Alcohol farm

Monster launches first flavored malt-based alcoholic beverage

Diving brief:

  • Monster Beverage plans to launch its first flavored malt liquor product later this year, co-CEO Rodney Sacks said in a statement.
  • The product, which will be called The Beast Unleashed, will contain 6% alcohol by volume and will initially be available in four flavors. Monster will gradually roll out the drink with the goal of making it available nationwide by the end of 2023, Sacks said.
  • While Monster is best known for its energy products, the company has taken aggressive steps to enter the alcohol business, further blurring the lines between beverage companies that until recently focused on alcohol. or non-alcoholic beverages.

Overview of the dive:

Monster announced in January that it was acquiring Canarchy Craft Brewery Collective, a craft beer and hard seltzer company, for $330 million in cash. At the time, the energy drink maker said the deal provided Monster with a “stepping stone” to enter the alcoholic beverage space by providing all the necessary infrastructure and licensing it needed.

The upcoming launch of The Beast Unleashed is Monster’s latest move to follow through on its commitment.

Alcohol remains a small but growing segment for Monster Beverage’s $51 billion. Alcohol sales, which include craft beers and hard sodas purchased as part of the Canarchy acquisition, were $32.4 million in the second quarter, the company said on Thursday. Overall, Monster’s net sales during the period were $1.7 billion, almost all of which came from its energy drink business.

“Our alcohol innovation pipeline is strong, with a number of additional innovative product lines currently in development,” Sacks analysts noted.

Monster also reportedly explored a deal with Modelo and brewer Corona Constellation Brands, according to media reports last fall.

And it has explored other avenues of growth in recent years. He launched the first 100% vegan energy drink called Java Monster Farmer’s Oats in 2019, made with oat milk, coffee and Monster’s energy blend containing taurine, ginseng and guarana. He also reportedly considered getting into cannabis.

Monster is the latest soft drink company to dabble in alcohol, although others have done so through partnership deals.

Coca-Cola has partnered with Molson Coors to create Topo Chico Hard Seltzer and Simply Spiked Lemonade and is working with Constellation to launch ready-to-drink cocktails through its Fresca brand. PepsiCo and Sam Adams maker Boston Beer have launched Hard Mtn Dew, while Diageo is teaming up with The Vita Coco Company on a range of premium canned cocktails made with Captain Morgan rum and Vita coconut water. Coco.

Even as consumers seek out more liquor options in convenient RTD cans, the category has become increasingly crowded with these deals and countless more to come. Monster is an energy drink juggernaut, but winning against giants like Coca-Cola, PepsiCo, Molson Coors and AB InBev, which employ a similar strategy of getting into once seemingly banned drinks, is not a sure thing. If success occurs, it will take time.