Big news in the world of drinks (caffeinated ones....... not alcoholic ones).
Energy drinks crashed Mountain Dew’s caffeine high. So Pepsi is taking another shot.
NASCAR’s Dale Earnhardt Jr. loves it (officially). The American heartland adored it so much analysts have called the middle swath of the country the Mountain Dew belt. Citrusy and chartreuse, it has a powerful caffeine punch that makes it the original undercover energy drink.
And yet, parent PepsiCo has never been able to position Mountain Dew, now branded as Mtn Dew, effectively that way. So Pepsi decided it was time to bring in a Rockstar.
PepsiCo announced Wednesday it will pay $3.85 billion for the Rockstar energy drink company. And even according to Pepsi top brass, the reason the company is giving Rockstar its due is Dew.
I've never had a Rockstar.
But I've had PLENNNNNNNTY of Mountain Dews. And they supply me with a very appropriate amount of caffeine.
So, I guess what I'm saying is that Pepsi has not won any new business from me by making this nearly $4 BILLION acquisition.
I presume this is what made Rockstar attractive to Pepsi (from the same article referenced above):
Caleb Bryant, associate director of food and drink reports for market research company Mintel, says this acquisition gives Pepsi a viable contender in the fast-growing energy drink market, with sales estimated at $12.4 billion in 2018. This is small compared with the more than $30 billion soda market, but it is growing, whereas soda had nominal growth, according to Bryant.
“Juice and dairy milk have been in sharp decline, soda is nearly flat,” he said. “Energy drinks, water and nondairy milks are the areas of growth in the industry as a whole.”
Grace & Peace & Love to you all -
Matt