Is Bang Energy Drink Discontinued? Vital Pharmaceuticals Inc., the manufacturer of Bang energy drinks, filed for bankruptcy under Chapter 11 on October 10th. This foretells trouble for the once-famous beverage manufacturer. It also points to a broader trend among customers and energy drinks.
According to court documents, Vital Pharmaceuticals owes Monster Beverage Co. over $500 million and PepsiCo Inc., its previous distributor, an additional $115 million. Jack Owoc, the energy drink’s CEO and founder, is optimistic. It claims lending institutions have put up $100 million and that the business will take over PepsiCo’s distribution network.
Bang is an American brand that has pioneered distinctive flavor systems and out-of-the-box thinking in the energy drink market over time. It is so popular because it tastes good rather than because it contains a lot of caffeine! It significantly impacted the market, particularly among those who exercise and adhere to the keto diet.
What happened with Bang Energy?
Bang Energy Drink has received a lot of attention. Generally, energy drinks have a special place in the beverage category. They’re just one of the drinks that people consume for pleasure or to stay hydrated. But they also claim to help with athletic performance, retrieval, and even weight loss.
Jack Owoc launched this energy drink in 1993. The Bang products have a solid public image, with many influencers promoting them on social media. In all the hype, a media release stated that Bang Energy’s parent company confirmed that it had filed voluntary petitions for protection under Chapter 11 of the bankruptcy code.
Chapter 11 bankruptcy is a reorganization plan that the court and the creditors must approve. The business stays operationally open during the process.
The company had recently lost $293 million for a misleading marketing lawsuit to rival Monster Beverage Corp. This filing is a restitution action to help the business recover from new problems. “It includes several lawsuits that have had an impact on the company’s short-term outlook,” VPX said in a statement.
VPX aims to recapitalize through the Chapter 11 process. Also, it seeks to emerge from bankruptcy well enough to proceed with its massive development in the beverage market.VPX has stated its plan to establish a new decentralized direct store distribution (DSD) network for the Bang Energy brand. This was intended as part of the restructuring process. It hopes to return to its “pre-Pepsi meteoric annual success.”
Why are Bang Energy drinks discontinued?
Jack Owoc claimed PepsiCo “engaged in a plan to destroy Bang from day one” during a spat between the two companies. PepsiCo has since acquired Celsius Holdings, another energy drink company.
Bang Energy announced in a short statement that it would shift from having its beverages distributed by PepsiCo to new dedicated store delivery partners. Bang did not reply to a request for more information, and PepsiCo did not respond to requests for comment.
According to the press release, Bang CEO Jack Owoc stated that “all conflicts with PepsiCo have been completely resolved and cleared up.”The two firms have been at odds since late 2020. Bang’s owner and PepsiCo disagreed on whether the smaller beverage maker could start leaving a deal reached previously that year.
There are no details about the agreement, including whether any money will be exchanged. Bang will be eligible to function with its distribution partners due to the separation. Meanwhile, PepsiCo can concentrate on expanding its energy drink franchise. With more than a year left on the agreement, it was clear that the deal was in trouble as soon as the ink dried. Thus, splitting up is a logical choice.
PepsiCo doubled down on the group in 2020, paying $3.85 billion for Rockstar. It occurred a month later when it signed the agreement with Bang.
According to the press release, Bang Energy will stay in business for a while. Thus, all business operations will continue. If Jack O’Connell can find a way to refinance its $1 billion in debt, it will stay the same. Bang Energy will be put up for sale if this does not happen within the next three months of its tenure. Of course, Bang Energy has been struggling financially.
Due to a trademark dispute and false advertising, it contains health benefits. Customers were misled in this manner. They should redesign the product, reduce the caffeine content, and list the actual ingredients.
Conclusion
Bang impacted the beverage industry more than 20 years ago. The brand focuses on brilliant, great-tasting, healthier-for-you, highly effective discoveries. “We also invented the performance energy category with social media loyalists who grew alongside our brand,” Owoc said. Their inspirational and optimistic contributions have led to numerous lawsuits against Monster Energy and Pepsi.
Despite Bang’s current problems, it appears that the United States still needs to finish energy drinks. According to a 2020 Research and Markets report, the energy drink market was estimated at $14.3 billion in 2020. Also, it is expected to grow to $21.01 billion by 2026.
Various factors, including the fast-growing younger population in the United States, will drive up demand. One way the market has changed is the desire for energy drinks that are not loaded with sugar.