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May 7, 2021updated 16 Jun 2021 1:32pm

Monster Beverage Corp continues to shine in Q1 but aluminium shortages threaten growth – results data

Energy drinks continues to be a COVID-resistant category as Monster Beverage Corp reports another record set of quarterly sales numbers.

  • Quarterly sales hit new high, climbing 17.1% to US$1.24bn
  • Sales outside US in three months to end of March accelerate faster, up 28.8% to $459.4m
  • Squeeze felt from aluminium can shortages

Energy drinks continues to be a COVID-resistant category as Monster Beverage Corp reports another record set of quarterly sales numbers.

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The owner of the namesake energy drinks brand saw its sales in the three months to the end of March jump by just over 17% this week. An even better showing occurred outside the US, where sales increased by almost 30%.

While the ‘Monster Energy Drinks’ reporting segment – which also includes Reign Total Body Fuel – grew 17.9% to $1.17bn, the ‘Strategic Brands’ portfolio, mostly made up of energy drinks brands purchased from part-owner The Coca-Cola Co, was up a less impressive 5.1% at $67.8m.

Sales outside of the California-based company’s homeland increased group share to 37% in Q1 2021 from 34% in the corresponding period a year ago.

Co-CEO Rodney Sacks

“The company posted record first-quarter net sales and profits, despite the ongoing impact of the COVID-19 pandemic. According to Nielsen, the energy drink category, and in particular our Monster Energy brand, continues to accelerate in most of our markets, including the US.

“In the first quarter of 2021, we continued with our robust programme of product launches in both our domestic and international markets, with plans for additional launches during 2021.”

One cloud on the horizon, however, is can-shaped: MBC warned that aluminium can supply shortages were experienced during the three months in North America and Europe. Subsequently, the group said it has been sourcing cans from unspecified sources in South America and Asia. “Logistical issues, including ocean freight and port of entry congestion, could delay such supply,” MBC flagged.

The Coca-Cola Co owns a near-17% holding in MBC, having bought into the group in 2014.

To view Monster Beverage Corp’s official Q1 results statement, click here.

Why energy and functional drinks should be wary of coffee’s renewed attack on the caffeine occasion – Click here for a just-drinks comment

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Free Whitepaper
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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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