Coca-Cola acquires 16.7% stake in Monster

The rumors about Coca-Cola and Monster Energy have been circulating for a while, and now Coca-Cola has officially acquired shares in Monster Energy. Things are getting interesting for Monster.

What Will Change with This Stock Acquisition

• Coca-Cola acquires 16.7% of Monster’s stock
• Coca-Cola’s NOS and Full Throttle will be sold by Monster
• Coca-Cola will sell non-energy drinks like Hansen Natural Sodas
• Monster will be distributed globally through Coca-Cola’s network (Seriously!?!)

The last point is the biggest one. While it’s still unclear whether Coca-Cola’s distribution channels will be used 100%, the likelihood is high, and if that happens, it could make it possible to distribute various flavors worldwide.

It’s Been a Hot Topic Among Overseas Fans

Overseas fans are excited about the possibility of trying different flavors, as reported in the media about Coca-Cola and Monster. The purchase amount for the stock was reportedly $2.15 billion, and Monster’s stock price rose by 36%.

While the carbonated beverage market is declining due to America’s health trends, the energy drink market is still growing. With this, Monster’s sales are expected to rise, and it could gradually close the gap with Red Bull, the current market leader. (Right now, Monster is still less than half of Red Bull’s sales and holds second place.) If this momentum spreads domestically in the U.S., there’s a strong chance it could overtake Red Bull in the U.S. market.

NOS, which will be moving from Coca-Cola to Monster, is currently facing competition from Rockstar, but is in a tight race with AMP. Full Throttle, however, seems to be struggling a bit (；´∀｀). It will be interesting to see how these mid-tier energy drink brands change with Monster handling their distribution. I’m sure overseas can collectors are paying close attention to this. The design and other aspects might change, after all.

What About Japan?

As Asahi Beverages is handling the distribution in Japan, it’s unclear how this will affect things. If there are any contract terms or expiration dates, there’s a chance they could be severed. Fans of Monster and especially those who love NOS are probably paying close attention to this.

The real issue is that the ingredients like taurine might need to be adjusted to fit Japanese standards. If they decide it’s too much trouble to make those changes, it would be a bit sad (laughs).

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