Did Bang go out of business? Energy drinks are staple companions for nocturnal adventurers, athletes, and those simply looking for a fizzy, flavorful burst of energy. But what happens when an industry giant like Bang Energy faces seemingly insurmountable challenges?
Of course, it will bring numerous questions in one’s mind. Bang is undoubtedly one of the leading players in the industry, recording about $300 million in sales by mid-2020. But recently, the company has come under some serious waters that have left a toll on its sustainability.
So, is Bang going out of business? In this article, we will take a deeper dive into the several issues surrounding Bang to help you see what’s really happening behind the scenes at Bang Energy. Did Bang go out of business? Just keep reading to find all the answers you need.
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A Quick Look at Bang Energy
Before we go ahead to answer the question: did Bang go out of business? Let’s take a quick look at what the company represents.
Bang Energy was founded by Jack Owoc many years ago and operates under the wings of its parent company, Vital Pharmaceuticals. The company has recorded a lot of success over the years, and in 2020, it was named the leading energy drink in the U.S.
Pioneering adventurous flavors like “Birthday Cake Bash” and “Radical Skadattle,” Bang didn’t just satisfy taste buds but provided a vibrant lifestyle alternative. But how did such a successful entity find itself threading on the brink of dissolution?
Bang’s journey was not without hurdles; recent developments unveiled a series of lawsuits, notably from Monster Energy, which led to series of issues and challenges for the company.
A consequential $293 million verdict against Bang, on account of false advertising and trade secret violations, set the stage for a tense atmosphere in the industry and began tilting the scales against them.
If you are a fan of Bang Energy, chances are that you are already aware of the different challenges facing the company. But did Bang go out of business? Let’s get an answer for that in the section below.
Did Bang Go Out of Business?
Let’s answer the question in simple terms: Bang Energy had some troubles, but did it completely go out of business? Not quite. Even though the company went through some sticky situations, it didn’t entirely vanish out of the market.
Instead, something else happened: Monster Energy swept in at a crucial moment. This was significant because Bang was facing various lawsuits and was weathering a storm of financial woes. But Monster’s entry onto the scene turned the tables a bit.
Bang Energy was well-known for its flashy marketing and catchy, energetic branding that entices fitness enthusiasts and energy drink fans alike. The brand prided itself on being a potent drink for those seeking a zestful lift in their day.
But as things often go in the business world, behind the lively commercials and colorful cans, there were some darker undertones brewing. Legal troubles, notably linked to their marketed “Super Creatine” and alleged false advertising, started to pile up, casting a shadow over the brand’s future.
Monster Energy, another giant in the energy drink space, saw an opportunity amidst Bang’s distress and decided to acquire the company. This move has been crucial in keeping Bang Energy alive, steering it away from completely fading out.
While the Bang of yesterday might look a bit different under Monster’s umbrella, it’s safe to say that, for now, the brand will continue to exist. Bang will continue to offer its vibrant range of drinks to the consumers who’ve grown to love them. So, in a nutshell, Bang Energy didn’t disappear – it just found a new home with Monster.
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Bang Energy Faces Financial Troubles
Bang Energy, once a giant in the energy drink realm, hit a pretty bumpy road that caused some serious headaches for the company. Imagine being at the top, with your drinks flying off the shelves, only to hit a wall of financial troubles so hefty it shakes the very core of the business.
That’s exactly what happened to Bang. The company, cherished for its bold flavors and lively can designs, faced a slew of lawsuits that had them coughing up a lot of cash, to the tune of millions, and let’s just say that’s no small pocket change.
These legal battles were not just tiny squabbles; they were big, impactful, and notably damaging. A notable adversary in the courtroom was none other than Monster Energy, who came down hard on Bang for reasons like false advertising.
These court cases not only had Bang shelling out huge sums of money but also put a serious dent in their reputation, causing a ripple effect that shook their financial stability and drove them to a harsh reality of debt and bankruptcy.
Monster Sued Bang Energy for the Second Time
The clashes between Monster and Bang transgressed beyond the competitive spirit seen amongst market rivals. Legal conflicts brought them head-to-head in courtrooms, with Monster pursuing litigation against Bang primarily for false advertising claims concerning “Super Creatine.” This wasn’t a one-off clash; Monster had Bang in its legal crosshairs on two notable occasions.
The first lawsuit saw Monster emerge victorious, saddling Bang with a monumental $293 million payout. An astonishing figure that undeniably played a pivotal role in Bang’s ensuing financial woes.
Undeterred, Monster pursued a second lawsuit, accusing Bang of persisting with the disputed advertising claims. Once again, the court ruled in favor of Monster, affirming Bang’s predicament.
So, it wasn’t just once that the company was sued by its dare rival. And on the two occasions, it lost the case, leading to the loss of huge sums of money.
Monster Energy Acquired Bang
In a twist laden with irony, Monster, once the plaintiff leading the charge against Bang, emerged as its savior, but through acquisition. Monster took control of Bang’s operations, including their 400,000-square-foot manufacturing facility near Phoenix, transitioning from rival to owner in an unexpected turn of events.
The acquisition, approved by a judge under the premise of salvaging over 300 jobs at Bang, was not simply a business transaction. For Bang, it was a lifeline, averting total liquidation and preserving a portion of its workforce, which otherwise stood on the brink of massive unemployment.
What Does This Acquisition Mean for Bang Energy Fans?
When Monster Energy stepped in to acquire Bang, it was like a twist in a movie. While the brand Bang is sticking around, things might look a bit different under new leadership.
Without Monster coming into the scene, Bang would have crashed under the heavy weight of its financial woes. So, the acquisition means fans can still get to enjoy their favorite Bank drinks.
However, with new management, changes are inevitable, and while Monster might bring in some new ideas or flavors, the essence of Bang that many have come to adore is likely to echo in whatever comes next.
What is Super Creatine?
“Super Creatine” sounds fancy and potent, doesn’t it? Bang Energy sure thought so when they claimed their drinks were powered by it. Traditionally, creatine is well-known in the fitness world for its muscle-building and energy-boosting properties.
However, Bang presented “Super Creatine,” or Creatyl-L-Leucine, as an even more powerful, stabilized form of the traditional creatine we know. It’s a chemically tweaked version, combined with another ingredient, leucine, that was touted to be a superior, more absorbable form of the classic supplement.
However, it was discovered that things were not really as Bang called them. This made Monster sue them under the premise that Bang advertising its drinks to contain super creatine, which it doesn’t contain, could cause even their favorite customers to turn to Bang. Of course, that landed Bang Energy in a serious legal issue.
What’s the Deal Between Bang & PepsiCo?
In a saga that interweaves legal battles and bold strategic moves, Bang Energy and PepsiCo entered a distribution deal in 2020, envisioning a cooperative future. Nevertheless, the deal experienced a premature demise as Bang Energy sent a termination agreement to PepsiCo a few months later, with no reason in particular.
Despite this, due to an emergency arbitrator rule, PepsiCo continued as the exclusive distributor of Bang until the end of 2023. Again, Bang Energy got sued for this, with allegations of miscommunication and foul play being thrown into the ring.
However, according to Jack Owoc, both PepsiCo and Bang resolved their disputes, although the particulars of their resolution remain undisclosed.
Did Bang Go Out of Business – Final Note
So, did Bang Energy go out of business? Well, yes and no. They hit some really tough times with money and legal issues, which caused a lot of struggles. But then, Monster Energy stepped in and bought them.
So, while Bang as we knew it faced a lot of troubles, the drinks we love are still around, just with a new company in charge. It’s a bittersweet end, but also a fresh start for our favorite colorful cans and a reminder that in business, anything can happen!