Why Did Bang Energy Go Bankrupt? Lawsuit, Debt, and Monster Energy’s Takeover

Bang Energy’s Rise – The Disruptor of the Energy Drink Market

Bang was quietly sold as one of the strongest energy drink brands with the highest caffeine content (375mg) in the U.S. until around 2015.

Originally, Bang had a hardcore, dark-side image and was a niche energy drink brand.

From a Minor Brand to a Major Brand: Successfully Rebranding

In order to break free from being a minor brand, Bang completely revamped its design and reconsidered its ingredients, reducing the caffeine content to 300mg and incorporating "Super Creatine" to rebrand itself as a fitness-oriented energy drink.

In fact, after the rebrand, Bang expanded its distribution to various stores such as convenience stores and supermarkets.

By 2018, Monster Energy Had Recognized Bang as a Threat

To understand how much of a threat Bang had become, you can look at how Monster Energy released a new energy drink brand called "REIGN", which was similar to Bang.

REIGN’s appearance was clearly inspired by the Bang series, and it contains high caffeine (300mg) and fitness-oriented ingredients.

Bang Transforms into a Pop Brand for Gen Z

Even after the release of REIGN, Bang’s rise continued unabated. In fact, it successfully expanded its share even further, leaving REIGN behind.

The shift from the previous black-based brand color to a white-based, colorful brand palette was a shocking transformation. By increasing its exposure on social media and targeting a younger, more pop and active audience, Bang gained explosive popularity. The goal was to move away from the hardcore image to a more mainstream, bright brand image. This shift was a tremendous success, and Bang surged to the third position in the U.S. energy drink market share.

In 2020, a Surge of New Emerging Energy Drink Brands

Inspired by the Bang series, other new energy drink brands emerged, offering zero sugar, high caffeine, and fitness supplement-based products, and utilizing social media marketing targeting younger generations. By 2022, nearly all energy drinks in the U.S. were filled with zero-calorie, high-caffeine products.

In this way, it’s clear that Bang was a game-changing presence in the U.S. energy drink market.

The Lawsuits That Shook Bang Energy

Bang’s success was not without challenges, as ongoing lawsuits with Monster Energy gradually weakened the brand.

Monster Energy vs. Bang Energy – A $293 Million Lawsuit

Monster Energy sued Bang Energy for false advertising, claiming that "Super Creatine" was neither a special ingredient nor had any unique effects.

Bang Energy marketed Super Creatine as a compound that converts into creatine in the body. However, it was later revealed that this compound did not provide the proven benefits of creatine. This misleading claim led to a lawsuit, and in 2022, Bang Energy lost the case. The court ordered Bang Energy to pay $293 million in damages.

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Distribution Dispute with PepsiCo – A Broken Partnership

In 2020, Bang Energy signed an exclusive distribution agreement with PepsiCo to expand its market reach. However, this partnership collapsed within just 18 months, and Bang was reported to owe $115 million in damages for early contract termination.

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Trademark Infringement Lawsuit from "Orange Bang"

The beverage company "Orange Bang," founded in 1971, had held the trademark for "Bang" since the 1980s. Orange Bang sued VPX for unauthorized use of the name.

The court ruled against Bang Energy, ordering it to pay $175 million in damages. Additionally, Bang was required to pay Orange Bang a 5% royalty on future sales under the "Bang" brand.

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Financial Crisis – How Lawsuits Led to Bankruptcy

As a result of these lawsuits, Bang Energy, which had grown to become the third-largest energy drink brand in the U.S., failed to secure sufficient funding and was forced into bankruptcy.

After filing for bankruptcy, Bang Energy attempted to restructure its business, but its massive debts made recovery nearly impossible. This led to asset liquidation and a competitive bidding process for the brand’s survival.

The Collapse, Bankruptcy, and Acquisition of Bang Energy by Monster Energy

In 2023, Monster Energy acquired Bang Energy for $362 million (approximately 53 billion yen).

After a large-scale lawsuit and adversarial relationship, Monster Energy acquired Bang... It seems that Bang, which had rapidly grown to become the third-largest energy drink brand in the U.S., had become a threat beyond expectations.

Under Monster Energy, Bang's Brand Power Dramatically Declines

After being acquired by Monster Energy, the Bang series lost its presence in stores. By 2024, under Monster Energy's umbrella, it had deteriorated to the level of "other energy drink brands (hardly available on store shelves)." Given the presence of the iconic CEO "Jack Owoc" and his unique promotion and branding, it seemed uncertain whether Monster Energy could replicate the same level of promotion and brand image, which likely contributed to Bang’s decline into just another "energy drink."

Famous Brands Entering Under Monster Energy's Umbrella Follow a Similar Path

Historically, other energy drink brands with their own distinct strategies, such as burn, Mother, Full Throttle, Relentless, Live+, which entered under the partnership of Coca-Cola and Monster Energy, all saw a decline in their brand power, and have also become part of the "other energy drink" category.

The Rise and Fall of Bang, a Game-Changer in the U.S. Energy Drink Market

Bang was a game-changer that brought fundamental changes to the U.S. energy drink scene, creating a major movement. However, it is very disappointing that it ended up in such a situation. Observing Bang's decline emphasizes the importance of properly managing legal risks and brand strategies.

Many of the lawsuits Bang faced seem to stem from the disregard of legal risks. As a result, the brand's unique promotions and image have completely disappeared, which is truly unfortunate.

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