just On Call - Monster to avoid South Korea price war with Red Bull
Sacks said he doesn't want to bring the industry down in a price fight
Monster Beverage Corp's CEO has said Red Bull's “aggressive” price cuts in South Korea won't drag his firm into a turf war, and warned its rival's discounts can't last.
In a call with analysts and shareholders yesterday (3 June), Monster CEO Rodney Sacks said Red Bull was trying to stop his brands from establishing themselves in the country but added he is happy with current pricing. Sacks said Monster will launch “price promotions from time-to-time” but that “we think our pricing is at the right level at the moment in Korea”.
“We don't believe that Red Bull will stay down at that price,” Sacks added. “I think it will come back.”
Monster's CEO also hit out at “inaccurate, speculative and biased” media articles on energy drinks and said Monster brands are unfairly highlighted in discussions over the potentially harmful effects of caffeine compared to rivals. “We feel that ultimately, there has been a disproportionate impact,” he said.
His comments follow media reports last week that a judge in California has summoned Monster to mediation over a lawsuit launched by the parents of a 14-year-old girl who died after allegedly drinking two of the company's drinks.
In March, Monster claimed there was no medical evidence to suggest it products contributed to the death of the girl.
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