The Coca-Cola Company aims to launch a new range of energy drinks under its Coke brand which would be made with naturally-derived caffeine and guarana extract, according to Reuters.
Called Coca-Cola Energy and Coca-Cola Energy No Sugar, the beverages will put the company in direct competition with Monster, in which it owns a 17% stake.
Monster shares fell 10% after it revealed it was in arbitration with Coca-Cola.
In a conference call with analysts, Monster CEO Rodney Sacks said: “Coca-Cola has indicated that it has suspended the proposed launch of such energy products until April 2019.”
The global energy drink market size is expected to reach $72 billion by 2024, rising at a CAGR of 7.1%, according to new figures from Researchandmarkets.com. Demand is expected to be boosted by the trend of mixing energy drinks with alcohol.
The launch would see Coca-Coca increase its efforts to move away from high-sugar fizzy drinks towards healthier alternatives.
In its most recent quarterly results published last week, the company was boosted by the double-digit growth of its Coca-Cola Zero Sugar beverage across all its operating regions. The Fuze Tea and Smartwater brands also performed strongly
Meanwhile, Monster Beverage revealed yesterday that it recorded net sales of over $1 billion for the second consecutive quarter, thanks to strong energy drink sales globally. Net sales to customers outside the US increased by 8.8%.
© FoodBev Media Ltd 2019
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