Coca-Cola’s stable of energy drinks, on the other hand, has at least 25% value share in 12 markets and is the number one overall off-trade value soft drinks player in 60 of Euromonitor International’s 80 researched countries. While Monster is available in over 40 countries across the world, it has only managed to capture 25% off-trade value share in three markets: the US (43%), Mexico (40%) and Greece (36%). As Monster begins its international expansion in earnest, the combination of Coca-Cola’s speed to market and Monster’s knack for new products could play well in a global landscape where product lifecycles are becoming shorter all the time. Furthermore, the expansion of energy functionality into categories such as RTD tea, juice, carbonates, and bottled water favours manufacturers able to reliably generate new flavours and formulations. Global off-trade value sales of energy drinks have slowed in recent years, but the category’s forecast US$12 billion absolute off-trade value growth from 2013-2018 bodes well for both parties. Monster also agreed to make Coca-Cola is preferred global distribution partner, while Coca Cola agreed to let Monster operate as its only energy play. In the agreement, Coke traded its energy brands (and markets) for Monster’s non-energy brands. On the heels of Coca-Cola’s 16.7% acquisition of Monster Energy, speculation regarding the potential for Monster’s international expansion is high.
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