just On Call - Bitter wind blows for Monster Beverage Corp?
Monster Beverage Corp released its full-year results yesterday
The CEO of Monster Beverage Corp has said extreme climates in the US have turned management into “weathermen” for the first time.
In a post-results conference call yesterday (27 February), Rodney Sacks said that the company, unlike other beverage makers, “never liked referring to the weather”. However, “unusual” conditions, especially on the US east coast, now appear to be impacting demand for Monster's energy drinks range, Sacks warned.
“We've never been weatherman in this company, as opposed to some of the major soft drinks companies,” he said. “But, we are getting to a point where we actually are - and I think it is correct to be.”
Sacks was replying to a question from an analyst who asked if bad weather was behind new figures for February that showed US sales slowing down after a strong January.
“I think weather did have an effect,” Sacks said. “I think the weather has been exceptionally harsh in the east (of the US). And, in many cases, it has affected our distributors' ability. This is something that is unusual.”
Sacks cited Nielsen figures for the four weeks to 25 January that showed Monster's sales of energy drinks in the US convenience and gas channel increased by 14%, compared to a 6.6% increase for the overall energy drinks category.
The numbers follow strong overall full-year sales for Monster, which rose by 9%. However, profits in calendar-2013 were held back by on-going legal issues over the safety and marketing of the group’s products.
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