Monster wants to take its products to China

Monster wants to take its products to China

Monster Beverage Corporation wants to launch its products in China after the Coca-Cola Co agreed to takes a minority stake in the company.

The energy drinks maker will use Coca-Cola's global distribution network to expand into territories it is not already in, including the Asian country, Monster CEO Rodney Sacks said in a conference call with analysts today. Sacks said regulatory issues in China will mean entry will “take time”, but he added: “We want to be there, we want to get there as quickly as we can.”

Coca-Cola yesterday agreed to pay US$2.15bn for a 16.7% stake in Monster. The deal includes Monster taking control of Coca-Cola's energy brands and Coca-Cola acquiring Monster's non-energy brands. 

Sacks today added that when the deal completes at the turn of the year, Monster will start to use Coca-Cola's distribution system in countries that it doesn't already have a presence in. However in other markets the company will evaluate if using its existing network would be more beneficial.

“We're going to look at markets individually,” Sacks said. “There are some markets that we haven’t been in that are big markets, and we see very strong long-term incentives.”

Sacks said Monster is currently available in “140-plus” countries.

If Monster does gain entry to China, it would not be competing with global energy rival Red Bull, as the Austria-based company is barred from entering the country