Analysis

just On Call - Monster Beverage struggles to crack energy shot code

Most popular

How COVID has changed consumers' shopping habits

COVID is opening up aged spirits to a new world

How COVID has driven at-home indulgence - trends

Pernod Ricard Performance Trends 2016-2020 - data

PepsiCo's Driftwell launch a seachange for drinks

MORE

Monster Beverage is re-evaluating the energy shot category as its Worx brand continues to struggle against 5-Hour Energy, the company's CEO has said.

//i4.aroq.com/1/monster_0.jpg

In a conference call with analysts yesterday (27 February), Monster chairman and CEO Rodney Sacks said sales of Worx were “substantially lower” in the fourth quarter than in the same period last year. The company's overall net sales jumped by 15% year-on-year in Q4 results, announced yesterday.

“I think we're going to continue to look at and evaluate,” Sacks said. “But we do believe there is still some opportunity that as a beverage company, we shouldn't walk away from (the energy shot category) and take it off the table.”

Sacks admitted that Worx has struggled against 5-hour Energy, which dominates the segment. “We believe there is room for a competitor, but so far nobody's been able to really crack the code,” he said.

Sacks also said Monster will discuss its share repurchase program, doubled in August last year, at a board meeting tomorrow. However he refused to speculate whether the company will introduce an additional program.

He also highlighted a number of lawsuits facing the company, but said he could not discuss them.

The US Food and Drug Administration is investigating filings over recent years where energy drinks have been cited in relation to patient deaths. Meanwhile, the family of a 14 year-old girl, who died after allegedly drinking two 24-ounce cans of Monster, last year filed a lawsuit against the company. 


Related Content

The Coca-Cola Co

The Coca-Cola Co "doesn't share energy drink plans with us" - Monster Beverage Corp CEO...

PepsiCo energy play will create

PepsiCo energy play will create "common enemy" for Coca-Cola - Monster Beverage Corp...

Monster Beverage Corp eyes move into spirits, hard seltzers - CEO

Monster Beverage Corp eyes move into spirits, hard seltzers - CEO...

Monster Beverage Corp Q1 2020 - Strong sales continue, +12.3% - results data

Monster Beverage Corp Q1 2020 - Strong sales continue, +12.3% - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?