November 06, 2008 09:00 AM Eastern Time 

The Pepsi Bottling Group Signs Agreement to Distribute Muscle Milk

SOMERS, N.Y.--(BUSINESS WIRE)--The Pepsi Bottling Group, Inc. (NYSE: PBG) today announced that it has signed an agreement with CytoSport, Inc. to distribute Muscle Milk, the 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.”

Muscle Milk is a product designed for people who lead active lifestyles. As a complete protein beverage, it promotes lean muscle growth, fast recovery from exercise and healthy, sustained energy. Protein-enhanced functional beverages comprise one of the fastest growing beverage segments, and Muscle Milk has the leading share of the space.

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

About PBG

The Pepsi Bottling Group, Inc. (NYSE: PBG) is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages. The company distributes a portfolio of products that includes some of the biggest brands in the beverage industry, including Pepsi, Diet Pepsi, Mountain Dew, Sierra Mist, Lipton Iced Tea, Aquafina, Sobe Life Water, Propel, G2 from Gatorade, Starbucks Frappuccino and AMP. Based in Somers, NY, PBG had annual sales of nearly $14 billion in 2007 and has approximately 70,000 employees spread across the U.S., Canada, Greece, Mexico, Russia, Spain and Turkey. PBG has the exclusive right to manufacture, sell and distribute Pepsi-Cola beverages in all or a portion of 41 states and the District of Columbia. For more information, please visit www.pbg.com.

About CytoSport

CytoSport, the maker of Muscle Milk, is the largest sport nutrition protein beverage company in the U.S. and offers a complete line of protein-enhanced powders, shakes and bars. Muscle Milk has recently been named the 2008 Ready-to-Drink beverage of the year by industry enthusiasts. For more information on Muscle Milk or additional CytoSport products, visit: www.cytosport.com.