Analyst Insight by Jonas Feliciano - Beverages Analyst
On the heels of Coca-Cola’s 16.7% acquisition of Monster Energy, speculation regarding the potential for Monster’s international expansion is high. In the agreement, Coke traded its energy brands (and markets) for Monster’s non-energy brands. Monster also agreed to make Coca-Cola is preferred global distribution partner, while Coca Cola agreed to let Monster operate as its only energy play. Global off-trade value sales of energy drinks have slowed in recent years, but the category’s forecast US$12 billion absolute off-trade value growth from 2013-2018 bodes well for both parties. Furthermore, the expansion of energy functionality into categories such as RTD tea, juice, carbonates, and bottled water favours manufacturers able to reliably generate new flavours and formulations. As Monster begins its international expansion in earnest, the combination of Coca-Cola’s speed to market and Monster’s knack for new products could play well in a global landscape where product lifecycles are becoming shorter all the time.
Continue reading "With Coca-Cola’s Distribution, Monster’s Innovations Can Shine on International Stage" »
Yesterday’s dismal eurozone Q2 GDP results appear to show the fragile recovery derailed. Real GDP growth for the bloc was flat at 0.0% quarter-on-quarter. The most notable results were the negative growth in the eurozone’s largest economy – Germany – and also it’s third largest Italy – which is now in the midst of a triple dip recession. Meanwhile, France – the second largest economy – saw flat growth.
Quarter-on-Quarter Real GDP Growth in the Eurozone: Q2 2014
Note: Q2 data for Ireland, Greece, Luxembourg, Malta and Slovenia have yet to be released
Continue reading "Eurozone Q2 GDP Figures Point to a Bump in the Road Rather than a Return to Recession" »