just Five Years Ago - Monster Beverage eyes international expansion
Monster Beverage Corp is hoping to boost its global footprint with the Coca-Cola Co deal
Monster Beverage Corp is set to boost its global standing on a significant scale after agreeing a deal with the Coca-Cola Co earlier this month.
After long-running speculation, the California-based firm announced it has agreed to sell a 16.7% stake to the soft drinks giant, allowing it to broaden the worldwide footprint of its energy drinks. China is among the targets for Monster.
What a long way the company has come in five years. Back in 2009, the firm was already boasting of its potential overseas, but nothing on the scale it can now achieve.
Sales for the business have more than doubled in the five-year period. Its half-year net sales in 2009, when it was known as Hansen Natural, came in at US544.4m, compared to $1.22bn this half-year.
It is in part thanks to the group’s expansion internationally that it has delivered those impressive sales numbers. Back in 2010, CEO Rodney Sacks was already talking about plans to launch in Asia.
By 2012, the company had changed its name to Monster Beverage, but was still talking about further international expansion as full-year profits leapt by 35% to $286.2m.
And, in April last year, one analyst was talking up the group’s international prospects, suggesting it would grow its global market share to at least 7.5% in value terms by 2015. Monster is also believed to have recently launched in India, which offers further significant opportunities.
But, although the group has prospered abroad, it hasn’t all been plain sailing back in the US. The company has been plagued by legal wrangles that have eaten into its bottom line. A number of lawsuits and the threat of legal action by San Francisco's city attorney still hang over the group. In the past, some had suggested that Coca-Cola had been partially scared off by the negative press around Monster.
Clearly, Coca-Cola believes the risk was worth it. And, with its backing, Monster is poised to hit the big time around the world.
Companies: The Coca-Cola Company
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