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Coca-Cola buys 16.7% stake in Monster Energy

Beverage giant Coca-Cola announced yesterday that it had acquired a 16.7% stake in the popular energy drink, Monster, costing $2.15 billion.

Plans were publicised by the new business associates detailing that there would be a long-term strategic partnership to accelerate growth within the beverage industry. Monster is the largest energy drink provider in the US, overtaking its main competitor, Red Bull, for the top spot.

It’s a positive collaboration, both are looking to improve the slowing global soda sales over the last 3 years. Last year’s 6.8% increase in energy drink sales was low, compared to the 11% in 2012, and 20% in 2011.

Statement released on the Coca-Cola website states:

“The Coca-Cola Company continues to identify innovative approaches to partnerships that enable us to stay at the forefront of consumer trends in the beverage industry. Our equity investment in Monster is a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category. This long-term partnership aligns us with a leading energy player globally, brings financial benefit to our company and our bottling partners, and supports broader commercial strategies with our customers to bring total beverage growth opportunities that will also benefit our core business.” – Muhtar Kent, chairman and CEO, The Coca-Cola Company.

The Advocate Group have worked with Monster Energy on a number of senior roles over the last few years and fully support this partnership.

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