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Rockstar Energy: The ‘anchor’ to PepsiCo’s energy-drink strategy

02-Jan-2024 - Last updated on 02-Jan-2024 at 14:25 GMT

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“The company never played significantly in energy before, and just within the last three years, we have four or five brands playing in energy, but Rockstar continues to be the anchor ... a core energy brand for consumers,” Torres said. 

PepsiCo buys Rockstar Energy, partners with Celsius

PepsiCo announced the acquisition of the legacy energy-drink company in March 2020, and the beverage went through a rebrand in 2021. While the pandemic halted many consumer activations, such as at concerts and sports events, the brand saw a return to those programs in 2023, as PepsiCo pushed more aggressively in the energy drink space, Torres said. 

“We were able to go back to our normal lives and really engage with the consumer through a lot of trials and sampling, making sure that the consumer knows the new flavors, the new ingredients, things that we were proud of," she said. "It's a 21-year-old brand, and there's a lot of people that still don't know the brand and our job is to build that awareness and incentivize trial.” 

In addition to the Rockstar Energy acquisition, PepsiCo made a distribution agreement with natural energy brand Celsius ​ and invested $550m for a stake in the brand, which helped propel it to billion-dollar brand status. PepsiCo is using the partnership to tap into consumer demands, as it looks to innovate on functionally, Torres said.

Tapping into consumer trends for zero sugar, hydration, recovery

Celsius energy also taps into zero-sugar and clean-label trends, an increasing focus area for PepsiCo, Torres said. Rockstar Energy already has a zero-sugar offering with its Pure Zero line, sweetened with erythritol. 

As part of its PepsiCo Positive (pep+) agenda, the company plans to achieve 100 calories ​ or fewer from added sugar per 12 fluid ounces serving in at least 67% of its beverage portfolio by volume by 2025.  The American Heart Association recommends ​ men should consume no more than nine teaspoons or 150 calories of added sugar per day, and women should consume no more than six teaspoons or 100 calories of added sugar a day.

“We have already 40-45% of our portfolio is zero [sugar], but what we want to do in 2024 is really change that dramatically. Not just with zero sugar and zero calories but adding functionality to our products.” 

PepsiCo is also expanding the occasions that Rockstar Energy is consumed with its Recovery line, a hydration beverage designed for exercise recovery. 

“[Energy drinks are] not a hydration beverage in general, and because we have enough electrolytes, we're able to claim that. So, I think the consumers have shown us that we have a really good winning product there. Our job is to continue to have it in more points of distribution, and more trials, and sampling.” 

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• Energy Drinks: An Overview
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The Energy Drinks Industry

Monster, Red Bull, and Rockstar remain popular with consumers

Amy Fontinelle has more than 15 years of experience covering personal finance, corporate finance and investing.

The Energy Drinks Industry: An Overview

If you're looking for a pick-me-up, a coffee may give you the jolt you need. But if you're like the millions of other people who don't want a cup of java, you may end up reaching for an energy drink. These companies that produce these beverages say they increase your energy and alertness as well as provide you with a physical boost. That's because they contain significant amounts of caffeine.

Energy drinks are part of the broader soft drink category, which includes carbonated beverages, fruit and vegetable juices, bottled water, sports drinks, beverage concentrates, ready-to-drink tea, and ready-to-drink coffee. According to experts, energy drinks are the most popular supplements for teens and young adults in the United States along with multivitamins. The majority of these drinks are consumed by men between 18 and 34.

Global energy drink sales are estimated to reach $53.1 billion by the end of 2022. The industry is expected to grow by a compound annual growth rate (CAGR) of 7.1% by 2027 to an estimated $86.1 billion. This growth is attributed to rising incomes, urbanization, and an increase in health and wellness consciousness. Both the adult and adolescent populations are consuming energy drinks to support their busy and active lifestyles, due to the an increase in performance, endurance, and alertness. Due to the COVID-19 crisis, "immunity-boosting" beverage consumption is rising as consumers are searching for sources that provide vitamins and minerals.

North Americans consume more energy drinks than any other geographic market in the world, with the European market close behind. Plus, research shows that the Asia-Pacific region is expected to be one of the fastest-growing markets for the industry, with a CAGR growth of 5.1% by 2026, thanks to a more modern lifestyle and changing demographics .

Want to know more about the biggest players in this industry ? Keep reading to learn about the largest companies in the energy drink market as well as some of the emerging trends .

Key Takeaways

• The energy drink industry is a booming business with several key names leading the pack.
• Red Bull, Monster, and Rockstar are among the biggest names in this saturated market.
• Red Bull is a privately-owned company and the dominant force in the market.
• Monster is publicly traded and entered into a strategic partnership with Coca-Cola in 2014.
• Rockstar was sold to PepsiCo in 2020.
• Global energy drink sales are estimated to reach $53.1 billion by the end of 2022 and are expected to grow by 7.2% between 2022 and 2027.

Redbull is owned by the Austrian company Red Bull GmbH . The company introduced the drink in Austria in 1987, marking the beginning of the global energy drink industry. Red Bull comes in 8.4-ounce cans in a handful of varieties, including original, sugar-free, Total Zero (no calories), and the Editions (watermelon, blueberry, tropical, coconut, dragonfruit, peach, and strawberry-apricot). The drinks’ main ingredients are caffeine, taurine, B vitamins, carbonated water as well as sucrose and glucose (except for the sugar-free version).

Red Bull is sold in 172 countries, where it employs more than 13,000 people, as of the end of 2021. Sales are surging in emerging markets , such as India (up 37%), Brazil (up 30%), and Africa (up 25%). The company continues to focus on its efforts to expand in the U.S., Western Europe, and the Far East.

The company is a private company owned by chief executive officer (CEO) Dietrich Mateschitz, along with Thai businessman Chalerm Yoovidhya and his family. Because the company is privately owned , there is very little financial information available. According to the company, more than 9.8 billion cans of Red Bull were sold in 2021. That's a jump of 24.3% from sales recorded in 2020, representing the best figures in the company's history.

California-based Monster Beverage ( MNST ) is a holding company that was founded in 1985. It employs more than 4,000 individuals (as of May 2022) and is headed by CEO Rodney Cyril Sacks. The company began selling Monster Energy drinks in 2002, originally created under the brand Hansen's Natural. In 2020, Monster is the second largest energy drink company with a market share of 39% after Red Bull.

Monsters drinks come in over 40 varieties. The company has 18 different brands, including the original Monster drink, Burn, NOS, and Predator. One 16 fluid ounce can of Monster Energy contains 160 milligrams of caffeine (or 10 mg per fluid ounce)—considered very high—and taurine, an amino acid considered to be a dietary supplement and mental stimulant.

The Monster drink is sold in 141 countries as of 2021. The company faces stiff competition domestically and internationally from Red Bull and Rockstar. In 2014, the company entered into a long-term strategic partnership with Coca-Cola ( KO ), which purchased a 16.7% stake in Monster. This move made Monster the exclusive energy play for Coca-Cola. The soft drink giant's distribution network reaches more than 200 countries. The two companies have done business together since 2008.

The company's stock trades on the Nasdaq . The stock was down 1.06% on a year-to-date (YTD) basis as of June 6, 2022, with a market cap of $48.39 billion. According to year-end reporting, Monster's consolidated net sales were $5.54 billion for the fiscal year 2021—an increase of 20.5% from the previous year. The company doesn't report year-end sales per individual brand. Gross profits reported as a percentage of net sales were reported for the year at 56.1%.

Rockstar International founder and owner Russ Weiner introduced Rockstar Energy in San Francisco in 2001. Its marketing strategy includes affiliations with action sports, motorsports, live music, and models. Rockstar comes in 16-ounce cans in 30 flavors, including Rockstar original, sugar-free, pure zero line, recovery drinks, and more. Rockstar is sold in convenience and grocery stores in more than 30 countries.

Weiner sold the privately held company to PepsiCo ( PEP ) in 2020 for $3.85 billion. The soft drink company reaches consumers in more than 200 counties, adding Rockstar to its beverage lineup, which includes Pepsi, Gatorade, and Tropicana. The company said it planned to relaunch the Rockstar brand in the United States and internationally before integrating it into its supply chain .

Although PepsiCo doesn't release financial information about specific brands, we can make some determination about how Rockstar is poised to position itself within the company. Sales of Rockstar topped $851 million in 2019.

Top Emerging Companies and Trends

The energy drink market is saturated , making it more difficult for smaller and newer companies to compete. This means there's no real threat to energy drinks market dominance. Sales for energy shots like 5-Hour Energy or Tweaker have declined since COVID-19 reduced the "impulsive nature of energy shot consumption."

There is room in the energy drink market for companies to differentiate themselves from the leading players, which look remarkably similar in their advertising, promotions, and sponsorships . Competitors face challenges such as distribution , obtaining shelf space, and generally offering something unique to the customer.

Red Bull and Monster are on top of the trends in the energy drink and soft drink industry, allowing them to widen their product offerings to compete with smaller players, including Bang, who has been gaining market share in the past year. This brand showed significant growth in the market in 2019, faring much better than other natural energy drinks thanks to its "super-creatine."

We can expect to see the following trends in the energy drinks industry in the future:

• A boost in the availability of plant-based energy ingredients in these beverages, including guarana and maca
• Nootropic energy to help increase help the consumer's focus and mental clarity
• The reformulation of drink formulas to include kola nut and natural caffeine, and more exotic flavors

Experts warn that the sleep patterns of teenagers can be drastically altered with the excessive consumption of energy drinks.

Examples of On-Trend Energy Products

Notes: This is not an exhaustive list of product offerings that fit the categories shown. There is also some overlap between categories. For example, zero-calorie drinks also have zero carbs.

How Old Do You Have to Be to Drink Monster Energy?

While there is no legal age limit to how old you have to be in order to drink Monster Energy, the company agreed that it would not market any of its energy beverages to children under the age of 12 in the U.S. This includes marketing and selling drinks, coupons, and samples in and around K-12 schools, as well as advertising in areas where children are the primary audience, such as television, radio, and the internet.

How Did Monster Beverage's Stock Split Work?

Monster split its stock four times between 2005 and 2016. The company did a two-for-one split on Aug. 9, 2005, and Feb. 16, 2012. Shareholders received four shares for each share they had on July 10, 2006, and three shares for every one share held on Nov. 10, 2016.

Who Are Monster Beverage's Major Shareholders?

The company's top individual shareholders include Rodney Sacks (50.2 million shares), Hilton Schlosberg (48.9 million shares), Mark Hall (795,356 shares), Emelie Tirre (247,172 shares), Thomas Kelly (126,292 shares), and Guy Carling (90,898 shares).

What Institutional Investors Hold Monster Beverage Stock?

As of March 30, 2022, Monster's top institutional investors were FMR (25.8 million shares), Vanguard Group (30 million shares), Blackrock (24.4 million shares), Loomis Sayles & Company (18.9 million shares), State Street Corporation (17 millions shares) and AllianceBernstein (14.3 million shares). About 65% of the company's shares are held by institutions.

The energy drink industry has been growing profitably for years as other once-popular beverages have declined, and it appears on track to keep growing despite regulatory and health challenges. One of the three leading companies is privately owned, limiting options for investors who want direct exposure to Red Bull through this category. But investors can still reap the benefits of public beverage stocks like Monster along with exchange-traded funds (ETFs) that focus on the food and beverage industry.

Disclaimer: The author does not own shares of or have a financial interest in any company mentioned in this article.

National Center for Complementary and Integrative Health. " Energy Drinks ."

Supply Chain Management Center at Rutgers University. " Breaking Down the Chain: A Guide to the Soft Drink Industry ," Pages 8-9.

Research and Markets. " Energy Drinks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027) ."

Market Data Forecast. " Asia Pacific Energy Drinks Market–Regional Industry Size, Share, Value, Volume and Global Key Players Analysis Forecast Report 2022 to 2027 ."

Red Bull. " Privacy Policy ."

Red Bull. " Company ."

Red Bull. " Products ."

Red Bull. " Red Bull Energy Drink Ingredients ."

Red Bull. " Company ," Select Dropdown "Employees."

Bloomberg. " Red Bull Sold One Can For Almost Every Person on Earth Last Year ."

Red Bull. " Company ," Select Dropdown "Cans Sold in 2021."

Fortune. " Red Bull ."

Forbes. " Chalerm Yoovidhya & Family ."

Forbes. " Monster Beverage (MNST) ."

Fortune. " How Hansen’s Natural created a Monster ."

Caffeine Informer. " Monster Energy ."

Monster Beverage Corporation. " 2021 Annual Report ," Pages 6, 8-10.

Mayo Clinic. " Taurine Is An Ingredient In Many Energy Drinks. Is Taurine Safe? "

Monster Beverage Corporation. " 2021 Annual Report ," Pages 1, 15.

Monster Beverage Corporation. " The Coca-Cola Company and Monster Beverage Corporation Enter into Long-Term Strategic Partnership ."

The Coca-Cola Company. " Coca-Cola System ."

Monster Beverage Corporation. " 2021 Annual Report ," Page 41.

Yahoo! Finance. " Monster Beverage Corporation (MNST) ."

Monster Beverage Corporation. " Monster Beverage Reports 2021 Fourth Quarter and Full-Year Financial Results ," Page 2.

Forbes. " Russ Weiner ."

Rockstar. " About Rockstar ."

Rockstar. " FAQs ," Select "What Size is the Rockstar Energy Can?"

PR Newswire. " PepsiCo To Acquire Rockstar, Expanding Presence In Fast-Growing Energy Category ."

PepsiCo. " Edited Transcript - Pop. OQ - Q4 2020 PepsiCo Inc Earnings Call ," Page 7.

Beverage Industry. " 2021 State of the Beverage Industry: Energy Drinks Flourish as Consumers Seek Functionality ."

Brenntag Food & Nutrition. " Trend Alert: Evolving the Energy Drinks Market ."

American Beverage Association. " ABA Guidance for the Responsible Labeling and Marketing of Energy Drinks ," Page 1.

Netcials. " Monster Beverage Corporation Stock Splits History ."

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Rockstar Energy Drink Marketing Plan

Filed Under: Business plans Tagged With: drink , energy

I. ROCKSTAR, INC.

Rockstar Energy Drink was founded by Russell Goldencloud Weiner, a doctor of nutritional enthomedicine, according to the Rockstar website. His parents, two renowned herbalists, helped to produce the Rockstar formulations. Today, three formulas of Rockstar are on the market: Original, Cola, and Diet. The original formula was first launched in 2001, making the company only 4 years old. The company is based in Las Vegas, Nevada, one of the trendiest locales of the United States, lending to the edgy “Rockstar” image. To enhance their image, Rockstar’s catchy slogan is “Party like a Rockstar”.

The Rockstar company is not publicly traded, but in some states is distributed by Dr. Pepper. Recently, Rockstar has teamed up with Coca-Cola Consolidated (CCBCC), Coca-Cola’s second largest distributor, as another means to distribute the popular drink. Rockstar is an industry innovator; by first introducing a 16oz sized can it has differentiated itself from typical energy drinks which come in an 8-8.4oz “slimcan”. One of Rockstar’s exclusive key ingredients, milk thistle, is a liver-protectant, detoxifier, and serves as a treatment for depression, as well as a hangover remedy. Red Bull, dominating the market share, is in store for some heavy competition against the up-and-coming Rockstar.

II. MARKETING RESEARCH

A. Market Potential, Industry Sales, and Forecasts

The energy drink industry is growing quickly, and it doesn’t look like it will be slowing down anytime soon. The growth of energy drinks can be attributed to their trendy image, convenience and multiple uses. Energy drinks can be used as mixers at clubs and bars or as coffee substitutes. According to Information Resources Inc., the energy drink dollar sales in 2004 increased 54 percent from the previous year, with unit sales up 31 percent. Although its indirect competitors, such as sports drinks or teas, have higher dollar sales, the relatively new energy drink industry has a much larger growth rate. Energy drink sales are forecasted to increase to almost $500 million in 2006. Appendix Exhibit B shows graphs of the energy drink industry sales and forecasts.

The Term Paper on Greeting Card Industry Market Analysis

Birthdays, holidays, congratulations, thank you, weddings, sympathy, get well soon, or simply no reason at all. These are just a few of the multitudes of reasons and occasions for which one might decide to send a greeting card. The average person in the United States will receive 20 greeting cards per year, one-third of which are birthday related greetings (GCA). The American greeting card ...

The breakdown of the market share in the energy drink industry are shown in Appendix Exhibit A. Rockstar, the second best-selling energy drink in the US behind Red Bull, had $15.7 million in sales in 2004, reflecting a 250-percent increase from the previous year. Rockstar energy drink is available in an 8oz. or 16oz. can in three flavors: original, diet and cola. The drink includes a variety of vitamins, herbs and amino acids mixed into a blend of vanilla, bubble gum and citrus flavors to provide a healthy, effective and tasty drink. Rockstar is a favorite among consumers due to its good taste, unique ingredients, good value ($/ounce), effectiveness and convenience. The positioning and desiring attributes of Rockstar give it great market potential for gaining more of the energy drink market share.

Industry Sales By Year: Direct Competitors

2003 2004 2005*

Brand $ in millions Market Share $ in millions Market Share $ in millions Market Share

Red Bull 68.8 54.8 120.0 59.2 188.8 65.0

Rockstar 6.2 5.0 15.7 7.7 21.9 7.5

Sobe Adrenaline 12.6 10.0 14.0 6.9 26.6 9.2

AMP 11.6 9.2 13.0 6.4 24.6 8.5

Monster 2.3 1.8 9.4 4.6 11.7 4.0

Sobe No Fear No Info No Info 7.5 3.7 N/A N/A

Hansen’s Energy 3.5 2.8 3.5 1.7 7.0 2.4

KMX 6.6 5.2 3.4 1.7 10.0 3.4

*Predictions: based on % change from prior years

Source: Information Resources Inc.

For 2004: previous 52 weeks ending July 11, 2004

The Essay on Coca Cola Drink Company Market

In the late years of the 19 th century, a new industry was getting born. An industry that was to become established as a major player in the market later in the next century - the Soft Drink industry. Today it is dominated by two main competitors Coca-Cola Co. and PepsiCo, Inc. , and a number of small soft drink producers. The Coca-Cola company rapidly evolved to a giant soft drink producer in the ...

For 2003: previous 52 weeks ending June 15, 2003

Industry Sales By Year: Indirect Competitors

Industry $ in millions % change from 2003

Energy Drinks 195.54 54.29%

Sports Drinks 1,139.77 13.45%

Ready-to-drink Coffees 138.99 16.49%

Canned/Bottled Teas 592.78 5.34%

Source: Information Resources Inc. for 52 weeks ending June 13, 2004

US Energy Drink Industry Sales Forecasts

Year $ in millions

B. Competitor Matrix

The Competitor Matrix in Appendix Exhibit F shows the different parent companies that own several of the energy drink brands on the market today. The parent companies include Coca Cola, Hansen’s, and Pepsi, just to name a few. These three corporations are all publicly traded and have been in the beverage market for many, many years. We were not able to retrieve data concerning Red Bull and Rockstar, two independently operated labels which are both relatively new to the market. Most of the energy drinks we observed have a global presence. Hansen’s was not very clear on whether it was sold globally, and Rockstar intends to expand into international markets in the near future. However, on the Rockstar can, many popular “party” cities are listed, but we are unsure if the product is actually readily available in those places. Rockstar’s closest competitor, Red Bull, is a Thai product, but is based in Austria; therefore, it has great international presence. There is great potential for Rockstar to dominate global markets outside of the United States.

C. Positioning Of Self and Competitors

Although Rockstar is only the second best-selling energy drink, its competitive edge can be seen in a positioning matrix, as seen in Appendix Exhibit C. Energy drink consumers have rated Rockstar high in quality, convenience, signaling and pricing, making it on par with the leading Red Bull. In terms of quality, Rockstar is equal or better than its competitors, including Red Bull, in effectiveness, taste, ingredient content and availability of low sugar, low carbohydrate or low calorie versions. Rockstar is the strongest in ingredients because the drink is packed with vitamins, herbs and amino acids, many of which are unique to Rockstar. One of these unique ingredients is the potent herb milk thistle, known to help with hangovers and protect and regenerate the liver. A comparison of ingredients in the energy drinks is shown in Appendix Exhibit D. Rockstar has a high purchasing convenience because it is available at most stores. It is even available for purchase in bulk packages at wholesalers, such as Costco. However, Rockstar’s transportability is limited by its large can size as opposed to the small can size of some of its competitors.

The Research paper on Red Bull Case Study 2

1. How will you characterize Red Bull’s overall marketing strategy (global, glocal or local)? Globalization is the deviation of businesses, philosophies, or technologies to propagate throughout the world, as well as the process of making this happen (SearchCIO, 2014). Glocalization is the idea that in a global market, when it is customized for the local or culture in where it is sold, a service or ...

Red Bull is at the top in terms of both availability and transportability. The positioning matrix also shows the huge advantage of Rockstar’s competitive pricing at $0.12/ounce over other energy drinks selling at $0.25/ounce. Rockstar’s high quality, purchasing convenience and good price make it a strong competitor in the energy drink market. However, Rockstar’s signaling in terms of its brand name, packaging and mixability need to be improved upon if it is going to compete with Red Bull. Rockstar energy drink has a unique, trendy “rock star” image with the slogan “party like a rock star”. Although it has a good image, the brand name does not have enough power to compete with Red Bull in attracting customers because it is not as well known. The packaging of the can is considerably plain with a gold star against a black (original), white (diet) or red (cola) can. The SWOT analysis below summarizes the strengths and weaknesses of Rockstar energy drink as well as the opportunities and threats facing the company as they try to capture more of the market share.

1. SWOT Analysis

* Great value: double the size for the same cost as other energy drinks

* Ingredients: contains many vitamins, herbs, amino acids and unique milk thistle

* Diverse product: offers three different flavors (original, diet and cola)

* US-based company

* Growing market share

* Company specializes only in one product (Rockstar energy drink)

* Good flavor: blend of vanilla, bubble gum and citrus flavors

* Unique, trendy “rock star” image, “party like a rock star” slogan

* Low market share (compared to Red Bull)

* Advertisement is not heavily promoted

* Low brand awareness, low brand value

The Essay on Energy Drink

Many people, especially young people, athletes and students, drink energy drinks like: Red Bull, Rock Star and Monster almost every day to survive in their busy life. However, these people do not know the dangerous side effects and the harm which these energy drinks can make in their body. A research was conducted by Mayo Clinic hospital says that Energy drinks related emergency visit double in ...

* Can is a bit plain and simple

Opportunities

* Young, innovative company

* Global market

* Mixability

* FDA approval

* Main competitor Red Bull holds more than half of market share (with many loyal customers)

* Energy drinks have unknown long-term health effects

D. Segments in the Market

Since it appears that most energy drink consumer are college students, three segments of energy drink consumers were considered within the college-aged population. The first segment consists of heavy users who find effectiveness, taste, availability, brand name, mixability and price to be the important. The heavy user segment can be further divided into two categories: Red Bull users and non-Red Bull users. Segment two is made up of health conscious users. The effectiveness, transportability, price and availability of low sugar, low carbohydrate or low calorie versions are important to users in this category. The third segment is made up of athletes who find effectiveness and availability of low sugar, low carbohydrate or low calorie versions to be the two most important attributes. The segmentation matrix in Appendix Exhibit E contains each segment and their rating of the importance of each attribute.

D. Costs, Contribution Margins

The costs for any beverage, and particularly Rockstar, are broad. In addition to development costs, Rockstar’s costs also include packing, shipping, distribution and retail costs, in addition to marketing and employee costs. Advertising costs alone were 7.3% and across the soft drink manufacturing industry, costs of operations in 2003 were 49.6% of total operating income (Almanac of Business and Industrial Financial Ratios).

The profit margin before and after taxes of the industry were 10.1% and 7.0% respectively.

E. Marketing Diagnosis

Following the Decision Tree for Marketing, we have decided to focus on trial for our target segment. Industry Sales are increasing, and there is a great potential for Rockstar to surpass Red Bull as the industry leader. Since Red Bull is heavily used in clubs and bars, Rockstar is equally capable of infiltrating the club scene to replace Red Bull.

The Essay on Direct Marketing with Red Bull

Introduction How should Red Bull market its brand in the future? I think, although Red Bull has been extremely successful in the past, times have changed and the company and products should change with it, otherwise we probably lose market share to the tremendous increased number of competitors in no time.At the height of early mornings and late nights, Red Bull energy drink became the fuel of ...

Based on customer interviews, awareness and knowledge of Rockstar are already present. Most people purchase Red Bull because of the reputation and availability. Some consumers in our interviews said that Rockstar is very similar to Red Bull in taste, quality, and effectiveness, and because of its competitive price compared to Red Bull, it is the preferred choice. If more people actually experience this similarity as well, Red Bull users may convert to Rockstar. Compared to Red Bull, Rockstar has a minimal to non-existent advertisement campaign, which also plays a factor in its position in the energy drink industry.

Strategies to increase Trial will be to distribute samples and coupons, set-up point of sale displays, and hire sales staff to offer demonstrations at promotional sites.

III. MARKETING DECISIONS

A. Target Segment

The consumption of energy drinks by the heavy user segment contributes to the rapid growth of the industry. The majority of energy drink consumers are in their late to early thirties. It is assumed that college students make up the majority of this group because college students often use energy drinks as alertness tools or energy boosters when studying or partying. Therefore, it is reasonable that we should target heavy users within the college student population.

Our target segment will be heavy Red Bull users in clubs and bars. According to Rockstar executive Todd Infurna, only 15 percent of Rockstar’s sales come from bars and nightclubs. However, exposure to the Las Vegas-based Rockstar energy drink in popular Las Vegas nightclubs and bars is causing an increase in the drink’s popularity. Rather than making changes to an already working core segment, we will try to increase the percentage of sales that come from users in the bars and nightclubs. Since Red Bull is the main brand being used as a mixer (with vodka) and it contributes to over 50% of the market share, converting Red Bull users to becoming Rockstar users will lead to large increases in Rockstar’s market share.

It is not recommended to target segment 2 and 3 because the focus of these segments do not correlate with Rockstar’s goals. Segment 2, the health conscious segment, chooses products based on factors such as price, transportability and low sugar, low carbohydrate or low calorie choices. It is likely that this segment will purchase cheaper, healthy teas over energy drinks. Although Rockstar contains many healthy herbal ingredients, its main focus is to provide an effective drink that provides energy to its consumers. The athletes in segment 3 are more likely to buy sports drinks with low sugar/carbohydrate/calories than an energy drink.

The Business plan on Red Bull Marketing Strategy

... drinks. Consumers tend to think twice at the time of purchase. Compared to the competitors Red Bull is nearly twice expensive as Monster or Rockstar. Red ... biggest brand in the energy drink market. They use ... large European influence. Red Bull was well stocked in clubs, where it became the drink of choice. 5.4 Promotion Red Bull is the ...

B. Product Positioning

Rockstar’s great tasting formula and competitive value will be maintained. The similarity in taste and mixability between Rockstar and leading competitor Red Bull creates a big advantage for Rockstar. In addition to having a great tasting formula, Rockstar exceeds Red Bull in its quality ingredients. As seen in Appendix Exhibit D, Rockstar contains many ingredients not found in other energy drinks. It contains more vitamins, herbs and amino acids that any other energy drink. Rockstar’s unique herb milk thistle, which is known to act as a liver protector and regenerator, also makes the product extremely suitable for consumption in clubs and bars. The milk thistle in Rockstar is also great for those who want help with their hangovers. Rockstar is offered at a much greater value, with its 16oz. can costing the same as Red Bull’s 8oz. can. This difference in value makes it extremely cost-effective to have Rockstar replace Red Bull as a mixer.

Rockstar’s trendy, rock star image will be emphasized when marketing the drink in clubs and bars. These consumers will drink the energy drinks to “pump them up” for partying all night. The rock star image is likely to appeal to young, hip people who are interested in music, having fun and partying like a rock star.

To make the product more appealing to energy drink users in clubs and bars, the packaging will be modified while retaining the same formula. The can will be changed so that it can glow in the dark or under a black light. This will make the drink stand out and have a “coolness” factor associated with it. Since energy drinks are currently only being combined with vodka, we will place new mixer recipes each can. By increasing the drink’s mixability, it will increase the uses for the product and cause Rockstar to become more popular as a mixer. The packaging will also be modified by making the smaller 8oz. can of Rockstar more popular in clubs and bars. Although the larger can size is more economical, such a large can is not required for mixing with alcohol. A smaller can should be used in clubs and bars to ensure quality by maintaining the carbonation and coldness of the drink. However, the 16oz. can size should remain an option to consumers who are purchasing Rockstar outside of clubs and bars.

One of the important attributes offered by Rockstar is its competitive price, which we will maintain at $2 for the 16oz. can. The price will be proportionally decreased for the smaller 8oz. can, which will be sold for $1 to target the users in clubs and bars. Its competitive price will give it an advantage over its competitors when trying to induce trial within the target segment.

Rockstar will continue distribution through its normal channels, such as supermarkets and retail stores. However, additional channels will be added to help target consumers in clubs and bars. One recommendation is forming contracts with clubs and bars to get them to serve Rockstar on tap. Since Rockstar appeals to people who like to listen to music, especially college students, the drink can be sold at concerts, band contests or music venues on college campuses. This will help to increase trial of the product.

E. Promotion

Rockstar currently has a few ads, one of which is shown in Appendix Exhibit G, but most consumers have not been exposed to them. We have developed several promotions and advertising plans to help move our potential consumers from awareness to repeat purchasers. Our most developed promotions focus on getting consumers to try Rockstar energy drinks, specifically at clubs or music venues with the hopes that they will extend their usage to everyday.

1. Advertisements

In addition to promoting trial, awareness of the Rockstar energy drink brand is another of our concerns. To address this concern we will begin by placing full-page ads in popular, national magazines. Because the ads will not be tied to any specific promotion it is possible to print those on remnant empty space, thus saving on advertising costs. To begin with we will place ads in FHM and Maxim. In the ads will we use a successful musician to solidify Rockstar’s image as an energy drink used by club and concert goers. Using a celebrity also helps to raise the esteem of the brand, as well as increase brand association. To track the reach and effectiveness of the advertisements the ad will include a web address consumers can go to and print out a coupon for a Rockstar drink. To access the coupon consumer will need an access code that will also be featured on the advertisement. Use of these access codes will allow us to track which ad reached more consumers. These advertisements can later be extended to other publications.

2. Trade-In

Once consumers are aware of Rockstar as an alternative energy drink option we want to try and specifically change their brand preference from Red Bull, the most frequently consumed energy drink, to Rockstar. To target Red Bull users we will co-sponsor a local concert, or team up with a music venue, and allow consumers to trade in their Red Bull energy drinks for a Rockstar. If consumers are repeat purchasers of Red Bull, then they have an opportunity to trade their energy drink for a Rockstar which has twice the value of Red Bull, as well as a unique image which is associated with the club/music scene. In addition, flyers promoting the event will include a coupon for a discounted Rockstar (see Appendix Exhibit H).

Consumers who trade in their Red Bull would also get discounted or free admission to the event. This promotion specifically targets Red Bull users while still maintaining Rockstar’s image as a club/party/concert drink.

An alternative to this promotion is to offer discounted admission to consumers who bring in empty cans of Rockstar. At the door patrons would then receive a coupon for Rockstar purchase at the venue, or other Rockstar promotional items.

3. Mixer/Recipe

In addition to promoting Rockstar’s image and value, we would also like to demonstrate that it is just as mixable with alcohol as Red Bull. This promotion will focus on bars or clubs that serve alcohol. Consumers would receive a coupon flyer at the door of the establishment that includes a recipe for an alcoholic energy drink (see Appendix Exhibit I).

Attached to the recipe would be two coupons. One coupon would offer a $1 off that specific drink if ordered from the bar, the other coupon would be for a discounted Rockstar at a retail store so that consumers can try mixing the drink at their own home. The coupon and recipe would be easily separated so that consumers can save the recipe.

4. Other Promotions

In addition to the three major promotions, we developed several other awareness and trial campaigns:

– When a Red Bull product is purchased at a grocery store, a coupon for Rockstar will print out. In this way we can focus on converting Red Bull consumers to Rockstar users.

– Team up with an alcohol company whose alcohol can be used to mix with Rockstar. Place shelf talkers on their products that feature the drink recipe, as well as offer discounts on Rockstar.

– Consumers can collect and send in Rockstar UPCs or proof of purchase to receive Rockstar merchandise.

F. Rejected Promotion Alternatives

In addition to the suggested promotions, we considered others that were similar to Red Bull’s promotion campaigns. However, we rejected them because they are costly and targeted general consumers, rather then a specific segment. For example, we considered using television commercials but they are expensive and offer little interaction between the customer and the product. While commercials may help increase awareness of the brand, they don’t offer any trial opportunities. Sponsoring sporting events is another campaign Red Bull has used. We rejected such sponsorships for the time being because they are very costly and these sporting events do not project the Rockstar image. In the future Rockstar may consider sponsoring large-scale concerts. We also rejected using “Rockstar mobiles” like the Red Bull “can cars” that can be seen driving around college campuses. While the novelty of the vehicles may draw attention, they also do not focus promoting trial to a specific group and would be costly to develop.

IV. IMPLEMENTATION

A. Mock Up Flyers

Appendix Exhibit H shows a sample flyer for the Red Bull trade-in promotion discussed above. The first key element is the name of the featured artists and the place and time of the event. The second element is the actual offer that tells consumers they can bring a full can of Rockstar to the particular venue to trade it in for a full can of Rockstar. Consumers who use Red Bull on a regular basis will have an opportunity to try something new without having to spend any additional money. Furthermore, they will be able to get into the venue without paying the usual cover charge. In addition to the critical information, the flyer also includes a coupon for those consumers who did not bring a can of Red Bull with them but still wish to try the product. This allows us to raise awareness of the product and have it available for consumers to try on the spot.

Another sample flyer, shown in Appendix Exhibit I, is for the Mixer/Recipe promotion. Its main feature is the new recipe for an alcoholic Rockstar drink. This flyer will be printed on heavy card stock and be glossy. Attached to the flyer will be two coupons that can be detached on a perforated line. One coupon will offer a discount to consumers if they order the alcoholic Rockstar drink at the bar where the flyers are being handed out. The second coupon will provide a discount on Rockstar at retail stores so that the consumer can purchase the ingredients and try making the drink at home.

B. Work Plan

A 12-month work plan is shown below according to the tasks and the start/end dates.

12 month Work Plan

Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Idea Generation and Screening for new Can

Concept Test with Club goers/owners/workers

Make Appropriate modifications based on concept test

Create project budget

Identify Test City

Contract Sales rep

Create promotional collateral

Distributor Promotions

Club Promotions

Small Music Venue Promotions

Assessment of Marketing Plan

C. Budget and Break Even Analysis for Sacramento Metro Area

The budget and break-even analysis for Sacramento are discussed below for each promotion.

1. Trade-In

Our trade-in promotion is an effective way to get Red Bull users to try the Rockstar brand and begin to convert them to repeat customers. The break-even analysis of this promotion varies depending on the location or event and can be applied at a wide range of venues. To cut down costs, Rockstar would team up with the particular venue and in exchange for promoting the band or event. The venue would wave the cover charge for all customers participating in the trade in as advertised (see Appendix Exhibit H).

Since the approximate contribution margin is 50% and a 16oz. can of Rockstar retails for $2.00, the contribution margin would be $1.00.

Assuming that the concert draws in 300 people per night, and a third of those people bring in a can to trade, then the cost of giving out a free can of Rockstar is $200. If two thirds of the concert-goers received a flyer with the additional 50-cent coupon, then that is an additional cost of $100. The total costs for the promotion, assuming the venue waves the cover charge, are $300. With a contribution margin of $1, an additional 300 cans of Rockstar would have to be purchased either at the revenue, or later at a retail store.

2. Mixer/Recipe

This promotion would be better implemented at a larger club venue that can accommodate more people. The contribution margin would still be $1 but the possible number of consumers would increase. It would cost $319 to produce 5,000 glossy flyers that feature the Rockstar recipe and coupons (quote from sprint.com; see Appendix Exhibit I).

The cost per flyer is 6 cents. Assuming 500 people come to the venue, the cost for the flyers would be $32. If one third of those people use the 50 cent coupon to purchase a Rockstar later at a retailer, that is an additional cost of $83. If half of the people who received a flyer bought the new mixed drink in the club, that cost would be $250. (However, the contribution margin on mixed drinks in the club maybe different, and so actual cost to Rockstar may be less.) Total costs would be $365, indicating that 365 additional Rockstars would have to be purchased at the club or later at a retail store.

D. Evaluation of promotions

All three of our main promotions include coupons or coupon codes which can easily be tracked through point of sales. By tracking these coupons within a week or two of the event or promotion, we will be able to evaluate whether or not our plan is working. This quick evaluation can be done because people will not hold onto a coupon for a long period of time after receiving it.

We can also track the success of our promotion by evaluating sales of Rockstar within the venues themselves, on the night of the promotion. This evaluation will quickly tell us how many consumers we reached at the door, and how many bought a Rockstar to try.

V. SOURCE CITATIONS

http://www.rockstar69.com

http://www.redbull.com

http://macabre.lib.calpoly.edu/staff/fvuotto/bus_346/

http://www.bevindustry.com/content.php?s=BI/2004/07&p=5

http://www.backyardgardener.com/redbull.html

http://www.bevnet.com/reviews/documents.asp?brandid=401

http://www.findarticles.com/p/articles/mi_m5072/is_48_26/ai_n9483610/print

http://www.reviewjournal.com/lvrj_home/2005/Mar-02-Wed-

http://www.bevindustry.com/content.php?

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PepsiCo unveils new-look Rockstar energy drinks ahead of global expansion

PepsiCo has overhauled Rockstar, a year after buying the energy drinks brand for US$3.85bn.

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PepsiCo has overhauled Rockstar, a year after buying the energy drinks brand for US$3.85bn.

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Packaging for the Rockstar range, which PepsiCo acquired in April last year , will switch to metallic gold and black colours in the refresh. PepsiCo will also launch a new marketing activation and expand Rockstar’s global footprint with a plan to more than double its markets over the next three years.

“Energy is a growth category we see accelerating around the world – and one that is overdue for a refresh,” said Mark Kirkham, PepsiCo’s GM for sports, energy & juice. “With this global campaign, we want to redefine how consumers see Rockstar Energy Drink and celebrate hardworking, passionate hustlers who want to get things done.”

The ad campaign, called ‘Life is Your Stage’, will roll out in Rockstar’s current 30 markets, which include the US, UK and Germany. PepsiCo has also assembled a team of influencers – the Rockstar Energy Hustle Collective – to create content for the drive.

Germany is a key region for Rockstar and is home to a number of exclusive brand launches. Earlier this month, PepsiCo released a Rockstar Energy beverage with hemp seed extract in the country.

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Rockstar Energy's extravagant billionaire founder Russ Weiner just sold his company to PepsiCo for nearly $4 billion. Here's how the son of a far-right talk show host built a multibillion-dollar energy drink empire.

• PepsiCo bought Rockstar Energy Beverages for $3.85 billion, the soft drink giant announced Wednesday .
• The deal brings the net worth of Rockstar's billionaire founder, who reportedly owned 85% of the company , to about $4 billion, Forbes estimated.
• Weiner is the son of far-right talk radio host and President Trump associate Michael Savage, a connection that has kept some grocery stores from selling Rockstar Energy, The New York Times reported in 2006.
• A Miami-area bridge fell on Weiner's 161-foot long yacht, "Rockstar," in 2014.
• Visit Business Insider's homepage for more stories .

Russ Weiner, the extravagant billionaire behind Rockstar Energy Beverages, just sold his business to PepsiCo for $3.85 billion.

For Weiner, who reportedly owned 85% of Rockstar , the deal was the culmination of an "American dream" that began in 2001 when he took a job at a vodka maker after losing a bid for California's State Senate. Weiner mortgaged his condo in the suburbs of San Francisco and relied on help from his family to launch the company and has since built a $4 billion fortune.

A representative for Weiner at PepsiCo did not immediately respond to Business Insider's request for comment on the sale to Pepsi, Michael Savage's connection to the company, Weiner's net worth, disposition, or career at the company.

Keep reading to learn more about Russ Weiner.

Russell Goldencloud Weiner, 49, is the son of controversial talk radio host Michael Savage.

Weiner is one of two children of far-right talk radio host Michael Weiner, who goes by Michael Savage online, according to The New York Times . In 2009, Savage called the Koran as "book of hate," and was subsequently banned from entering Britain. Savage brags about the incident in his biography on his personal website , saying that it "made him the 'poster child' for free speech, not only for Americans concerned about the cultural shift towards totalitarianism and their rights to freedom of expression, but for people around the globe."

Both of Weiner's parents helped him found Rockstar, according to The Times . Weiner's connection to Savage has kept some store owners from carrying Rockstar, The Times reported in 2006. The then-CEO of Oregon based grocery chain New Seasons told The Times that its stores did not carry Rockstar because of Savage's views.

Weiner's mother Janet is Rockstar's CFO and owns 15% of the company, according to Forbes . Janet Weiner plans to use her portion of the windfall from the PepsiCo sale to "devote her life to helping animals through animal rescues," Weiner told Forbes .

Weiner had an entrepreneurial spirit from a young age.

Weiner founded his own yard service company when he was 8 years old, Forbes reported. As a teenager, Weiner also worked at a Wendy's drive-thru window, according to Forbes .

He later attended San Diego State University and graduated with a Bachelor's degree in political science, according to Forbes . After graduation, Weiner planned and sold spring break trips to Cancun and Hawaii geared toward high school students, Forbes reported.

Weiner shares his father's interest in politics.

Weiner ran for a seat in the California State Assembly in 1998, according to Forbes . Then 28 years old, Weiner ran on a conservative platform and only garnered 30.5% of the vote, Forbes reported.

The campaign wasn't a complete waste, however.

Skyy Vodka founder Maurice Kanbar was impressed with Weiner's performance on the campaign trail and gave the future billionaire a job at his company, according to Forbes . Kanbar was also a friend of Weiner's father, Forbes reported. 

"He saw I had the guts to stand up with the American flag — and people cursing my name," Weiner told Forbes in 2014.

Weiner had the idea to create a new energy drink while working at Skyy after seeing the success of Red Bull, but Kanbar did not approve the project, according to Forbes . Weiner quit his job at Skyy to start Rockstar, founding his new company in 2001 by taking out a $50,000 mortgage on the condo he owned in the upscale San Francisco suburb of Sausalito, California, according to Forbes . He also rented a computer at a then-Kinko's location to design his new company's logo and reach out to manufacturers, Forbes reported.

Rockstar was a near-instant success, making Weiner extremely wealthy.

Rockstar found initial success as a cheaper alternative to Red Bull, thanks to its wide variety of flavors, Forbes reported in 2014. The drink was set apart by its unusually large size for an energy drink. Rockstar was first in the category to be sold in 16 oz cans, PepsiCo said in a statement .

Weiner drove around San Francisco in an old limousine with Rockstar's logo painted on the side to promote the drink when it first launched, according to Forbes .

Forbes added Weiner to its Billionaires List in 2015, when he had a net worth of $2.1 billion. The magazine currently estimates that Weiner is worth $4 billion , and placed him as No. 195 on the Forbes 400.

Weiner is known to have a "short temper."

After interviewing the billionaire in 2014, Forbes' Abram Brown wrote that Weiner could also be combative and short-sighted. According to Brown , Weiner's disposition caused numerous Rockstar executives to leave the company and Coca-Cola to renege on a deal to handle Rockstar's distribution.

Rockstar first went into business with Pepsi after its relationship with Coca-Cola ended in 2009.

The two companies signed a distribution deal in 2009, Forbes reported .

Pepsi announced Wednesday that it would acquire Rockstar for $3.85 billion.

"We have had a strong partnership with PepsiCo for the last decade, and I'm happy to take that to the next level and join forces as one company," Weiner said in a statement released by PepsiCo . "PepsiCo shares our competitive spirit and will invest in growing our brand even further. I'm proud of what we built and how we've changed the game in the energy space." 

Weiner told Forbes that the deal "shows the American dream is still alive and well."

"It's perfect timing in my life right now," Weiner told Forbes . "I'll have enough money to pretty much do whatever I want in life and not put my nose to the grindstone. I was running this business 24 hours a day for the past 20 years. I was never not working."

Weiner reportedly owned 85% of Rockstar , according to CNBC.

Weiner has purchased at least six beachfront mansions in California and Florida — and several of them are currently for sale.

Weiner purchased a waterfront mansion on Miami Beach's Biscayne Bay for $20 million in 2016, but put the property back on the market for $35 million in September 2019, according to the Los Angeles Times . The 10,000-square-foot house sits on an acre of land and has a pool, a spa, and a private dock with space for four jet skis.

Also in September 2019, Weiner also purchased a $16.5 million home in Los Angeles' Hollywood Hills and put it back on the market for $28 million just two weeks later, the LA Times reported. That house was built in an "ultra-modern" style and has views of the LA skyline, according to the LA Times .

Weiner also owns a 161-foot yacht named "Rockstar" that is as extravagant as his pricey mansions.

The yacht's amenities include a Jacuzzi and gym on the top deck and sleeping accommodations for 12, according to Curbed .

A bridge collapsed on the boat in Miami in 2014, according to Curbed . The boat was able to be repaired and was spotted on the waters again in Miami in 2017, Curbed reported.

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About Rockstar

With its delicious flavors and unmistakable energy boost, Rockstar Sustains Mind-Body Energy for all active lifestyles. In addition to our Original and Sugar Free Rockstar, there's a range of products including the sugar-free Pure Zero line, Rockstar Focus, Rockstar Recovery, and Rockstar Punched.

About PepsiCo

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $91 billion in net revenue in 2023, driven by a complementary beverage and convenient foods portfolio that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com , and follow on X (Twitter) , Instagram , Facebook , and LinkedIn @PepsiCo.

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• Rockstar Energy Drink brand profile in the United States 2023

Rockstar Energy Drink brand awareness, usage, popularity, loyalty, and buzz among energy drink consumers in the United States in 2023

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Statistics on " Energy drinks market worldwide "

• Revenue of the energy & sports drinks industry Worldwide 2014-2027
• Energy and sports drink revenue worldwide 2023, by sales channel
• Energy and sports drink revenue growth worldwide 2015-2027
• Revenue per user of energy & sports drinks Worldwide 2018-2028
• Average energy & sports drinks price Worldwide 2018-2028
• Energy and sports drink revenue worldwide 2022, by country
• Per capita energy drinks market volume worldwide 2023, by country
• Sales volume growth of energy drinks in the U.S. 2005-2022
• Leading energy drink brands in convenience stores in the UK 2023, by sales revenue
• Energy and sports drink revenue in Japan 2014-2027
• Global net sales of Monster Beverage 2008-2022
• Global sales share of Monster Beverage by distribution channel 2010-2022
• U.S. case sales of Rockstar energy drinks 2015-2022
• Red Bull brand profile in the United States 2023
• Monster brand profile in the United States 2023
• Red Bull brand profile in the UK 2023
• Monster brand profile in the UK 2023
• Rockstar Energy Drink brand profile in the UK 2023
• Red Bull brand profile in Germany 2023
• Monster brand profile in Germany 2023
• Volume of energy & sports drinks Worldwide 2015-2027
• Per-capita consumption of energy & sports drinks in the U.S. 2018-2028
• Soft drinks: Sports drinks consumption volume in the United Kingdom (UK) 2013-2022
• Per capita consumption of mineral and energy drinks in Germany 2012-2023
• Per capita spending on isotonic drinks in households Spain 2011-2022

Other statistics that may interest you Energy drinks market worldwide

• Premium Statistic Revenue of the energy & sports drinks industry Worldwide 2014-2027
• Premium Statistic Energy and sports drink revenue worldwide 2023, by sales channel
• Premium Statistic Energy and sports drink revenue growth worldwide 2015-2027
• Premium Statistic Revenue per user of energy & sports drinks Worldwide 2018-2028
• Premium Statistic Average energy & sports drinks price Worldwide 2018-2028
• Premium Statistic Energy and sports drink revenue worldwide 2022, by country
• Premium Statistic Per capita energy drinks market volume worldwide 2023, by country
• Premium Statistic U.S. energy drink sales 2017-2023
• Premium Statistic Sales volume growth of energy drinks in the U.S. 2005-2022
• Premium Statistic Leading energy drink brands in convenience stores in the UK 2023, by sales revenue
• Premium Statistic Energy and sports drink revenue in Japan 2014-2027

Company figures

• Premium Statistic Global revenue of Red Bull 2011-2023
• Basic Statistic Red Bull's number of cans sold worldwide 2011-2023
• Premium Statistic Global net sales of Monster Beverage 2008-2022
• Premium Statistic Global sales share of Monster Beverage by distribution channel 2010-2022
• Premium Statistic U.S. sales of Rockstar energy drinks 2015-2023
• Premium Statistic U.S. case sales of Rockstar energy drinks 2015-2022

Brand awareness

• Premium Statistic Red Bull brand profile in the United States 2023
• Premium Statistic Monster brand profile in the United States 2023
• Premium Statistic Rockstar Energy Drink brand profile in the United States 2023
• Premium Statistic Red Bull brand profile in the UK 2023
• Premium Statistic Monster brand profile in the UK 2023
• Premium Statistic Rockstar Energy Drink brand profile in the UK 2023
• Premium Statistic Red Bull brand profile in Germany 2023
• Premium Statistic Monster brand profile in Germany 2023

Consumption

• Premium Statistic Volume of energy & sports drinks Worldwide 2015-2027
• Premium Statistic Per-capita consumption of energy & sports drinks in the U.S. 2018-2028
• Premium Statistic Soft drinks: Sports drinks consumption volume in the United Kingdom (UK) 2013-2022
• Premium Statistic Per capita consumption of mineral and energy drinks in Germany 2012-2023
• Premium Statistic Per capita spending on isotonic drinks in households Spain 2011-2022

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Pepsico acquires rockstar energy for $3.85b.

PepsiCo, Inc. (NASDAQ: PEP ) announced Wednesday it reached an agreement to acquire energy drink maker Rockstar Energy Beverages for $3.85 billion.

What Happened

PepsiCo's relationship with Rockstar dates back to 2009 when it started distributing energy drinks in North America. Under PepsiCo's complete ownership, the company will be in a better position to take advantage of rising demand in the "functional beverage space," PepsiCo chairman and CEO Ramon Laguarta said in the press release.

PepsiCo will look to accelerate Rockstar's performance and expand its other brands in the category, such as Mountain Dew. Currently, PepsiCo sells energy beverages under the Mountain Dew label, including Kickstart and Game Fuel.

"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," the release said.

Why It's Important

PepsiCo's acquisition marks the first large deal under Laguarta's leadership. Last month, the CEO was asked to comment on the company's energy drink strategy during a conference call. He highlighted success in its ready-to-drink coffee beverages it sells as part of a partnership with Starbucks. He also said the company needs to do a "better job with Rockstar," according to The Wall Street Journal .

Rockstar is also one of the biggest competitors to Monster Beverage Corp (NASDAQ: MNST ).

PepsiCo doesn't expect the transaction to be meaningfully positive to its revenue or earnings per share in 2020. The company expects the deal to close in the first half of the year.

PepsiCo's stock traded lower by 3.7% to $129.10 per share art time of publication.

Related Links:

Pepsi To Acquire One of China's Largest Snack Brands In 5M Deal

Pepsico Reports Q4 Earnings Beat

Photo credit: Mike Mozart, Flickr

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Rockstar launches promotional campaign

By David Shrimpton in Soft Drinks 11th May 2022

The energy drink Rockstar has launched a promotional campaign that says it can help fuel every aspect of modern lifestyles.

The “Fuel Every You” campaign includes advertising, digital marketing and in-store promotions to highlight the virtues of the drink.

Rockstar’s European marketing director, Ruben Navarro Sanchez, said: “We recognise that our multidimensional consumers have a wide variety of goals to smash.

“With ‘Fuel Every You’, we want to show our consumers that our drinks are designed to keep every version of them thriving.

“Each vibrant can is packed full of an energising blend of caffeine, Vitamin B and Vitamin C to help them at every stage of the day.”

Rockstar is available in 500ml and 250ml formats.

Tagged with: energy drinks rockstar

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Rockstar Focus

(Image courtesy of Rockstar)

Rockstar Energy Drink announced the launch of Rockstar Focus, the newest addition to the brand’s energy portfolio.

Made with innovative ingredients like Lion’s Mane, a mushroom used in traditional eastern cultures, and providing 200 mg of caffeine, Rockstar Focus gives consumers functional energy and a mental boost to tackle the day and be the best version of themselves, it says.

The new zero sugar, calorie-free beverage is available in three flavors — Lemon Lime, White Peach and Orange Pineapple.

“Our new Rockstar Focus formulas are uniquely crafted to include the optimal blend of cutting-edge ingredients and the power of caffeine, setting a new standard to deliver not just energy, but mental focus,” said Danielle Barbaro, vice president of R&D at PepsiCo Beverages North America, in a statement. “Through our proprietary design process, we artfully curated each flavor to provide the consumer with an energizing and refreshing taste experience." 

Packaged in 12-ounce cans, Rockstar Focus is available to purchase at retailers where PepsiCo products are sold nationwide, starting at $2.99 a can. 

www.rockstarenergy.com

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