Sales of Monster Energy outpaced the overall energy drink category in the two-week period ending February 27, according to an analysis of Nielsen data by Goldman Sachs Equity Research.
Monster saw U.S. dollar sales rise 8.6% year over year in the two-week period to $5.74 billion, declining slightly from 9.8% in the four-weeks and 11% in the 12-weeks. In comparison, the category grew dollar sales 7.1% in the two-weeks. The company’s volume sales were up 9.8% in the same period, compared to 7.7% for the category, which Goldman Sachs attributed to tailwinds from its “strong innovation pipeline.” Monster’s average unit price fell 1.1% while the category saw a 0.6% drop.
Red Bull continued to post double-digit increases in dollar sales, growing 15.9% in the two-weeks (compared to 17.5% in the four-weeks and 18.8% in the 12-weeks). Volume was up 17.4% while average unit price declined 1.3%.
Goldman Sachs analysts suggested that Red Bull’s momentum was driven by a shift from on premise sales, where the brand has historically been strong, to at home amid continued behavioral shifts during the COVID-19 pandemic. The company has also benefited from recent flavor innovations, the report said, but Monster could be catching up fast as the company rolls out several new products.
In a recent “Beverage Bytes” survey of convenience retailers conducted by Goldman Sachs, 35% of respondents said they expect Monster to gain shelf space this year. The analysts also wrote that they “continue to be optimistic” about a potential hard seltzer launch from Monster later this year or next year.
The report follows a strong Q4 2020 earnings report by Monster that saw the company beat analyst expectations with a 17.6% increase in net sales. In January, the company unveiled a slate of new products set to launch this year, including 12 oz. slim can variations of its core offerings, extensions for the Rehab, Hydro and Ultra lines and new Reign flavors.
Among its existing portfolio, Monster Java posted the strongest dollar sales growth at 9.2% in the two-weeks, followed by core Monster at 6.9% and Zero Ultra at 5.7%. Monster Ultra Sunrise grew 2.8% in the same period. However, the company’s other offerings reported declines, including Reign (down 11.2%), NOS (down 11.5%), Rehab (minus 6.3%) and Hydro (a drop of 32.4%).
Dollar sales for number three category player Bang fell 5% in the two weeks to $1.1 billion, compared to a 2.3% slide in the four weeks and 1.4% growth in the 12-weeks.
PepsiCo saw dollar sales slide 26.3% in the two-weeks, compared to a 22.6% drop in the four-weeks and a 16.5% decline in the 12-weeks. Rockstar sales in the two weeks were down 11.4% and MTN Dew Kickstart dropped 15.4%. Additional SKUs also reported declines including Rockstar Punched (minus 7.8%), Rockstar Pure Zero (down 39.5%) and MTN Dew Amp Game Fuel (down 37.9%).
Performance energy brand CELSIUS has continued its high double digit growth streak, with dollar sales up 93.3% in the two weeks to $101.4 million, only a slight deceleration from 98.7% growth in the four-weeks and up from 89.7% growth in the 12-weeks. Goldman Sachs noted that the brand also has “significant exposure” to non-tracked channels including fitness and ecommerce.