With its business growing amid a rising U.S. energy drink category, Monster Beverage Corporation expressed confidence in its widening product portfolio and its alcoholic drinks arm, Monster Brewing Company, during its annual investor meeting presentation on Tuesday.
During the live presentation, co-CEOs Rodney Sacks and Hilton Schlosberg highlighted 3.2% retail sales growth for its U.S. business against 6% growth for the total energy category in the 13-week period ending January 4.
- However, after two straight quarters of falling sales in its nascent beverage-alcohol division, Monster said it will prioritize streamlining Monster Brewing Company this year under recently-appointed division president Ray LaRue.
- This includes consolidating production facilities, which Sacks said will result in two main manufacturing plants and a third used for niche or smaller brands.
#ICYMI: In November, Monster announced it had “restructured” Monster Brewing Company’s senior management following the appointment of LaRue. The company also shuttered the Deep Ellum and Oskar Blues production facilities production breweries in Texas and transitioned the Cigar City brewery in Tampa to an R&D facility.
“We expect to take a further impairment in this division, but we are confident that we’ll be able to use this platform. It’s premature for us to discuss ideas on the alcoholic and non-alcoholic sides, but we do have new ideas planned to help us become a staple in the business,” Sacks told investors during yesterday’s presentation.
Focusing on the “power of the portfolio,” Monster will also seek to grow its core lines while attracting new consumers to the category in 2025 with a roster of influencer and sports partnerships. Two key renewals have already taken place: a five-year deal with UFC featuring custom signage and a deal with X Games.
How does Monster ensure consumer impressions from these deals produce results in retail? According to CMO Dan McHugh, creating digital content with athletes and ambassadors is key. For example, the company has featured YouTuber Kai Senat on “major content” that has reportedly delivered “unbelievable numbers across the board for the Bang Energy brand.”
Monster closed out the presentation by vaguely discussing the succession plan for Sacks, which would eventually see Schlosberg take over the CEO role entirely. A timeline has not been announced.
“What I can say is that probably around mid-year, you’ll see some change. This is a company and brand I’ve grown up with, so I think I can still contribute and play an important role, but perhaps in a slightly different position or not as hands-on or full-time,” said Sacks.