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Pepsi fulfills Rockstar dream

This article was originally published in The Tan Sheet

Executive Summary

The Purchase, N.Y.-based beverage giant enters a multiyear agreement to distribute Rockstar energy drink, the No. 3 brand in the category, according to Information Resources Inc. sales data for the 52 weeks ending Jan. 25 from supermarkets, drugstores and mass merchandise outlets, excluding Wal-Mart. Rockstar, made by Rockstar International, sold $99.1 million during that period and captured 11 percent market share. A number of Pepsi energy drinks in the Amp line are in the top 20, but none claim more than 4 percent of the segment. The distribution deal, the terms of which were not disclosed, "is a major milestone" in Pepsi's bid to become the energy drink category leader, Hugh Johnston, president of Pepsi-Cola North America Beverages, says Feb. 19. Industry experts say to move up in the energy drink market, large firms must pursue deals like Pepsi's with Rockstar, given the "first mover advantage" of Red Bull and Hansen Natural's Monster (1"The Tan Sheet" Sept. 8, 2008, p. 11)

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