Monster Beverage has reported a substantial rise in the global sales of its energy drinks, helped by a 16% increase in sales outside North America.
Shares in the US-based company – the second largest energy drink manufacturer behind Red Bull – increased by 13% following the announcement of the news, and fuelled by speculation that Coca-Cola was preparing to take a minority stake in the business.
“Its price has doubled since last August, when Coke agreed to pay $2.15bn to acquire a 16.7% stake as part of an asset swap and distribution pact,” the Wall Street Journal reported.
Monster published its fourth quarter and full-year results, ahead of further expansion into the Indian and Chinese markets. Its operating income of almost $14m outside North America represents a significant contrast with the heavy losses it incurred in 2013. The revival of its fortunes have been helped by growth in the European and Japanese marketplaces.
Chief executive Rodney Sacks said: “We are pleased to report another quarter and year of continuing sales growth, in both our domestic and international markets. In particular, we continued to achieve solid sales growth in Japan, which is becoming one of our largest international markets. In addition to launching Monster Energy Unleaded, as well as Monster Energy Ultra Sunrise in the United States during the second half of 2014, we are currently launching Monster Energy Ultra Citron and Monster Rehab Peach Tea and Energy. We believe that these products will play an important part in our business plan in 2015.”
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