PepsiCo (PEP) is focusing on energy drinks to get a piece of the lucrative market.
The food and beverage company has closed its acquisition of Rockstar Energy drinks and will become the exclusive distributor of Bang Energy, it said Tuesday.
The deals "position PepsiCo to better participate and capture its fair share within an attractive and highly profitable category," said CEO Ramon Laguarta in a statement discussing the company's first quarter financial results.
Energy is a growing category. US energy drinks and shots sales amounted to about $13.5 billion in 2018, a jump of about 30% from 2013, according to the research company Mintel. Coca-Cola (KO) has also invested in energy drinks.
PepsiCo reported growth in the first quarter, with net revenues up 7.7%. But it pulled its guidance for the year because of uncertainty stemming from the coronavirus pandemic.