“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,” Ramon Laguarta, PepsiCo chairman and CEO, said. “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.”
Rockstar, which was founded in 2001, has products in over 30 flavors sold through retailers in over 30 countries. In addition to Rockstar, PepsiCo also owns 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," Russ Weiner, Rockstar's founder, said. "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 has also entered into an agreement which will provide approximately $0.7 billion of payments related to future tax benefits associated with the transaction, payable over up to 15 years.
According to Mintel data, energy drinks are expected to have a positive growth of 4-5% per year, forecast through 2022.
On the whole, it appears that conventional soda is on the decline in the U.S., and has been for roughly a decade largely due to consumers seeking healthier and more functional beverages.