News

Monster Beverage Corp under threat from "Juul of energy" Bang - analyst

Most popular

Can alcohol slow the onset of dementia? - analysis

What rum needs to do to recognise its potential

A-B InBev's Craft Brew Alliance purchase - Comment

Why single malt should ignore its core consumer

How much should you drink to help you live longer?

MORE

Fast-growing energy drink brand Bang is causing disruption to Monster Beverage Corp in the US as it takes market share from the Coca-Cola-backed company, an analyst has said.

In a note to clients this week, Wells Fargo's Bonnie Herzog said the sugar-free brand is increasingly becoming a competitor to Monster's portfolio and is a potential "Juul of the energy category". Juul is the electronic cigarette company behind the namesake brand.

Herzog suggested that Monster's launch of fitness energy drink Reign this month, which would play in the same segment as Bang, is "too little too late."

Florida-based sports nutrition company VPX launched Bang in 2012, however the drink has recently started challenging Red Bull and Monster and is the fastest-growing energy drink in the US. Citing Nielsen data Herzog said sales growth was an "impressive" 879% in the one week ending 9 March. Because of the growth, Monster lost more than four percentage points of value share in the seven-day period, dropping to 41%. In comparison, Bang's value share of the US energy drinks category, meanwhile, is up to 8%.

Herzog forecast more trouble ahead for Monster if a large company, such as PepsiCo, was to buy Bang Energy. Herzog also took issue with Monster's decision to increase pricing on its products over the past month.

"It's still not entirely clear that Monster's pricing is fully sticking," Herzog said.

Monster is launching Reign this month. The product is described as "total body fuel" and contains 300mg of caffeine and amino acids.

From cannabis to carbs - Ten innovation trends for 2019 - Focus 


Sectors: Soft drinks, Water

Related Content

Coca-Cola European Partners lines up UK launch for Monster Beverage Corp's Reign

Coca-Cola European Partners lines up UK launch for Monster Beverage Corp's Reign...

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

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

Monster Beverage Corp and Coca-Cola Co in energy drinks spat

Monster Beverage Corp and Coca-Cola Co in energy drinks spat...

How has Monster Beverage Corp performed in YTD 2019? - results data - just-drinks comments

How has Monster Beverage Corp performed in YTD 2019? - results data - just-drinks comments...

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?