Monster Beverage Success Story: The Company’s subsidiaries develop and market energy drinks, including Monster Energy

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Monster Beverage Success Story 

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Monster Beverage is a multinational beverage company that offers energy drinks, soft drinks, and other beverage types. Based in Corona, California, the Company started off as Hansen Juices in 1935. It was in 2012, the Company changed its profile and name to Monster beverages. The Company was rated as one of the top beverage companies in 2020.

Monster Beverage - Company Highlights

  • Company Name-Monster Beverage Corporation
  • Headquarters-Corona, California, US
  • Sector-Energy Drinks
  • Founder-Hubert Hansen
  • Founded-1935
  • Market Capitalization-$53.63 Billion (2023)
  • Revenue-$5.54 Billion (2021)
  • Parent Organisation-Hansen Juices
  • Website-monsterbevcorp.com

Monster Beverage - About

  • Monster Beverage is a beverage company that started as a juice company in 1935. Through its partner companies, they market and sell various brands of energy drinks.
  • These include Monster Energy, Monster Energy Extra strength, Full Throttle, Burn, and N.O.S. Rest of the product range includes Coffee shakes, soft drinks, and energy shakes.
  • Currently, the Company sells its energy drinks to club stores, drug chains, full-service distributors, retail grocery, specialty chains, etc.
  • Monster Beverage company is more focused on its energy drinks segment. It was ranked second among U.S. Energy drink brands, with Red Bull being the leader.

Monster Beverage - Industry

  • Monster Beverage is a significant player in the Energy drinks industry. It comprises energy drinks, energy shots, and energy drink mixes. These are beverages that help a person gain stamina and remain healthy. Sales of Energy drinks have increased in the last few years.
  • The major players in the energy drink segment are Red Bulls, Monster Beverage, and Vital Pharmaceuticals. Most of the sales of Energy drinks come from convenience stores.
  • The graph shows an estimated global energy drink market size in US Billion Dollars
  • The graph shows an estimated global energy drink market size in US Billion Dollars

Monster Beverage - Founders and Team

Hubert Hansen launched the Hansen Juices in 1935. He and his sons would sell juices to retailers, film studios, etc., in Southern California.

Hubert Hansen

  • Hubert Hansen started a juice company in 1935 under the name Hansen Juices. Hansen Beverage, a sister company of Unipac corporation, acquired this business and used his name to market lemonade and juice. Post his death in 1951, his children and grandchildren carried the business further.

Monster Beverage - Startup Story

  • After Hubert Hansen founded the Company in 1935, he and his three sons started selling juices to celebrities in Southern California. Then in 1970, Tim Hansen developed a new range of sodas and juices, and the Company was named Hansen's juices.
  • Eventually, the Company filed for Bankruptcy in 1988, was taken over by California CoPackers corporation, and given the name Hansen Natural Company. By 2012 the Energy drinks market was booming. Shareholders changed the name of the Company to Monster Beverage Corporation.
  • In June 2015, Coca-Cola took ownership of Hansen's juice, sodas, and other products through a deal. They also bought a 16.7% stake in the Company which has now reached 19.3% due to share buybacks.

Monster Beverage - Mission and Vision

  • The Company's mission statement focuses on providing high-quality drinks to customers. Their mission statement is as follows:
  • "To satisfy consumers' needs for superior quality and great tasting, healthy, natural, and functional beverages. Our beverages will be positioned as an upscale brand and will often be marketed at a premium for competitive mainstream products."
  • Monster Beverage - Name, Tagline, and Logo
  • Monster Beverage Logo - 2002 to Present
  • Monster Beverage Logo - 2002 to Present
  • The monster beverage company's significant earnings come from its energy drink segment. The tagline for the same is as follows:
  • "Unleash the beast."
  • The Monster Beverage logo is a green M placed on a black frame. What is unique about the logo is the way it is stylized. The color of the logo is a shocking neon green. The M looks as if it is the claws of a wild beast. This artistic logo resonates with their tagline. Below the M is written Monster Energy in Caps using white and neon blue colors.

Monster Beverage - Business Model

  • Monster Beverage is an American multinational whose main areas of business include the development, marketing, and distribution of the following products:
  • Energy drinks
  • Non-carbonated energy drinks
  • Non-Carbonated dairy based Coffee  
  • The Company operates both in the U.S. and internationally. Three segments on which they focus are Strategic brands, Monster energy drinks, and others. Monster beverage's competitive position is very strong. They have maintained the second position in the market.
  • Various variants in the energy drinks category of Monster beverages are Monster Energy Original, Monster Rehab, Monster Zero Ultra, Monster Khaos, Monster Punch, Monster Java, Monster Hydrom, Monster Maxx, and Muscle Monster.    

Monster Beverage - Revenue Model

  • The revenue of Monster Beverages for 2022 is $6.22 billion. The Company made a revenue of $5.54 Billion in 2021. 90% of the Company's revenues come from the Monster Energy drink segment.

Monster Beverage - Employees

  • Monster Beverages wants its employees to have an enjoyable time while working. The Company even organizes training and development programs that would boost the skills of the employee.
  • Apart from that, the Company offers the benefits of dental and health insurance, disability benefits, paid sick leave, life insurance, vacations, subsidy for food, an online learning platform, etc. to its employees.

Monster Beverage - Challenges Faced

  • The Monster Beverage company faces issues like high freight costs and fuel expenses. They have hurt the Company's operating margins for a while. Apart from that, the inflation-based costs of Aluminium cans, freight and shipping, and other aspects affect the Company's operating profits.
  • In the third quarter of 2022, the Company faced global supply chain challenges. This included a lack of shipping containers that caused a shortage of ingredients. The Company also faced a rise in its distribution expenses that, included warehousing costs and fuel and freight prices.

Monster Beverage - Growth

  • Monster Beverage gets a substantial portion of revenue from its Energy drinks segment. The Company showed gradual growth in the last few years. However, since 2016 the growth has really picked up.
  • The energy drinks segment sales contribute 94.2% of the total sales. Their revenue has grown by almost 30% since 2019, which shows the strength of the Company.

Monster Beverage - Advertisements and Social Media Campaigns

  • Monster Beverages spends its major ad contribution on the Monster energy drink. Their commercial focuses on the product range or the new generation and their need to be unique. Most of the commercials created just focus on the qualities of the product in question.

Monster Beverage - Awards and Achievements

  • A few awards Monster Beverage has won over the years are:
  • N.B.J.'s large company growth award in 2007
  • It also won the stock award from N.B.J. in 2004 and 2005

Monster Beverage - Competitors

Some of Monster Beverage's competitors are:

  • Celsius
  • Red Bull
  • Rockstar Energy
  • Burn
  • N.O.S.
  • Ionamin C
  • Eastroc Beverage Group Co Ltd
  • Zevia
  • Lucozade

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Monster Beverage - Future Plans

  • Monster Beverages continues to expand its portfolio and make bigger strides in the market. In the third quarter of 2022, the Company launched its new product, Predator, in markets like Malaysia, Jordan, and Kazakhstan. By the first half of 2023, they will also extend the product to the rest of the countries.
  • Another product that they plan to launch in the first half of 2023 is Rainstorm. It will have four flavors, each different from the others. To reduce its supply chain challenges, the Company plans to reduce dependency on imported cans.
  • The Company will also launch the first flavored malt drink Beast Unleashed. It will have only 6% alcoholic content and will launch through Beer distributors.
  • Energy drinks are included as a part of the day to day life. The two most popular players in the industry are Red Bull and Monster Beverage. Both corporations are known for their different products.
  • Monster Beverage has a number of brands under its name to sell products. Some of them are Monster Energy, BPM, BU, Java Monster, Muscle Monster, etc. It was started in 1935 as Hansen Juices by Hubert Hansen.

FAQs

Who is the CEO of Monster Beverage?

Monster Beverage has two co-CEOs, i.e., Rodney Sacks and Hilton Schlosberg.

How many brands does Monster have?

Monster has multiple brands through which it sells its products. Some of the brands are Monster Energy, BPM, BU, Java Monster, Muscle Monster, Burn, Nalu, NOS, Play and Power Play, Samurai, and Ultra Energy.

Which product gets the maximum sales for Monster Beverage?

Monster Beverage gets its most revenue from Monster Energy Drink. In fact, the product holds the number two position in the market share of that segment.

Does Coca-Cola own Monster?

In 2015, Monster signed a deal with Coca-Cola allowing them 16.7% of the stake in the business. The deal was the exchange of the ownership of the worldwide energy drink business to Monster from Coca-Cola. And on other hand, the ownership of the worldwide non-energy drink business was transferred to Coca-Cola from Monster. So according to the deal, Coca-Cola owns a 16.7% stake in Monster.