Getting one of the top 4 best selling energy drinks and you ask what we are doing? Yes Monster sells a alot, but do the math. Amp, Sobe and now RockStar. We now have twice as many flavors as Monster including the new No Fear Green Tea, Black Tea, and Amp Lemonade. I'm sure your happy with Monster but your selling your self short being happy about losing cases.

I hate losing cases anytime, but in the long run I will still sell 10 times the energy I did last year, and thats even after we lose Rockstar. In alot of accounts, space for Moster and Nos were needed anyway, and with a two months heads up hopefully Rockstar can move out by then and will be forced into Pepsi cold vault space. I know I wont order it anymore unless forced to.

Originally Posted by BhamCokeman

I hate losing cases anytime, but in the long run I will still sell 10 times the energy I did last year, and thats even after we lose Rockstar. In alot of accounts, space for Moster and Nos were needed anyway, and with a two months heads up hopefully Rockstar can move out by then and will be forced into Pepsi cold vault space. I know I wont order it anymore unless forced to.

There lies your problem. Any good Rep myself included have already planned to maintain the space that RockStar has as of now. I'm talking about cold vault. No rep is going to leave foriegn product in there cooler but vault space is a daily fight as we all know. For me my job is half done cause any spcae Rockstar currently has remains the same. More space more cases. Win Win for Pepsi.

Originally Posted by Red Sox fan

Yes, I don't think anyone is claiming that Alabama is ROCKSTAR country (I think thats where your from).
Greg-good to see you can admit when you are wrong. I HONESTLY did not see the article you saw but I am pretty sure I know which service you are talking about. I will check it out. I still take issue with the fact that you said "I do not know what the terms of the agreement are"..but then went on hypothosize anyway with a clear negative slant. That's fine to have an opinion, but I for one respect informed opnions a lot more.

Thanks for the backhanded compliment, however, I think I am informed. I have sat in meetings with decision makers at Coke, Pepsi, DPSG(formerly DP7UP) and AB throughout my beverage Industry career..I think I know how the Industry works thank you and driving company brands sales always trumps driving sales of licensed brands! ALWAYS!
You need to stop being so altruistic and start thinking in terms of reality.

So what if my opinion has a negative slant...Its an opinion. Sorry it isn't cohesive with yours. That is what I see happening from my experience. What is BOOKOO doing in CCE's system now? Why was it even brought in to the fold? Coke didn't need it.

Originally Posted by greg

Thanks for the backhanded compliment, however, I think I am informed. I have sat in meetings with decision makers at Coke, Pepsi, DPSG(formerly DP7UP) and AB throughout my beverage Industry career..I think I know how the Industry works thank you and driving company brands sales always trumps driving sales of licensed brands! ALWAYS!
You need to stop being so altruistic and start thinking in terms of reality.

So what if my opinion has a negative slant...Its an opinion. Sorry it isn't cohesive with yours. That is what I see happening from my experience. What is BOOKOO doing in CCE's system now? Why was it even brought in to the fold? Coke didn't need it.

First off BOOKOO was never in CCE's system. Incorrect facts again. However, the answer to your question about Bookoo is simple. SOME coke bottlers (Consolidated etc.) brought it into their systems as a way to replace or hedge against ROCKSTAR..IT FAILED COMPLETELY. Thats one of the main reasons Rockstar left the coke system finally. Both the parent company (KO) and the bottlers continued to launch new sku's that were terrible and at the end of the day only took up valauable space/focus from ROCKSTAR (which they should have been focusing on all along).

If you notice the new deal with PEPSI is directly with PEPSICO (pepsi parent company as you know). While there is no equity involved, there SIGNIFICANT interest in the deal to give them incentive to make sure the deal works and ROCKSTAR is a priority within their system. Both companies recognize the pitfalls of the situation you explain above, having been through it in the past (Rockstar with Coke, Pepsi with brands like Sobe etc).

Originally Posted by Red Sox fan

First off BOOKOO was never in CCE's system. Incorrect facts again. However, the answer to your question about Bookoo is simple. SOME coke bottlers (Consolidated etc.) brought it into their systems as a way to replace or hedge against ROCKSTAR..IT FAILED COMPLETELY. Thats one of the main reasons Rockstar left the coke system finally. Both the parent company (KO) and the bottlers continued to launch new sku's that were terrible and at the end of the day only took up valauable space/focus from ROCKSTAR (which they should have been focusing on all along).

If you notice the new deal with PEPSI is directly with PEPSICO (pepsi parent company as you know). While there is no equity involved, there SIGNIFICANT interest in the deal to give them incentive to make sure the deal works and ROCKSTAR is a priority within their system. Both companies recognize the pitfalls of the situation you explain above, having been through it in the past (Rockstar with Coke, Pepsi with brands like Sobe etc).

In my haste, I wrote off the top of my head. Coke Consiolidate and Coke United is where BooKoo landed. But the fact remains the same, What is BooKoo doing for them now? Semantics not withsatnding, the spirit of the argument remains the same.

So what does SIGNIFICANT interest really mean? You obvioulsy have been around this business for a while, surely you can see my argument/opinion? Suppose the "interest" is a $10mm per annum licensing fee(on top of case cost)....is that really significant for Pepsi to let a brand die in its distribution system? In the long run will it not benefit PEPSI to write off $100mm from 10 years Licensing fees over a much longer period, or better yet, make it one lump sum to apply to EBITDA saving them more in the short term and gaining a position or two in the overall category?

See, that is why they are entering into a Licensing agreement instead of buying them outright. Buying them takes up too much cash up front as well as makes them liable for the brand for years and years.

And BTW, That is ONE Fact I had wrong when I mentioned CCE, not "another" or "again" as you pointed out. The other things I said are opionions. I never stated them as facts.

This deal had to happen, there was no way that Rockstar could continue to play second fiddle in the KO bottling system or with the small independent distributors.

Pepsi would be smart to get rid of the entire No Fear line and concentrate on Amp and Rockstar.

I wish Rockstar all the best, I always felt it was a good brand to carry. Anyone know when this deal takes effect? I assume that the CCE/Rockstar deal will be terminated very soon, correct?

Greg I am with you on this one. The Rockstar Brand is not what it was and the shot does not sell. Going with Pepsi seems like a bright spot but I think you are right... it is on the shelf and thats about it. Don't look for Pepsi to go crazy with this brand. Coke made a very good move.

I am incredibly excited over the move. Back when Coke signed their Monster agrement, it was made very clear that Rockstar can leave at any time if they felt they were on the back burner. The second I saw that, I thought it was a perfect set up for Pepsi to jump into the system and grab one of the top energy drinks. We got it. Does this change the landscape of the business? No. I have not noticed much change for Monster here in Northern California, except for more POS durring trade tours. But, they have used Monster to leverage more space for their Full Throttle and Nos lines. Rockstar is huge to us. Obviously, a profitable case sale in a slower economic time. A tool for us to gain more space in the cold valt. A HUGE moral booster for all my sales reps., and extra padding in their pay checks. More cooler in the field, more sponsorships. I love it. Great for Pepsi, Great for Rockstar. Hopefuly in many areas it will help were there are 3 or 4 different houses that carry the brand. (Here 7-up, Southern Wine and Spirits, and a couple Grocery Distributors).

Originally Posted by greg

In my haste, I wrote off the top of my head. Coke Consiolidate and Coke United is where BooKoo landed. But the fact remains the same, What is BooKoo doing for them now? Semantics not withsatnding, the spirit of the argument remains the same.

So what does SIGNIFICANT interest really mean? You obvioulsy have been around this business for a while, surely you can see my argument/opinion? Suppose the "interest" is a $10mm per annum licensing fee(on top of case cost)....is that really significant for Pepsi to let a brand die in its distribution system? In the long run will it not benefit PEPSI to write off $100mm from 10 years Licensing fees over a much longer period, or better yet, make it one lump sum to apply to EBITDA saving them more in the short term and gaining a position or two in the overall category?

See, that is why they are entering into a Licensing agreement instead of buying them outright. Buying them takes up too much cash up front as well as makes them liable for the brand for years and years.

And BTW, That is ONE Fact I had wrong when I mentioned CCE, not "another" or "again" as you pointed out. The other things I said are opionions. I never stated them as facts.

Ok greg/SP, so according to this logic Monster will also fail in the Coke system, right (also licensed brand)? And further why is that that both Monster and Rockstar outshare Full Throttle/amp by triple/double respectively although neither one has EVER owned their own distribution system. Also please reconcile the success of every other succesful independant brand (Vit Water etc) who relied on third party dists..If I were extrapalate your opinion out the only brand that has a shot is Red Bull (own their own distro).

look, I understand your point. There is clearly a history of brands that enter the coke/pepsi systems and get lost, quick. What I am sayng is Rockstar understands those risks (maybe better than anyone else out there) and has done its best to mitigate them. Time will tell..