Keurig Dr Pepper Inc. is in talks to buy the maker of Bang Energy drinks, Bloomberg News reported on Thursday, at a time when traditional beverage makers are investing in smaller brands.
The deal price for the owner of the energy drink brand, Vital Pharmaceuticals Inc or VPX, has not been finalised, the report said, citing people with knowledge of the matter.
One of the people said VPX could be valued at over $2 billion, while another person placed the figure at more than $3 billion, according to the report that said talks are in an early stage.
Coffee maker Keurig Dr Pepper and VPX did not immediately respond to requests for comment from Reuters.
Series Of Deals
A deal for VPX could mark the latest in a series of deals by beverage giants, with Coca-Cola Co acquiring the rest of BodyArmor it did not own for $5.6 billion and PepsiCo Inc taking a stake in energy drinks maker Celsius Holdings Inc.
The deal with BodyArmor in 2021 marks a shift in strategy for Coca-Cola that spent the preceding year offloading or discontinuing brands, including its own energy-drink brand, to focus on its sodas.
In June, Keurig Dr Pepper entered into a definitive agreement to acquire global rights to the non-alcoholic, ready-to-drink cocktail brand Atypique from Station Agro-Biotech.
The agreement includes a multi-year collaboration between the two companies to boost growth for Atypique by leveraging Station Agro-Biotech's R&D expertise in the category and Keurig Dr Pepper's sales and distribution network.
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