By Colin Kellaher
The maker of Bang Energy drinks on Tuesday said it is terminating an exclusive U.S. distribution agreement with PepsiCo Inc. that the companies struck earlier this year.
Vital Pharmaceuticals Inc. said the termination, which is effective in October 2023, was due to "multiple issues and concerns regarding PepsiCo's performance" since the partnership began in April.
PepsiCo said it was disappointed that Vital is moving to end the deal, "especially given the rapid success we've had in significantly expanding the presence and availability of Bang Energy drinks in retail and foodservice across the country."
PepsiCo noted that it remains the exclusive distributor of Bang drinks in the U.S. for the full termination period, and that it will continue to fulfill its obligations under the agreement.
PepsiCo in late April announced the Bang deal just at it completed its $3.85 billion acquisition of Rockstar Energy Beverages as part of a push to expand its presence in the fast-growing energy-drink category.
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(END) Dow Jones Newswires