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    Monster Beverage Corp (MNST)

    New Share Buyback Program

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    Business Description

    Monster Beverage Corporation, headquartered in Corona, California, is a holding company that develops, markets, sells, and distributes a variety of beverages through its subsidiaries . The company's product offerings include energy drinks, craft beers, hard seltzers, flavored malt beverages (FMBs), and still and sparkling waters . Its energy drink portfolio features well-known brands such as Monster Energy®, Monster Energy Ultra®, Java Monster®, Reign Total Body Fuel®, Bang Energy®, and NOS® . The company operates through four main segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other .

    1. Monster Energy® Drinks - Develops and markets energy drinks, including Monster Energy® and Reign Total Body Fuel®, which are the primary drivers of the company's revenue .
    2. Strategic Brands - Includes brands acquired from The Coca-Cola Company and affordable energy brands like Predator® and Fury®, contributing to the company's diverse energy drink portfolio .
    3. Alcohol Brands - Offers craft beers and flavored malt beverages (FMBs), expanding the company's presence in the alcoholic beverage market .
    4. Other - Involves products sold by American Fruits and Flavors LLC to third-party customers, adding to the company's product diversity .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Rodney C. SacksChairman of the Board of Directors and Co-CEONovember 1990Rodney C. Sacks has been serving as the Chairman of the Board of Directors since November 1990 and became Co-Chief Executive Officer in January 2021. He has extensive experience in the food and beverage industry .
    Hilton H. SchlosbergVice Chairman of the Board of Directors and Co-CEOJanuary 2021Hilton H. Schlosberg has been Vice Chairman and Co-Chief Executive Officer since January 2021. He was previously President, COO, and Secretary from November 1990 to January 2021, and CFO from July 1996 to January 2021 .
    Thomas J. KellyChief Financial OfficerJanuary 2021Thomas J. Kelly has been the Chief Financial Officer since January 2021. He previously served as Executive Vice President, Finance, and/or Controller and Secretary of MEC from 1992 to January 2021 .
    Guy P. CarlingPresident, EMEAJuly 2018Guy P. Carling has been the President of EMEA since July 2018. He joined Monster Beverage Corporation in December 2007 and has over 26 years of experience in the beverage industry .
    Emelie C. TirrePresident, AmericasJuly 2018Emelie C. Tirre has been serving as the President of the Americas since July 2018. She joined Monster Beverage Corporation in July 2010 and has over 32 years of experience in the beverage industry .

    Questions to Ask Management

    1. Given the significant increase in aluminum costs and the possibility of higher tariffs, how do you plan to mitigate these pressures on gross margins, and can you elaborate on the effectiveness of your current hedging strategies?

    2. With the recent implementation of price increases in the United States and internationally, have you observed any changes in consumer behavior or demand elasticity that could impact your sales volumes or market share?

    3. Could you provide more details on the $16.7 million provision related to the intellectual property claim involving the Hubert Hansen name, including any potential ongoing financial impacts or steps being taken to resolve the issue?

    4. In light of the $10.6 million in inventory reserves due to excess inventory levels in the alcohol brands segment, what specific measures are you implementing to improve inventory management and prevent similar write-downs in the future?

    5. Despite sequential improvements, gross margins in the EMEA region remain below 2021 levels; what targeted initiatives are in place to restore margins to historical levels, and what is your expected timeline for achieving this?

    Share Repurchase Program

    Program DetailsProgram 1Program 2Program 3
    Approval DateNovember 2, 2022 November 7, 2023 August 19, 2024
    End Date/DurationExhausted by September 30, 2024 Exhausted by September 30, 2024 Not specified, no shares repurchased as of November 6, 2024
    Total Additional Amount$500.0 million $500.0 million $500.0 million
    Remaining Authorization$0.0 million $0.0 million $500.0 million
    DetailsExhausted Exhausted No shares repurchased

    Debt Maturity Schedule

    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    2027$750.0Term Loan6.09100.0% = (750 / 750) * 100
    2029$0.0Revolving Credit LineN/A0.0% = (0 / 750) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Red Bull GmbH: Competes domestically and internationally with Monster's energy drinks, including non-carbonated Red Bull in China and Asia .
    • PepsiCo, Inc.: Competes with Monster's products and has a long-term distribution arrangement with Celsius Holdings, Inc. .
    • Keurig Dr. Pepper Inc. (KDP): Competes with Monster's products .
    • Rockstar: Competes domestically and internationally with Monster's energy drinks .
    • MTN Dew Amp and MTN Dew Energy: Compete domestically with Monster's energy drinks .
    • G Fuel: Competes domestically with Monster's energy drinks .
    • Venom: Competes domestically with Monster's energy drinks .
    • 5-Hour Energy Shots: Competes domestically with Monster's energy drinks .
    • MiO Energy: Competes domestically with Monster's energy drinks .
    • V8 + Energy: Competes domestically with Monster's energy drinks .
    • Uptime: Competes domestically with Monster's energy drinks .
    • hi*ball: Competes domestically with Monster's energy drinks .
    • CELSIUS: Competes domestically and internationally with Monster's energy drinks .
    • C4: Competes domestically with Monster's energy drinks .
    • Alani Nu: Competes domestically with Monster's energy drinks .
    • 3D Energy: Competes domestically with Monster's energy drinks .
    • ZOA Energy: Competes domestically with Monster's energy drinks .
    • GHOST Energy: Competes domestically with Monster's energy drinks .
    • Gatorade Fast Twitch: Competes domestically with Monster's energy drinks .
    • Prime Energy: Competes domestically and internationally with Monster's energy drinks .
    • Starbucks BAYA Energy: Competes domestically with Monster's energy drinks .
    • Guayaki Yerba Mate: Competes domestically with Monster's energy drinks .
    • Adrenaline Shoc: Competes domestically with Monster's energy drinks .
    • Accelerator Active Energy: Competes domestically with Monster's energy drinks .
    • Arizona Rx Energy: Competes domestically with Monster's energy drinks .
    • Bucked Up Energy: Competes domestically with Monster's energy drinks .
    • XYIENCE Energy: Competes domestically with Monster's energy drinks .
    • V-Energy: Competes internationally with Monster's energy drinks .
    • Lucozade: Competes internationally with Monster's energy drinks .
    • HELL: Competes internationally with Monster's energy drinks .
    • Amper: Competes internationally with Monster's energy drinks .
    • Shock: Competes internationally with Monster's energy drinks .
    • Tiger: Competes internationally with Monster's energy drinks .
    • Fearless: Competes internationally with Monster's energy drinks .
    • Boost: Competes internationally with Monster's energy drinks .
    • TNT: Competes internationally with Monster's energy drinks .
    • Shark: Competes internationally with Monster's energy drinks .
    • Dragon: Competes internationally with Monster's energy drinks .
    • Score: Competes internationally with Monster's energy drinks .
    • Sting: Competes internationally with Monster's energy drinks .
    • Hot 6: Competes internationally with Monster's energy drinks .
    • Suntory ZONE: Competes internationally with Monster's energy drinks .
    • Battery: Competes internationally with Monster's energy drinks .
    • Bullit: Competes internationally with Monster's energy drinks .
    • Flash Up: Competes internationally with Monster's energy drinks .
    • Black: Competes internationally with Monster's energy drinks .
    • Non-Stop: Competes internationally with Monster's energy drinks .
    • Bomba: Competes internationally with Monster's energy drinks .
    • Semtex: Competes internationally with Monster's energy drinks .
    • Vive 100: Competes internationally with Monster's energy drinks .
    • Dark Dog: Competes internationally with Monster's energy drinks .
    • Speed: Competes internationally with Monster's energy drinks .
    • Guarana: Competes internationally with Monster's energy drinks .
    • M-150: Competes internationally with Monster's energy drinks .
    • Lipovitan: Competes internationally with Monster's energy drinks .
    • Bacchus: Competes internationally with Monster's energy drinks .
    • Volt: Competes internationally with Monster's energy drinks .
    • Bolt: Competes internationally with Monster's energy drinks .
    • Mr. Big: Competes internationally with Monster's energy drinks .
    • Boom: Competes internationally with Monster's energy drinks .
    • Raptor: Competes internationally with Monster's energy drinks .
    • Amp: Competes internationally with Monster's energy drinks .
    • Fusion: Competes internationally with Monster's energy drinks .
    • Hi-Tiger: Competes internationally with Monster's energy drinks .
    • Eastroc Super Drink: Competes internationally with Monster's energy drinks .
    • Carabao: Competes internationally with Monster's energy drinks .
    • Power Horse: Competes internationally with Monster's energy drinks .
    • XL: Competes internationally with Monster's energy drinks .
    • Crazy Tiger: Competes internationally with Monster's energy drinks .
    • Effect: Competes internationally with Monster's energy drinks .
    • Missile: Competes internationally with Monster's energy drinks .
    • Nocco: Competes internationally with Monster's energy drinks .
    • Adrenaline Rush: Competes internationally with Monster's energy drinks .
    • Real Gold: Competes internationally with Monster's energy drinks .
    • War Horse: Competes internationally with Monster's energy drinks .
    • BLU: Competes internationally with Monster's energy drinks .
    • Eneryeti: Competes internationally with Monster's energy drinks .
    • GURU Organic Energy: Competes internationally with Monster's energy drinks .
    • Molson Coors: Competes within the FMB, hard seltzer, and craft beer categories .
    • Constellation Brands: Competes within the FMB, hard seltzer, and craft beer categories .
    • AB InBev: Competes within the FMB, hard seltzer, and craft beer categories .
    • The Boston Beer Company: Competes within the FMB, hard seltzer, and craft beer categories .
    • The Mark Anthony Group: Competes within the FMB, hard seltzer, and craft beer categories .

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLPDecember 31, 2023 PresentCurrent auditor.
    Deloitte & Touche LLP1991 December 31, 2022 The change was part of a review process by the Audit Committee and was not related to any disagreement.

    Latest news

    Recent developments and announcements about MNST.

    Financial Actions

      New Share Buyback Program

      ·
      Jan 21, 2025, 7:56 PM

      Monster Beverage Corporation has announced a new buyback program as part of its financial strategy. The company plans to repurchase approximately 72.2 million shares of its common stock at an average price of $52.70 per share. This move is aimed at enhancing shareholder value by reducing the number of outstanding shares, thereby increasing the earnings per share and potentially boosting the stock price.

    Legal & Compliance

      Legal Proceedings

      ·
      Jan 21, 2025, 7:55 PM

      Summary of the Legal Matter Involving Monster Beverage Corporation

      Key Parties Involved:

      • Monster Beverage Corporation: The company involved in the legal matter.
      • Rodney Sacks and Hilton Schlosberg: Co-Chief Executive Officers of Monster Beverage Corporation.

      Nature of the Proceedings:

      • On January 21, 2025, Monster Beverage Corporation filed a Form 8-K with the United States Securities and Exchange Commission. This filing is a current report pursuant to the Securities Exchange Act of 1934, indicating that the company is hosting an investor meeting to provide updates on its business and operations. The meeting will be led by the Co-Chief Executive Officers and other senior management team members.

      Potential Financial or Operational Consequences:

      • The document does not explicitly mention any direct financial or operational consequences resulting from the legal matter. However, the investor meeting could potentially impact the company's stock performance and investor relations, depending on the updates and disclosures made during the meeting.

      Additional Information:

      • The presentation for the investor meeting will be available as a live webcast and archived on the company's website for one year, allowing stakeholders to access the information at their convenience.