An increase in promotional pricing and strong sales for sugar-free Monster Zero Ultra and coffee-based Java Monster helped Monster Beverage Corp. build substantial volume growth over recent weeks, according to an analysis of Nielsen U.S. channel data through August 22, 2020 by Goldman Sachs Equity Research.
The California-based energy drink brand saw volume increase 20.8% over the two-week period ended August 22, a slight acceleration over 19.7% growth over the four-week period. Sales were up 7.6%, up from 6.7% over the four weeks.
Java Monster saw sales increase 13.7% and volume rise 12.5% over the two weeks, while sales of Monster Zero Ultra were up 7.5% during the period. Monster’s core line saw a 4.3% sales increase. Elsewhere, Monster Hydro (down 32.5% over the two weeks and 16.1% for the 52 weeks), Monster Ultra Red and Monster Ultra Blue experienced declines in both sales and volume.
Despite the growth, Monster’s sales were outpaced by both its main rival Red Bull and the energy category overall, which grew 11% over the two-week period and 10.2% over the four weeks. Red Bull was up 19.3% over the two weeks, during which the company increased its category market share to 36.6% during that period. Both the core Red Bull line (up 15.6% over the two weeks and 5.1% over the 52-week period) and the brand’s Summer Editions (51.9% growth over the two weeks) performed strongly.
While Red Bull and Monster each put up positive sales numbers, PepsiCo reported a 7.5% drop over the two weeks ended on August 22. Rockstar continued to struggle, with sales falling 8.3% and volume slipping 4.6% over the two weeks. Company sales are down 8.1% for the year.
Bang reported a 1.7% decline in sales during the two week period, though sales are trending forward after a 3.5% drop over the four weeks. The Florida-based brand is up 21% for the 52-week period. Elsewhere, Celsius has seen sales surge 60.4% over the four weeks.
Goldman Sachs analysts wrote that they expect category growth to “remain strong” and that the outlook is “robust” for the rest of this year.