Monster Energy (NASDAQ: MNST) continues to tease on hard seltzer, remaining non-committal in Thursday’s conference call with analysts, when the company detailed first quarter 2021 financial results.
“We are still looking at the market,” co-CEO Rodney Sacks told analysts during last week’s earnings conference call. “But how we do it and what we do it is still not being determined and still not — we don’t have a firm direction. So all I can really say is just that we are addressing it, but you shouldn’t assume that we are definitely going to go ahead or definitely not going to go ahead or how.”
Monster stock declined about 4% after Thursday’s earnings announcement.
Monster has filed numerous applications with the US Patent & Trademark Office for marks that would be used in the hard seltzer category. Applications for “True North,” “Real North,” “Hydra,” and “Trident” were filed in 2020 with an “intent to use” status. But True North was also filed in the category of flavored water in 2021, the first indication that a non-alcoholic product with that name was in development.
Sacks confirmed Thursday that True North will be launched this year, sans alcohol. “This summer, we are also planning to launch a line — a new line of energy drinks under the True North brand name in 12-ounce sleek cans, which will contain an organic plant-based energy blend and ingredients for immunity support,” Sacks explained.
“Initially, True North will have a limited target in 2021, with plans for a full launch into mainstream channels in 2022.”
Energy drinks rival Vital Pharmaceuticals (VPX), makers of Bang Energy, launched MIXX hard seltzer broadly in recent months. VPX Bang was sued by Mark Anthony Brands International over the MIXX mark, in a complaint that it was confusingly similar to its trademarked MXD ready-to-drink canned cocktails. Monster has also sued VPX Bang, in an ongoing legal battle that involves the “Reign” trademark.
Last fall, Stifel analyst Mark Astrachan spoke to the potential of a hard Monster Energy drink. “We think the success of new entrants suggests an opportunity for Monster given its strong track record of innovation, including, importantly, expanding usage occasions with new products.”
Monster produces the Monster Mule non-alcoholic ginger brew, but that’s about as close as it currently gets. Monster Mule is a spicy and sweet ginger drink, blended with Monster Energy, finishing with a zesty lime punch.
Fans, analysts, competitors — and Hard Seltzer News writers — await on the sidelines for the Monster decision.
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