US – American beverage and coffeemaker conglomerate, Keurig Dr Pepper, has distanced itself from any links to acquiring the owner of Bang Energy drinks, Vital Pharmaceuticals (VPX).
In a statement, the company said: “We are not pursuing a partnership with Vital Pharmaceuticals for the Bang brand.”
However, Keurig noted that it was open to pursuing any merger or acquisitions which could put it in a better position to grow and increase profits.
Through its strong nationwide omnichannel selling and distribution system, including its company-owned DSD network, Keurig is leveraging on this important asset to drive strong in-market execution and market share growth for brands and those of its strategic partners.
According to the Bloomberg report, sources within Keurig Dr Pepper valued VPX somewhere between US$2 billion to US$3 billion for the takeover.
The news of a possible deal comes shortly after Bang Energy dissolved its distribution deal with PepsiCo, in June 2022 following nearly two years of legal disputes.
The speculated deal that has been denied was to be the latest in a series of deals by beverage giants, with Coca-Cola Co acquiring the rest of BodyArmor it did not own for US$5.6 billion and PepsiCo Inc taking a stake in energy drinks maker Celsius Holdings Inc.
The deal with BodyArmor in 2021 was a shift in strategy for Coca-Cola which spent the preceding year offloading or discontinuing brands, including its own energy-drink brand, to focus on its sodas.
In June 2022, 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 clutching at Station Agro-Biotech’s R&D expertise in the category and Keurig’s sales and distribution network.
Bank of Nova Scotia breaks out of Keurig Dr Pepper
Elsewhere, Bank of Nova Scotia has cut its holdings in shares of Keurig Dr Pepper by 91.5% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
The institutional investor owned 18,472 shares of the company’s stock after selling 199,693 shares during the period.
Bank of Nova Scotia’s holdings in the beverage giant was worth US$700,000 as of its most recent SEC filing.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro-industry. SUBSCRIBE HERE.
