Monster Paper Final

Monster Beverage Corporation
Stock Symbol: MNST
Christine Sparks, Mary Milovic
MBA 6140
Colleen Rushford
12/7/14

Table of Contents
Introduction to Monster Beverage Corporation 3
Monster’s Markets 5
The Products of Monster 8
SWOT Analysis 11
Conclusion 13
References 15
Appendix A 16
Appendix B 17
Appendix C 18
Appendix D 19
Appendix E 20

Introduction to Monster Beverage Corporation Monsters, those large, unpredictable beings, have taken on many forms throughout history. They continue to do so today, not only as beings, but as the very liquids we consume. As the Urban Dictionary tells us, “The Monster is the best damn energy drink ever made!” The Monster Beverage Corporation is a force to be dealt with as it battles its rival, Red Bull in the multi-billion-dollar energy drink wars. The Monster Beverage Corporation manufactures energy drinks, natural soft drinks, and fruit drinks including Monster Energy, Hansen’s Natural Soda, Hansen’s Junior Juice, Hubert’s Lemonade, Peace Tea and Blue Sky. Monster Beverage is located in Corona, California and was incorporated on April 25, 1990. According to the 2013 Annual Report, the common stock value of the company is worth $.005 par value per share and is registered under the Nasdaq Global Select Market with the symbol MNST. Historically, the company began in the 1930’s by the Hubert Hansen family. Initially, the family business consisted of selling fresh juices in California. Over the years, the name of the company changed from Hansen’s Juices, Inc. to The Fresh Juice Company of California, to Hansen Foods, Inc. During the 1990’s the California Co-Packers Corporation spent time acquiring rights and assets from The Fresh Juice Company, including the use of the Hansen’s brand name. According to the SEC Annual Report (2013), the final acquisition occurred in 1999 when “we acquired all of FJC’s rights to manufacture, sell and distribute fresh, non-pasteurized juice products under the Hansen’s trademark together with certain additional rights” (p.4). While all of this was occurring, the California Co-Packers Corporation was busy adding new products considered “alternative” energy drinks. The success of the energy drink beverages resulted in a final name change from the Hansen Natural Corporation to Monster Beverage Corporation in 2012 (SEC, p.4). The “alternative” beverage category combines non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, and single-serve still water (flavored, unflavored and enhanced) with “new age” beverages, including sodas that are considered natural, sparkling juices and flavored sparkling beverages.
In August 2014, Monster Beverage and The Coca-Cola Company entered into definitive agreements for a long-term strategic partnership to accelerate growth for both companies in the global energy drink category. Under the agreements, The Coca-Cola Company will acquire an approximate 16.7% ownership interest in Monster Beverage and will transfer ownership of its global energy business to Monster. In turn, Monster Beverage will transfer its non-energy business to The Coca-Cola Company. Monster and The Coca-Cola Company will amend their current distribution agreements in the U.S. and Canada by expanding into additional territories. Additionally, upon closing, The Coca-Cola Company will become Monster's preferred distribution partner globally, and Monster will become The Coca-Cola Company's exclusive energy play. This partnership merger is expected to close in early 2015 (2013 Annual Report).

Monster’s Markets The Monster Beverage Corporation is fully aware that the beverage industry is highly competitive. Competition is fierce in regards to pricing, product development, packaging, marketing and promotion (SEC Annual Report, p. 12). According to

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