When will Monster Beverage Corp. (NASDAQ: MNST), makers of the popular Monster Energy Drink, launch an alcoholic beverage? The brand teased fans with the possibility of a Monster hard seltzer in the past. CEO Rodney Sacks has previously divulged that the company is exploring alcoholic brands.

“We’re looking at developing some products in both nonalcoholic and alcoholic spaces,” Sacks told investors on a recent earnings call. Sacks has also said that Monster is not interested in introducing a “heavily caffeinated” alcoholic beverage, hinting that the brand does not want to follow in Four Loko’s dangerous footsteps.

Monster Opportunity

As the brand has long been one of the most popular energy drinks on the market, analysts predict that an alcoholic Monster drink could potentially generate at least $76 million in annual sales for the company.

“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,” said Stifel Financial analyst Mark Astrachan.

As recently as November 16, the company filed with the US Patent & Trademark office for “Stripped Malt” as a trademark for alcoholic beverages. In June, Monster filed for trademarks including True North, Pure North, and Real North (possible flavor names?).

However, the company has been tight-lipped regarding the logistics of such a launch. The possible new product line was not addressed in the Q3 earnings report, which was released on Nov. 5.

Partner Needed

As the infamous three-tiered alcohol distribution system in the US is rather complicated, Monster would likely need a partner in the industry to help them get Stripped Malt on store shelves. The Coca-Cola Company is partnering with Molson Coors for the US distribution of its Topo Chico Hard Seltzer.

Already released in select Latin American and European markets, American consumers can look forward to Topo Chico Hard Seltzer in the first half of next year.

Interestingly enough, Monster used to be in a non-compete agreement with The Coca-Cola Company that forbade them from introducing anything other than energy drinks. However, that agreement ended in 2020, and didn’t cover alcoholic beverages. Coca-Cola still owns a minority stake in Monster Beverage Co.

Upcoming Competitive Pressure

One of Monster’s main competitors, Bang Energy, recently announced its own intent to expand into the hard seltzer space. So far the company has filed patent applications for 25 hard seltzer skus. The quixotic names include Mixx, Jump, 5th Fuel, Wetter than Water, Hydro Fuzion, Einstein Water, My Fix, Mixed, Strawberry Blast, Frosé Rosé, Purple Kiddles, Meltdown Secret, Undope, Guess, Sting, Zooz, Fix, Vibrate, The Cure, Vooz, Q, Quiz, Stoked Seltzer, Quash, Hard Hemp, and of course Bang.

In addition to its new alcoholic option, Monster Beverage Co. has hinted in the past that they are also interested in pursuing a cannabis infused drink. No word yet on when fans can expect either the presumably hard Stripped Malt or a potential marijuana infused Monster to hit stores, but the new products sure sound like the jolt we could all use going into 2021.

Erin Grafton
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