Pepsi buys Muscle Milk

Canadian Vending
February 21, 2019
By Canadian Vending
The Pepsi Bottling Group, Inc. announced that it has signed an agreement with CytoSport, Inc. to distribute Muscle Milk, a protein-enhanced functional beverage.

“Strengthening and diversifying the PBG product portfolio is one of our top priorities. By teaming up with CytoSport, we are entering a new beverage segment with attractive long-term growth prospects,” said PBG North America president Rob King in a press release.  “Muscle Milk has established itself as one of the leading functional nutrition beverage brands, and adding it to our portfolio will enable us to capitalize on the opportunities in this exciting category.”

Under the terms of the agreement, Pepsi will have a license to distribute the ready-to-drink line of Muscle Milk and Muscle Milk Light in its territories in the U.S. and Canada. The agreement is effective immediately and PBG will begin distribution in the U.S. in January. Financial terms of the transaction were not disclosed.

“The Pepsi Bottling Group’s robust go-to-market system is unsurpassed in the beverage industry,” said CytoSport President Greg Pickett in the same release. “By working with PBG, we’ll be able to greatly extend the reach of the Muscle Milk brand and put our products in the hands of more consumers than ever before. This is a beverage category with tremendous growth potential, and this agreement further enhances CytoSport’s leading position in the category.”

Muscle Milk is a product designed for people who lead active lifestyles. As a complete protein beverage, it promotes lean muscle growth, fast recovery from exercise and healthy, sustained energy. Protein-enhanced functional beverages comprise one of the fastest growing beverage segments, and Muscle Milk has the leading share of the space.

Muscle Milk branded products can be purchased at convenience, food, drug, grocery and specialty retailers nationwide. The distribution agreement with PBG will greatly increase the brand’s market penetration.

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