Monster Reassures Investors, Offers Glimpse of New Products for 2013

In a bid to reassure shareholders and investors about safety of its products as well as the current and future growth potential of its flagship energy drink, Monster Beverage Corp. issued a recent filing with the U.S. Securities and Exchange Commission (SEC) that included a 61-slide presentation that began with the statement, “Monster Energy Products Are Safe.” The presentation was shown at an investor meeting that Monster hosted in New York and simultaneously webcast on the company’s website yesterday afternoon.

Packed with trends on the energy drink category, company sales data, and information about new line extensions, Monster nonetheless began the presentation with a series of data points intended to counter the barrage of negative press directed at its energy products. The company stated that “more than 8 billion cans of Monster Energy… have been sold and safely consumed in the U.S. and around the world since 2002,” and that the Food and Drug Administration (FDA) “has made it clear that it has not established any causal link between Monster Energy products and any of the limited number of events reported” in the FDA’s Food Safety Adverse Event Reporting System.

Monster offered affirmative details on the caffeine levels in its products, stating that its energy drinks “generally contain approximately 10 mg of caffeine per ounce from all sources.” The company followed by comparing the caffeine content in its products to that in “leading brands of coffeehouse-brewed coffee” which “contain on average in excess of 20 mg of caffeine per ounce,” according to Monster.

Monster also included a cartoon featured in a Good Housekeeping magazine from 1912 that warned about the dangers of Coca-Cola and compared it to the current backlash that Monster and other energy drink brands are facing with regards to the amount of caffeine in their beverages. The cartoon’s caption read, “Any powerful drug such as caffeine is acknowledges to be, should not be offered indiscriminately to the public in other than its natural condition, and certainly not without the knowledge of the consumer.” Monster noted that the cartoon was warning a “gullible public” at the time of its release.

However, not everything in yesterday’s meeting was about Monster pushing back against its critics. The company revealed three eye-opening line extensions in the presentation, including a new 12-pack of 8 oz. cans dubbed Monster Minis.  The smaller sized cans, which will be released in the first quarter of 2013, will come in four varieties: Monster Energy, Monster Absolute Zero, Monster Rehab, and Monster Lo-Carb. It is unclear if the new multi-packs will include a mix of the four products.

The company also introduced Monster Energy Ultra Pink, which, much like Monster Energy Zero Ultra, is a zero-calorie and zero-sugar product. The drink is packaged in a bright pink can and is likely an attempt by Monster to reach out to new female consumers — and may be keying off of the success that 5-Hour Energy has reached with its recently debuted Pink Lemonade flavor. The new beverage will be released in the first half of 2013.

As has been previously reported, Monster is also planning to launch Protein Monster, a new non-carbonated line of energy drinks formulated with protein. While the presentation did not include the actual level of protein content in the line, Protein Monster will be packaged in 15.5 oz. cans and come in three varieties. Those drinks are also slated for release in the first half of next year.

Monster shares rallied today following multiple positive reports from Wall Street analysts.