Editor’s note: This story has been updated with comment from Keurig Dr Pepper.
- Keurig Dr Pepper is in talks to purchase the owner of Bang Energy drinks, according to Bloomberg. The wire service noted that one person said the company could be valued at more than $2 billion, while another put the price tag above $3 billion. The negotiations are at an early stage and could fall apart, Bloomberg noted.
- In an emailed statement to Food Dive, a Keurig Dr Pepper spokesperson said the company is “currently not pursuing an acquisition,” but “growing our business through M&A and brand/distribution partnerships” is a key part of how the company will spend its money and “you should expect that we are quite active and look at a lot of the deals that arise.”
- An acquisition by the soda, coffee and water company would be the latest deal in the popular energy drink space and a bold statement for Keurig Dr Pepper’s new CEO Ozan Dokmecioglu who took over the top post late last month.
Keurig Dr Pepper is no stranger to energy drinks, with a portfolio that includes Xyience and Venom, as well as a distribution deal for A Shoc. But a purchase of Bang would give the beverage giant ownership of a larger, more well-known brand and firmly cement its position in the fast-growing category.
Bang only recently exited a rocky distribution deal with PepsiCo that was mired by conflict, lawsuits and allegations, much of it taking place behind closed doors. A purchase by Keurig Dr Pepper would immediately give Bang a quick pathway toward growth through the Texas-based company’s deep financial pockets, broad distribution reach and innovation prowess.
If Bang and Keurig Dr Pepper do reach a deal, it would be the latest round of consolidation in the energy drink space. PepsiCo doubled down on the category in 2020 when it purchased Rockstar for $3.85 billion, and then earlier this month invested $550 million in energy drink maker Celsius, while signing a long-term strategic distribution agreement. Coca-Cola, which announced plans to discontinue sales of its Coca-Cola Energy in North America last year, has a 16.7% stake in Monster from a 2015 deal.