PepsiCo is to buy Rockstar Energy for $3.85bn, as the soft drinks and snacking giant looks to cash in on rising demand for so-called functional beverages.
Ramon Laguarta, PepsiCo Chairman and CEO, said: “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.”
PepsiCo has had a distribution agreement with Rockstar in North America since 2009; its energy portfolio includes Mountain Dew’s Kickstart, GameFuel and AMP.
Barr Soft Drinks produces Rockstar in the UK, under a licence that expires in 2024, while rival Britvic makes the British version of Mountain Dew.
“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,” added Laguarta.
The deal is expected to close in the first half of this financial year, subject to conditions.