Monster Beverage is contesting claims from an investor who alleges that the company’s stock is overvalued. On Tuesday, Spruce Point Management published a report asserting that Monster is misleading investors regarding its condition, mentioning that the energy drink powerhouse is experiencing declining sales in the U.S., slow international market penetration, and rising competition from healthier brands like Celsius. The investment firm also indicated that Monster’s shares trade at an “unjustified premium” compared to Coca-Cola, which holds a 21% stake in the energy drink company.
In a statement on Wednesday, Monster’s co-CEOs, Rodney Sacks and Hilton Schlosberg, criticized Spruce Point’s report as “false and misleading.” They emphasized that the company’s financial statements are accurate and comply with Securities and Exchange Commission regulations. “The document released by a self-serving activist short seller is filled with inaccuracies and insinuations that seem designed to distort the Company’s record and share price for its own benefit,” Sacks and Schlosberg remarked.
Monster is grappling with declining sales in a saturated energy drink market, and is also facing challenges in expanding its alcoholic beverage segment. Last month, the company reported $130 million in impairment charges related to its alcohol products for the most recent financial quarter, resulting in an excess inventory of drinks valued at $4.1 million. Sacks announced last month that he will step down as co-CEO in June, leaving Schlosberg as the sole leader of the energy drink manufacturer.
Meanwhile, Starbucks, the world’s largest coffee chain, aims to capture a larger share of the ready-to-drink beverage category by launching a new lineup of energy drinks that compete with brands like Celsius. According to a press release, the Starbucks Iced Energy drinks are “hydrating” sparkling beverages designed to help consumers achieve mental clarity. The lineup features three flavors: Tropical Peach, Watermelon Twist, and Blueberry Lemonade. Each drink contains 160 milligrams of caffeine sourced from plant-based ingredients, zero sugar, and just 5 calories per can.
Jennifer Wong, vice president of Americas development at Starbucks, stated, “We continually monitor emerging consumer trends and preferences to ensure that we are evolving our ready-to-drink beverage portfolio to meet consumer demand.” These beverages are available at grocery stores and convenience outlets nationwide. Beverage giant PepsiCo has been selling ready-to-drink versions of Starbucks products for over 30 years as part of the North American Coffee Partnership.
The new energy drinks replace Baya, which was launched in 2022 and discontinued the following year; Baya was made with naturally occurring caffeine from coffee fruit. Over the past few years, the energy drink market has regained momentum, with healthier brands like Celsius attracting a growing consumer base for zero-sugar options. Sales of energy drinks are projected to exceed $30 billion by 2028, according to Mintel data cited by Starbucks.
In another segment of the beverage industry, Captain Morgan, known for its spiced rum, is capitalizing on the rising popularity of “swicy” flavors with its latest offerings. The new flavors in its Sliced RTD lineup, called Sweet vs. Heat, are designed for younger consumers seeking a spicy kick in their canned cocktails. The new options include Chili Lime Margarita, Jalapeño Paloma, Blackberry Mojito, and Peach on the Beach.
Sliced is a collection of canned cocktails launched by Diageo last year, featuring flavors that replicate popular cocktails such as Pineapple Daiquiri, Strawberry Margarita, and Mango Mai Tai. These drinks are made with malt alcohol instead of real spirits and contain 5% alcohol by volume. Justin Faiber, director of brand marketing for RTD beverages at Diageo, explained that the company’s strategy for the new flavor profile responds to the increasing demand for bold tastes.
“As sweet-meets-spicy continues to trend in food and beverage, we identified a great opportunity to introduce that contrast in a ready-to-drink format that prioritizes flavor, convenience, and excitement,” Faiber commented. “By combining two distinct profiles in one package, we’re providing consumers an easy way to explore and enjoy new flavor combinations without overthinking it.”
With the rise of products like Mike’s Hot Honey, many food and beverage formulators have embraced sweet and spicy flavor pairings. Last year, Q Mixers launched a Spicy Mango Margarita mix aimed at Gen Z consumers seeking heat. Additionally, for those looking to enhance their health, supplements such as calcium citrate malate, vitamin D3, and magnesium tablets can complement a balanced diet while enjoying these exciting beverage trends.