In this piece, we will take a look at the 12 biggest energy drink stocks in the U.S. If you want to skip our background of the consumer discretionary industry, energy drinks, and the broader economic environment, then take a look at 5 Energy Drink Stocks in the US.
Energy drinks are a relatively newer phenomenon especially if we consider that carbonated beverages have been around for far longer. They provide the consumer with a mix of the utility offered by carbonated drinks and the stimulants that are often found in coffee or black tea. However, while the first carbonated beverages are believed to have been developed a couple of centuries ago, energy drinks first surfaced in America in 1949 under the brand name Dr. Enuf.
Since then, the global energy drink market has grown by quite a bit. Research conducted by Allied Market Research suggests that the global energy drink market was worth $45.8 billion in 2020. Over the next decade, the research firm believes that this market will grow at a compounded annual growth rate (CAGR) of 8.2% to sit at $108 billion by 2031. These estimates are also mirrored by another research report that pins a CAGR of 11.90% on the global energy drinks market for its growth between 2023 and 2030, to ascribe an $89 billion value for the sector by the end of 2030.
As well as growing in the billions over the past couple of decades, the energy drink market is also quite diverse these days. There are dozens, if not hundreds of brands that are sold all over the world with the marketing claim of improving performance. Additionally, while an energy drink is typically thought to be the one involving caffeine, there are other variants of athletic drinks that seek to replace lost minerals in the body due to extensive physical activity but do not boast the stimulative effects of caffeine or another popular ingredient, taurine.
On a broader level, energy drinks are of six kinds, with some of these being sports drinks and energy shots. As to who is more susceptible to drinking energy drinks, research shows that at least when it comes to college students, those enrolled in tougher courses such as medicine often play a larger role in determining energy drink usage.
Shifting towards the corporate side of things, market share distribution in the energy drink market follows the Power Law. Some big brands control most of the sales, simply due to the fact that they have greater brand awareness, robust supply chains that can ship thousands of units, and well oiled production processes to churn out large volumes. Our analysis of the 10 Biggest Energy Drink Companies in the World shows that multinational beverages giants such as The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NYSE:PEP), and Monster Beverage Corporation (NASDAQ:MNST) are the largest companies in terms of market capitalization that sell energy drinks.
However, out of the top three companies identified above, only Monster Beverage Corporation (NASDAQ:MNST)'s drinks made it to the list of the best selling energy drinks in the U.S. as of May 2022. Data from Information Resources Inc. (IRI) shows that during this time period, the non asceptic energy drink segment which includes popular names such as Red Bull, raked in $16 billion in sales. Out of these, Red Bull accounts for 42.5% of the sales, as it brought in $6.8 billion across U.S. retail outlets. This marked a 13.6% annual increase, as inflationary pressures and a resumption in outdoor activities proved to be some of the 'stimulating' factors for revenue growth. Overall, the top five non asceptic energy drinks sold in the U.S. were Redbull, Monster Energy, Vital Pharmaceuticals' VPX, PepsiCo, Inc. (NYSE:PEP)'s Rockstar, and Monster Beverage's Reign. As for Red Bull's maker Rauch Fruchtsäfte GmbH & Co OG, the growth in the global energy drink market also makes it the 20th largest non alcoholic beverage company in the U.S.
Finally, even though inflation is coming down in the U.S., consumers are starting to feel the pinch as savings from the pandemic dry out and the job market becomes tougher. Energy drink companies are feeling the pinch too, as the management of Monster Beverage Corporation (NASDAQ:MNST) shared during its latest earnings call:
Operating expenses for the 2023 second quarter were $450.4 million, compared with $406.9 million in the 2022 second quarter, as a percentage of net sales operating expenses for the 2023 second quarter were 24.3% compared to 24.6% in the 2022 second quarter. Distribution expenses for the 2023 second quarter decreased to $82 million, or 4.4% of net sales compared to $87.9 million or 5.3% of net sales in the 2022 second quarter. The $5.8 million decrease in distribution expenses was primarily due to decreased freight out expenses of $11.8 million partially offset by higher warehouse expenses of $4.8 million as a result of higher raw materials and finished product inventories in the United States and EMEA.
With these details in mind, let's take a look at some of the biggest energy drink stocks in the U.S.
Young athletes having a break while enjoying one of the sports drinks offered by the Company
Our Methodology
To compile our list of the biggest energy drink stocks in the U.S., we first made a list of publicly traded companies that sell energy drinks in the United States. Then, the top 12 in terms of market capitalization were chosen.
The Coca-Cola Company (NYSE:KO) is one of the largest carbonated beverages company in the world. It also sells its own energy drinks, under the brand Coca-Cola Energy. The drinks have the typical assortment of caffeine, B-vitamins, and other ingredients found in energy drinks.
By the end of this year's second quarter, 61 out of the 910 hedge funds that were part of Insider Monkey's research had held a stake in The Coca-Cola Company (NYSE:KO). Out of these, the firm's largest shareholder is Warren Buffett's Berkshire Hathaway since it owns 400 million shares that are worth $24 billion.
PepsiCo, Inc. (NYSE:PEP) is another carbonated beverage firm with a large global presence. Its Pepsi Max soft drink has enough caffeine to match some energy drinks, and the company also took a $550 million stake in energy drink manufacturer Celsius in 2022 to add to a $3.5 billion purchase of Rockstar in 2020.
Insider Monkey's June quarter of 2023 survey covering 910 hedge funds revealed that 68 had owned the firm's shares. PepsiCo, Inc. (NYSE:PEP)'s biggest hedge fund investor is Terry Smith's Fundsmith LLP due to its $1.2 billion investment.
Monster Beverage Corporation (NASDAQ:MNST) is a well known energy drink manufacturer who is America's strongest response to the world's most widely known energy drink RedBull. The firm's shares are rated Buy on average and analysts have penned in a roughly $10 share price upside based on the average share price.
44 out of the 910 hedge funds tracked by Insider Monkey were Monster Beverage Corporation (NASDAQ:MNST)'s investors as of Q2 2023 end. Neal C. Bradsher's Broadwood Capital is the company's largest stakeholder in our database since it owns $534 million worth of shares.
Keurig Dr Pepper Inc. (NASDAQ:KDP) is another popular American carbonated beverage company. Like Pepsi, the firm is also expanding its presence in the energy drinks market. It made a big splash in December 2022 when it invested a cool $864 million in the energy drink maker Nutrabolt.
After digging through 910 hedge funds for their June quarter of 2023 investments, Insider Monkey discovered that 40 had bought a stake in Keurig Dr Pepper Inc. (NASDAQ:KDP). Out of these, the firm's biggest investor is Jim Simons' Renaissance Technologies through a $244 million stake.
Celsius Holdings, Inc. (NASDAQ:CELH) is an American firm set up in 2007. It is a diversified energy drink company, which sells products under the CELSIUS Originals and CELSIUS Heat brand names, as well as powders used in making energy drinks.
As of June 2023, 41 hedge funds out of the 910 tracked by Insider Monkey had invested in Celsius Holdings, Inc. (NASDAQ:CELH). Out of. these, the biggest stakeholder is Paul Marshall and Ian Wace's Marshall Wace LLP since it owns 1.3 million shares that are worth $199 million.
The Campbell Soup Company (NYSE:CPB) is one of the oldest companies on our list since it was set up in 1869. The firm sells the V-Fusion+ lineup of energy drinks.
Insider Monkey's second quarter of 2023 survey covering 910 hedge funds revealed that 29 had invested in the company. Campbell Soup Company (NYSE:CPB)'s largest shareholder is Jim Simons' Renaissance Technologies due to its $197 million investment.
Suntory Beverage & Food Limited (OTCMKTS:STBFY) is the first international firm on our list. It is headquartered in Tokyo, Japan, and the firm sells all kinds of beverages all over the world. It also distributes products in the U.S., with its V Energy Drink being the most well known product.
