Rockstar CEO Reports Big Share Gains From CCE Deal.
'Awesome' and 'Shocked.'
Terminations '99% Done.'

Rockstar CEO Russ Weiner says brand has gained significant share since June 1st start of distribution throughout most of U.S. by CCE (BD 4/29/05). Rockstar was formerly distributed mainly by independent bottlers and distributors. Coke/CCE territory covers most of country, except northwest U.S. In addition to CCE, several other Coke bottlers carry Rockstar. Shares. Weiner says from June 1st through end of July, Rockstar posted following share gains where it's handled by CCE: 1) C-stores, 5.7 to 9.5. 2) grocery, 7.6 to 12.3. 3) drug chains, 2.0 to 4.7. Volume. Weiner predicts Rockstar will close to "double" its total volume this year. Last year, it did 9.7 mil 192-oz cases. Weiner says in May-July, its total volume was up about 108%. Canada. Rockstar in mid-September launched in Canada via CCE.

Working with CCE. Weiner sounds nothing less than ecstatic about relationship with CCE. Declares: "It's awesome. I talk to (CEO) John Alm, I'm talking to the top, top guys. (They) are always available to talk to." Before CCE and now. Weiner says with one of his previous large distributors, "I could never get anything done." Adds: "With CCE ... they listen. They want to learn from me, and they want me to work with their people. They're all helpful." 'Shocked.' Weiner notes this wasn't entirely what he expected. Declares: "I'm shocked, they don't act like a big company. And no one bitches about their jobs, they're all happy." Cold channel. Weiner predicts CCE's cold channel reach will help him gain competitively vs Red Bull and Monster. Says: "The thing that will set us apart is in the cold-drink channels. That will separate us (from our competitors) in the future."

Distributor terminations. When Coke and CCE inked their deal with Rockstar back in April, Rockstar had to terminate agreements with many of its existing distributors, many of whom had buy-out clauses. Rockstar's previous distributors included: Dr Pepper/Seven Up Bottling Group, Southern Wine/Spirits, Polar and Kalil. Re terminations, Weiner says there are "no legal issues at all, zero." Says most former distributors have received their termination payouts. "A handful are (complaining) about a small amount ... We're nearly finished ... It's 99% done."