As reported [image-nocss] in a CSP Daily News Flash yesterday, precise terms of the contract were not disclosed, but PepsiCo has purchased rights to function as master distributor, offering Rockstar products exclusively through its bottling system in all trade channels. Las Vegas-based 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.
"I am not sure if this is good or bad, probably a little of both," one beverage category manager told CSP Daily News on condition of anonymity. "I think Rockstar will get one of the best distributors in the U.S. and gain distribution across all channels. Rockstar will then be pressured to provide marketing programs that sell their product. Pepsi will add yet another drink to their already crowded portfolio of energy drink, none of which have been a big success."
Hugh Johnston, president of Pepsi-Cola North America Beverages, said, "Rockstar is a major milestone in our bid to become the undisputed category leader in energy drinks. 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 said, "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. Adding it to our portfolio, which already includes the AMP energy brand, gives us a great platform to increase our share and capitalize on future growth opportunities."
And Russ Weiner, founder and CEO of Rockstar Energy Drink, said, "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."
Rockstar Energy Drink is available in 11 flavors: Original, Sugar Free, Zero Carb, Juiced Mango Orange Passion Fruit, Juiced Guava, Juiced Pomegranate, Tropical Punched, Punched Citrus, Roasted Mocha, Roasted Latte, and Roasted Light Vanilla. Rockstar Energy Shots are available in Wild Berry and Tropical Punch flavors. Rockstar is available at convenience and grocery retail outlets across the United States, Canada, Australia, New Zealand, Japan, Germany, Switzerland, Finland, Spain, The Netherlands and throughout the United Kingdom.
Purchase, N.Y.-based PepsiCo is one of the world's largest food and beverage companies, with 2008 annual revenues of more than $43 billion. The company's principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales.
Pepsi-Cola North America Beverages, also based in Purchase, N.Y., is PepsiCo's refreshment beverage unit in the United States and Canada. Its U.S. trademarks include Pepsi, Mountain Dew, Sierra Mist, Mug, Aquafina, SoBe and IZZE. The company also makes and markets Tropicana juice drinks, Dole and Ocean Spray single-serve juices and North America's bestselling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks.
The Pepsi Bottling Group Inc., Somers, N.Y., is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages. PBG accounts for more than one-half of the Pepsi-Cola beverages sold in North America and about 40% of the Pepsi-Cola system volume worldwide. With and annual sales of nearly $14 billion, PBG has operations in the United States, Canada, Greece, Mexico, Russia, Spain and Turkey. Approximately 30% of the company's operations are outside of the United States.
Minneapolis-based PepsiAmericas Inc. is the world's second-largest manufacturer, seller and distributor of PepsiCo beverages. With annual sales of $4.9 billion in 2008, PAS operates 33 manufacturing facilities and more than 175 distribution centers across its markets. It serves a significant portion of a 19-state region in the United States; Central and Eastern Europe, including Ukraine, Poland, Romania, Hungary, the Czech Republic and Slovakia; and the Caribbean.
Pepsi Bottling Ventures LLC, Raleigh, N.C., is the nation's third largest anchor bottler for Pepsi-Cola, operating 23 manufacturing, distribution and sales facilities serving consumers in North Carolina, New York, Delaware, Maryland, Virginia and Vermont.
Hansen Natural Corp. last October completed agreements with The Coca-Cola Co. and Coca-Cola Enterprises Inc. for distribution of its Monster Energy drinks line in six Western European countries, Canada and selected territories in the United States, terminating an agreement with Dr Pepper Snapple Group.
Rodney Sacks, chairman and CEO of Hansen, said, "We believe the relationship with The Coca-Cola Co. and Coca-Cola Enterprises will enable us to build on the success of our Monster Energy brand in North America and expand into fertile new international markets. In the United States, the relationship will complement our existing long-term arrangements with Anheuser-Busch distributors, which have been and we expect will continue to be very important to Hansen. We believe that the combination of these two leading distribution systems will provide us with an unrivaled distribution network in North America." (Click here for previous CSP Daily News coverage.)
Regarding Coca-Cola's takeover of Monster, the anonymous category manager said the transition has led to a "refreshing" new relationship. "[It] has been a good," he said. "They are allowing the Monster marketing/representation to present [a program] and Coke is implementing their plans."
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