SUBSCRIBE

Breaking News on Food & Beverage Development - North AmericaEU edition | Asian edition

News > Manufacturers

SEE INSIDE MONSTER ENERGY'S INNOVATION LOCKER: THE BEVERAGEDAILY.COM TOP 5

'Monster Energy Sunrise will have 'Orangina-type flavor': CEO Rodney Sacks

Post a comment

By Ben Bouckley+

08-Aug-2014
Last updated on 08-Aug-2014 at 22:34 GMT

Monster Energy CEO Rodney Sacks insists new launch Ultra Sunrise will not go head-to-head PepsiCo's Mountain Dew Kickstart, despite its lighter 'Orangina-type flavor'.

The company beat analyst expectations to report strong Q2 net sales of $687.2m (+8.9%) and net income of $141m (+31.9%).

But Sacks warned of “less robust” growth for the US energy category as a whole, and blamed subdued sales of 5-Hour Energy in particular.

“We think the energy category is being slowed down a little bit by the negative growth that is being experienced by 5-Hour…we lump it in the same kind of category,” Sacks said.

5-Hour Energy acting as a brake on the category

The winners as per Nielsen across all channels? Monster dollar sales were up 9% in the 13 weeks to July 26 2014 with 5.3% growth for the category as a whole; Red Bull sales were up 4.3%, NOS up an impressive 30.5%.

The losers? Rockstar’s sales were flat over the quarter (though down 7.2% in the four weeks to July 26), 5-Hour Energy was down 2.5% and AMP down 11.1%.

Nielsen figures for the four weeks ending July 26 show that in the key US C-store and gas channel alone Monster's market share was up 0.6% year-on-year to 34.6%, while Red Bull’s fell to 35.3%; Rockstar (6.9%) and 5-Hour (9%) both lost ground.

Consumers want lighter drinks - 'lighter in calories, lighter in taste'

“Overall we are just seeing that slowing trend,” Sacks added during yesterday's call, after Jeffries analyst Kevin Grundy noted a slowdown from double-digit to single-digit growth in the C-store and gas channel.

Why is this happening? Well, Sacks blames health concerns over carbonated soft drinks (CSDs) that have spilled over into dark CSDs (this includes Monster), but believes these will pass.

“But there are certainly some changing consumer trends and preferences. We will deal with some of them by adapting our products to be more drinkable, to be lighter, lighter in calories and lighter in taste.”

Monster is just like like, err, wine...

Monster aimed at this profile with its Ultra line, he said, and is reformulating its juice line with less juice for a lighter drink.

“On the other hand, a majority of consumers still like full-flavored, heavy bodied drinks – just as they like light wines and they like heavy wines,” Sacks said.

Monster is trying to cater for the “full gamut of consumers”, he said, noting that it introduced Muscle Monster for “pure sports people or bodybuilders” to get protein as well as energy.

Click through our gallery, which begins below, for the inside track on Monster's slated 2014/15 launches, starting with Ultra Sunrise.

Subscribe to our FREE newsletter

Get FREE access to authoritative breaking news, videos, podcasts, webinars and white papers. SUBSCRIBE

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

All Galleries

INDUSTRY VOX POP: What does natural & clean label mean?

INDUSTRY VOX POP: Do natural claims still resonate with consumers? Mamma Chia, Runa, Saffron Road, Cargill et al weigh in

Are consumers weary of 'all-natural' claims? And if so, what other cues do they look for on...

General Mills, ConAgra, Kevita new products gallery

New products gallery: Cinnamon Toast Crunch turns 30, ConAgra makes snacking ‘guilt-free’, Kevita’s kombucha for the mainstream

Here’s a look at the latest and greatest in new product launches—from General Mills making the old...

FBULA Bootstrapping, brand-building & Fresh & Easy’s quest for the new

Bootstrapping, brand-building & Fresh & Easy’s quest for what's ‘fresh, unique and new’: A day at the Food & Beverage University

From how to keep control of your trade spending to presenting the perfect pitch to investors (spoiler...

LEGAL VOX POP: Are 'all-natural' claims worth the hassle?

LEGAL VOX POP: Are 'all-natural' claims worth the hassle?

With a class action lawsuit filed almost weekly over the word ‘natural’ on food & beverage labels,...

Top 10 best-selling US cereal brands 2014, IRI data

Cereal chartbusters 2014: America’s top 10 best-selling brands

BakeryandSnacks has dug into fresh IRI data to dish up the latest list of top 10 best-selling...