Monster Energy CEO addresses stiff competition in the energy drink set, teases alcohol launch

Asked by analysts about the competitive landscape of the energy drink category especially with PepsiCo’s recent $550m investment in Celsius​ and its growing retail footprint for Bang and Rockstar Energy along with other emerging brands such as Ghost Energy and C4, Sacks said the competition to hold onto and grow shelf space is undoubtedly stiff. 

“There will be a lot of fighting going on… you have got all of these sort of performance brands basically fighting for some more shelf space, and obviously, we will do the same. So there will be a lot of transition going on,”​ said Sacks.

Net sales +13.2% in Q2 2022, but significant supply chain challenges remain

The company reported net sales of $1.66bn in Q2 2022, a 13.2% increase vs. Q2 2021 while experiencing a significant increase in its cost of sales and operations, shared Sacks.

“Since the beginning of the COVID-19 pandemic and the subsequent increased demand for the company’s energy drinks, the company prioritized ensuring product availability for its customers and consumers. This strategic direction has remained in place throughout the global supply chain challenges and disruptions despite adversely impacting the company’s profitability,”​ noted Sacks.

“The company continues to stand by its strategy to ensure product availability and solidify the continued long-term growth of the company’s brands.”

Monster Energy reported retail dollar sales of the company’s energy drink portfolio in all outlets increased by 6% in the 13-week period through July 23, 2022, vs. one year ago. The company’s growth lagged behind the overall energy drink category which saw dollar sales increase 8.2% in the same period. 

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