Is Coca-Cola Mulling Over The Buyout Of Monster Beverage?
Zacks Investment Research | Aug 31, 2017 09:44PM ET
The Coca-Cola Company (NYSE:KO) has a possibility to take over the renowned energy drink maker Monster Beverage Corp. (NASDAQ:MNST) , according to founder of The Street, Jim Cramer. Meanwhile, Monster Beverage’s shares scaled a new 52-week high of $56.44 on Aug 31, finally ending the day’s trading a tad lower at $55.82.
Coca-Cola had already acquired a 16.7% stake in Monster Beverage on Jun 12, 2015. Hence, according to Cramer, Monster Beverage is a possible buyout choice for Coca-Cola as the company has also been focusing on portfolio expansion in order to gain a competitive edge in the U.S. beverage space.
Furthermore, Coca-Cola’s new CEO, James Quincey is known for his motivation in expanding the company’s brand through acquisitions.
In the U.S. beverage space, Coca-Cola along with other major soft drink makers like Pepsico, Inc. (NYSE:PEP) and Dr Pepper Snapple Group, Inc. (NYSE:DPS) have been facing carbonated soft drinks (CSD) category headwinds for some time now.
Cross-category competition and growing health and wellness consciousness have resulted in a drastic shift in consumer demand toward healthier beverages like energy drinks, tea juices and flavored waters. Consumer’s watchfulness over the use of artificial sweeteners and high sugar content has dented sales for companies belonging to the beverage Original post
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