Coca-Cola Energy to Compete With Monster in US Market

Coca-Cola is expecting to roll out their first ever Coke-branded energy drink in the US this coming January 2020. The product was initially launched earlier this year in Spain and Hungary and it’s currently available in 24 countries across Europe.

Varieties include Coca-Cola Energy and Coca-Cola Energy Zero alongside Coca-Cola Cherry and Coca-Cola Cherry Zero — a flavor that will be sold exclusively in the US. The products include 114 mg of caffeine per 12 oz serving and are made with guarana extracts, B vitamins, and without taurine-a substance often used in energy drinks.

Coca-Cola has been venturing out to other beverage categories, including non-alcholic adult drinks and coffee, to help compensate for the number of consumers reducing there soda intake.

The company hopes its Coca-Cola Energy line will leverage some of its clientele into a faster-growing market, which according to Mordor Intelligence, is expected to reach a global revenue of $8.34 billion by 2024, with an annual growth rate of 7.1 percent.

“Taste is a strong driver when people are deciding what beverages to enjoy, especially in a market where there are so many options. We know Coca-Cola fans love the taste of Coke…and, with Coca-Cola Energy, we found there was an opportunity to extend Coca-Cola to a category many people haven’t tried,” said Janki Gambhir, Coca-Cola’s Innovation Brand Director.

Coca-Cola isn’t new to this product segment either; it has gained plenty of knowledge on the industry throughout its five-year partnership with the Monster Beverage Corporation.

The company gained a 16.7 percent stake in Monster for approximately $2.15 billion back in 2015, and currently holds a 19 percent stake in the company. As a result, Monster has access to Coca-Cola’s distribution network.

The new energy drink has caused tension between the two companies, turning the two from business partners to competitors. This led to an arbitration lawsuit filed by Coca-Cola earlier this year, questioning whether or not their new line of energy drinks violated its current contract with Monster.

The tribunal ruled in Coca-Cola’s favor this passed July — four months after its new energy drink launched across Europe. Since then the company has been fast to get its new product to the States.

Whether or not Coca-Cola will divest from Monster still remains unknown. Their second quarter earnings indicated its product launch in Europe was well-received. If Coca-Cola Energy hits the ground running in the US, there’s a chance the company may want to focus on its own brand from here on out.