In 2013, Senator Ed Markey (MA) and Dick Durbin (IL) launched an investigation on energy drinks and released a report showing that energy drink companies frequently host events that cater to high school students and launch advertising campaigns in youth-oriented social media. But its recent challenges have not done the company any favors as it goes up against a number of heavyweight brands, including Rockstar, which is owned by PepsiCo, Monster and the fast-growing Celsius, among other players.While many energy drink makers claim they do not market to young people, energy drink advertising continues to influence young consumers. Still, Owoc said at the time that Bang intends to regain its “formidable” market share. He vowed to continue fighting large corporations, including Monster and PepsiCo. “We are coming like a freight train and cannot be stopped,” he said.īut Vital is now set for a bankruptcy court auction, the South Florida Business Journal reported last week, and it’s likely the board believed it could better maximize its value in a sale under the direction of a new CEO.īang still has a highly recognizable brand name in the growing energy drink marketplace. In a statement announcing the bankruptcy, Bang said the PepsiCo deal led to a decline in market share, from about 9.7% just before the transaction to 6.3% when it exited, equating to about $680 million in lost sales.

Monster was identified in bankruptcy court papers as Bang’s largest unsecured creditor. Bang also owed PepsiCo $115 million under a settlement, as well as $2.1 million from consumer programs, according to documents filed in bankruptcy court. The filing came after Monster Energy won $293 million in a false advertising and trade secrets case against Bang. Then last October, Vital filed for bankruptcy to “help the company recover from recent challenges” and to put in place a new distribution network. The decision resulted in a bitter and protracted period of litigation before the companies parted ways. “We sincerely expected PepsiCo to execute at an even higher level based on their enormous resources and promises. Unfortunately, we were wrong. PepsiCo, you’re fired,” he said. Vital entered into what appeared to be a promising distribution deal for Bang with PepsiCo in March 2020, but just eight months later Vital announced it was terminating its exclusive distribution partnership “citing multiple issues and concerns regarding PepsiCo’s performance,” Owoc said. DiDonato and the executive leadership team for their stewardship and to the talented and hard-working members of the Bang Energy team for their unyielding commitment to the brand.”īang’s recent challenges have upended what had been a favorable time in the brand’s history. “We acknowledge Jack’s vision in founding this leading brand and creating a world-class product in the energy drink category,” Steve Panagos, chairman of the board, said in a statement. “As the Company continues to pursue value maximization, we are grateful to Mr.

While Bang’s statement announcing the departure of its founder was light on details, it’s likely the board lost confidence in Owoc and wanted a new leader during a challenging period in the company’s history. The sudden departure of Owoc is the latest in a series of high-profile incidents that have impacted Bang and its parent company during the last several years.

Bang energy drink advertising