ATLANTA & CORONA, Calif. -- The Coca-Cola Co. and Monster Beverage Corp. closed Friday on the previously announced strategic partnership related to an equity investment, business transfers and expanded distribution in the global energy drink category. As a result of the transaction, the Coca-Cola Co. now owns an approximate 16.7% stake in Monster.
The Coca-Cola Co. transferred ownership of its worldwide energy-drink business, including NOS, Full Throttle, Burn, Mother, BU, Gladiator, Samurai, Nalu, BPM, Play and Power Play, Ultra (UCTT) and Relentless, to Monster Corp., and Monster transferred its non-energy business, including Hansens Natural Sodas, Peace Tea, Huberts Lemonade and Hansens Juice Products, to Coca-Cola.
Since the transaction was announced, Monster, Coca-Cola and its bottlers have amended their distribution arrangements in the United States and Canada by expanding into additional territories and entering into long-term agreements. The Coca-Cola Co. also has become Monster's preferred global distribution partner with new international distribution commitments already in place with bottlers in Germany and Norway.
In the U.S., as distribution of Monster has transferred from Anheuser-Busch to Coca-Cola, some convenience retailers have reported out of stocks and low inventory, according to a Wells Fargo Securities survey, resulting in a dip in the brand's share of the energy-drink market. However, "it appears issues are being addressed and broadly improving," Wells Fargo analyst Bonnie Herzog reported today. "We expect Monster's second-half results should improve."
In connection with the closing, the Coca-Cola Co., Atlanta, made a net cash payment of approximately $2.15 billion to Corona, Calif.-based Monster.
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