Monster sees boost for energy, while alcohol sales tumble
Monster Beverage has shown growth in energy drinks but revealed “severe weather” impacted its alcohol division last year. The post Monster sees boost for energy, while alcohol sales tumble appeared first on The Drinks Business.
Monster Beverage has shown growth in energy drinks but revealed “severe weather” impacted its alcohol division last year.
During a recent earnings call, Monster Beverage co-chief executive officer Rodney Cyril Sacks said: “We continue to see sustained growth in the global energy drink category" but admitted that “Monster Brewing continues to face challenges in the fourth quarter and full year” and explained that “net sales for the alcohol brands segment were US$34.9 million in the 2024 fourth quarter, a decrease of approximately US$0.3 million or 0.8% lower than the 2023 comparable quarter.”
Giving a little colour to the overall picture, Sacks pointed out that, in the US, Monster is "seeing a resurgence of growth in the energy drink category in the convenience, as well as in all measured channels reported by Nielsen".
However, describing the challenges of the past year, Sacks also admitted: “Hurricanes Helene and Milton impacted sales at retail in certain states in October 2024” and noted that “the alcohol segment operates a brewery in Brevard, North Carolina, which was closed for a week due to flooding from Hurricane Helene. This brewery was partially operational for a period and was fully operational by mid-November 2024.” An issue that has seemingly taken its toll on the alcoholic beverage division of the business.
He went on to add: “In October, the Brevard, North Carolina production and shipping were severely impacted by Hurricane Helene. Production in Brevard normalised in November, while other facilities we utilised during the quarter to allow for a minimal overall disruption. In addition to the appointment of a new pesident of Monster Brewing announced last quarter, we have now restructured the senior management team in sales, marketing, strategy, and operations divisions and will be implementing further adjustments in the coming months with the intent to optimise our personnel and facilities to support the current demands of our portfolio and innovation pipeline.”
In the US, the energy category, according to Nielsen for the recently reported 13 weeks through 15 February 2025, grew at 6.2% versus the same period last year. In EMEA, the category for the same 13-week period, grew at approximately 14.4%. While in APAC, the category grew at approximately 11.8% and in Latin America, the category grew at approximately 20.2%.
Talking more about the positives, Sacks insisted: “Consumers' growing need for energy are positive trends for the category.”
Monster Beverage reported that gross profit for the 2024 fourth quarter was adversely impacted by an increase in inventory reserves due to excess inventory levels in the alcohol brands segment of US$4.1 million.
Sacks also revealed that “operating expenses for the 2024 fourth quarter were adversely impacted by US$130.7 million of impairment charges related to the alcohol brands segment” and explained that “the impairment charges were primarily the result of operating and financial performance not meeting projections” and blamed this on “challenges in the category, as well as the decrease in projected ongoing operating and financial performance”. Sacks noted that “in addition, operating expenses for the 2024 fourth quarter were adversely impacted by US$1.8 million of company-incurred legal expenses in connection with an intellectual property claim brought by the descendants of Hubert Hansen, in relation to the company's use of the Hubert Hansen name prior to the transaction with the Coca-Cola Company”.
Despite these challenges, the company achieved record fourth-quarter net sales of US$1.81 billion, in the 2024 fourth quarter. 4.7% higher than net sales of US$1.73 billion in the comparable 2023 quarter, 4.8% excluding the alcohol segment.”
During the call, Sacks said that “net sales for the 2024 fourth quarter increased 7.8% or 7.9%, excluding the alcohol segment. Gross profit as a percentage of net sales for the 2024 fourth quarter was 55.3% compared with 54.2% in the 2023 fourth quarter”.
He also reassured analysts: “We are continuing to monitor opportunities for further pricing actions, both domestically and internationally.”
According to Sacks, if you look at the category, the “sales of the company's energy drink brands including Bang were up 4.4% in the 13-week period. Sales of Monster increased 4.8%. Sales of Reign were down 6.3%. Sales of NOS increased 2% and sales of Full Throttle decreased 0.8% [while] sales of Red Bull increased 10%”. This, he folowed, by summariing as a reason to "remain optimistic" and went on to speak of the potential in the east.
Sacks stated: “We remain optimistic about the long-term prospects for the Monster brand in China and are excited about Predator, which is being rolled out to additional markets in China throughout this year.”
Giving weight to the business' intention to keep looking forwards, Sacks also said that Monster Brewing is “currently shipping Beast, Pink Poison, and Killer Sunrise in 24-ounce cans and we'll be launching Gnarly Grape in 24-ounce cans in the coming months.” Plus, he added that “Miche, our newest flavoured/beer innovation, will also be launched nationally in the coming months in two 24-ounce flavours, Chelada and Michelada.”
The drinks giant also revealed that it is planning to launch the Beast internationally this summer in select markets, subject to regulatory approvals and unveiled that it is “planning for further innovation in Monster Brewing in the coming months”.
Sacks reminded that in October 2024, the company launched Monster Ultra Vice Guava nationally and said that “the initial response from both customers and consumers alike has been very positive on this innovation”.
He added that, during the first quarter of 2025, the company also “launched innovation across various brands, including Monster Energy Ultra Blue Hawaiian, Monster Energy Brew Triple Shot, Killer Brew Triple Shot, Monster Energy Juice Viking Berry, Reign Storm Tropical, Reign White Haze, and Bang Energy Sour Ropes” and hinted that it is also “planning to launch Bang Energy Any Means Orange next month” which is part of its relationship with the content and streaming group, Any Means Possible.
Looking at the issues, Sacks reiterated: “We believe January 2025 sales were adversely impacted by the California wildfires, and by other severe weather conditions in the United States, such as the Gulf Coast Blizzard affecting New Orleans in Florida as well as the northeastern ice storms.”
But, he explained, that this was an unavoidable challenge since the company's "distribution partners' warehouses and retail outlets were closed for certain time periods in these areas during January".
Monster has not ruled out further price increases and narrowly avoiding anything concrete, Sacks admitted: “We implemented a price increase in the US on 1 November 2024. We continue to review opportunities for price increases domestically and internationally.”
He added: “We're excited for our 2025 innovation pipeline globally we are currently exploring opportunities for our alcohol products in certain international jurisdictions.”
Responding to analysts questions, Monster Beverage vice chairman and co-chief executive officer: Hilton Hiller Schlosberg said: “The major drivers of gross margin in the quarter were reduced input costs, partially offset by geographical sales mix. I think it would be really premature to even talk about tariffs because no one really knows what's going to happen. However, we are hedged to quite a nice extent in 2025 with aluminium”.
Schlosberg admitted that there are also green shoots for the business in the form of extra presence in stores and added: “We're really excited with the additions to our portfolio that we've been able to attract and increase shelf space.“
During a recent earnings call, Monster Beverage co-chief executive officer Rodney Cyril Sacks said: “We continue to see sustained growth in the global energy drink category" but admitted that “Monster Brewing continues to face challenges in the fourth quarter and full year” and explained that “net sales for the alcohol brands segment were US$34.9 million in the 2024 fourth quarter, a decrease of approximately US$0.3 million or 0.8% lower than the 2023 comparable quarter.”
Giving a little colour to the overall picture, Sacks pointed out that, in the US, Monster is "seeing a resurgence of growth in the energy drink category in the convenience, as well as in all measured channels reported by Nielsen".
However, describing the challenges of the past year, Sacks also admitted: “Hurricanes Helene and Milton impacted sales at retail in certain states in October 2024” and noted that “the alcohol segment operates a brewery in Brevard, North Carolina, which was closed for a week due to flooding from Hurricane Helene. This brewery was partially operational for a period and was fully operational by mid-November 2024.” An issue that has seemingly taken its toll on the alcoholic beverage division of the business.
He went on to add: “In October, the Brevard, North Carolina production and shipping were severely impacted by Hurricane Helene. Production in Brevard normalised in November, while other facilities we utilised during the quarter to allow for a minimal overall disruption. In addition to the appointment of a new pesident of Monster Brewing announced last quarter, we have now restructured the senior management team in sales, marketing, strategy, and operations divisions and will be implementing further adjustments in the coming months with the intent to optimise our personnel and facilities to support the current demands of our portfolio and innovation pipeline.”
In the US, the energy category, according to Nielsen for the recently reported 13 weeks through 15 February 2025, grew at 6.2% versus the same period last year. In EMEA, the category for the same 13-week period, grew at approximately 14.4%. While in APAC, the category grew at approximately 11.8% and in Latin America, the category grew at approximately 20.2%.
Talking more about the positives, Sacks insisted: “Consumers' growing need for energy are positive trends for the category.”
Monster Beverage reported that gross profit for the 2024 fourth quarter was adversely impacted by an increase in inventory reserves due to excess inventory levels in the alcohol brands segment of US$4.1 million.
Sacks also revealed that “operating expenses for the 2024 fourth quarter were adversely impacted by US$130.7 million of impairment charges related to the alcohol brands segment” and explained that “the impairment charges were primarily the result of operating and financial performance not meeting projections” and blamed this on “challenges in the category, as well as the decrease in projected ongoing operating and financial performance”. Sacks noted that “in addition, operating expenses for the 2024 fourth quarter were adversely impacted by US$1.8 million of company-incurred legal expenses in connection with an intellectual property claim brought by the descendants of Hubert Hansen, in relation to the company's use of the Hubert Hansen name prior to the transaction with the Coca-Cola Company”.
Despite these challenges, the company achieved record fourth-quarter net sales of US$1.81 billion, in the 2024 fourth quarter. 4.7% higher than net sales of US$1.73 billion in the comparable 2023 quarter, 4.8% excluding the alcohol segment.”
During the call, Sacks said that “net sales for the 2024 fourth quarter increased 7.8% or 7.9%, excluding the alcohol segment. Gross profit as a percentage of net sales for the 2024 fourth quarter was 55.3% compared with 54.2% in the 2023 fourth quarter”.
He also reassured analysts: “We are continuing to monitor opportunities for further pricing actions, both domestically and internationally.”
According to Sacks, if you look at the category, the “sales of the company's energy drink brands including Bang were up 4.4% in the 13-week period. Sales of Monster increased 4.8%. Sales of Reign were down 6.3%. Sales of NOS increased 2% and sales of Full Throttle decreased 0.8% [while] sales of Red Bull increased 10%”. This, he folowed, by summariing as a reason to "remain optimistic" and went on to speak of the potential in the east.
Sacks stated: “We remain optimistic about the long-term prospects for the Monster brand in China and are excited about Predator, which is being rolled out to additional markets in China throughout this year.”
Giving weight to the business' intention to keep looking forwards, Sacks also said that Monster Brewing is “currently shipping Beast, Pink Poison, and Killer Sunrise in 24-ounce cans and we'll be launching Gnarly Grape in 24-ounce cans in the coming months.” Plus, he added that “Miche, our newest flavoured/beer innovation, will also be launched nationally in the coming months in two 24-ounce flavours, Chelada and Michelada.”
The drinks giant also revealed that it is planning to launch the Beast internationally this summer in select markets, subject to regulatory approvals and unveiled that it is “planning for further innovation in Monster Brewing in the coming months”.
Sacks reminded that in October 2024, the company launched Monster Ultra Vice Guava nationally and said that “the initial response from both customers and consumers alike has been very positive on this innovation”.
He added that, during the first quarter of 2025, the company also “launched innovation across various brands, including Monster Energy Ultra Blue Hawaiian, Monster Energy Brew Triple Shot, Killer Brew Triple Shot, Monster Energy Juice Viking Berry, Reign Storm Tropical, Reign White Haze, and Bang Energy Sour Ropes” and hinted that it is also “planning to launch Bang Energy Any Means Orange next month” which is part of its relationship with the content and streaming group, Any Means Possible.
Looking at the issues, Sacks reiterated: “We believe January 2025 sales were adversely impacted by the California wildfires, and by other severe weather conditions in the United States, such as the Gulf Coast Blizzard affecting New Orleans in Florida as well as the northeastern ice storms.”
But, he explained, that this was an unavoidable challenge since the company's "distribution partners' warehouses and retail outlets were closed for certain time periods in these areas during January".
Monster has not ruled out further price increases and narrowly avoiding anything concrete, Sacks admitted: “We implemented a price increase in the US on 1 November 2024. We continue to review opportunities for price increases domestically and internationally.”
He added: “We're excited for our 2025 innovation pipeline globally we are currently exploring opportunities for our alcohol products in certain international jurisdictions.”
Responding to analysts questions, Monster Beverage vice chairman and co-chief executive officer: Hilton Hiller Schlosberg said: “The major drivers of gross margin in the quarter were reduced input costs, partially offset by geographical sales mix. I think it would be really premature to even talk about tariffs because no one really knows what's going to happen. However, we are hedged to quite a nice extent in 2025 with aluminium”.
Schlosberg admitted that there are also green shoots for the business in the form of extra presence in stores and added: “We're really excited with the additions to our portfolio that we've been able to attract and increase shelf space.“ 
