‘Wellness’ drinks backed by star athletes like Steph Curry are toppling $55 billion beverage giant Monster, a short seller claims

• Monster Beverage Corp. About 3.7 % on Tuesday After he hedging a short report claiming that the power maker of $ 55 billion was at risk of winning hip through emerging brands such as Celsius, Plezi, Zoa and Joker. These drinks emphasize wellness, moisture and athlete on intense energy, and they support the effects of social media to go with them, according to the near seller.

Spruce Point Capital Management is betting on $ 55 billion for power drink, Monster Beverage Corp. It issued a new report on a short seller claiming sports and moisturizing sports drinks, which is the market share from under MONSTER. After Spruce Point published its short report on Tuesday, urging a “strong sale” on the beverage maker, the share price fell by more than 3 % to 55 dollars.

California -based Monster Monster sells energy drinks under the same brand name alongside craft beer and solid SELTZERS such as Dale’s Pale Alele and Florida Man IPA, steel tea and bad monster, among dozens of others. It also has a silent and sparkling water mark, Monster Tour Water. The company continued to launch new products and flavors, and in 2024, Bang Energy Sour Ropes and Monster Killer Brew Mean Bew were sold. But SPRUCE POINT claims that the company is superior by beverage competitors such as Celsius who are seen as “wellness” for drinks and has a better strategy to meet the tastes of consumer changing quickly.

“The Monster product has not sought enough quickly or put himself as a functional health product,” said Ben Axler, founder of Spruce Point. luck. Axler said that monster drinks are seen by consumers as sugar and caffeine and that they “may not be in good health for you.”

“They are slightly behind the curve in terms of service, as there are advanced customers’ needs,” said chief investment officials. luck.

Monster did not immediately respond to the comment. Spruce Point has occupied a short position in Fortune 500 shares and will benefit from the low price of its share.

According to Axler, Monster Co-Coos Rodney Sacks and Hilton Schlosberg were among the first visions who built a “huge” work, but this growth made it difficult for the company to continue to progress. Axler said that the competitiveness of energy and well drinks has developed significantly during the age of the company, which is more than 30 years.

The report indicates that even the 7-Eleven chain has entered Energy Drink, with its own brand Fusion. Wawa in Philadelphia Metro Area offers their “custom” drinks.

“There are only many sites for sale … and only the rack area only,” said Axler. He said that he personally sees Silsius in the exit lines in grocery stores, competing for attention for consumers who may have already seen the monster.

Axler said: “It is a seizure on the ground.”

According to the SPRUCE POINT report, Monster started erosion last year by launching new competitors and brands such as Prime Energy, which was able to “enter and a kind of noise theft” with retailers, the report said. SPRUCE Point Core Energy brands claims Monster in a high -pressure competitive environment where athletes and athletes with Starpower can launch products to millions of social media followers and traction immediately. In addition, marketing some new drinks focuses more on health concerns about the clean, non -sparkling energy.

Modern partnerships and launching brands that make Monster’s position include CELSIUS, which acquired the Kim Kardashian Alani Nu partner; MAS+ by Megastar Lionel Messi; And Plezi, co -founded by the former first lady, Michelle Obama. Plezi Calculate the American Professional League star Steve Curry as a partner.

Axler said Monster also faces a new competition from alcohol brands. Axler said that companies such as Anheuser-Busch and Molson Coors are heading to energy drinks as a new growth bacultural, as Axler said, Gen Z and Morticals younger are still “curious”, and therefore less inclined to drink wine and beer, companies such as Anheuser-Busch and Molson Coors turns into energy drinks as a new growth baculor.

Spruce Point, CEO of Ultimate Fights Championship, wrote about a partnership with Ultimate Fighting Championship Dana White to launch energy drinks under the PHORM Energy brand, SPRUCE Point Books. Molson Coors obtained a royal share last year in Zoa, an energy drink that was marketed as “better than” and participated in its founding DWAYNE “The Rock” Johnson. Nikola Jokić launched the Denver Nags Center, a self -drink, Joker, on the day of April Fools.

Management quality is also a problem, according to the Spruce Point report. Axler noted that the 75 -year -old bags warned the Monster Council that he would resign in June to make way for Chalosburg as a single executive president, but investors are likely to want to hear the company’s full caliphate plan for the position of CEO.

“They need to stimulate growth,” Axler said. “But, in the end, I think he will need more change.”

This story was originally appeared on Fortune.com

2025-04-09 09:03:00