Odd Lots How Monster Beverage Shares Soared a Monster 100,000% in the Last 20 Years
Feb 15, 2021
Mark Astrachan, an analyst at Stifel Financial Corp., delves into the staggering 100,000% rise of Monster Beverage shares over the past two decades. He discusses the company’s unique marketing strategies that have propelled it past competitors like Red Bull and the importance of grassroots tactics in building brand awareness. Astrachan also highlights the innovative product lines and partnerships that transformed Monster from a small player to a market leader. The conversation reveals insightful dynamics about consumer engagement and the challenges within the energy drink landscape.
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Reddit Anecdote
- A Reddit user invested $90,000 in Monster in 2005, achieving 500% returns by 2010.
- Other users criticized this decision, but the stock continued its monster surge, making the initial investment even more valuable.
Monster's Origins
- Monster Beverage originated as Hanson Natural, a juice company acquired in the early 1990s by its current co-CEOs.
- The co-CEOs, originally from South Africa, bought the juice business as an investment and later moved into energy drinks.
Entering Energy Drinks
- Inspired by Red Bull's success in Europe, Monster's founders decided to target the U.S. energy drink market.
- They aimed for a different consumer segment than Red Bull, focusing on larger cans, different flavors, and a more blue-collar image.