Coca-Cola, Monster Acquisition Rumors Denied By Soda Giant

-- Monster Beverage Corp.'s shares soared on Monday following a report that Coca-Cola Co. was considering buying the energy drink maker, but the world's biggest soft drink maker later denied the discussions are under way.

The Wall Street Journal cited unnamed people in reporting that Coca-Cola was in talks to buy Monster. If a deal transpired, Monster would be Coca-Cola's largest brand acquisition ever.

Coca-Cola said late Monday that no such discussion is in process.

Monster declined to discuss the matter, citing company policy.

The companies have a distribution relationship in many markets so they always are in some contact.

"At this time, we are not in discussions to acquire the Monster Beverage Corporation. We continue to review the best ways to maximize the value of our relationship," Coca-Cola said in a statement.

The deal didn't seem farfetched to investors because Coca-Cola is constantly looking beyond soda for growth and has seen some success in energy drinks. In its fiscal first quarter, for instance, it sold 4 percent more Coca-Cola around the world than a year earlier, while it sold 15 percent more bottled water and 25 percent more energy drinks.

Coca-Cola's energy drinks include Full Throttle, Fuze, burn and Gladiator.

Monster Beverage, based in Corona, Calif., sells juices, sodas and other drinks under brands such as Monster Energy and Hansen's. Its net income rose 35 percent in its last fiscal year to $286.2 million.

Formerly known as Hansen Natural Corp. and known for its juices and natural beverages, the company released Monster Energy in 2002. The drink's tremendous popularity ultimately redefined the company, and it renamed itself Monster in January.

It says its energy drink sales are growing faster than the category as a whole, which includes Red Bull, Rockstar and other competitors. Monster now offers a variety of energy drinks around the globe. This year, it entered new markets including Poland and Japan.

Monster's stock was one of the top gainers on the Nasdaq early Monday on speculation about a possible acquisition. The Nasdaq paused the stock's trading three times by midday based on the activity.

Shares of Monster spiked to a record high of $83.96, which was 27 percent above their previous 52-week trading high of $65.94, reached last week. But they closed down 53 cents at $65.

Shares of Coca-Cola, based in Atlanta, fell 31 cents to close at $76.32.

Comments

[JVARGAS74]

10:00 AM on 05/09/2012

If Monster is not part of Coca Cola, why does it appear on the graph under Coca Cola? Did I misunderstand the image?

[Happy Kine]

02:35 PM on 05/01/2012

I did not know monster was hansen. that's funny to me, they used to pander to the trustafarian crowd.

[Fletch55]

11:38 AM on 05/01/2012

Monster is some nasty foul stuff.

[Rosalee Harris]

11:09 AM on 05/01/2012

Exactly what I've been saying and if the economy back then had WORKED guess what it would be the economy today. its because it has NOT WORKED and people like Ron Paul want us to go back to FAILURE. His economic policy is WORSE than Romney and thats saying A LOT.

[pllc]

10:00 AM on 05/01/2012

A remarkable company that will live in the annals of perfect marketing. Example in point : in a foreign country a young girl as we were drinking Coke together asked me if we had Coke in the U.S. I said, yes we did. Unlike Pepsi, Coke's strategy is strickly focused on soft drinks; not adding food and snacks to supplement the business. I looked up the other brands they carry and was astounded to find they have over 500 different local brands of softdrinks they acquired over the years in various markets around the world. Mostly those of their erstwhile distributors. Monster is no exception as a step toward acquiring their distributors, both large and small as means to increase their margins from a franchise business to a wholly-owned business. .

[lmayj]

09:59 AM on 05/01/2012

its probably going to be true

[blueswithafeeling]

08:40 AM on 05/01/2012

Put a steak in a pan of coke and in 24 hrs you have liquid protein- Coke- good stuff?

[Matt Hans]

10:45 AM on 05/01/2012

Your supposed to drink it. Not cook with it!

[truthosaurus1]

11:32 AM on 05/01/2012

you never heard of the Coca Cola cookbook? Coca Cola chicken is one of my favorite dishes!

[blueswithafeeling]

06:33 PM on 05/01/2012

Coke- bad for you

[Fletch55]

11:39 AM on 05/01/2012

Thats been proven urban legend about 30 times now. Hell even myth busters did it on a live episode. Might want to work on your information a bit more lol

[frankc354]

08:03 AM on 05/01/2012

they start out as rumors but for the most part end up being true !!

[kidcat24]

07:52 AM on 05/01/2012

And watch the billions cross hands. Remember we're broke. lol sure

[cmel57]

07:48 AM on 05/01/2012

Pee & sugar in a can. Yummy .

[carburetor]

05:38 AM on 05/01/2012

These guys are just sugar merchants adding to the health decline in America. Obesity, diabetes and stroke available in larger and larger containers year after year.They should go back to the 6.5 oz. serving that was popular in the 1950's. Energy drinks are bad for your health, too. The so-called diet drinks are full of chemical sweeteners that aren't any good, either.

[Peter Nadreau]

05:54 AM on 05/01/2012

Typical Liberal attitude....

[kidcat24]

07:51 AM on 05/01/2012

And your attitude towards the junk food industry and healthcare costs are what?

[akarmahitmydogma]

09:50 AM on 05/01/2012

tie your shoes and finisn your cereal...

[mosuro]

06:52 AM on 05/01/2012

Guess what, it won't change either. Until lifestyles change our health care will continue to soar. How many people do I see ordering a huge fried food platter then order a diet drink..sit back and eat it all, pop a pill and think they are healthy.

[IDIOTA]

02:10 AM on 05/01/2012

I don't buy ALEC Cola anymore.

[burnsengine]

01:45 AM on 05/01/2012

LOL!!!
Yeah.... let's just say that "rumor" didn't start by "accident."

[Baneblade]

01:34 AM on 05/01/2012

Imagine that. Millions of dollars appear or disappear based on rumor and hearsay.

[freethinking moderate]

02:31 AM on 05/01/2012

It has to. Its not like Americans build anything anymore.

[Glenn Maynard]

10:56 AM on 05/01/2012

personally I think Coke is wasting their money but I sure wish I had a bunch of shares of Monster so I sure wish I had a bunch of Monster stock cause when Coke says they are going to buy them their stock is going to skyrocket and they are going to make a bunch of money

[felitto23]

12:25 AM on 05/01/2012

I'll take a Dr. Somebody ( can't remember the name ) Cream Soda !!

[Peter Nadreau]

05:55 AM on 05/01/2012

Dr.Brown's Cream Soda

[buccaneerdman]

06:42 AM on 05/01/2012

I remember the old fashion vanilla or cherry cokes in our local drug store soda fountain, they were great.