Analysis - Monster braced for slowing international sales
Monster is expected to report a softer performance in some international markets
Monster Beverage is likely to report slower international sales growth in its second quarter with a weaker performance in Japan, Canada and Mexico, an analyst has warned.
CLSA analysts in Asia have suggested that Monster's volumes in Japan between January and May are "a bit behind target" despite the launch of a third product in the country, Absolutely Zero. "We were impressed by Monster’s initial take-up in Japan, but it is a fickle market and Monster may face headwinds there," said Caroline Levy from CLSA in a note today (4 July).
Japan is estimated to account for around 5% of Monster's international sales.
Elsewhere in Asia, it was reported last month that energy drink sales in South Korea had suffered a slowdown due to health concerns.
Some other international markets also appear to be slowing for the California-based group, according to CLSA. In Q1, sales in Canada were up by a modest 6%, while March sales in Mexico rose by 7%.
In Europe, sales gains in April were slower than Q1, though Monster's management expects improvement, CLSA noted.
However, in the US, Monster's sales are accelerating. According to latest IRI figures, sales are up by 9.7% for the four weeks to 16 June, against a 9.4% rise in the previous four weeks, CLSA flagged.
The energy drinks group reported a slowing in Q1 sales and a fall in profits in May.
Monster is due to report its second-quarter figures early next month.
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Sectors: Soft drinks
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