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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Monster Beverage (MNST) ten years ago? It may not have been easy to hold on to MNST for all that time, but if you did, how much would your investment be worth today?
Monster Beverage's Business In-Depth
With that in mind, let's take a look at Monster Beverage's main business drivers.
Monster Beverage Corporation, headquartered in Corona, CA, is a marketer and distributor of energy drinks and alternative beverages. Incorporated in 1990 in Delaware, Monster Beverage was previously known as Hansen Natural Corporation. In 1992, the company acquired the Hansen Beverage business.
On Jun 12, 2015, Monster Beverage closed a deal with The Coca-Cola Company (TCCC). Per this long-term strategic deal, Coca-Cola acquired an approximate 16.7% equity stake in Monster Beverage. Coca Cola also transferred ownership of global energy drinks business, which includes brands like NOS, Full Throttle, to Monster Beverage. In exchange, Monster Beverage transferred non-energy business to TCCC.
Monster Beverage reports results under three operating segments:
Monster Energy Drinks (92.4% of net sales in FY22): Monster Energy Drinks Segment includes the former Direct Store Delivery segments, excluding Peach Tea brand. This segment comprises mostly Monster Energy brand products.
Strategic Brands (5.6%): The Strategic Brands segment includes brands acquired from the “TCCC Transaction”. Monster Beverage observes the same business model with acquired brands as their previous owner.
Alcohol Brands (1.6%): Alcohol Brands segment includes various craft beers and hard seltzers purchased as part of its acquisition of CANarchy Craft Brewery Collective LLC on Feb 17, 2022 as well as The Beast Unleashed. It also sells kegged and ready-to-drink canned beers, hard seltzers and FMBs, primarily to beer distributors in the United States.
Other (0.4%): The Other segment includes the former warehouse segment and the Peach Tea brand. The segment also includes products acquired from the AFF Transaction that are sold to independent third-parties. On Apr 1, 2016, the company acquired the concentrate and flavor business of American Fruits and Flavors (AFF).