PepsiCo said last Wednesday it would buy Rockstar Energy Beverages for $ 3.85 billion, in the company’s biggest effort to position itself in the energy drink market where rival Coca-Cola has been expanding rapidly.
Pepsi Inc, which already distributes Rockstar drinks, has a smaller presence in the energy drink market with its Mountain Dew Kickstart and Mountain Dew Game Fuel brands.
Coca-Cola Co, which has a stake in Rockstar’s rival Monster Beverage Co, launched its own Coke energy drink brand in the United States earlier this year, after introducing it to European markets months earlier.
Rockstar was founded in 2001 in Las Vegas and sponsors action sports and music festivals as its primary form of advertising.
The global energy drink market is currently dominated by Red Bull of Austria.
Pepsi said it does not expect the deal to impact its earnings or earnings per share in 2020.