"I might even be a Rockstar"... Hannah Montana said it best, but Pepsi's feeling it — it just bought Rockstar Energy for $3.85B. Russ Weiner founded the canned energy company in '01 (his mom was CFO). Pepsi has distributed Rockstar since '09, but that deal meant it couldn't launch a Mountain Dew-branded energy rival — now that it's acquired Rockstar, its energy ambitions are unlimited. The rest of Big Bev is shifting from sugary sodas too for these reasons...
Or combine the 2 for a winning strategy... For years, Big Bev lagged in the exploding health/energy sector. Lately, it has been upping its "functional drink" game:
Big Bev needs "functional bev"... Something providing more than just sugar/alcohol. With the Rockstar acquisition, Pepsi immediately gets the #3 spot in energy drinks (after Monster and Red Bull). It can also go big on its Mountain Dew line and do energy in-house. Sodas aren't far from energy drinks (caffeine, sugar, unpronounceable chemicals) — maybe Big Bev just has to throw in vitamins, more caffeine, and more extreme names (Coke Energy is the epitome).