| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **U.S. and Canada** ($ million) | N/A | **1,115.3**  **[0001104659-23-056507_mnst-20230331x10q.htm:9]**  | **1,184.5**  **[0001104659-23-087927_mnst-20230630x10q.htm:10]**  | **1,168.964**  **[0001104659-23-114789_mnst-20230930x10q.htm:11]**  | **4,202.537**  **[0001104659-24-029425_mnst-20231231x10k.htm:119]**  | N/A | **1,154**  **[0001104659-24-086781_tm2421078d1_ex99-1.htm:1]**  | N/A |
| **EMEA** ($ million) | N/A | **308.1**  **[0001104659-23-056507_mnst-20230331x10q.htm:9]**  | **381.6**  **[0001104659-23-087927_mnst-20230630x10q.htm:10]**  | **391.883**  **[0001104659-23-114789_mnst-20230930x10q.htm:11]**  | **1,257.471**  **[0001104659-24-029425_mnst-20231231x10k.htm:119]**  | N/A | **702.4**  **[0001410578-24-001239_mnst-20240630x10q.htm:32]**  | **708.8**  **[0001410578-24-001818_mnst-20240930x10q.htm:32]**  |
| **Asia Pacific** ($ million) | N/A | **131.0**  **[0001104659-23-056507_mnst-20230331x10q.htm:9]**  | **146.3**  **[0001104659-23-087927_mnst-20230630x10q.htm:10]**  | **127.267**  **[0001104659-23-114789_mnst-20230930x10q.htm:11]**  | **484.459**  **[0001104659-24-029425_mnst-20231231x10k.htm:119]**  | N/A | N/A | N/A |
| **Latin America and the Caribbean** ($ million) | N/A | **144.6**  **[0001104659-23-056507_mnst-20230331x10q.htm:9]**  | **142.6**  **[0001104659-23-087927_mnst-20230630x10q.htm:10]**  | **167.914**  **[0001104659-23-114789_mnst-20230930x10q.htm:11]**  | **610.622**  **[0001104659-24-029425_mnst-20231231x10k.htm:119]**  | N/A | N/A | N/A |
| **International (Outside the U.S.)** ($ million) | **542.5**  **[MNST_3230462_4]**  | N/A | N/A | N/A | N/A | **744.1**  **[0001104659-24-056393_tm2413295d1_ex99-1.htm:1]**  | **746**  **[0001104659-24-086781_tm2421078d1_ex99-1.htm:1]**  | **760.1**  **[0001104659-24-115332_tm2427782d1_ex99-1.htm:1]**  |

7fc6178234987a2a1e60c982f991a8d327494026e53e4d2788c77ea0662192b9

Monster Beverage Corporation, headquartered in Corona, California, is a holding company that develops, markets, sells, and distributes a variety of beverages through its subsidiaries **[0001104659-24-029425_mnst-20231231x10k.htm:2]**. The company's product offerings include energy drinks, craft beers, hard seltzers, flavored malt beverages (FMBs), and still and sparkling waters **[0001410578-24-001239_mnst-20240630x10q.htm:8]**. 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® **[0001410578-24-001818_mnst-20240930x10q.htm:28]**. The company operates through four main segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other **[0001410578-24-000605_mnst-20240331x10q.htm:25]**.

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 **[0001104659-24-029425_mnst-20231231x10k.htm:56]**.
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 **[0001104659-24-029425_mnst-20231231x10k.htm:58]**.
3. **Alcohol Brands** - Offers craft beers and flavored malt beverages (FMBs), expanding the company's presence in the alcoholic beverage market **[0001104659-24-029425_mnst-20231231x10k.htm:56]**.
4. **Other** - Involves products sold by American Fruits and Flavors LLC to third-party customers, adding to the company's product diversity **[0001104659-24-029425_mnst-20231231x10k.htm:58]**.

48fc905fc9b09f34404c8296aa8cb463d224dbea7162dba686b57604b78e9a06

| Metric (Unit)                                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Energy Drink Case Sales (Thousands of Cases)       | 166,227  **[0001104659-23-026733_tm237882d1_ex99-1.htm:8]**  | 182,444  **[0001104659-23-056023_tm2314653d1_ex99-1.htm:7]**  | 198,406  **[0001104659-23-087294_tm2322746d1_ex99-1.htm:7]**  | 203,088  **[0001104659-23-113794_tm2324499d2_ex99-1.htm:7]**  | 185,304  **[0001104659-24-028756_tm241011d2_ex99-1.htm:8]**  | 211,430  **[0001410578-24-000605_mnst-20240331x10q.htm:33]**  | 212,194  **[0001410578-24-001239_mnst-20240630x10q.htm:41]**  | 219,409  **[0001410578-24-001818_mnst-20240930x10q.htm:42]**  |
| Average Net Sales per Case (USD)                   | 8.91  **[0001104659-23-026733_tm237882d1_ex99-1.htm:8]**  | 9.03  **[0001104659-23-056507_mnst-20230331x10q.htm:35]**  | 9.00  **[0001104659-23-087927_mnst-20230630x10q.htm:43]**  | 8.90  **[0001104659-23-114789_mnst-20230930x10q.htm:44]**  | 9.12  **[0001104659-24-028756_tm241011d2_ex99-1.htm:8]**  | 8.69  **[0001410578-24-000605_mnst-20240331x10q.htm:33]**  | 8.73  **[0001410578-24-001239_mnst-20240630x10q.htm:41]**  | 8.36  **[0001410578-24-001818_mnst-20240930x10q.htm:42]**  |
| Barrel Sales for Craft Beers, Hard Seltzers, FMBs (Millions of Barrels) | N/A | 0.15  **[0001104659-23-056507_mnst-20230331x10q.htm:30]**  | 0.2  **[0001104659-23-087927_mnst-20230630x10q.htm:34]**  | 0.15  **[0001104659-23-114789_mnst-20230930x10q.htm:36]**  | N/A | 0.20  **[0001410578-24-000605_mnst-20240331x10q.htm:28]**  | 0.15  **[0001410578-24-001239_mnst-20240630x10q.htm:33]**  | 0.14  **[0001410578-24-001818_mnst-20240930x10q.htm:33]**  |

a6bc8bd02aacfcd5730a86d72b422feec028a27cb1749dcbf033f2d9741a7c6f

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Monster Energy® Drinks ($ million)** | **1,390**  **[0001104659-23-026733_tm237882d1_ex99-1.htm:1]**  | **1,560**  **[0001104659-23-056507_mnst-20230331x10q.htm:27]**  | **1,690**  **[0001104659-23-087294_tm2322746d1_ex99-1.htm:0]**  | **1,710**  **[0001104659-23-113794_tm2324499d2_ex99-1.htm:1]**  | **1,600**  **[0001104659-24-028951_tm241011d3_ex99-1.htm:0]**  | **1,730**  **[0001410578-24-000605_mnst-20240331x10q.htm:25]**  | **1,742.8**  **[0001410578-24-001239_mnst-20240630x10q.htm:29]**  | **1,720**  **[0001410578-24-001818_mnst-20240930x10q.htm:29]**  |
| **Strategic Brands ($ million)** | **93.0**  **[0001104659-23-026733_tm237882d1_ex99-1.htm:1]**  | **86.4**  **[0001104659-23-056507_mnst-20230331x10q.htm:27]**  | **99.7**  **[0001104659-23-087294_tm2322746d1_ex99-1.htm:0]**  | **98.8**  **[0001104659-23-113794_tm2324499d2_ex99-1.htm:1]**  | **91.8**  **[0001104659-24-028951_tm241011d3_ex99-1.htm:1]**  | **108.4**  **[0001410578-24-000605_mnst-20240331x10q.htm:25]**  | **109.2**  **[0001410578-24-001239_mnst-20240630x10q.htm:29]**  | **112.6**  **[0001410578-24-001818_mnst-20240930x10q.htm:29]**  |
| **Alcohol Brands ($ million)** | **26.9**  **[0001104659-23-026733_tm237882d1_ex99-1.htm:1]**  | **46.3**  **[0001104659-23-056507_mnst-20230331x10q.htm:27]**  | **61.1**  **[0001104659-23-087294_tm2322746d1_ex99-1.htm:1]**  | **42.3**  **[0001104659-23-113794_tm2324499d2_ex99-1.htm:1]**  | **35.2**  **[0001104659-24-028951_tm241011d3_ex99-1.htm:1]**  | **56.1**  **[0001410578-24-000605_mnst-20240331x10q.htm:25]**  | **41.6**  **[0001410578-24-001239_mnst-20240630x10q.htm:29]**  | **39.8**  **[0001410578-24-001818_mnst-20240930x10q.htm:29]**  |
| **Other ($ million)** | **4.6**  **[0001104659-23-026733_tm237882d1_ex99-1.htm:1]**  | **4.6**  **[0001104659-23-056507_mnst-20230331x10q.htm:27]**  | **7.3**  **[0001104659-23-087294_tm2322746d1_ex99-1.htm:1]**  | **6.7**  **[0001104659-23-113794_tm2324499d2_ex99-1.htm:1]**  | **4.9**  **[0001104659-24-028951_tm241011d3_ex99-1.htm:1]**  | **5.5**  **[0001410578-24-000605_mnst-20240331x10q.htm:25]**  | **7.0**  **[0001410578-24-001239_mnst-20240630x10q.htm:29]**  | **5.9**  **[0001410578-24-001818_mnst-20240930x10q.htm:29]**  |

0f00fd4105019c9888bb2e97d9b6a3c970d85956ffaac385eb6d1d8262c2ce2e

d8f31eb4b67ff5c7a6a4fe36a0b1c3dfeb6f2fef4304c3cc6375dc338112c7cd

26c7c9f9cece81d9b2a0a5810626f136514ebfa11da1db0d0362ed6c64cef66c

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?

0088e3347d2fc903b9b63df69c32c9791581e5037a924082204fc6ae1c43a139

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

5011e8cbc675dc9da51b7910372d71b275f81465fb556bb64cd5b954fbbec54e

Energy Drink Case Sales (Thousands of Cases)

Average Net Sales per Case (USD)

Barrel Sales for Craft Beers, Hard Seltzers, FMBs (Millions of Barrels)

0a2001e65c492b6c395a00855d7899eda2bc3344ea035bbc7694006600f1bbe8

Monster Energy Drinks

Strategic Brands

Alcohol Brands

Other

Finished Products

Concentrate

DSD Segment

Warehouse Segment

Energy Drinks

Non-carbonated

Carbonated

Total Revenue

20aa3bd326f516ef27c8583c564fa2ad0101f7c39eeefa8996e7f2623642e9b7

f327d64b4134af07bfbfc541bc45379d4028ed178edc17799d3108ab0f95d95d

- Red Bull GmbH: Competes domestically and internationally with Monster's energy drinks, including non-carbonated Red Bull in China and Asia  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- PepsiCo, Inc.: Competes with Monster's products and has a long-term distribution arrangement with Celsius Holdings, Inc.  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Keurig Dr. Pepper Inc. (KDP): Competes with Monster's products  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Rockstar: Competes domestically and internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- MTN Dew Amp and MTN Dew Energy: Compete domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- G Fuel: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Venom: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- 5-Hour Energy Shots: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- MiO Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- V8 + Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Uptime: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- hi*ball: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- CELSIUS: Competes domestically and internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- C4: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Alani Nu: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- 3D Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- ZOA Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- GHOST Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Gatorade Fast Twitch: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Prime Energy: Competes domestically and internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Starbucks BAYA Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Guayaki Yerba Mate: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Adrenaline Shoc: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Accelerator Active Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Arizona Rx Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Bucked Up Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- XYIENCE Energy: Competes domestically with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- V-Energy: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Lucozade: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- HELL: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Amper: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Shock: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Tiger: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Fearless: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Boost: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- TNT: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Shark: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Dragon: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Score: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Sting: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Hot 6: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Suntory ZONE: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Battery: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Bullit: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Flash Up: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Black: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Non-Stop: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Bomba: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Semtex: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Vive 100: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Dark Dog: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Speed: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Guarana: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- M-150: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Lipovitan: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Bacchus: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Volt: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Bolt: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Mr. Big: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Boom: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Raptor: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Amp: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Fusion: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Hi-Tiger: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Eastroc Super Drink: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Carabao: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Power Horse: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- XL: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Crazy Tiger: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Effect: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Missile: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Nocco: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Adrenaline Rush: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Real Gold: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- War Horse: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- BLU: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Eneryeti: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- GURU Organic Energy: Competes internationally with Monster's energy drinks  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Molson Coors: Competes within the FMB, hard seltzer, and craft beer categories  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- Constellation Brands: Competes within the FMB, hard seltzer, and craft beer categories  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- AB InBev: Competes within the FMB, hard seltzer, and craft beer categories  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- The Boston Beer Company: Competes within the FMB, hard seltzer, and craft beer categories  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .
- The Mark Anthony Group: Competes within the FMB, hard seltzer, and craft beer categories  **[0001104659-24-029425_mnst-20231231x10k.htm:12]** .

a3d9c5ee5ebe39106fb03f0de560d2a5c39bffa4b346e1a16825db0afae6acd6

U.S. and Canada

EMEA

Asia Pacific

Latin America and Caribbean

- Net Sales Outside U.S.

- Gross Sales Outside U.S.

fd8ea646427184b07693db177a0d3fb54d252c229d8088efe3182fbc84e650fd

| Name               | Position                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|--------------------|-----------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Rodney C. Sacks    | Chairman of the Board of Directors and Co-CEO | November 1990    | **Rodney 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  **[0001104659-24-053090_tm242702d2_def14a.htm:15]** **[0001104659-23-053065_tm231870d9_def14a.htm:22]** .          |
| Hilton H. Schlosberg | Vice Chairman of the Board of Directors and Co-CEO | January 2021     | **Hilton 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  **[0001104659-24-053090_tm242702d2_def14a.htm:15]** **[0001104659-24-053090_tm242702d2_def14a.htm:22]** .        |
| Thomas J. Kelly    | Chief Financial Officer                       | January 2021     | **Thomas 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  **[0001104659-24-053090_tm242702d2_def14a.htm:22]** .                                |
| Guy P. Carling     | President, EMEA                               | July 2018        | **Guy 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  **[0001104659-24-053090_tm242702d2_def14a.htm:22]** .                                          |
| Emelie C. Tirre    | President, Americas                           | July 2018        | **Emelie 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  **[0001104659-24-053090_tm242702d2_def14a.htm:22]** .                        |

157cf86d55d74dd83b1dd38376cc050a78ada6b1445d34614653f77d0f48e3cd

| Program Details          | Program 1                  | Program 2                  | Program 3                  |
|--------------------------|----------------------------|----------------------------|----------------------------|
| Approval Date            | November 2, 2022  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:19]**     | November 7, 2023  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**     | August 19, 2024  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**      |
| End Date/Duration        | Exhausted by September 30, 2024  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:19]**  | Exhausted by September 30, 2024  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**  | Not specified, no shares repurchased as of November 6, 2024  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**  |
| Total Additional Amount  | **$500.0 million**  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:19]**   | **$500.0 million**  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**   | **$500.0 million**  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**   |
| Remaining Authorization  | **$0.0 million**  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:19]**     | **$0.0 million**  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**     | **$500.0 million**  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**   |
| Details                  | Exhausted  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:19]**            | Exhausted  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**            | No shares repurchased  **[0001410578-24-001818_mnst-20240930x10q.htm:57]** **[0001410578-24-001818_mnst-20240930x10q.htm:20]**  |

2f5e9bbdee484459925dfb33511bddec90d37f46e3df830d4bdc00c4d5d8c814

| Name                | Start Date          | End Date | Reason for Change                                                                 |
|---------------------|---------------------|----------|-----------------------------------------------------------------------------------|
| Ernst & Young LLP   | December 31, 2023  **[0001104659-23-003829_tm233359d1_ex99-1.htm:0]** **[0001104659-23-003829_tm233359d1_8k.htm:0]**  | Present  | Current auditor.                                                                  |
| Deloitte & Touche LLP | 1991  **[0001104659-23-027245_mnst-20221231x10k.htm:101]**             | December 31, 2022  **[0001104659-23-003829_tm233359d1_ex99-1.htm:0]** **[0001104659-23-003829_tm233359d1_8k.htm:0]** **[0001104659-23-003829_tm233359d1_8k.htm:1]**  | The change was part of a review process by the Audit Committee and was not related to any disagreement.  **[0001104659-23-003829_tm233359d1_ex99-1.htm:0]** **[0001104659-23-003829_tm233359d1_8k.htm:0]** **[0001104659-23-003829_tm233359d1_8k.htm:1]**  |

72fefda02b60c335c14ec4277a07252a97a1a3ef99eb9cb942f72ad9667054af

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,881.0 million (+1% YoY)  **[0001104659-23-114789_mnst-20230930x10q.htm:11]** **[0001410578-24-001818_mnst-20240930x10q.htm:10]**   
- Strategic Brands: $112.6 million (+14% YoY)  **[0001104659-23-114789_mnst-20230930x10q.htm:11]** **[0001410578-24-001818_mnst-20240930x10q.htm:10]**   
- Alcohol Brands: $39.8 million (-6% YoY)  **[0001104659-23-114789_mnst-20230930x10q.htm:11]** **[0001410578-24-001818_mnst-20240930x10q.htm:10]**   
- EMEA: $417.588 million (+7% YoY)  **[0001104659-23-114789_mnst-20230930x10q.htm:11]** **[0001410578-24-001818_mnst-20240930x10q.htm:10]**   
- Operating Income: $479.9 million (-6% YoY)  **[0001104659-23-114789_mnst-20230930x10q.htm:6]** **[0001410578-24-001818_mnst-20240930x10q.htm:3]**   
- Net Income: $370.9 million (**-18% YoY**)  **[0001104659-23-114789_mnst-20230930x10q.htm:6]** **[0001410578-24-001818_mnst-20240930x10q.htm:3]**   
- Basic EPS: $0.38 (-12% YoY)  **[0001104659-23-114789_mnst-20230930x10q.htm:6]** **[0001410578-24-001818_mnst-20240930x10q.htm:3]**   

89def912b1320f4b2ce8902ec9ad1533582bf957a4da8880fdc3e6d026b835db

Case Sales for Monster Energy® Drinks (thousands of 192-ounce case equivalents)

Case Sales for Strategic Brands (thousands of 192-ounce case equivalents)

Total Energy Drink Case Sales (thousands of 192-ounce case equivalents)

Average Net Sales per Case for Energy Drinks (USD)

Case Sales for Alcohol Brands (thousands of 192-ounce case equivalents)

Average Net Sales per Case for Alcohol Brands (USD)

900a67f563778ac060d04c2910279d16bf7e4dcafbd6e7f68e2a45e2851ed05f

cc6d9493e7a160b1bde49040a27734644df2d75ab479bc8bdd6117165bb54b66

| Year | Amount Due (Millions) | Debt Type              | Interest Rate (%) | % of Total Debt                     |
|------|------------------------|------------------------|-------------------|--------------------------------------|
| 2027 | $750.0                | Term Loan             | 6.09             | 100.0% = (750 / 750) * 100 **[0001410578-24-001818_mnst-20240930x10q.htm:18]**  |
| 2029 | $0.0                  | Revolving Credit Line | N/A              | 0.0% = (0 / 750) * 100 **[0001410578-24-001818_mnst-20240930x10q.htm:18]**      |

e3d3a69dfc5bbe6f67d84eacc3beb75653da16c6a1799edc60b2f393a5166c81

- **Management believes that consumer demand has bottomed out and expects a recovery in sales, indicating confidence in future growth prospects.**  **[MNST_3406835_11]**
- **Recent Nielsen data shows an upward trend in the energy drink category and Monster's sales, suggesting a positive shift in market dynamics.**  **[MNST_3406835_11]** **[MNST_3406835_2]**
- **Despite facing increases in commodity costs like aluminum and sugar, the company considers these impacts manageable, supporting stable future margins.**  **[MNST_3406835_15]**

542497526f0873ac202d57c714d9a7163d38c8249e6cdeb4d0fbd95b23163ba1

- **Monster Beverage anticipates significant international growth opportunities, particularly in emerging markets like China and India, driven by the expansion of their affordable energy brand **Predator**.**  **[MNST_3375485_13]** ,  **[MNST_3375485_10]**
- **In the U.S., despite perceived slowdown in some data, **January sales were impressive**, and the company expects additional growth through **anticipated gains in shelf space** and the rollout of new products, including the addition of the **Bang** brand.**  **[MNST_3375485_8]** ,  **[MNST_3375485_12]**
- **The company has seen improved gross margins, benefiting from factors such as lower aluminum costs and the ramp-up of their own manufacturing facilities, and is optimistic about continued margin improvement.**  **[MNST_3375485_9]** ,  **[MNST_3375485_7]**

7b1aef12b18f76cf768ad3112aeed9592c4feec3800292178c9733c90cabc134

- **Significant increases in commodity costs**, particularly **aluminum and sugar**, are expected to negatively impact Monster Beverage Corporation's margins.  **[MNST_3406835_15]**
- The company **cannot determine** the extent to which recent sales increases are due to **advanced purchases ahead of price increases**, introducing uncertainty in sales data and forecasting.  **[MNST_3406835_15]** **[MNST_3406835_11]**
- **Consumers are reducing energy drink consumption**, drinking **one less** per week, which may indicate a potential decrease in demand.  **[MNST_3406835_11]**

6db8628482cb6a4787b32df4703691d857d7bc6c0f6d7c95d8a8a1a82d339bd2

- Monster's **G&A expenses were higher than expected in Q4**, even **excluding the $40 million impairment charges**, and management did not provide a clear explanation for the increase.  **[MNST_3375485_11]**
- The **strong gross margins reported in Q4 may not be sustainable**, as they were partly due to **nonrecurring items**, such as true-ups and rebate programs.  **[MNST_3375485_7]**
- In **January, the U.S. energy drink category saw a slowdown**, and Monster's sales were affected, potentially impacting future growth.  **[MNST_3375485_8]**

089dde2a166037226a0926fb24547ca2e059a45c37f74efcb2d2461cdbbb6619

- **Sales Slowdown**: Monster Beverage is experiencing a **slight slowdown** in sales, with acknowledged **softness in the market** due to **inflation and higher gas prices** affecting consumer traffic and spending.  **[MNST_3382228_15]**
- **Price Increase Risks**: The planned **price increase** for the **main Monster Energy line** in the **fourth quarter** may negatively impact demand, especially as competitors have already taken pricing actions, introducing uncertainty on how consumers will react.  **[MNST_3382228_11]**
- **Leadership Transition Concerns**: With **Rodney Sacks considering reducing his day-to-day management responsibilities starting in 2025** and **Hilton Schlosberg transitioning from Co-CEO to CEO**, there may be **leadership uncertainty** that could affect the company's strategic direction.  **[MNST_3382228_7]**

25bed1e2fe4982cbcd55a19373592bf161b3adf5a56733a3f273b89c1b56f87a

- **Improvement in Gross Margins Across the Board**: Monster Beverage reported a **pickup in international margins, particularly in EMEA**, and has been **working on improving margins** in both the U.S. and international markets, which is expected to positively impact profitability.  **[MNST_3382228_13]**
- **Planned Price Increase on Main Monster Energy Line in Q4 2024**: The company plans to **implement a price increase on its main Monster Energy line in the fourth quarter of 2024**, which is anticipated to enhance revenue growth and margins.  **[MNST_3382228_11]** **[MNST_3382228_19]**
- **Strong Growth in Non-Measured Channels**: Monster Beverage is experiencing **strong sales growth in non-measured channels**, including important customers such as **Amazon, Home Depot, Lowe's, and major club store chains**, indicating additional growth opportunities beyond traditional retail metrics.  **[MNST_3382228_14]**

b78f25493d4fe801ae94f1eea899d68f6b89193cb2a00da6813e90aadc1755a7

1. **Gross Margins**  
   **Q:** Will gross margin pressures ease in Q3?  
   **A:** Management believes that the **higher allowances** and **production inefficiencies** affecting gross margins will **resolve over time**.  **[MNST_3397053_13]**  While allowances should be gone by next quarter, production inefficiencies may take longer to fully address.  **[MNST_3397053_13]**  These inefficiencies stem from gearing up production in new plants, including Norwalk, which opened in April, and a facility in Phoenix acquired from Bang.  **[MNST_3397053_13]**  On commodities, they anticipate aluminum costs should **reduce over time** due to their hedging strategies.  **[MNST_3397053_13]** 

2. **Category Trends**  
   **Q:** How are current category trends, especially in July?  
   **A:** According to Nielsen data, the U.S. convenience and all measured channels are **getting worse in July**, not better.  **[MNST_3397053_9]**  However, non-measured channels continue to be a significant and growing part of their activities.  **[MNST_3397053_9]** 

3. **Price Increase Amid Slowdown**  
   **Q:** Why raise prices despite category slowdown?  
   **A:** They see an opportunity to take a **price increase** while retaining a **competitive price** for consumers.  **[MNST_3397053_9]**  Monster has had only **one increase in the last 2 years**, whereas competitors have had multiple.  **[MNST_3397053_9]**  They've absorbed significant cost increases and believe it's prudent to move forward with a price increase.  **[MNST_3397053_9]** 

4. **Inventory Levels and Innovation**  
   **Q:** Any bottler inventory impact on Q2? Innovation plans?  
   **A:** They haven't seen significant changes in bottler inventories impacting Q2.  **[MNST_3397053_11]**  The German issue affecting **1 million cases** has been resolved.  **[MNST_3397053_11]**  New products like **Fantasy Ruby Red** and **Rio Fans** are performing well, with sales per point ahead of competitors' new launches.  **[MNST_3397053_11]**  They plan to launch **Ultra Vice Guava** later this year and have a strong innovation pipeline for 2025.  **[MNST_3397053_11]** 

5. **Production Challenges in Germany**  
   **Q:** Are German production issues resolved?  
   **A:** The production challenges in Germany have **largely been resolved**.  **[MNST_3397053_9]**  The issues arose due to capacity constraints and increased demand during the European soccer championships.  **[MNST_3397053_9]**  They don't anticipate a recurrence and have taken steps to prevent future issues.  **[MNST_3397053_9]** 

eb9ed908a5e180a69389a46813a835fc6a3a663ec8c13ceaa724144e15c8384a

1. **Upcoming Price Increase**  
   **Q:** Will you raise prices in the U.S., and when?  
   **A:** We plan to implement a **price increase** on our main Monster Energy line in the **fourth quarter**.  **[MNST_3382228_11]** **[MNST_3382228_14]**  We'll announce details to bottlers and retailers in the next few months, with implementation expected after a 60-day notice period.  **[MNST_3382228_11]** 

2. **Dutch Auction Share Repurchase**  
   **Q:** Why are you conducting a Dutch auction now, and what's the timing?  
   **A:** Given recent market softness, we believe it's an opportunistic time to execute a **modified Dutch auction** to repurchase shares.  **[MNST_3382228_12]**  We'll likely implement it in the next week or so, within this quarter.  **[MNST_3382228_12]**  This tender offer is in addition to our existing repurchase plans.  **[MNST_3382228_12]** 

3. **Margin Improvement**  
   **Q:** What's driving improvement in international and U.S. gross margins?  
   **A:** We've seen a pickup in international margins, especially in **EMEA**, and improved U.S. margins.  **[MNST_3382228_13]**  Previously, we expected margins around **53.5%**, but we've done better this quarter.  **[MNST_3382228_13]**  We'll continue working to improve gross margins across the board.  **[MNST_3382228_13]** 

4. **Sales Slowdown and Outlook**  
   **Q:** Is there a slowdown in your business, and what's causing it?  
   **A:** There has been a **slight slowdown**, attributed to **inflation** and **higher gas prices** affecting consumer traffic.  **[MNST_3382228_15]**  This trend is industry-wide.  **[MNST_3382228_15]**  We expect improvement with the coming of summer and are positive about our innovation pipeline.  **[MNST_3382228_15]** 

5. **Operating Expense Increase**  
   **Q:** What's causing higher operating expenses?  
   **A:** We've built up **inventories** to over **95%** in-stock rates to better meet demand.  **[MNST_3382228_17]**  This has increased costs in **freight**, **warehousing**, **sponsorships**, **payroll**, and **marketing**.  **[MNST_3382228_17]**  We're focusing more on social media platforms to align with our consumer base.  **[MNST_3382228_17]** **[MNST_3382228_17]** 

6. **Bang Brand Progress**  
   **Q:** How is the Bang brand progressing and what's planned?  
   **A:** **Bang sales are starting to accelerate** as we secure more listings.  **[MNST_3382228_16]**  Marketing is gaining momentum into the summer, including a large influencer platform.  **[MNST_3382228_16]**  We're positioning Bang as a **lifestyle brand** and investing accordingly.  **[MNST_3382228_16]** 

7. **International Gross Margins and Coke Partnership**  
   **Q:** Can you improve international gross margins through better terms with Coke?  
   **A:** Negotiating with bottlers is challenging.  **[MNST_3382228_19]**  We aim to improve margins via **commodities** and **pricing**, but must be cautious not to jeopardize our strong bottling relationships.  **[MNST_3382228_19]** 

8. **Sales in Non-Measured Channels**  
   **Q:** How are sales in measured vs. non-measured channels?  
   **A:** While we don't disclose percentages, our **non-measured channels** like **Home Depot**, **Lowe's**, and **Amazon** remain strong.  **[MNST_3382228_14]**  This contributes to discrepancies between Nielsen numbers and our reported sales.  **[MNST_3382228_14]** 

9. **Shipment Timing Impacts**  
   **Q:** Are shipment timings affecting sales numbers?  
   **A:** Sales to bottlers depend on their production schedules.  **[MNST_3382228_10]**  They may produce earlier or later, impacting our sales timing.  **[MNST_3382228_10]** 

10. **Price Increase Details**  
    **Q:** Can you share the magnitude of the U.S. Q4 price increase?  
    **A:** It's not appropriate to discuss specifics before informing bottlers and retailers.  **[MNST_3382228_20]**  We can't share details at this stage.  **[MNST_3382228_20]** 

11. **April Sales and Extra Days**  
    **Q:** Does April sales include the 2 extra days, and any timing impacts?  
    **A:** The **2 extra days** in April are included in our reported numbers.  **[MNST_3382228_9]**  Sales timing can be influenced by bottlers' production schedules.  **[MNST_3382228_9]** **[MNST_3382228_10]** 

f86554d7820b4403b8527550114cd36ecda36f172abb5ac02a9829dfffdcd423

- **Strong Innovation Pipeline Driving Growth**: Monster's recent product launches, such as Fantasy Ruby Red and Rio Punch, are performing exceptionally well, outperforming competitor products in sales per point.  **[MNST_3397053_11]**  Upcoming launches, including Ultra Vice Guava and new innovations for the Bang brand, are expected to positively impact sales in the coming quarters.  **[MNST_3397053_11]**
- **Production Inefficiencies are Temporary and Expected to Resolve**: The current production inefficiencies, which affected gross margins, are due to ramping up new production facilities like Norwalk and Phoenix.  **[MNST_3397053_13]**  These issues are anticipated to be resolved over time, leading to improved efficiencies and margins in future periods.  **[MNST_3397053_13]**
- **Strategic Pricing Actions and Effective Cost Management**: Monster plans to implement a price increase on its core brands in the U.S. effective November 1, 2024, while maintaining competitive pricing.  **[MNST_3397053_9]**  Additionally, the company's hedging strategy for aluminum costs is expected to result in cost reductions over time, supporting gross margin improvement.  **[MNST_3397053_13]**

7bd5ebacba0316676a9fe8a37b3b1ac43f367282aa3f51b2bb22ee67eea9c832

1. **Gross Margin Outlook**  
   **Q:** Any thoughts on margin trajectory after strong Q4?  
   **A:** Management noted that Q4 had nonrecurring items, and on an ongoing basis, gross margin was about **53.5%**. They are working to improve margins by bringing up their own manufacturing facilities and benefiting from lower aluminum costs, but they don't give guidance and are uncertain about future costs like freight.  **[MNST_3375485_7]** **[MNST_3375485_9]** 

2. **U.S. Pricing Strategy**  
   **Q:** What's preventing you from announcing U.S. price increases?  
   **A:** While competitors have raised prices, management is carefully evaluating the U.S. retail pricing environment. They are neither committing to nor ruling out a price increase, emphasizing the importance of making the right decision given their sizable business and customer relationships.  **[MNST_3375485_9]** 

3. **International Expansion Opportunities**  
   **Q:** How do you view international growth and margin improvement?  
   **A:** They see significant opportunities in international markets, particularly in developing countries like **China** and **India**. By expanding both premium brands like **Monster** and affordable brands like **Predator**, they expect continued growth. However, due to competitive dynamics, especially pricing against **Red Bull**, achieving U.S.-level margins internationally will be challenging.  **[MNST_3375485_10]** **[MNST_3375485_13]** 

4. **U.S. Market Share and Sales Trends**  
   **Q:** Can you comment on U.S. market slowdown and market share trends?  
   **A:** Management believes January sales were strong and that **Nielsen** data doesn't capture all channels, such as significant club store chains. Factors like weather and tough comparisons to prior year launches affected perceived slowdown. They anticipate gains in shelf space and benefits from reintroducing the **Bang** brand starting in the first quarter through the second quarter.  **[MNST_3375485_8]** 

5. **Cooperation with Coke System**  
   **Q:** Update on in-market execution and cooperation with Coke bottlers?  
   **A:** They are working with **Coke bottlers** to improve execution and are rolling out new products. New retail sets are being implemented from February onwards, and they expect positioning to improve in upcoming reports.  **[MNST_3375485_12]** 

6. **G&A Expenses Increase**  
   **Q:** What's behind the significant increase in G&A expenses in Q4?  
   **A:** Management pointed out a **$40 million** impairment charge related to Alcohol Brands in the quarter. Excluding that, they didn't see the same level of increase and would need to review further.  **[MNST_3375485_11]** 

15b05fef2f2c67cb7339c05e29eda56bae6908946196ec2c75b2010fcccf93e3

- **Production challenges and inefficiencies** have impacted sales, particularly in Germany, where a lack of capacity and distribution constraints led to a loss of **1 million cases**. While the issues are being addressed, they may not fully resolve until after the third quarter.  **[MNST_3397053_9]** **[MNST_3397053_11]** **[MNST_3397053_13]**
- The company's **innovation pipeline is underperforming**, with new product launches achieving lower-than-expected distribution levels (in the **60% range** instead of the expected **75-80%**), potentially impacting sales growth in the second half of the year.  **[MNST_3397053_10]** **[MNST_3397053_11]**
- The plan to implement a **5% price increase** on core brands in November 2024, despite a slowdown in the energy drink category and increased price sensitivity among consumers, may further suppress demand and market share.  **[MNST_3397053_12]**

34f82ddab4386fc5309e0f9d8d4fe6476a4175c44718f7f632c978af540e9f03

1. **Recovery of the Energy Drink Category**  
   **Q:** How is the energy drink category performing currently?  
   **A:** Management believes the energy drink category has reached the bottom and is showing signs of recovery, with latest Nielsen data indicating category growth of **1.9%** over the latest 13-week period, **3.2%** over 14 weeks, and **3.7%** in the latest week.  **[MNST_3406835_11]**  Improved macroeconomic conditions, such as a recent rate cut and the conclusion of the election, are expected to boost consumer confidence and foot traffic in convenience stores, which comprise **62%** of energy drink sales.  **[MNST_3406835_11]** 

2. **Impact of Price Increases and Demand Elasticity**  
   **Q:** What is the effect of recent price increases on demand and promotional activity?  
   **A:** Management is assessing the impact of recent price increases on demand and determining the elasticity before deciding on any promotional activities.  **[MNST_3406835_10]**  They note it's challenging to answer precisely at this time due to factors like buy-ins and the impact of hurricanes.  **[MNST_3406835_11]** 

3. **Gross Margins in EMEA**  
   **Q:** How are gross margins trending in EMEA, and can they return to 2021 levels?  
   **A:** Gross margins in EMEA have been improving each quarter, and management is optimistic about further improvement due to pricing actions and the upcoming juice plant production early next year.  **[MNST_3406835_14]**  While uncertain if margins will return to 2021 levels, they are positive about the trend.  **[MNST_3406835_14]** 

4. **Advanced Purchases Before Price Increase**  
   **Q:** Was there an impact from advanced purchases ahead of the price increase?  
   **A:** Unlike previous years, it's difficult this time to determine the impact of advanced purchases ahead of the price increase because the favorable pricing was cut off mid-October, making it complex to assess any effect on October sales.  **[MNST_3406835_15]** 

5. **Commodity Costs and Inflation**  
   **Q:** What is the outlook on commodity costs and inflation?  
   **A:** Management notes significant increases in commodity costs, particularly **aluminum** due to tariffs, and **sugar**.  **[MNST_3406835_14]** **[MNST_3406835_15]**  They actively manage and hedge aluminum exposure using a ladder strategy to mitigate price volatility.  **[MNST_3406835_14]** 

6. **Impact of Innovation on Consumption Trends**  
   **Q:** How is innovation affecting category growth?  
   **A:** While innovation drives consumption, recent product launches had limited impact as the latest innovation (one SKU) only reached shelves towards the end of October.  **[MNST_3406835_13]**  Management doesn't believe innovation has significantly influenced recent trends yet.  **[MNST_3406835_13]** 

7. **Inventory Levels and Distributor Orders**  
   **Q:** How are inventory levels affecting sales figures?  
   **A:** The company fulfills orders based on distributor requirements, which are informed by consumption data and other factors. They haven't observed inventory hiccups like some competitors and execute orders as per customer demand.  **[MNST_3406835_12]** 

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Monster Beverage Corp (MNST)

Financials