Bang Energy parent Vital Pharmaceuticals files for bankruptcy
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Vital Pharmaceuticals, the parent of Bang Energy, filed for Chapter 11 protection on Monday.
The filing comes after a summer of speculation over whether Keurig Dr. Pepper (KDP) or another beverage player would move to acquire the company. Such speculation followed the dissolution of a distribution agreement with PepsiCo (PEP), which went on to ink a deal with Celsius Holdings (NASDAQ:CELH) shortly thereafter.
Despite the bankruptcy filing, management remained upbeat about reorganization. A company statement clarified that the pursuit of Chapter 11 protection is a result of ârecent challenges, including multiple lawsuits that impacted the Companyâs short-term outlook and the cost impact of reconstituting the companyâs national distribution network that resulted in a summer revenue gap.â The company recently lost a $293M lawsuit for false advertising to rival Monster Beverage Corp. (NASDAQ:MNST).
âOur inspired and positive contributions have been met with numerous lawsuits from Monster Energy (MNST) and also Pepsi (PEP), basically Big Beverage,â CEO Jack Owoc said. âWe will continue to fight these monster corporations and will not allow them to deprive you of our remarkable beverages and other inventions.â
Shares of Celsius Holdings (CELH) +5.1% and Monster Beverage (CELH) +0.88% rose sharply in the immediate aftermath of the filing on Monday.
Read more on beverage M&A trends.