Monster launched ‘The Beast Unleashed’ – a 6% ABV alcoholic beverage – in January 2023. That was followed by this year’s launch of Nasty Beast Hard Tea, another 6% ABV drink.
Step 1: Infrastructure
Monster started its alcohol journey with the acquisition of CANarchy Craft Beer Collective – a craft beer and hard seltzer company – for $330m in January 2022.
That acquisition brought key brands such as Cigar City (Jai Alai IPA and Florida Man IPA), Oskar Blues (Dale’s Pale Ale and Wild Basin Hard Seltzer), Deep Ellum (Dallas Blonde and Deep Ellum IPA), Perrin Brewing (Black Ale), Squatters (Hop Rising Double IPA and Juicy IPA) and Wasatch (Apricot Hefeweizen) into the Monster beverage portfolio.
But more importantly, it represented the ‘springboard’ to enter the alcoholic beverage sector.
With the acquisition it gained a fully in-place infrastructure: including people, distribution and licenses, along with alcoholic beverage development expertise and manufacturing capabilities in the industry.
But in 2024, Monster is changing the structure of its alcohol division to focus more on its own launches and build on its existing brand equity.
Step 2: Leverage the Monster brand equity
What's important to note is that Beast Unleashed and Nasty Beast Hard Tea already represent the 'majority' of the company's alcoholic beverage sales.
The Beast Unleashed represented the top new brand in beer in 2023, according to a Monster presentation to investors in January: already with $87.7m in sales.
In January, Monster announced it was turning CANarchy Craft Brewery Collective into Monster Brewing Company, a move that intends to favor and strengthen these two brands.
"This change will better align the business with Monster Beverage Corporation’s brand equity, particularly as these products are expected to continue to play an increasingly important role in CANarchy’s future activities," explained the company.
Step 3: Push the momentum forward
That comes as Monster's sales in the alcohol category grow.
The first full quarter for Monster’s Alcohol Brands segment - back in Q2, 2022, after the acquisition of CANarchy - saw net sales reach $32.4m.
That grew to $46.3m in Q1, 2023: thanks to the addition of The Beast Unleashed.
The Beast Unleashed comes in 4 flavors: Mean Green, White Haze, Peach Perfect and Scary Berries.
Nasty Beast Hard tea: comes in 4 flavors: original, tea+lemonade, peach, green tea.
Both come in at 6% ABV.
In Q1, 2024, alcohol sales reached $56.1m - representing a 21% increase on Q1, 2023 - thanks to the roll out of The Beast Unleashed and launch of Nasty Beast Hard Tea.
“The Beast Unleashed is now available in 49 states and we have commenced with distribution of The Beast Unleashed in 24 oz. single serve cans in the convenience and gas channel,” reported Rodney Sacks, chairman and co-CEO, in the company’s Q1 earnings call in May this year.
“Nasty Beast, our new hard tea line was launched in 12 oz. variety packs in January 2024 and in 24 oz. single serve cans in February 2024, and is now available in 49 states.”
Monster's marketing might
The Beast Unleashed and Nasty Beast use similar branding and marketing cues to Monster's energy drinks: topped with the classic 'M' logo and typeface that is well-known from Monster's branding.
The Beast Unleashed's three marketing pillars are around music, motorsports and tailgating.
All eyes on Q2 results
So far, the company remains both confident and cautious and the new launches: given it is still early days.
The Beast Unleashed is ‘performing to expectations’, while early response to the hard tea line (since its January launch) has been ‘positive’.
Alcohol sales may have reached $56.1m in Q1, 2024. But that represents a drop in the ocean for the energy drink giant, which saw its overall company net sales rise 11.8% to $1.9bn in the quarter.
Indeed, other company segments – such as the Strategic Brands division (which includes energy drink brands acquired from The Coca-Cola Company as well as Monster’s affordable brands Predator and Fury) – saw even stronger growth that alcohol (growing 25.6%).
And Monster is realistic about the alcohol category: with an alcohol impairment charge of $39.9m in Q4, 2023, relating to certain acquired non-amortizing intangibles as well as property and equipment, as a result of ‘the continuing challenges in the craft beer and seltzer categories.’
So can the company continue the momentum in alcohol? All eyes will now be on Monster's alcohol sales when the company releases its Q2 results on August 7.
