Rockstar Vitality’s income progress returns after PepsiCo redesigned the model

Rockstar Energy Drink

Arun Nevader | Getty Images

Rockstar Energy’s sales are growing again after years of weak or even declining demand after new owner PepsiCo redesigned the brand a few months ago.

Still, PepsiCo CEO Ramon Laguarta told analysts Thursday that it was too early to tell if new consumers are trying Rockstar’s energy drinks.

“I would say it’s too early to remember if we are really bringing new consumers to the brand and if those consumers are sticking with the brand,” he said. “I think we will need a few more quarters to really understand what is happening at the consumer level.”

Pepsi bought the struggling beverage brand last year for $ 3.85 billion as part of their broader push towards higher caffeinated options, like the launch of Mtn Dew Rise in March. Rockstar had lost market share to newcomers, and rival Monster Beverage is still the top energy drink maker.

Earlier this year, Rockstar aired its first Super Bowl ad starring rapper Lil Baby to reintroduce the brand to consumers. Cans of Rockstar also got a new logo and fresh packaging.

In Germany, Pepsi launched Rockstar Energy + Hemp earlier this month, but Laguarta told analysts not to draw any conclusions about whether the company will launch the product elsewhere.

The brand revival comes as Pepsi prepares for consumer behavior to change again in the wake of the pandemic. The company expects demand for its North American beverage unit to rebound as more consumers return to restaurants, stadiums, and movie theaters. Executives also said they anticipate a shift back to smaller packaging for snacks and beverages, but there is still some uncertainty about whether consumption at home will last longer.

“I think the consumer will be showing us more in the next six to nine months,” said Laguarta.

Pepsi’s shares rose less than 1% in early day of trading after the company beat Wall Street estimates for first-quarter earnings and sales. Despite difficult comparisons due to last year’s inventory levels, the company posted sales growth of 6.8%.

You might also like

Comments are closed.