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Coke and Monster Announce Long-Term Partnership

By:  Unbottled Staff Aug 14, 2014
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Monster energy drink

The Coca-Cola Company and Monster Beverage Corporation today announced plans for a long-term strategic partnership to accelerate growth for both companies in the fast-growing, global energy drink category.

As part of the agreement, which is expected to close at the end of 2014 or the beginning of 2015 following regulatory approvals, Coca-Cola will acquire an approximately 16.7 percent minority ownership interest in Monster.

To align product portfolios and enable those portfolios to benefit from each company’s respective strengths, The Coca-Cola Company will transfer ownership of its worldwide energy business, including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless, to Monster; and Monster will transfer its non-energy business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products, to The Coca-Cola Company.

The Coca-Cola Company and Monster will amend their current distribution agreement in the U.S. and Canada by expanding into additional territories and entering into long-term agreements. The Coca-Cola Company will become Monster’s preferred distribution partner globally, and Monster will become The Coca-Cola Company’s exclusive energy play. These agreements will deliver sustainable value to The Coca-Cola Company’s global system and accelerate Monster’s opportunity to grow internationally.

“The Coca-Cola Company continues to identify innovative approaches to partnerships that enable us to stay at the forefront of consumer trends in the beverage industry,” said Muhtar Kent, chairman and CEO, The Coca-Cola Company. “Our equity investment in Monster is a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category. This long-term partnership aligns us with a leading energy player globally, brings financial benefit to our company and our bottling partners, and supports broader commercial strategies with our customers to bring total beverage growth opportunities that will also benefit our core business.”

Read the full press release.