Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Monday, November 22, 2021 10:25:36 PM
By: Bloomberg | November 22, 2021
Monster Beverage Corp., the maker of energy drinks, is exploring a combination with Corona brewer Constellation Brands Inc., according to people familiar with the matter.
Monster Beverage, which has Coca-Cola Co. as a major shareholder, has discussed a potential deal with advisers, said the people, who asked not to be identified because deliberations are private.
Considerations may not lead to a transaction between Monster Beverage, which has a market value of $48 billion, and Constellation Brands, which is worth $44 billion. The exact structure of a potential tie-up couldn’t be immediately learned and it’s unclear whether discussions will lead to a full merger or asset deal.
Any transaction with Constellation would require the support of the Sands family, which has built the company into a global beverages player, the people said. A spokesperson for Constellation Brands declined to comment, and a representative for Monster Beverage couldn’t be immediately reached for comment.
Constellation fell 0.1% to $235.07 at 11:25 a.m. in New York, while Monster rose 0.9% to $90.11. Both stocks have underperformed the 25% jump in the S&P 500 index in 2021.
Coca-Cola Stake
Monster’s relationship with Coca-Cola may pose a sticking point, said Kenneth Shea, senior analyst for beverage and tobacco companies at Bloomberg Intelligence.
“I see such a transaction, if effected, as jeopardizing Monster’s exclusive distribution agreement with Coca-Cola, which could derail its international growth ambitions,” Shea said.
“I see little synergy between these two companies, as regulators would not welcome drinks that combine caffeine and alcohol,” Shea added. “The products produced would have to leverage their respective brands but be mindful of the limitations with product formulations.”
A representative for Coca-Cola declined to comment.
Drink Deals
Constellation Brands, which is based in Victor, New York, started as a wine producer in 1945. It now sells Corona Extra and Modelo Especial in the U.S. as well as Casa Noble Tequila, Svedka Vodka and High West Whiskey.
A deal between Constellation and Monster could be interesting for the category of cannabis-infused beverages. Monster was said to be considering CBD or hard seltzer categories, but there are concerns that could tarnish the company’s image.
Constellation has a stake of almost 40% in in Canopy Growth, a Canadian marijuana company. Canopy sells drinks with THC in Canada, and aims to sell them in the U.S. if marijuana becomes federally legal.
Monster Beverage earlier this month reported record third-quarter net sales, despite supply-chain challenges including securing aluminum cans amid the pandemic.
If the talks are successful, it would be the latest beverage deal since Coca-Cola agreed to acquire the remaining stake that it doesn’t own in sports-drink brand BodyArmor for $5.6 billion in cash earlier this month.
Other alcohol deals could be on the way. Private equity firm Sycamore Partners is also weighing a sale of Stag’s Leap Wine, potentially worth $1 billion, Bloomberg News previously reported.
Sycamore purchased the brand as part of its acquisition of Ste. Michelle Wine Estates from Altria Group Inc. in a $1.2 billion deal that closed in October.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent MNST News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 09:43:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/30/2024 09:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/19/2024 08:26:50 PM
- Monster Beverage Board Authorizes New $500.0 Million Share Repurchase Program • GlobeNewswire Inc. • 08/19/2024 08:10:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/08/2024 08:38:31 PM
- Bumble Plunges 36% on Weak Revenue; Warner Bros. Reports Significant Loss; Digital Turbine Surges 18%, and More in Earnings • IH Market News • 08/08/2024 09:53:55 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:23:54 PM
- Monster Beverage Reports 2024 Second Quarter Financial Results • GlobeNewswire Inc. • 08/07/2024 08:15:00 PM
- Monster Beverage to Report Financial Results for 2024 Second Quarter on August 7, 2024 • GlobeNewswire Inc. • 07/31/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/10/2024 09:53:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/10/2024 09:53:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/10/2024 09:52:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/10/2024 09:51:24 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 07:29:02 PM
- Form 144/A - Report of proposed sale of securities: [Amend] • Edgar (US Regulatory) • 06/14/2024 04:30:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:26:05 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:25:19 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:24:33 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:23:45 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:22:57 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:21:48 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:20:58 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:20:16 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:19:28 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/14/2024 01:18:29 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM