Pepsi enters energy drink market with $3.85bn Rockstar deal

Pepsi is attempting to diversify by acquiring Rockstar Energy Beverages

A truck passes in front of a PepsiCo Inc. facility in Louisville, Kentucky, U.S., on Tuesday, Sept. 24, 2019. PepsiCo Inc. is scheduled to release earnings figures on October 3. Photographer:
A truck passes in front of a PepsiCo Inc. facility
(Image credit: © 2019 Bloomberg Finance LP)

Drinks giant PepsiCo has its sights on the growing energy drink market, acquiring Rockstar Energy Beverages for $3.85 billion.

Neither Pepsi nor its main rival Coca-Cola own a major brand in the energy drinks market - although Coke has a stake in Monster. Pepsi’s move for Rockstar could be the first major move in a battle for dominance in the category, as soft drinks companies diversify away from their traditional offerings.

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William Gritten

William Gritten is a London-born, New York-based strategist and writer focusing on politics and international affairs.