AG Barr has issued a bullish statement in reaction to the news that PepsiCo Inc intends to buy the Rockstar energy drink brand.
The Cumbernauld based firm has exclusive rights to produce and distribute Rockstar in the UK, Ireland and some continental European countries under a franchise agreement with its US parent company. Irn-Bru maker AG Barr counts on Rockstar for around 8% of its sales and said its contract with "several years" remaining.
PepsiCo's acquisition of Rockstar Energy Beverages is reported to be worth $3.85 billion.
AG Barr said: "PepsiCo has been a distribution partner for Rockstar in North America since 2009. AG Barr has been a franchise partner of Rockstar since 2007 and retains the exclusive distribution rights for the Rockstar brand in the UK, Ireland and certain European territories. A.G. BARR has a long term contract, extending for several years, for the manufacture and sale of the Rockstar energy brand, which contributes approximately 8% of the Group’s sales volumes."
Last year AG Barr addressed problems with the recipe for its Rockstar lines, which it blamed for disappointing sales during 2018.
