Monster moves to acquire Bang Energy
Monster Beverage Corporation has entered into a deal with Vital Pharmaceuticals, Inc. to acquire Bang Energy.
Since1993, Florida-based Vital Pharmaceuticals, Inc., under the brands Bang Energy and as VPX Sports, has developed performance beverages, supplements, and workout products. In addition to Bang Energy, the company’s products include keto-friendly Meltdown, Quash, Vooz and Redline.
A subsidiary of Monster will take over Bang Energy’s assets, including a beverage production facility located in Phoenix, AZ. At one time, Bang dominated about 10% of the energy-drink market, but market share fell to the single digits in recent years.
In a release, Monster emphasized the transaction is subject to certain terms and closing conditions: "While Monster is hopeful that the Transaction will be completed, there is no guarantee that it will receive Bankruptcy Court approval."
Bang Energy filed for Chapter 11 protections under the U.S. Bankruptcy Code in October 2022.
At the time, Jack Owoc, CEO and founder of VPX said his aim was to regain lost market share: “We are excited about our future, and particularly the new distribution system that we have spent the better part of this year assembling. We are coming like a freight train and cannot be stopped.”
Ironically, Owoc's company had recently lost a US$293-million lawsuit for false advertising to rival Monster Beverage Corp. Court documents revealed that Bang’s parent company oweed more than $500 million to Monster Beverage Co., as well as Orange Bang, a small California juice maker. It owed another $115 million to PepsiCo Inc., its former U.S. distributor.
California-based Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries, which develop and market sparkling and still water; hard seltzers and flavoured malt beverages brands, as well as more than 25 energy drink brands, including Monster Energy drinks, Monster Energy Ultra energy drinks, Juice Monster Energy + Juice energy drinks, Java Monster non-carbonated coffee + energy drinks.
