Look out Red Bull. Monster is flying

Monster is beating Red Bull at home and aiming to cut its rival's lead overseas.A lineup of new products and N...

Posted: Jan 19, 2018 3:36 PM
Updated: Jan 19, 2018 3:36 PM

Monster is beating Red Bull at home and aiming to cut its rival's lead overseas.

A lineup of new products and NASCAR, BMX, UFC and MMA sponsorships have contributed to Monster's boom.

Monster has become the top energy drink maker in the United States, controlling 43% of the market, according to Morgan Stanley. Red Bull trails slightly. Rockstar is in third place.

Energy is Monster Beverage Co.'s biggest sales driver -- Java, Rehab, Ultra, Hydro and Mutant are several of the top-selling Monster brands -- but the company also offers tea, juice, water, coffee and zero-calorie energy drinks. It's planning to expand coffee and juice flavors in 2018.

While soda sales have steadily declined as more Americans put down sugary drinks in favor of healthier choices, energy products are bucking the trend.

Retail sales in the United States have spiked 25% since 2012 to $11.7 billion last year, according to Euromonitor.

Analysts say consumers are willing to buy highly-caffeinated drinks, which are pricier than sodas, because they provide a pick-me-up.

Monster also offers a better bang for energy drinkers' buck, noted Stifel analyst Mark Astrachan. A 16 oz can of Monster is the same price as a 8.4 oz can of Red Bull.

Related: How one county slashed sugary drink sales

Privately-held Red Bull more-than-doubled Monster's sales in 2016, according to Astrachan, but Wall Street is buzzing about Monster's rise.

Revenue has grown every year since Monster launched in 2002, topping $3 billion in 2016.

Several analysts raised their share price targets on the company this week, leading Monster's stock to hit an all-time high. Shares gained 52% in 2017 and the company has a $37 billion market value.

"There isn't another stock in our coverage universe with a comparable current growth profile," Credit Suisse analyst Laurent Grandet wrote in a research note Wednesday.

Monster lags far behind Red Bull overseas, but analysts say there's potential to shrink the gap.

Grandet predicts Monster's international business will make up 36% of the company's total sales by 2019, up from 24% today.

A 2014 deal with Coca-Cola should help.

Coke took a 17% stake in Monster for more than $2 billion and the two companies swapped drinks -- Coke sold Monster its NOS and Full Throttle drinks in exchange for Monster's non-energy products.

The agreement made sense for Monster because it got access to Coke's enormous distribution network around the world.

Monster launched in China, the second largest energy drink market in world, in 2016 and is "just getting warmed up" there, Wells Fargo's Bonnie Herzog wrote in a note Thursday.

A lower corporate tax rate should also allow the company to reinvest savings abroad, analysts agree.

Competitors and international expansion are not Monster's biggest concerns though.

Energy drinks face tough regulation. New taxes on sugary drinks, such as the one adopted in the U.K., can derail the industry.

The World Heath Organization has also said they "may pose danger to public health," while the American Academy of Pediatrics said children should not consume energy drinks.

In 2012, Monster tumbled 14% after the parents of a 14-year-old girl alleged Monster drinks were responsible for her death.

Monster denied any responsibility and added caffeine labels to its products the following year.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 497790

Reported Deaths: 9917
CountyCasesDeaths
Harrison34102530
DeSoto31839398
Hinds31837622
Jackson24314377
Rankin21881388
Lee15427234
Madison14525279
Jones13772241
Forrest13412250
Lauderdale11937314
Lowndes10934185
Lamar10470135
Pearl River9431237
Lafayette8454138
Hancock7697126
Washington7365156
Oktibbeha7111129
Monroe6727174
Warren6642176
Pontotoc6609101
Neshoba6606205
Panola6460131
Marshall6386132
Bolivar6266145
Union596094
Pike5784152
Alcorn5633101
Lincoln5417134
George491879
Scott470998
Tippah465381
Prentiss464181
Leflore4627143
Itawamba4596104
Adams4570119
Tate4546109
Copiah445191
Simpson4421116
Wayne438572
Yazoo438586
Covington427394
Marion4216107
Sunflower4215104
Coahoma4115104
Leake407787
Newton380879
Grenada3692108
Stone358464
Tishomingo356391
Attala330289
Jasper328265
Winston313191
Clay306375
Chickasaw296767
Clarke290694
Calhoun277945
Holmes266987
Smith262550
Yalobusha232647
Tallahatchie225251
Walthall217763
Greene215548
Lawrence211140
Perry204755
Amite203954
Webster201645
Noxubee185340
Montgomery179056
Jefferson Davis170642
Carroll167438
Tunica158639
Benton147438
Kemper141241
Choctaw133026
Claiborne131237
Humphreys129038
Franklin119128
Quitman106227
Wilkinson104539
Jefferson94234
Sharkey64020
Issaquena1937
Unassigned00

Alabama Coronavirus Cases

Cases: 812694

Reported Deaths: 15142
CountyCasesDeaths
Jefferson1139601904
Mobile721751321
Madison51923685
Shelby37240339
Baldwin37044538
Tuscaloosa34902599
Montgomery33919719
Lee23122240
Calhoun22125469
Morgan20620370
Etowah19739496
Marshall18238298
Houston17288405
St. Clair15897337
Cullman15297290
Limestone15178198
Elmore15038284
Lauderdale14125294
Talladega13692271
DeKalb12554258
Walker11069364
Blount10081174
Autauga9883146
Jackson9776177
Coffee9176188
Dale8856180
Colbert8781200
Tallapoosa7032195
Escambia6725127
Covington6672179
Chilton6580160
Russell624758
Franklin5927105
Chambers5558142
Marion4952126
Dallas4854199
Clarke472681
Pike4716105
Geneva4558126
Winston4461101
Lawrence4252117
Bibb421686
Barbour355374
Marengo333989
Monroe329962
Randolph324763
Butler323994
Pickens313581
Henry310565
Hale308787
Cherokee299457
Fayette290579
Washington250851
Cleburne245958
Crenshaw243375
Clay239767
Macon230662
Lamar215446
Conecuh185351
Coosa177738
Lowndes173161
Wilcox167038
Bullock151744
Perry138040
Sumter131138
Greene125544
Choctaw86627
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