Analysis - Monster Beverage Corp poised for global surge
Monster is tracking down Red Bull outside of the US
Monster Beverage Corporation's international profits will jump 50-fold over the next three years, an analyst has predicted.
In a note to clients, Stifel analyst Mark Astrachan said today (11 April) that Monster's annual operating profits from sales outside of the US will increase from US$5m last year to $101m in 2015. At the same time, international operating margins will rise from 1.1% to 13.4%.
Astrachan also said the energy drinks maker is poised to cut into Red Bull's global hegemony, as it has done in the US and Western Europe. “Monster’s share has steadily increased in many international markets, an indication of solid consumer acceptance,” Astrachan said.
According to Stifel estimates, Monster will grow its international market share in value terms from 5.1% to at least 7.5% by 2015. Astrachan added: “We believe our rest-of-the-world growth and market share assumptions could prove conservative, given Monster’s substantial share gains over a relatively short time in the US and Western Europe.”
Monster is likely to repeat the formula of strong sponsorship and promotional efforts that saw it overtake Red Bull as the market leader by volume in the US in ten years, Astrachan said.
This week, Monster announced a US$200m buyback of the company's outstanding common stock.
Red Bull has spared no expense in pursuit of its own path to market domination. Its efforts have been so extensive that the number of sportspeople and events it sponsors can be listed in the hundreds....
A spate of recent trademark rows in the drinks industry has prompted Stuart Whitwell from Intangible Business to cast his eye over some of them, to see if there's a common thread....
According to the global company website, Red Bull is focusing on the core markets of Western Europe and the US, as well as the growth markets of Brazil, Japan, India and China. The company is also con...
This report analyzes the worldwide markets for Functional Foods and Drinks in US$ Million by the following Product Segments: Cereals and Grains, Beverages, Dairy Products, Snacks, and Other Functional...
Get the facts and find out what's next for this dynamic marketplace where a plethora of new players strive to grow and hope to make inroads against the industry leaders. This report profiles the top c...
- A tobacco analogy soft drinks will want to embrace
- just The Preview - SABMiller's Q1
- Pernod's Portman Group penalty - a coincidence?
- Cleaning China's seedier side brings Remy balance
- PepsiCo to consider more re-franchising - CEO
- Diageo's Captain Morgan Facebook ad banned
- Diageo faces public consultation over W&M sale
- William Grant silent on Drambuie bid talk
- Bacardi to fight US football team legal action
- Remy posts Q1 sales drop as Edrington loss bites