Monster shares fall as Coke develops its own energy drinks

Associated Press |

CORONA, Calif. (AP) — Shares of energy drink maker Monster Beverage Corp. tumbled after the company said its partner Coca-Cola Co. is developing energy drinks of its own.

Coke bought a stake in California-based Monster in 2014. At that time, Coke transferred its energy brands to Monster and agreed not to develop competing drinks.

But in a conference call with investors late Wednesday, Monster CEO Rodney Sacks said Coke is developing two energy drinks it believes are exceptions to the agreement.

Coke says Coca-Cola Energy and Coca-Cola Energy No Sugar wouldn't violate the agreement, which allows Coke to market energy drinks under its own name. But Monster is fighting their release.

Both companies confirmed they have entered into arbitration.

Monster shares were down 8 percent to $51.20 in morning trading.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

World Economic Forum at Davos 2019 - Dr Oliver Krause Founder Untitled Inc Part 1

Matt Bird sits down with Dr Oliver Krause, Founder Untitled Inc, in part 1 of this 2 part interview at the World Economic Forum at Davos 2019