Weak alcohol sales dragged on Monster Beverage in Q1, part of a confluence of factors that saw net sales drop 2.3% during the quarter.
Monster CEO Rodney Sacks also cited cold weather, a shift in U.S. and European bottler/distributor ordering patterns, and adverse exchange rates for the energy drink company’s underwhelming earnings report during an investor call this morning.
Excluding alcohol, currency-adjusted net sales increased 1.9% during the quarter.
Energy Drinks, including Reign and Bang, reported a dip in net sales from $1.72 billion to $1.71 billion in Q1, recorded as a 2.2% increase when adjusted for foreign currency.
Monster’s Strategic Brands division reported a 3.3% drop in adjusted net sales, falling from $108.4 million in Q1 2024 to $98.3 million in Q1 2025.
“Our first quarter revenues were impacted by a number of headwinds including bottler/distributor ordering patterns, unfavorable foreign currency exchange rates in certain markets, adverse weather in certain geographies as well as overall global economic uncertainties,” said Hilton H. Schlosberg, Monster’s Vice Chairman and Co-Chief Executive Officer.
Executives pointed to improving velocities in April as a sign of category resilience amidst plummeting consumer confidence: for the 13 weeks ended April 26, all-outlet energy drink sales were up 10% from the year prior, per Nielsen.
On Alcohol: Net changes in foreign currency exchange rates cost Monster over $57 million in Q1, but the company’s sliding Alcohol Brands segment is likely to draw more attention. The division reported $34.7 million in net sales during the quarter, a 38.1% year-over-year decline which the company attributed largely to the launch of Nasty Beast Hard Tea.
As reported on BevNET’s sister publication Brewbound, The Beast and Nasty Beast have reported steep declines this year, falling 15.7% in dollars and 14.4% in volume year-to-date (YTD) through March 23.
Over the last three years, Monster has shuttered multiple sites acquired through its $330 million purchase of CANarchy Craft Brewery Collective in 2022; last month, the company announced production of its Utah-based brands Wasatch Brewing and Squatters Brewing will shift to other facilities within its bicoastal network.
“We remain focused on optimizing our personnel and facilities to support the current demand for our Monster Brewing portfolio and innovation pipeline,” said Sacks in a statement today.
Michi, a new flavored beer line in 24 oz. cans, is “in the process of a national launch” in two flavors, Lime Chelada and Tomato Michelada.
Sacks also noted that the company was “exploring opportunities for our alcohol products in certain international jurisdictions,” and that Monster Brewing will have more innovation rolling out in the coming months.
On tariffs: Sacks praised the company’s risk mitigation strategy amidst a shaky global trade environment; Monster is “nicely hedged on metal,” he said, including higher-priced aluminum sold in the U.S.
On innovation: After a busy Q1 that saw releases like Ultra Blue Hawaiian (already a best-seller, per Sacks), Vice Guava and a couple new Killer Brew flavors, among others, the pipeline will slow down until the later half of this year, the company said.