Coca Cola to Buy Monster

Says on MSN that Coca Cola rumored to pay north of 11.5 billion for Monster. That would spell the end of Full Throttle as that's cokes attempt at taking on Monster. Crazy how much Monster worth. Just imagine what speed could be worth some day. Energy drinks are fastest growing sector of beverage drinks and our guy has the best tasting yet. Obviously a long way to go and not nearly the marketing power of Monster but something to dream of.

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Permalink Reply by WJM on April 26, 2012 at 7:23pm

According to several analysts Benzinga spoke to Thursday, Coca-Cola (KO +1.04%) could have its sights set on Monster Beverage (MNST +2.91%) in an acquisition that may be the beverage giant's largest ever.

Jack Russo of Raymond James thinks Coke might be planning to buy the energy-drink maker. If that's the case, he said, investors should look for Coke to begin selling off some bottling assets to raise money. Still, he noted that if Coke were to consider such a move, it may draw fire from shareholders since the purchase price would amount to a "king's ransom."

Shares of Monster Beverage rose nearly 3% Thursday to close at $65.38, giving it a market value of $11.5 billion. Assuming some premium, the purchase would be the largest in Coca-Cola's history. Given the size of the deal, investors may be skeptical of the possibility.

Still, energy drinks remain one the fastest-growing sectors of the beverage market, and Coke's attempt to enter the market with its own Full Throttle has proven to be a failure.

Benzinga spoke to another analyst on the possibility, but he declined to comment on the record as he was not authorized to speak on the matter.

"Yes, the price Coke would have to pay for Monster would be the biggest hangup," he stated. "Still, Coke wants to be a bigger presence in the energy drink market and they already have a fairly close distribution relationship with Monster. The move would be elevating that to the next level. They could do it, but they would really have to be excited about Monster's growth prospects."

Shares of Coca-Cola closed Thursday up 1.04% to $75.71.

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Permalink Reply by WJM on April 26, 2012 at 7:41pm

Note: Hansen's Natural changed their name to Monster Beverage in January of this year.

Permalink Reply by will on April 26, 2012 at 9:11pm

Yeah, back when Robby got the Monster deal I convinced my dad and my son to buy Hansen's at about 30 bucks a share, but I never bought any. The stock split when it hit about 100 bucks a share, and now they are both looking at me like I'm some sort of genius who is to stupid to take his own advise.

Permalink Reply by J.R. Sands on April 26, 2012 at 9:24pm

Haha....Good stuff Will.

Permalink Reply by Josh Fisher on April 26, 2012 at 9:30pm

Doesn't Coke also own NOS (well the drink not the name) & Mother (Australia) too? They bottle/distribute a few others as-well IIRC.

Permalink Reply by Christopher Lutz on April 27, 2012 at 6:13am

I'm curious what the value break-out is between the Monster beverages and the rest of Hansen's. This deal would be for the whole company not just the Monster brand.

Permalink Reply by Michael Martinez on April 27, 2012 at 10:58am

I don't have any facts or genuine articles of concern to add to this discussion. However..............I live in fear of corporate ownership per say of products. Antitrust laws and monopoly enforcement are an after thought as the big picture is profit and on paper gains. I'm not so blind to realize survival of any one business in the face of market loss needs to be protected but as expansion continues the world suffers. It suffers through lack of choice, quality standards and prduc....................Did any one notice how the Cadbury Eggs SUCK now that Hershey makes them ...........take over or sale some time back............ I mean....PPPBBHHH. I make my own pickles sometimes beefjerky sometimes sausage sometimes wine sometimes smoked fish. Coke buys Monster.....let me find my New Years Eve horn, when someone finds a positive other than how much money "somebody" is going to make I'll blow it. Independent Enterprise Forever

Permalink Reply by Andre on April 28, 2012 at 1:53pm

If Coke buys Monster. Then there will be Monster Zero, smaller packages and more Monster vending machines.

Permalink Reply by laura_a_Robbyfan on April 28, 2012 at 7:43pm

Did Coke really PR Full Throttle in the off road and extreme sports arenas? Was Full Throttle ever seen on any cup or Nascar cars? My guess if this does go through then the Busch sponsorship would go byby,

Permalink Reply by Ed Fifield on April 28, 2012 at 8:18pm

I don't know. It actually could add to the Busch sponsorship. I still wouldn't be surprised to see Kurt driving a Dodge in Cup next year under Kyle/Kurt Busch ownership with Monster and Dodge being the main sponsors. We will see.

Permalink Reply by Josh Fisher on April 28, 2012 at 9:18pm

Full Throttle is the Title sponsor of the NHRA Pro Classes & they sponsored some cars & races in the Canadian Tire Series, but I don't think I've ever heard of them sponsoring anything other then that.

Permalink Reply by mj on April 29, 2012 at 12:14am
Doesn't Coke already own NOS ? What's gonna happen with that ? 

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