Coke splashes out on a $2 billion stake in Monster

Monster Beverage has sold a 16.7 per cent stake to Coca-Cola for $US2.15 billion ($2.3 billion), giving the soft drink giant a greater hold on the energy drink market.

As part of the deal, The Coca-Cola Company will become Monster’s preferred distribution partner globally and Monster will become Coca-Cola's exclusive energy play.

Coca-Cola will transfer ownership of its worldwide energy business, including Mother, NOS, Full Throttle, Burn, Play and Power Play, and Relentless, to Monster; and Monster will transfer its non-energy business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products, to The Coca-Cola Company.
 
“Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category," Muhtar Kent, chairman and CEO of Coca-Cola said.
 
Rodney C. Sacks, chairman and CEO of Monster, said the transaction represented a unique opportunity for Monster and its shareholders.

“We gain enhanced access to The Coca-Cola Company’s distribution system, the most powerful and extensive system in the world. At the same time, we become The Coca-Cola Company’s exclusive energy play, with a robust portfolio led by our Monster Energy line and The Coca-Cola Company’s energy brands.

“Our business will be bolstered by The Coca-Cola Company energy brands we will acquire, providing us with complementary energy product offerings in many geographies, as well as access to new channels, including vending and specialty accounts,” Sacks said.