"It’s hard to separate Bang Energy from its founder. The product itself and the brand built around it is hardly enough to create such an emotional response," noted Schall. There's also the matter of the brand's polarizing founder Jack Owac, who became more and more of a caricature and spectacle as Bang Energy gained market attention.
"While Bang Energy is essentially going back to a distribution model that produced a lot of great results pre-Pepsi with a lot of the same DSD partners it comes with a slew of execution risks along with the fact that they won’t have the same market momentum and exclusivity on those trucks," said Schall. In its statement, VPX Sports said it intended to recapture the 3.4% market share it lost under PepsiCo's distribution network with more than 269 distributors. You have costs that outweigh current revenue levels and the only way to fix that is through cost-cutting measures which is a publicity nightmare."Īnd then came the public breakup between Bang Energy and PepsiCo in June 2022, in which Bang announced it would be exiting the beverage giant's distribution model. an asset-light model, like say Monster, and deciding to add capacity fast and furious-style based on earlier aggressive growth models, you end up with this oil and water business problem. "By choosing to vertically integrate themselves vs. "My speculation is this financial trouble arose from the lack of growth that happened between 20 mixed with business model choices at Bang Energy," Schall noted in his recent YouTube video outlining the rise and fall of Bang Energy. VPX intends to use the Chapter 11 process to recapitalize and emerge from bankruptcy well-positioned to continue its rapid growth in the beverage market." 'It’s hard to separate Bang Energy from its founder' 3 energy drink brand and landing a distribution contract with PepsiCo, Bang Energy was on an upward climb that coupled with founder Jack Owac's larger-than-life personality attracted both the attention and ire of its competitors, according to Schall.īut it appears the soaring brand may have flown too close to the sun with the news - announced Monday - that the VPX is seeking Chapter 11 bankruptcy protection.Īccording to VPX, the filing is a " restorative action to help the company recover from recent challenges, including multiple lawsuits that impacted the company’s short-term outlook and the cost impact of reconstituting the company’s national distribution network that resulted in a summer revenue gap.
Emulsifiers, stabilizers, hydrocolloidsĪfter skyrocketing into a market-leading position in the energy drink category hitting $1.3bn in revenue in 2019, surpassing PepsiCo's RockStar Energy as the No.
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