Coke seal Monster deal
Coca-Cola, in a cash deal, has acquired a 16.7% stake in Monster Beverage.
The $2.15bn (£1.3bn) deal will see Coca-Cola’s energy business transfer to Monster.
Monster’s non-energy business will, in-turn, transfer to Coca-Cola. Brands include; Hansen’s Naatural Sodas and Peace Tea.
As a result of the deal, Monster will have access to Coca-Cola’s global distribution system.
Muhtar Kent, chairman at Coca-Cola said in a statement: “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. Investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category”.
Monster chairman Rodney C. Sacks said in the statement the deal will give the company “enhanced access to the Coca-Cola Company’s distribution system, the most powerful and extensive system in the world. At the same time, we become The Coca-Cola Company’s exclusive energy play”.