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    Pepsi Bottling Group to Distribute Muscle Milk

    Deal with CytoSport gives Pepsi access to value-added protein drink category.

    SOMERS, N.Y. --The Pepsi Bottling Group Inc. (PBG) said it has signed an agreement with CytoSport Inc. yesterday to distribute Muscle Milk, a leader in protein-enhanced functional beverages in the United States.

    Under the terms of the agreement, PBG will have a license to distribute the ready-to-drink line of Muscle Milk and Muscle Milk Light in its territories in the U.S. and Canada. The agreement is effective immediately and PBG will begin distribution in the U.S. in January. Financial terms of the transaction were not disclosed.

    "Strengthening and diversifying the PBG product portfolio is one of our top priorities. By teaming up with CytoSport, we are entering a new beverage segment with attractive long-term growth prospects," said PBG North America President Rob King. "Muscle Milk has established itself as one of the leading functional nutrition beverage brands, and adding it to our portfolio will enable us to capitalize on the opportunities in this exciting category."

    "The Pepsi Bottling Group’s robust go-to-market system is unsurpassed in the beverage industry," said CytoSport President Greg Pickett. "By working with PBG, we’ll be able to greatly extend the reach of the Muscle Milk brand and put our products in the hands of more consumers than ever before. This is a beverage category with tremendous growth potential, and this agreement further enhances CytoSport’s leading position in the category."

    Designed for people who lead active lifestyles, Muscle Milk is billed as a complete protein beverage that promotes lean muscle growth, fast recovery from exercise and healthy, sustained energy.

    Muscle Milk branded products can be purchased at convenience, food, drug, grocery and specialty retailers nationwide. The distribution agreement with PBG is expected to greatly increase the brand’s market penetration.

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