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PepsiCo buys Rockstar Energy Beverages

March 13, 2020

Logo courtesy of Rockstar Energy Drinks and PepsiCo

PepsiCo, Inc. announced that it has entered into an agreement to acquire Rockstar Energy Beverages (“Rockstar”), the popular energy drink maker.

The PepsiCo Chairman and CEO, Ramon Laguarta stated that the company hopes to expand in the energy drink category, alongside brands such as Mountain Dew. In addition to Rockstar, PepsiCo’s energy portfolio includes Mountain Dew’s Kickstart, GameFuel, and AMP. The purchase was made for , for US$3.85 billion.

Rockstar, founded in 2001, produces beverages 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.

“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 and creator of the 16oz energy drink. “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. 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, including regulatory approval, and is expected to close in the first half of 2020.