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Home » Emergency Arbitrator Says PepsiCo Remains Bang's Exclusive US Distributor

Emergency Arbitrator Says PepsiCo Remains Bang's Exclusive US Distributor

Bang Ordered to ‘Cease’ Activity in PepsiCo Distribution Territory

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December 8, 2020

An emergency arbitrator has ordered Bang Energy for now to stop actions to take distribution back from PepsiCo. The interim ruling filed today also orders Bang owner Vita Pharmaceuticals to abide by the terms of its distribution agreement with PepsiCo during the contract’s three-year notice period.

Bang terminated a distribution master agreement with PepsiCo without cause in October and later filed a lawsuit against the company. PepsiCo filed for arbitration on Nov. 23 under the terms of the agreement, claiming that Bang breached the distribution agreement and owes PepsiCo a “separation amount.” PepsiCo also asked for a declaratory judgement that it is the exclusive distributor of Bang for at least three years. The full case remains open.

The Interim Order is available for Beverage Digest subscribers HERE.

Bang CEO Jack Owoc and a company attorney did not immediately respond to an email seeking comment.

PepsiCo reacted to the ruling in an emailed statement to BD:

“We are pleased with the arbitrator’s emergency order that clarifies PepsiCo remains the exclusive distributor of Bang products in the United States until October 2023. This order upholds the importance and enforceability of distributor agreements and reaffirms the high standard of integrity to which we hold ourselves and expect of our partners.

As we’ve said before, serving our customers remains our top priority. To best serve our customers, bottling partners and our associates, PepsiCo will continue to abide by our agreement with VPX and vigorously defend and enforce our rights granted under the agreement, as confirmed by yesterday’s arbitration order.”

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