“We believe Monster could generate four to five times its current international unit case sales by 2017, earlier than our original estimate of 2020. Wells Fargo analyst Bonnie Herzog said the deal was a “ huge win for both companies”.Īs around 80% of Monster’s sales are currently generated in the US, access to Coke’s global distribution network will significantly accelerate Monster’s international market share, she predicted. Wells Fargo: Deal a huge win for both companies It has a new product development team that any CPG company would covet.” “Monster has kept that core functionality , but has been experimenting in so many ways with new flavors and concepts . Jonas Feliciano: Deal is a 'wise hedge' for Coca-Cola What stood out about Monster was its success at generating brand extensions and new product concepts in a market where the vast majority of new products fail, said Feliciano, noting that Coke had had real success in the energy market (its brands generated net sales of $330m in 2013 from 20 countries) but had not gained the traction of Monster or Red Bull. Monster’s success rate for new products is well above the industry norm Maybe they limit their revenue , but getting a 17% share while divesting its own energy brands hedges Coke against any future energy backlash, so it’s a smart move.” Under their proposed " strategic partnership", Coca-Cola will pay $2.15bn for a 16.7% stake in Monster, which will assume control of Coke's energy brands including NOS, Burn and Full Throttle and gain access to Coke's international distribution network while Monster will transfer its non-energy brands such as Peace Tea and Hubert's Lemonade to Coca-Cola.Įuromonitor International beverages analyst Jonas Feliciano told FoodNavigator-USA: “I think this is a brilliant move from Coca-Cola. Emulsifiers, stabilizers, hydrocolloids.Chocolate and confectionery ingredients.Carbohydrates and fibers (sugar, starches). Plant-based, alt proteins, precision fermentation.
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