Pepsi pays $3.85 billion for Rockstar

16 Mar 2020

PepsiCo has entered into an agreement to acquire Rockstar Energy Beverages for $3.85 billion.

"As we work to be 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 accelerate Rockstar's performance and unlock our ability to expand in the category with existing brands such as Mountain Dew," said PepsiCo Chairman and CEO, Ramon Laguarta. "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."

Pepsi pays $3.85 billion for Rockstar

Rockstar, founded in 2001, produces beverages that are designed for those who lead active lifestyles. Rockstar products are available in over 30 flavours at convenience and grocery outlets in over 30 countries. PepsiCo has had a distribution agreement with Rockstar in North America since 2009. In addition to Rockstar, PepsiCo's energy portfolio includes Mountain Dew's Kickstart, GameFuel, and AMP.

"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," said Russ Weiner, Rockstar's founder. "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."

PepsiCo does not expect the transaction to be material to its revenue or earnings per share in 2020. The transaction is subject to customary closing conditions.

Related tags

Market News

Related news

Boom or bust: Are consumers ready for the alternative protein revolution?

Boom or bust: Are consumers ready for the alternative protein revolution?

24 Jun 2022

While excitement over alt-proteins is high among industry and investors, major challenges remain for companies looking to convince consumers to switch to a plant-based ‘meat alternative’.

Read more 
New EU mineral oil limits an ‘important step for food safety’

New EU mineral oil limits an ‘important step for food safety’

23 Jun 2022

The EU’s decision to restrict aromatic mineral oils (MOAH) in food products has been hailed as an important step in food safety and consumer protection but consumer organisation, Foodwatch, is calling for binding regulation to go one step further.

Read more 
NutriScore logo could help young people make healthier food choices – but more awareness is needed

NutriScore logo could help young people make healthier food choices – but more awareness is needed

22 Jun 2022

The European Nutri-Score labelling system can help young people make healthier food choices, according to a Spanish study – but one third still do not know what the label indicates.

Read more 
Mars launches animal-free chocolate with Perfect Day’s whey protein

Mars launches animal-free chocolate with Perfect Day’s whey protein

21 Jun 2022

Mars has launched a vegan chocolate bar made with biotech unicorn Perfect Day’s animal-free whey protein made via precision fermentation.

Read more 
Unilever in $120m biotech venture to scale palm oil alternative

Unilever in $120m biotech venture to scale palm oil alternative

20 Jun 2022

Unilever has teamed up with US biotech company Genomatica to commercialise its palm oil alternative produced via a biotechnology fermentation process.

Read more 
Clear and accurate precautionary allergen labelling is vitally important, says regulatory expert

Clear and accurate precautionary allergen labelling is vitally important, says regulatory expert

17 Jun 2022

As the UK’s Food Standards Agency looks to standardise allergen label wording, it is “vitally important” that food businesses provide consumers with clear and accurate precautionary information about potential unintended allergens in ...

Read more 
Monterey Mushrooms gets EU approval for vitamin D-rich mushroom powder

Monterey Mushrooms gets EU approval for vitamin D-rich mushroom powder

16 Jun 2022

Monterey Mushrooms’ vitamin D-rich mushroom powder, produced using ultraviolet (UV) to boost the nutrient content, can be sold in the EU, following novel food approval from the European Food Safety Authority (EFSA).

Read more 
Soil sequestration: An emerging opportunity for farmers and food producers

Soil sequestration: An emerging opportunity for farmers and food producers

15 Jun 2022

Sequestration of carbon into soil has almost the same potential to reduce greenhouse gas (GHG) emissions as the use of wind or solar power and provides farmers with an opportunity equal to that of reforestation strategies, according to Berry Marttin of...

Read more 
Nitrite and nitrate alternatives gain ground for processed meat applications

Nitrite and nitrate alternatives gain ground for processed meat applications

14 Jun 2022

As France finalises its review into the health risks of nitrite in cured meats, industry research focuses on the potential substitutes for nitrite and nitrate in processed meats to offer consumers healthy alternatives.

Read more 
Metrics matter: Measuring the true price of food for a healthy and sustainable future

Metrics matter: Measuring the true price of food for a healthy and sustainable future

13 Jun 2022

Food value chains must begin to price in the ‘externalities’ of production, including impacts on human and planetary health, if the world is to realistically create a healthy and sustainable food supply to feed a growing population, according to one of...

Read more