Industry News | February 19, 2009

Pepsi Adds Rockstar to Its Lineup

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Fueling its broader beverage portfolio reinvention plans, PepsiCo today announced a multiyear distribution agreement with Rockstar Energy Drink, dramatically increasing the Pepsi system's share of the fast-growing, highly profitable energy drink market. Rockstar will be distributed by The Pepsi Bottling Group (PBG), PepsiAmericas, Pepsi Bottling Ventures and other independent Pepsi-Cola bottlers in most of the U.S. and all of Canada.

While precise terms of the contract were not disclosed, PepsiCo has purchased rights to function as master distributor, offering Rockstar products exclusively through its bottling system in all trade channels. Rockstar will retain research-and-development, marketing and manufacturing accountabilities. Rockstar significantly expands the PepsiCo portfolio of energy beverages, which also includes products marketed under the AMP, No Fear and Starbucks trademarks.

"Rockstar is a major milestone in our bid to become the undisputed category leader in energy drinks," says Hugh Johnston, president of Pepsi-Cola North America Beverages. "Building on the success of AMP and other energy drinks in the Pepsi lineup, it gives our system an immediate boost in value, variety and scale. To borrow a phrase from the Rockstar playbook, we're making our portfolio 'bigger, better, faster, stronger,' moving assertively to the front of the energy drink pack with our bottling partners."

PBG Chairman and CEO Eric Foss says: "Strengthening and diversifying our brand portfolio is a strategic priority that we share with our partners at PepsiCo and the rest of the Pepsi family. Rockstar is a terrific brand in an expanding beverage segment."

Says Russ Weiner, founder and CEO of Rockstar Energy Drink: "The fact that PepsiCo and its bottlers made a substantial investment in securing the distribution rights for Rockstar shows the industry their immense commitment to eventually make Rockstar the No. 1 energy drink in North America. Now that the deal is done, I can honestly say that we at Rockstar feel like we have a true home in the Pepsi system."