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PepsiCo Makes Another Entry Into Energy Drinks

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

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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.

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Pepsico, Inc. Stock Quote
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The Coca-Cola Company Stock Quote
The Coca-Cola Company
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