[Overseas Stocks Spotlight] "Monster Beverage to Continue Benefiting from Energy Drink Market Growth"

[Asia Economy Reporter Eunmo Koo] There is an analysis that Monster Beverage (Monster Beverage·MNST. US) will continue to benefit from the growth of the global energy drink market.

On the 6th, Kim Taehyun, a researcher at IBK Investment & Securities, stated in a report, "The global energy drink market size is expected to grow at an average annual rate of 7.2%, from approximately $53 billion in 2019 to about $86 billion in 2026," adding, "With the expansion of energy drink consumers mainly in the US and Europe, and increasing substitution demand for traditional carbonated drinks such as cola, considering that Monster Beverage is the industry's second-largest player with a 39% market share, it is expected to continue benefiting from market growth."

Monster Beverage's sales in the third quarter of this year reached $1.246 billion, a 9.9% increase compared to the same period last year, and operating profit rose 16.0% to $458 million. Net income also increased by 16.3% to $347 million. Researcher Kim explained, "The record-high quarterly sales performance was achieved due to continued strong retail sales and the recovery of sales in convenience store and gas station channels, which had been sluggish in the second quarter due to the impact of COVID-19."

By region, sales in North America and Canada grew 7.0% to $841 million, Asia-Pacific increased 23.0% to $127 million, and Latin America and the Caribbean rose 6.2% to $51 million. Europe, the Middle East, and Africa, which had been a concern due to strengthened lockdown measures, also showed solid sales performance with a 15.8% increase year-on-year to $226 million.

Founded in 1935, Hansen’s, a small beverage and juice manufacturer in California, USA, is the predecessor of Monster Beverage. After launching Monster Energy in 2002 and focusing on the high-caffeine energy drink market, the company changed its name to Monster Beverage in 2012. In August 2014, it sold a 16.7% stake to Coca-Cola for $2.15 billion, transferring brands other than energy drinks to Coca-Cola and acquiring Coca-Cola’s energy drink brands, forming a strategic partnership. Since then, leveraging Coca-Cola’s vast distribution channels to expand into the global market, Monster Beverage has grown into the second-largest company in the energy drink market, following Red Bull (Red Bull GmbH).

This content was produced with the assistance of AI translation services.