Monster Beverage Corporation (MNST) is based in California. The corporation is a holding company and conducts no operating business except through its consolidated subsidiaries (Monster Beverage Corporation, 2017). Through its consolidated subsidiaries, the company markets and sells energy drinks such as Monster Energy, Monster Energy Extra Strength, NOS, Full Throttle and Burn. Coffee drinks, soft drinks, and energy shakes complete its product portfolio Industry Conditions The company’s key market focus is on energy drinks. One of its signature brands, Monster Energy, generated sales amounting to about 1.52 billion U.S. dollars in 2016 and was ranked as the second leading U.S. energy drink brand, following only Red Bull (Statista, 2017). …show more content…
dollars (Statista, 2017). Additionally, 2016 represented the companies’ 24th consecutive record of increased gross sales (Monster Beverage Corporation, 2016). The corporation has seen a steady increase in their financial growth over the years and is considered fiscally healthy. Last, the company has a strong partnership agreement with the Coca-Cola Company; which has contributed to its financial strength and opportunity to expand its market base. Economic Outlook Monster Beverage’s strong portfolio of energy drinks’ and continued innovation are considered the primary factors that have facilitated and sustained their leadership position over the years. The corporation ranks 13th on Forbes magazine’s list of the world’s most innovative companies (Forbes, 2017). The Monster Energy Drinks segment represented 90.5%, 92.5% and 93.9% of the corporations consolidated net sales for the years ended December 31, 2016, 2015 and 2014, respectively (Monster Beverage Corporation, 2016). Gross sales continue to rise from $3.1 billion in 2015 to $3.5 billion in 2016, and Net sales increased from $2.7 billion in 2015 to $3 billion in 2016. The company plans to remain innovative in their product development, and anticipate introducing new beverages and packaging upcoming fiscal