Is Bang Energy going out of Business? Bang is an American energy drink company that was established in 2012. Your Destiny fuels its tagline. By 2020 this brand was the third highest-selling energy drink company in the United States of America. It was only behind Monster and Redbull.
Bang brand has always been known for its boldness in terms of the image that it has presented in the market. The Bank actively sponsors a lot of influencers on tick-tock and Instagram as a part of its marketing strategy. It actively selects influencers with a good following on social media platforms that are famous among the youth.
By offering them paid collaboration, bang gets its products featured in its reels or short videos, which helps in targeting its product toward a mass audience all at once.
The CEO of this company Jack Owoc has always been very particular about the social media influence and power that Instagram and tick-tock has. This is why he has always focused on using these platforms to ensure that the product is actively present on social media.
The parent company of bang is Vital Pharmaceuticals, which was founded in 1993 by Jack Owoc. It is also a manufacturer of sports supplements and manufactures other beverages under the name of VFX. Some other products from this company include redline, Noo Fuzion, and Meltdowns.
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Will Bang energy be out of Business?
Vital pharmaceuticals, the parent company of bang energy, has filed for Chapter 11 bankruptcy. This means they’re still in business, but they will soon leave if the situation lingers on. The brand was once the number three best-selling energy drink brand in the whole market. They were performing well and had great reviews from the customers as well.
But some practices by the company and its unethical woke culture have led to its rapid decline and delegation. The multiple lawsuits that were imposed on the company decreased its reputation of the company to a considerable extent. People stopped buying anything from this brand because it was associated with many controversies.
Along with this, many new brands were released in the market offering better quality products and high nutritional value than Bangs was offering. They also indulged in many ill practices like using other companies’ music without hearing about copyright. They also lost a lot of their revenue and legal cases and lawsuits.
The company also needed to take a more conscious initiative to ensure gradual growth during the pandemic. They were very complacent with their company’s achievements, while other companies worked hard to adapt to the changing market circumstances. This stifled the growth of vital pharmaceuticals and its subsidiary branches, ultimately leading to their fault.
Their approach toward the changing market situations was very stagnant and fundamental. Other companies adopted a very pragmatic approach and were successful and unaffected by the pandemic. Bang, on the other hand, incurred considerable losses in the market.
Loans and debts
Bank also has a lot of unpaid loans except for the revenue it has to make to save itself from bankruptcy. It currently owes $500 million to Monster, three $340 million to different lenders, and $110 million to PepsiCo.
This means that bang has a debt of around $950 million to cover to become debt free. This seems like a long road because, currently, bang needs to make more revenue to sustain its production and give salaries to its employees. Paying back seems like a far-fetched goal.
Bang has around 3 to 4 months to arrange or find out a plan to salvage this financial crisis. If the CEO cannot figure out something, the company will be up for sale sometime.
Bank has also had to figure out some strategies to attract customers towards them because of all that has happened, and sales have remained the same. All of this has created a brand image about bang being a wrong brand as in the past, they have named their products the wrong way and claimed to offer something that they don’t offer. And if they are not able to do this, then the almost 1 billion of debt that the bank still owes will not be able to be repaid, and the whole company will crumble down into ashes.
Future of the company
Even the company employees doubt that CEO Jack Owoc, who has a personal worth of $3 billion, will be able to get the company out of the debt trap in which he has landed it. The CEO seems like a delusional person who is not concerned about what is happening with the company and the employees who are working in his company.
People associated with the company had been warning and urging him to pay some attention to where the company has been leading in the past few days. Funders have even offered to give a hundred million US dollars more to save the company from bankruptcy. But there is a condition that has been associated with this. If bang cannot cover the amount in 3-4 months, it will have to sell the company.
Everybody in the market has gone against the company because of its controversial past and unfair practices. Company employees have said they are hopeless and do not expect any miracle anytime soon.
Bangs Launch
In 2012 bang was introduced in the market of energy rings as a carbonated energy drink with low sugar levels. Bang always believed in developing quality energy drinks with low sugar levels and other harmful components. It wanted energy drinks to be healthy rather than have an excessive amount of calories.
In 2017 they announced a new variant that was deprived of caffeine and used as an alternative instead of caffeine. Caffeine, in large quantities, harms the body as it causes sleeplessness and skin-related issues. Excess coffee is also not very good for cardiovascular health as well as the functioning of other organs. This is why Bang took this conscious step to eradicate the use of coffee in its energy drinks.
In 2019 the brand extended its manufacturing units by opening new units in Phoenix, Arizona, in addition to the existing units in Pembroke Pines, Florida.
In 2020 VFX signed a deal with PepsiCo to distribute energy drinks to sell its energy drinks under the name of PepsiCo. This deal was signed in April 2020 but was soon terminated in November 2020 because of some company arguments. Pepsi now had the distribution rights of bang only until April 2023.
Controversies
Bang has been subjected to a lot of controversies in the past years. Monster drinks accused bang of indulging in consumer-harming practices and following degrading business ethics. In return, bang accused monster drinks of using their trademarked dress and sued them.
Soon after, their bang was again sued by monster drinks and orange drinks. Orange drinks had previously accused the bank of forgery and shot them on 29. The case was settled outside of the court, and both parties withdrew their case. But once again, orange and Monster together shoot a bang of delusion in customers by using their ‘creatine based’ slogan in their products when it didn’t increase the level of creatine in the drink.
It caused damage of two $93 million to VFX and bang.
Other lawsuits
Since then, bang has not recovered from the financial damage it caused. It has still been trying to recover from the loss.
Additionally, it lost $178 million in the case as well. They also lost a lawsuit against Sony Music for using their music without legal permission and suffered severe copyright cases. They also used the musician Prince’s famous ‘purple rain’ in their campaigning.
They were sued by the legal team Prince and, as a result, lost another legal case. Moving on, they signed a PepsiCo collaboration to distribute all their beverages under its name. But they soon had a rift claiming that PepsiCo was distributing their drinks to authorized dealers and retailers without seeking their permission. The entire contract was terminated within 6-7 months of its signing.
Is bang energy healthy?
Bank has always tried to differentiate itself from your regular energy drink. It has always claimed to be a healthier version of your energy drinks with high sugar levels. But all of these claims made by Bang have been proved contradictory as a lot of
lawsuits have been filed against Bang, citing that it has indulged in forgery regarding the use of ingredients.
Its competitive brands have said that it’s not as healthy as it claims to be, and the competitive brands have only won the lawsuits. According to them, they offer zero transfers or calories. They also have no amount of added sugar.
The brand claims its energy drink is enriched with vitamins and minerals like vitamins B3, C, B6, Magnesium, and calcium. It also has a very high quantity of caffeine, 300 mg. This amount of caffeine is very harmful to your body. Although the brand has a caffeine-free variant, experts say it is not highly healthy.
Some of the ingredients used in the brand are-
- Sucralose
- Potassium Phosphate Dibasic
- Vitamin C (Ascorbic Acid)
- Potassium Sorbate
- Magnesium Chloride
- SUPER CREATINE® (Creatyl-L-Leucine [Creatine bonded to L-Leucine])
- Calcium Chloride
- Calcium Disodium EDTA
- Vitamin B3 (Niacinamide)
- CoQ10 (Coenzyme Q10)
- Vitamin B6 (Pyridoxine Hydrochloride)
- Vitamin B12 (Methylcobalamin)
- Carbonated Water
- Citric Acid
- Natural and Artificial Flavors
- Caffeine
- Sodium Benzoate
- Potassium Citrate Monohydrate
- EAAs (L-leucine, L-isoleucine, L-valine, L-lysine, L-threonine, L-phenylalanine, L-histidine, L-methionine, L-tryptophan)
What do experts say?
Health experts have advised that one should avoid consuming energy drinks like Bang. They don’t give you any high energy levels and cause a lot of disruption in your body. Instead of drinking these energy drinks, you should ensure a balanced diet and have at least eight hours of sleep every day.
This in itself is enough for you to have reasonable amounts of energy. Even then, if you feel like you have low energy, you can try taking supplements of different vitamins and minerals in tablet form rather than drinking these energy drinks full of chemicals and preservatives. These are also not very good for your heart because they increase the blood flow in your body and make your heart pump faster.
Famous products by Bang
Some famous energy drinks by bang are-
- Pina Colada.
- Bangster Berry.
- Birthday Cake.
- Black Cherry Vanilla.
- Blue Razz.
- Cherry Blade Lemonade.
- Cotton Candy.
- Delicious Strawberry Kiss.
Final word
By now, you must have realized what caused the decline of Bang. Till now, bang has stayed in business as it has been given some time window to work on its flaws. But if the same situation continues for the next three or four months, bang will have to sell its stocks. Initially, bang performed well in the market and was doing a good job, but due to its less activeness and elasticity, it has to see The consequences now.
It is assumed that bang will likely be sold to cover the debt. This organization’s employees have lost faith in the administration and the company’s leaders. All the tragedy had to be faced by everyone in solidarity, but the fault was only of the CEO and other important people in the company.
At this point, they cannot even pay their staff ultimately, so they forget about paying back the debt. This is why it is sad that success is not permanent in a business, and it must be handled and preserved with care to enjoy long-term benefits. Let’s hope that whatever future bank has, the people who have no fault are not affected, and the company somehow manages to rise back after whoever decides to acquire it. Until then, you must know that bang has yet to go out of business, but we need to know what the future has in store.