Please ensure Javascript is enabled for purposes of website accessibility

PepsiCo Makes Another Entry Into Energy Drinks

By Jennifer Saibil – Apr 28, 2020 at 11:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The beverage company announced the distribution agreement along with a high-performance earnings report.

Energy drinks have become a standard beverage offering in supermarkets all over the U.S., and PepsiCo (PEP -1.93%) is bolstering its offerings in that area. Today it announced that it will be the sole distributor of Bang energy drinks, produced by Vital Pharmaceuticals, Inc. (VPX).

A new age of energy drinks

"In the ultra-competitive energy category, Bang Energy has thrived, pioneering the performance energy segment and attracting the next-generation of energy consumers," said PepsiCo North America CEO Kirk Tanner. PepsiCo will distribute the full line of Bang energy drinks in the U.S., and both companies expect a large increase in distribution. "This alliance plays a central role in PepsiCo's overall energy-beverage strategy and enables us to significantly accelerate the distribution of Bang Energy to meet rising consumer demand," Tanner said.

Two beverage cans on ice.

Image source: Getty images.

Bang energy drinks, which were launched in 2012, are meant to give full taste with zero calories. VPX is a leader in sports nutrition and hydration. Bang has risen to become the third-largest energy drink brand, and in 2019, was the single-largest contributor to overall growth in the liquid refreshment beverage market.

Competing with Coke

Pepsi rival Coca-Cola introduced its own energy drink in the U.S. this January.

PepsiCo announced in March that it was acquiring energy drink maker Rockstar for $3.85 billion. Rockstar and Bang have different target markets, with Bang focused on the athletic sector and Rockstar concentrated on "those who lead active lifestyles from athletes to rock stars."

In addition to Rockstar, PepsiCo also makes Mountain Dew's Kickstart, GameFuel, and AMP beverages. 

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pepsico, Inc. Stock Quote
Pepsico, Inc.
$162.80 (-1.93%) $-3.20
The Coca-Cola Company Stock Quote
The Coca-Cola Company
$55.03 (-2.15%) $-1.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.