If you are a fan of Bang, one of the questions that will likely be on your mind now is: Is Bang going out of business? From recent news about the company, it seems like our favorite energy drink company is facing some serious challenges lately, and there’s a lot of buzz about whether Bang is heading toward a tough spot.
With competition in the energy drink market heating up and some legal battles thrown into the mix, things have been far from smooth for Bang and its parent company. So, are they really going out of business?
In this post, we will be diving deep into the recent happenings at Bang to uncover the truth behind the rumors. Just keep reading – the answer to the question ‘Is Bang going out of business?’ lies here.
Is Bang Going Out of Business?
A few years back, Bang Energy burst onto the scene, captivating energy drink enthusiasts with its vibrant cans and adventurous flavors like “Birthday Cake Bash” and “Radical Skadattle.”
The company was founded by Jack Owoc under the parent company Vital Pharmaceuticals and recorded a remarkable $300 million in sales by May 2020. Bang’s success even crowned it as the top-selling energy drink in the USA, outpacing industry giants like Red Bull and Monster.
However, the tides turned swiftly, and Bang found itself facing a tough uphill battle. In October of the same year, both Bang and its parent company were compelled to file for bankruptcy, citing the need to overcome mounting challenges and establish a new distribution network.
One major blow came from a lawsuit where Monster Energy secured a staggering $293 million verdict against Bang for false advertising and trade secrets violations. As if that wasn’t enough, Monster emerged as Bang’s largest unsecured creditor in the bankruptcy proceedings.
With the look of things now, Bang may soon be going out of business. Monster will soon be acquiring the company, which will mean losing their 400,000-square-foot manufacturing facility near Phoenix to the Monster Company.
According to a recent report on the issue, Bang representatives said the company would have to liquidate, with about 700 people losing their job if the sale to Monster didn’t go through. The judge who approved the sale also said this is the best decision as it will be helping to save more than 300 jobs for Bang.
So, if you are still asking: Is Bang going out of business, the answer is yes. The company already filed for bankruptcy and will soon be acquired by Monster, a rival energy drink company. Now, let’s delve into what really led to all of these.
Why Is Bang Going Out of Business?
Now that we have shown you it’s likely Bang Energy will go out of business soon, we should also let you know how everything started with the company that led its downfall. The company has once been the key player in the energy drink space. But now, it’s facing the harsh reality of going out of business.
What could have been the cause? Well, the reason given by the company for filing for bankruptcy is due to recent legal battles faced by the company which have taken a toll on its finances and reputation.
One of the major setbacks came from lawsuits filed against Vital Pharmaceuticals, Bang’s parent company. The legal actions caused them to lose a huge amount of money which forced the company into debt.
One such case involved the advertising of Bang Energy RTD, claiming it contained “Super Creatine” – a coveted element for bodybuilders. Gyms became a key target for their marketing, and sales soared among fitness enthusiasts.
However, investigations by Orange Bang and Monster Beverage found that Bang’s energy drink didn’t actually contain Super Creatine, leading to false advertising claims. Both companies took Bang to court, and the verdict was in their favor. Bang was compelled to pay a staggering $175 million in damages to Orange Bang and $293 million to Monster, leaving the company reeling from the financial blows.
To add to their woes, copyright infringement claims were filed against Bang, with Sony Music and Prince Rogers Nelson’s suits prevailing in court. These legal losses further contributed to Bang’s financial downfall.
Despite their past successes, the burden of these lawsuits and monetary losses proved too heavy for Bang Energy to bear. And the culmination of these issues led the once-thriving company to make the difficult decision to file for bankruptcy, marking the end of an era for Bang Energy.
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Is Jack Owoc Still the CEO of Bang?
In a surprising turn of events, Jack Owoc’s tenure as the CEO of Bang Energy came to an end in March 2023. Along with this, he was also removed from his position on the board of directors.
The company’s decision to part ways with its founder and visionary marks a significant change in leadership amid the challenging times faced by Bang Energy.
What is Super Creatine?
Super Creatine, also known as Creatyl-L-Leucine, is a proprietary compound that Bang Energy claimed to have introduced as an ingredient in their energy drinks. The company claimed that Super Creatine offered enhanced benefits compared to regular creatine, which is a well-known and widely used supplement among athletes and bodybuilders.
Traditional creatine monohydrate is a naturally occurring compound found in small amounts in certain foods and is also synthesized in the human body. It is well-researched and has been shown to improve athletic performance, increase muscle strength and size, and aid in muscle recovery.
On the other hand, Super Creatine (Creatyl-L-Leucine) is a chemically modified form of creatine, specifically combined with the amino acid leucine. Bang Energy promoted this compound as a more soluble and stable version of creatine, suggesting that it could potentially offer better absorption and effectiveness in the body.
How Many Times Has Monster Sued Bang Energy?
Monster and Bang Energy are two rival companies in the energy drink industry. These two have had a bad record time in court when Monster sued Bang recently for false advertising and other alleged misconduct. Up until Bang filed for bankruptcy, Monster has sued the company to court twice.
The first time, it sued Bang for falsely claiming to have creatine as one of the ingredients included in its energy drink, which Monster claimed could make him lose customers because of the false advertisement.
Monster won the suit and Bang was asked to pay the company $293 million. But again in April Monster went after Bang again, claiming it still uses the claim in its advertisements. Bang said they could lose millions of dollars if they decide to destroy existing cans with ‘Super Creatine’ on it. But again, Monster won the suit.
Is Bang Going Out of Business – Final Note
If you have read this post to this end, then you should already have an answer to the question: Is Bang going out of business?’ But if you hurried up to this point, then the answer is, unfortunately, a yes. The company recently filed for bankruptcy as a result of losing several lawsuits to rival companies.
Monster Energy, a rival energy drink company, is said to acquire the company soon, using it as a way of expanding its business in the U.S. If you have been a fan of Bang Energy, then you may not like to hear that your favorite company may soon be going out of business.
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