Morningstar Rating

Stock Research and Analysis

by Thomas Mullarkey, CFA

Bulls Say

Through its Monster Energy brand, the company is the largest seller of energy drinks in the U.S. convenience store channel with a 34% market share roughly matching Red Bull.
Monster has significant growth opportunities in international markets as well as in further increasing its share of noncarbonated drinks in the United States.
Monster has many large and able distribution partners, including Coca-Cola, CCE, CCH, and ABI. These partners enable Monster to benefit from an established capital-intensive distribution network, so it can focus on higher-return, brand-building activities. Read more 

Bears Say

The Coca-Cola Company, which is Monster's largest distributor, is also a competitor with its Full-Throttle energy drink. Coke eventually could seek higher economic rents from Monster.
The San Francisco City Attorney is on a quest to reduce the caffeine concentration of energy drinks to match that of ordinary colas.
In some countries, retailers are rolling out private-label energy drinks that are priced significantly below Red Bull and Monster. Such competitive threats could erode segment prices and profitability. Read more 

Management

Even though Monster has delivered meaningful returns to its shareholders during the last decade, we view the company's standard of corporate governance as average. Rodney Sacks has held the chairman and CEO roles since 1990. While we would prefer to   Read more 

Profile

Through its subsidiaries, Monster Beverage Corporation develops, markets, and sells a variety of nonalcoholic beverages, including energy drinks, natural sodas, and fruit   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Brands Key to Consumer Moats  
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.