Did Bang Energy Go Out Of Business? Reasons Behind Bankruptcy & Future Plans

Introduced back in the year 2012, Bang Energy is an American brand of energy drinks. The company is owned by Vital Pharmaceuticals which is another corporation located in Florida. As of the year 2020, Bang Energy drinks were the third most consumed energy drinks in the United States of America after Monster and Red Bull. The drinks of Bang Energy are safe to consume but due to its high presence of caffeine, it is recommended that consumers must stick to the limitations made by FDA.

Last year in the month of October Bang Energy and as well as its parent company Vital Pharmaceuticals declared bankruptcy to help the company recover from the recent challenges that they were facing. Within a couple of months after declaring bankruptcy, Owoc was removed from the position of the board of directors and as well as the CEO in March 2023.

The latest news has surfaced that Monster Beverage has reached an agreement to acquire Vital Pharmaceuticals and the Bang Energy brand. It still remains to be seen whether Bang Energy will be able to emerge from its bankruptcy. 

Bang Energy Filed For Bankruptcy In 2022, But What Happened Next?

Bang Energy was introduced in the United States back in the year 2012 and has witnessed immense growth in its sales over the past couple of years. But, it was in October 2022 when the parent company of Bang Energy, Vital Pharmaceuticals filed for bankruptcy. This was to ensure that Bang Energy and its parent company could be helped by the recent challenges that they were facing in recent years. 

As mentioned earlier, within a couple of months after filing for bankruptcy, Owoc, who was one of the members of the board of directors and also the CEO, was removed from his position in March 2023. Now, there have been talks that the company will be taken over by Monster Beverage and currently the agreement for the same is undergoing.

With the acquisition, it only seems possible that Bang Energy drinks could be back into their business. But, as of now, things will take time for the company to get back on their business.

Monster Energy To Acquire Bang Energy For $362 Million

Monster Beverage Corporation has agreed to acquire Bang Energy for a whopping amount of $362 Million. Monster Corp has won the bankruptcy court approval to acquire their former rival Bang Energy out of Chapter 11 for $362 million and also settle litigation between energy drink companies.

Both Monster and Bang Energy had grown in popularity of their respective drinks through creator partnerships via TikTok and both these companies had a face-off in court when a jury awarded Monster $293 million after it sued Bang Energy for false advertising and other alleged misconduct. 

This acquisition will be giving Monster Beverage Corporation a crucial boost in its energy drink business in the United States. Monster has been the leader when it comes to the highest-selling energy drinks in the United States and now by acquiring one of its rivals the competition for them has only become shorter and the company could use this advantage for the benefit of its business. 

The Future Of Bang Energy After The Acquisition

As of now, the future of Bang Energy is quite uncertain ever since they have declared bankruptcy. The company is in talks and has also been approved by a judge to be acquired by Monster Beverage Corporation. Bang Energy would be losing not just their company to their rival but it is predicted that almost 700 people will be losing their jobs if there was no acquisition. 

The representatives of Bang Energy had said that they would have to liquidate. The judge who granted the approval for the sale of the company has said that it was the best option to make the acquisition so that at least 300 jobs could be saved for Bang. As of now, not many details or information has been released. The acquisition is said to take place by the second half of 2023. 

What Does The Acquisition Mean For Bang Energy Fans?

Bang Energy drink fans could be both happy and as well as sad after the acquisition. Most of the fans will be happy in the sense that the acquisition of the company could help Bang Energy save, retrieve and help in sales of their original drinks which has been the third highest-selling drink back in the year 2020 in the United States. 

On the other hand, fans of Bang Energy would be sad in the sense that there could be changes made by Monster Beverage. This is because it was one of the rival companies for Bang Energy. However, there could be hundreds of employees who will be losing their jobs as well which is a growing concern for the fans and as well as the employees. 

Will Bang Energy Change After The Acquisition?

As of now, there has been no such news or updates that Bang Energy will change its products or their brand. The acquisition is still in progress as Monster Beverage has just recently won the bankruptcy for Bang Energy.

Being the rival of Bang Energy it only seems possible that Monster Beverage Corp upper-level managers will be taking a major decision about the future of Bang Energy drink and how they would like to represent the drink to the customers. 

Therefore, as of now it is a 50-50 decision that Monster Beverage could make about the future. If they want Bang Energy consumers to enjoy the drink then they may introduce the drinks in their original form, taste, packaging, branding, and other such things so that customers are retained. 

The Pros and Cons of The Monster Energy Acquisition

Pros

• Strong management will be taking over the drink business of Bang Energy 
• Bang Energy fans could expect the return of their favorite drink in the market 
• A lot of jobs could be saved by the acquisition 
• In terms of competition, there will be one less to worry about for Monster Beverage 

Cons 

• Even though some jobs would be saved hundreds could still lose their job
• Monster could bring changes in the brand and as of now it is quite unclear 
• Monster could face customer losses if they bring major changes in the taste of the drinks.  

What’s Next For Bang Energy?

As of now it only seems likely that Bang Energy has become helpless. The acquisition is the only thing that will be saving the company and its reputation. However, there are going to be huge side effects after this acquisition. This is because Monster could make changes in the taste of Bang Energy drinks which may not be liked by the fans. But, there is going to be a strong management system after the acquisition.