Following the recent news that PepsiCo is set to buy Rockstar Energy Beverages for $3.8bn, making it the third largest energy drink supplier in the US;

Allison Bamfield, Beverages Data Analyst at GlobalData, a leading data and analytics company, offers her view:

“With an established energy drinks brand in their hands Pepsi can now fully exploit the growing US energy drink market, worth over * $18.2bn in 2019 with growth projected annually to 2025.

“Pepsi, has achieved only limited success in developing its own energy drinks brands such as AMP and Game Fuel, so the company’s acquisition of Rockstar Energy drink is a smart move, making Pepsi the third largest energy drink supplier in the US overnight.

“The company has attempted to build up its energy drinks brands, especially in the US but has struggled to gain traction against a raft of new market entrants and established brand leaders such as Monster and Red Bull.

“This is also a timely move for Pepsi as changing consumer preferences within beverages has seen many consumers drink less carbonates to reduce their sugar consumption causing Pepsi volumes to decline globally.” 

* source: GlobalData: Total US energy drinks market value, 2019