Phenomenal share price 700 times… Drinks through the ‘Owunwan’ generation

A company that fell from the stratosphere at the speed of sound, jumped off a cliff, and drove a small plane through a tunnel.

Here’s a company that has succeeded in keeping up with the marketing of this brand that sticks to challenges that can’t be done with sober mind.

Even today, when exercise and self-management are the trend, it sells exceptionally well during the test period because of its awakening effect, and is a demonic drink that has been banned from sale in schools around the world because it is so drunk.

Rather, it is a story of a monster-like company that writes a new sales record during the corona period and runs at an all-time high even these days when stocks around the world are staggering.It’s unfamiliar to us, but ‘By America’ takes a look at the sparkling companies in the New York stock market. Today, it is an extreme sports sponsor company that neither Corona Pandemic nor Jerome Powell could stop, and Coca-Cola’s hidden secret weapon, Monster Beverage (ticker name: MNST ) .

Taurine, caffeine, vitamin B here, and even carbonic acid. Energy drinks with the same awakening effect, but with different content and manufacturing method, were originally popular in Japan and Thailand. It first entered Korea in 2011 and became popular as a drink for college students and college students.

It is still popular in promoting low-caffeine beverages such as Hot Six, Vita 500, and Bacchus introduced by Lotte. As the energy drink market grows, the consumption age of the original Red Bull is widening, and market share changes are taking place. Targeting this niche, energy drinks with a strategy of maximizing caffeine content and increased capacity are beginning to eat into the market.

Today’s hero, America’s Monster Beverage, caught up with the market share with a more radical and more awakened image.

Originally a pasteurized juice company created by Hubert Hansen in 1930, it started as a company that made carbonated soda drinks with a gentle image.

Then, in 1990, South African CEO Rodney Sacks and the current vice chairman of Hilton Schlossberger took over as a consortium, and the two changed their name to Monster Beverage in 2012, and the full-fledged market domination began.

It’s like starting marketing 20 years later than Red Bull, but it still caught up with a 39% market share as of 2020, and it’s a huge company that earned 7.8 trillion won annually from its representative brand, Monster Energy Drink alone. Of course, the two executives who created the consortium are also listed as billionaires.

Red Bull uses the way it promotes its logo in extreme sports, but Monster Beverage has narrowed its target and has long adorned UFC martial arts with fluorescent logos that look like the Hulk or Wolverine scratched, widening fan demand .

With the phrase ‘Unleashed Monster’, which can be seen as a sentence containing madness, it sponsors monster trucks, drag racing, F1 , snowboard big air, etc., and has definitely encroached on areas that Red Bull can’t do by changing the taste, scent, and color.

In addition, we made different brands for each type of sport and region of consumption. Burn , NOS , Full Throttle, reminiscent of motorsport fuel, each brand and design tailored to the Australian market and music concert sponsorship have been introduced.메이저놀이터 .

As the image seems to give a radical awakening effect to the whole body, the rate of increase in the stock price is steep, so Tesla and Apple are also successful companies in the stock market to the extent of laughing. It is a company that has been recording a stock price increase rate of 73,000 percent since 1985 and 10 times since 2011, and is still the highest price ever.

However, Monster Energy did not grow like this only with marketing aimed at the vacancy of Red Bull. In 2014, it handed over a 19.3% stake and production functions to Coca-Cola, the world’s largest beverage company, and only compressed and nurtured the energy drink brand, which can be said to be a godsend.

The Coca-Cola company only has a brand, and the manufacturing function of adding beverages has been separated. It is because it is a field that is expensive and difficult to make a profit. In Korea, LG Household & Health Care is in charge of this function, and it can be said that Monster Energy also greatly increased brand profitability by entrusting manufacturing functions to each region.

In this way, there is no need to accumulate debt in the process of expanding the business, and it is possible to collect cash and quickly rotate assets.

When sales of other competitors slowed down due to concerns about the economic slowdown, only the Red Bull and Monster Energy brands showed a difference in growth rate enough to continue increasing sales.

Thanks to this, adjusted earnings per share of $2.23 last year and in the first quarter of this year also increased by 35% to $0.38, easily exceeding market expectations. Sales increased by an average of 10% each year, setting a record of 30 consecutive years of net sales growth until last year.

The unfortunate part is that it has decided to stick to the non-dividend policy in the meantime and in the future. It’s all about buying back about $500 million of its own stock. Nevertheless, the price-to-earnings ratio is still around 30 times, and it is also an expected stock that Morgan Stanley, RBC Capital, and Wells Spaco give an overweight, saying that it can produce better-than-expected results even in the second quarter on Wall Street .

In a market where liquidity is drying up, companies that show growth are becoming increasingly rare. It seems like a company that will play a role in waking up the vitality of a market that is withering with spirit-boosting caffeine.

I hope that a company like Monster Beverage, which has grown its market dominance and exerted its strength to push out Red Bull, will be able to continue its legend.

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