Pepsi Buys Rockstar
Pepsi buys Rockstar.
PepsiCo buys Rockstar Energy Beverages for $3.85 billion.
Founded in 2001, Rockstar is drinks designed for people leading an active lifestyle. Available in 20 flavors at convenience and grocery stores in 30 countries. Distributed by PepsiCo in North America since 2009. Supporting the Rockstar lifestyle across the globe through action sports, motorsports, and live music. Pepsi's energy portfolio also includes Kickstart, GameFuel, and Amp Energy.
The deal reflects the shift from reliance on sales of sugary, fizzy drinks toward options ranging from tea and coffee to still and sparkling water varieties, which appeal to health-conscious and younger consumers. Neither PepsiCo nor Coca-Cola owns a major brand in the energy drinks category, which is forecast to grow to more than $80 billion over the next five years and is now dominated by Red Bull.
200 countries and territories around the world enjoy PepsiCo products a billion times a day. PepsiCo generated $67 billion in 2019 net revenue, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi, Quaker, and Tropicana. Pepsi has 22 brands producing more than $1 billion each in estimated annual retail sales.
PepsiCo is also buying online snack company Hangzhou Haomusi Food, known as Be & Cheery, for $705 million. Be & Cheery’s products include nuts, dried fruits, meat snacks, baked goods, and confectionery, all sold online through major e-commerce platforms. Pepsi’s goal is to be China’s leading consumer-centric food and beverage company.
Ramon Laguarta of Pepsi said: ‘As we become more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo's capabilities to both speed up Rockstar's performance and unlock our ability to expand in the category with existing brands such as Mountain Dew. Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.’
Russ Weiner of Rockstar said: ‘We have had a strong partnership with PepsiCo for the last decade, and I'm happy to take that to the next level and join forces as one company. PepsiCo shares our competitive spirit and will invest in growing our brand even further. I'm proud of what we built and how we've changed the game in the energy space.’
Centerview Partners served as financial advisor to PepsiCo. Gibson, Dunn & Crutcher and Davis Polk & Wardwell served as legal advisors.
Goldman Sachs served as financial advisor to Rockstar. King & Spalding served as legal advisor.
PepsiCo buys Rockstar Energy Beverages for $3.85 billion.
Founded in 2001, Rockstar is drinks designed for people leading an active lifestyle. Available in 20 flavors at convenience and grocery stores in 30 countries. Distributed by PepsiCo in North America since 2009. Supporting the Rockstar lifestyle across the globe through action sports, motorsports, and live music. Pepsi's energy portfolio also includes Kickstart, GameFuel, and Amp Energy.
The deal reflects the shift from reliance on sales of sugary, fizzy drinks toward options ranging from tea and coffee to still and sparkling water varieties, which appeal to health-conscious and younger consumers. Neither PepsiCo nor Coca-Cola owns a major brand in the energy drinks category, which is forecast to grow to more than $80 billion over the next five years and is now dominated by Red Bull.
200 countries and territories around the world enjoy PepsiCo products a billion times a day. PepsiCo generated $67 billion in 2019 net revenue, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi, Quaker, and Tropicana. Pepsi has 22 brands producing more than $1 billion each in estimated annual retail sales.
PepsiCo is also buying online snack company Hangzhou Haomusi Food, known as Be & Cheery, for $705 million. Be & Cheery’s products include nuts, dried fruits, meat snacks, baked goods, and confectionery, all sold online through major e-commerce platforms. Pepsi’s goal is to be China’s leading consumer-centric food and beverage company.
Ramon Laguarta of Pepsi said: ‘As we become more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo's capabilities to both speed up Rockstar's performance and unlock our ability to expand in the category with existing brands such as Mountain Dew. Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.’
Russ Weiner of Rockstar said: ‘We have had a strong partnership with PepsiCo for the last decade, and I'm happy to take that to the next level and join forces as one company. PepsiCo shares our competitive spirit and will invest in growing our brand even further. I'm proud of what we built and how we've changed the game in the energy space.’
Centerview Partners served as financial advisor to PepsiCo. Gibson, Dunn & Crutcher and Davis Polk & Wardwell served as legal advisors.
Goldman Sachs served as financial advisor to Rockstar. King & Spalding served as legal advisor.
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