The Weekly Sip: Monster slams claims that stock is overvalued | Starbucks debuts new energy drink lineup

Chris Casey

Thu, Apr 10, 2025, 4:00 AM 4 min read

On Tuesday, Spruce Point Management released a report claiming Monster is misleading investors about the state of the company, saying the energy drink giant faces diminishing sales in the U.S., slow international adoption and increased competition from better-for-you brands like Celsius. The investment firm also said Monster shares trades at an “undeserved premium” to Coca-Cola, which owns 21% of the energy drink company.

Monster co-CEOs Rodney Sacks and Hilton Schlosberg blasted Spruce Point’s report as “false and misleading” in a statement Wednesday. They stated the company’s financial statements are accurate and follow Securities and Exchange Commission regulations.

“The document released by a self-interested activist short seller is filled with, and based on, inaccuracies and aspersions that appear to be designed to distort the Company’s record and share price for its own gain,” Sacks and Schlosberg said.

Monster is facing slumping sales amid a crowded energy drink market, as the company also struggles to grow its alcoholic beverage segment. Last month, the company said it faced $130 million in impairment charges linked to its alcohol products in its most recent financial quarter. Monster ended up with excess inventory of the drinks worth $4.1 million.

Sacks announced last month he will step down from his position as co-CEO in June, leaving Schlosberg as the energy drink maker’s sole head.

Starbucks shakes up RTD lineup with energy drinks

The world's largest coffee chain is seeking a bigger slice of the ready-to-drink beverage category by rolling out a new energy drink lineup that competes with players like Celsius.

Starbucks Iced Energy drinks are “hydrating” sparkling products designed to help consumers achieve mental clarity, according to the press release. The line debuted with three flavors: Tropical Peach, Watermelon Twist and Blueberry Lemonade. The beverages contain 160 milligrams of caffeine derived from plant-based ingredients, zero sugar and 5 calories per can.

“We always keep a pulse on the latest consumer trends and preferences to ensure we’re continuing to evolve our ready-to-drink Starbucks beverage portfolio to meet consumer demand,” said Jennifer Wong, vice president of Americas development at the company, in a statement.

The drinks are available at grocers and convenience stores nationwide. Beverage giant PepsiCo has sold RTD versions of Starbucks products for more than 30 years under the North American Coffee Partnership.

The energy drinks replace Baya, launched in 2022 and discontinued the following year, which was made with naturally occurring caffeine from coffee fruit.

Over the past few years, the energy drink market has regained steam with better-for-you brands like Celsius growing a fanbase for zero sugar varieties. Sales of energy drinks are predicted to cross $30 billion by 2028, according to Mintel data cited by Starbucks.

Diageo spices up Captain Morgan cocktails

The brand best known for its spiced rum is leaning in to the growing popularity of “swicy” flavors with its latest launch.

Captain Morgan is calling the latest flavors in its Sliced RTD lineup Sweet vs. Heat, which is designed for younger consumers looking for a spicy kick in their canned cocktails. The new flavors include Chili Lime Margarita, Jalapeño Paloma, Blackberry Mojito and Peach on the Beach.

Sliced is a line of canned cocktails introduced by Diageo last year in flavors that mimic the taste of popular cocktails such as Pineapple Daiquiri, Strawberry Margarita and Mango Mai Tai. The drinks are made with malt alcohol as opposed to real spirits, and contain 5% alcohol by volume.

Justin Faiber, director of brand marketing for RTD beverages at Diageo, said the company’s strategy for the new flavor profile was to deliver on the growing demand for bold flavors.

“As sweet-meets-spicy continues to trend across food and beverage, we saw a great opportunity to bring that contrast into a ready-to-drink format in a way that’s flavor-first, convenient, and always exciting,” Faiber said. “By putting two distinct profiles into one pack, we’re giving people an easy way to explore and enjoy new flavor lineups without overthinking it.”

With the growth of products like Mike’s Hot Honey, food and beverage formulators have capitalized on sweet and spicy flavor combinations. Last year, Q Mixers added Spicy Mango Margarita mix to its lineup targeting Gen Z heatseekers.

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