Announced on Friday, The Coca-Cola Co. and Monster Beverage Corp. have completed a strategic partnership, one in which the cola giant paid $2.15 billion for a 16.7 percent stake in the energy drink company. The two companies initially reached a deal in August.
Along with an equity stake in Monster, Coke has become the “preferred global distribution partner” for Monster energy drinks, and assumed most of the wholesaling responsibilities for the brand globally, according to a joint release from the two companies. A notable exception is in metro New York, where Monster products will continue to be distributed by well-known independent distributor Big Geyser. Coke has also begun to plug Monster into its international business, a key part of the deal and one expected to reap massive rewards for the energy brand overseas.
The two sides also swapped ownership of non-primary brands with Coke acquiring all of Monster’s non-energy drink business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products, which are now managed by Coke’s Venturing and Emerging Brands unit. In return, Monster now owns energy brands formerly held by Coke, which include NOS and Full Throttle, among others.
Here is the joint press release from Coke and Monster in full:
ATLANTA & CORONA, Calif.–(BUSINESS WIRE) — The Coca-Cola Company (NYSE: KO) and Monster Beverage Corporation (NASDAQ: MNST) announced today the closing of 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 Company now owns an approximate 16.7% stake in Monster.
The Coca-Cola Company transferred ownership of its worldwide energy business, including NOS, Full Throttle, Burn, Mother, BU, Gladiator, Samurai, Nalu, BPM, Play and Power Play, Ultra and Relentless, to Monster, and Monster transferred its non-energy business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products, to The Coca-Cola Company.
Since the transaction was announced, Monster and The Coca-Cola Company and its bottlers have amended their distribution arrangements in the U.S. and Canada by expanding into additional territories and entering into long-term agreements. The Coca-Cola Company also has become Monster’s preferred global distribution partner with new international distribution commitments already in place with bottlers in Germany and Norway.
In connection with the closing, The Coca-Cola Company made a net cash payment of approximately $2.15 billion to Monster.
About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, one of the world’s most valuable and recognizable brands, our Company’s portfolio features 20 billion-dollar brands including, Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, POWERADE, Minute Maid, Simply, Georgia, Dasani, FUZE TEA and Del Valle. Globally, we are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy our beverages at a rate of 1.9 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together with our bottling partners, we rank among the world’s top 10 private employers with more than 700,000 system associates. For more information, visit Coca-Cola Journey atwww.coca-colacompany.com, follow us on Twitter at twitter.com/CocaColaCo, visit our blog, Coca-Cola Unbottled, at www.coca-colablog.com or find us on LinkedIn at www.linkedin.com/company/the-coca-cola-company.
About Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries market and distribute energy drinks including Monster Energy® energy drinks, Monster Energy Extra Strength Nitrous Technology® energy drinks, Java Monster® non-carbonated coffee + energy drinks, M3® Monster Energy® Super Concentrate energy drinks, Monster Rehab® non-carbonated energy drinks with electrolytes, Muscle Monster® Energy Shakes, Übermonster® energy drinks, NOS, Full Throttle, Burn, Mother, BU, Gladiator, Samurai, Nalu, BPM, Power Play™, Ultra and Relentless. For more information, visit www.monsterbevcorp.com.