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Energy drink company Monster Beverage Corporation has released a statement in response to a report from short-selling firm Spruce Point Capital Management, claiming the report contained 'false' and 'misleading' characterisations about the company’s business.

The report, which was posted on Tuesday 8 April, claims that a negative stigma around energy drinks has led to a market shift, with consumers looking towards healthier energy and hydration drinks, which has led to Monster's 'slow growth in US and Canada further raising concerns about Monster’s mindshare amongst its consumers'.

As well as claims around the company's growth, the report also alleges, "we have identified several concerns with the financial reporting and accounting choices," following Monster's change of auditors in 2023 and that "Monster has historically failed to implement best corporate practices by not separating the duties of the chief financial officer, chief accounting officer and chief operating officer roles."

Spruce Point also stated that it "believes that the company faces pressures from increasing competition, changing regulatory environments and unsustainable international growth. We believe that investors may be mistakenly perceiving this food and beverage stock as a 'safe stock' during this period of tariff-driven market turmoil."

Monster, based in California, US, develops and markets energy drinks, as well as still and sparkling waters and craft beers. The company responded to the report saying that the information contained within it came from non-credible sources.  

Rodney Sacks and Hilton Schlosberg, Monster’s chairman and vice chairman, respectively, and co-chief executive officers released a joint statement, which read: “We have always prided ourselves on having and continue to have a strong reputation for ethical operations and transparent reporting and these principles remain critically important to all of us at Monster".

“The document released by a self-interested activist short seller is filled with and based on inaccuracies and aspersions that appear to be designed to distort the company’s record and share price for its own gain. The company’s management remains focused on the business with the ongoing objective of creating long-term value for our stakeholders and investors.”

“The company’s consolidated financial statements and other financial information filled with the Securities Exchange Commission have historically been and continue to be fairly stated in all material respects, presented in accordance with generally accepted accounting principles and are governed by SEC rules and regulations.”

Monsters’ board of directors has reaffirmed its confidence in Monster’s management and strategic direction. Lead independent director Mark Vidergauz added: “On behalf of the entire board, we stand in support of the management team and believe that the company remains well-positioned for long-term success.”

Following the statement released on Wednesday 9 April, Monster said it will not be commenting any further on the Spruce report.