Energy drink growth slows, Monster continues to gain

Year over year energy drink demand for June climbed 15-18
percent in convenience and gas stores, and 20 percent in Wal-Mart stores,
according to Longbow Research Analyst Alton Stump.

Last year, energy drinks enjoyed gains of 25 percent or
greater, Stump said. He cited slower overall traffic in gas station mini-marts for
driving a 1-2 percent hit to category demand in June. He also noted that
Longbow’s contacts cited lower spending behind Coke’s Full Throttle, Pepsi’s
Sobe and independent Rockstar as a core driver to reduced category growth.

Amid that slack promotion environment, Stump reported that
Monster continued to gain market share while increasing its presence in
c-stores. Approximately 80 percent of surveyed stores said they carried Monster
coolers, Stump reported, up from 75 percent in April.

The brand also enjoyed an approximately 50 percent increase
in shelf space at Wal-Mart stores, Stump reported.