In a long-anticipated move, US beverage firm Coca-Cola said it has decided to acquire a 16.7% stake in Monster Beverage, in an attempt to gain a bigger market share in the beverage industry.
‘Powerful and Extensive System’
Coca-Cola chairman Muhtar Kent released a statement, saying the company continues to come up with unique strategies that will help it “stay at the forefront of consumer trends in the beverage industry.”
He explained that the “investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category.”
Monster chairman Rodney C. Sacks, on the other hand, said the agreement gives the company “enhanced access to the Coca-Cola Company’s distribution system, the most powerful and extensive system in the world. At the same time, we become The Coca-Cola Company’s exclusive energy play.”
Growing Energy Drinks Market
Coca-Cola and Monster Beverage have teamed up to better align each of their product lineup and distribution abilities.
Under the $2.15 billion deal, Coca Cola will transfer ownership of its energy business to Monster, while Monster will transfer its non-energy department.