Pepsi shot! 26.8 billion acquires energy drink company Rockstar Energy

In less than a month, PepsiCo's "buy buy buy" step has taken another step. On the 23rd of last month, PepsiCo reached an agreement with Haoyou Health Food Co., Ltd., which spent $ 705 million and acquired Familiar snack brand Baicao flavor, entered the casual snack industry.

Recently, foreign media sources said that PepsiCo and beverage company Rockstar Energy reached an acquisition agreement worth 3.85 billion US dollars.

Big energy drink

It is estimated that everyone is very curious, what kind of energy drink company is Rockstar worth PepsiCo's 26.8 billion acquisition?

According to media information, Rockstar was founded in 2001. The beverages it produces are mainly designed for "active lifestyle" people such as athletes and rock stars. Currently, Rockstar sells in convenience stores and stores in more than 30 countries and regions There are more than 30 kinds of product flavors.

PepsiCo said it has reached a distribution agreement with Rockstar in North America since 2009. Hugh Johnston, Pepsi's chief financial officer, said the company's distribution contract with Rockstar has limited its innovation in energy drinks or cooperation with other companies. If the deal is completed, Pepsi will be able to establish partnerships with other energy drink manufacturers.

Through the acquisition, PepsiCo will expand its existing energy beverage product portfolio, which currently includes Kickstart, GameFuel and AMP from Mountain Dew.

Commenting on the news, Russ Weiner, founder of Rockstar, said: "We have established a strong partnership with PepsiCo over the past decade and I am excited to take it to the next level and become a company."

Ramon Laguarta, Chairman and Chief Executive Officer of PepsiCo, said: "As we strive to be consumer-centric and capitalize on the growing demand in the functional beverage sector, this highly strategic acquisition will allow us to leverage PepsiCo To accelerate Rockstar's performance and unlock our ability to expand categories with existing brands. "
Why is it an energy drink?

Obviously, Pepsi wants to have its own market share in the field of energy drinks.

In recent years, everyone can clearly feel that due to the increase in health consumption awareness, whether it is Coca-Cola or Pepsi, the decline in the sales of carbonated beverages is an indisputable fact, so the path of diversified transformation is necessary, such as the introduction of Low-calorie products such as water, tea drinks, coffee drinks.

So why is Pepsi targeting the energy drink market this time?

The first thing to say is that Pepsi rival Coca-Cola already has research and development products on energy drinks, which are listed in Spain and Hungary. The products also contain natural caffeine, guarana extract and vitamin B. The main energy supply is also.

The "Energy Drinks to 2022" report states that as the energy drink segment matures, North American Red Bull, Magic Claw and other important players have begun to scramble to add extended functions to related mixed drinks, such as coffee energy drinks, dairy products Adding caffeine, etc., can not only satisfy the consumer's hobby of drinking coffee, but also expand the base of energy consumers.

So for Pepsi, there is competition in this area and there is a market.

On the other hand, energy drinks are on the rise. According to data from Mintel, from 2013 to 2018, total sales of energy drinks in the United States increased by 29.8%, and sales last year were about $ 13.5 billion. Take global data, the global energy beverage market size was about 53 billion in 2018, and it is expected that by 2026, this number will reach $ 86 billion.

In addition, Rockstar already has a sufficient user base in this field, and the product variety is also rich and diverse. Pepsi has entered the field with Rockstar as its entry point. This is undoubtedly a shortcut.