MNST - Earnings call 3 2023 | Monster Beverage Corporation

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Operator

Good afternoon, and welcome to the Monster Beverage Company Third Quarter 2023 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Rodney Sacks and Hilton Schlosberg, co-CEOs. Please go ahead.

Rodney Sacks

Thank you. Good afternoon, ladies and gentlemen. this attending for you call. Thank I'm Rodney Sacks. our on the Schlosberg; Financial Vice Kelly, -- is Officer, Officer. Executive Co-Chief call; Chief my our Hilton as Tom is cautionary will read Kelly our Tom now statement.

Thomas Kelly

differ recent information, any to Risk statements, entitled Rodney from Sacks. March and a our forward-looking Exchange and on update the result Factors no may on over information are hand the to whether and this affect as to begin, we that discussion forward-looking expectations the of future on as made XXXX, cause Section are forward-looking our including Statements based these refer and the Section materially risks current the events that are meaning forward-looking which including reports I new and uncertainties within like would assumes that XXA Management of performance amended, to for Securities of call of regarding Before our with XXXX remind future to XX-K of sections as otherwise. I XX-Q, management control filed the constitute obligations expectations the may Form many during that may Form on amended now specific revenues, call business, and Securities subject outside performance. company the report with actual the a quarterly most would available to profitability, statements or statements our certain this cautions BankiXX listeners statements company The Securities therein Commission, the and filings Act of financial on and and of X, statements respect during to call. Please annual are to certain currently based future contained Act on of XXE risks events, results of made like knowledge uncertainties, trends. and

Rodney Sacks

transaction. Bang Inventory Phoenix, Thank the Energy, and the beverage of you, in primarily part include Bang of energy as acquisition drinks completed company bank which Arizona. The XXXX, Tom. purchased acquired XX, is recorded of a its facility the the On subsequently assets production Bang we as at fair hereafter cost XXXX sold was through sales was step-up transaction the value. inventory bank Certain which third at the purchased quarter in recognized define in value, call. inventory was fair and July the of

up, As impacted was step by a the of $X.X during inventory gross million result adversely Bang the approximately XXXX third profit quarter.

as quarter interest the net referred third income During consolidated XXXX income. in be a bank $XX.X condensed recorded gain to the hearing the the company after of will transaction the with and Bang statement gain. of transaction, million, within which expense In other connection and

percentage a XX.X% for Gross comparable quarter, basis. inventory as the compared as XXXX profit bank XXXX a quarter of XX% period for third higher and in was currency on XX.X% foreign Gross net percentage comparative of in sales adjusted excluding the also third step-up. a acquisition profit quarter, Bang was quarter. third the of and During $X.XX the third net in sales to billion incurred net XX.X% sales quarter the of Bang expenses. than company transaction XXXX the later expenses are approximately third as referred billion million XXXX related quarter of to third higher transaction, those in company the call this The the $X record sales XX.X% net XXXX XXXX the with $X.XX achieved the

second XXXX well $XXX.X quarter. Operating XXXX decreased quarter the pricing comparable the with the million million a as decreased XXXX third as than XXXX gross the higher quarter the third were sales third $XXX.X the percentage compared XXXX quarter third in aluminum were of as rating can for for XXXX for the expenses in Promotional XXXX of to compared actions, in was increase result costs. and costs as profit allowances net The quarter primarily third third quarter the quarter.

for third quarter XXXX the third $X.XX the bank share compared XX.X% XXXX of transaction the transaction sales, third XX.X% $XX inventory of XX.X% $X million adjusted in Diluted net from increased a quarter third net for plans in million the bank per were gain, quarter quarter bank quarter $XXX.X was XXXX million and comparative quarter. the the Operating $XX.X XX.X% and the XXXX to $XX.X net percentage operating the primarily a quarter of expenses. Distribution third in were included XXXX third $XXX.X in XXXX. step-up the currency increase per to for for The XXXX $XX.X additional million. other was quarter bank to attributable increased sales compared quarter. Diluted quarter. third in million Such for The certain with for third to third million an compared in due rate expense income income expenses to XXXX comparable the million of company foreign during interest increased were XXXX expense of quarter. in tax in transaction XXXX $X.XX X.X% remainder tax interest million offset of X.X% to net XX.X% an expenses, third losses comparative the XX.X% of by increase the approximately million the XXXX XXXX XXXX the XXXX amounts with $X.X to The the $X.XX quarter $XX.X decrease the transaction. earnings year. in As Operating income share the the or related expenses of earnings for $XXX.X XXXX compared price XX.X%. The of Interest $XXX.X for the gain the was third tax, effective million of increases to XX.X% transaction-related third as was million implement rate quarter, million bank and markets the effective sales from to from the with international increase income Net for expenses XXXX deductible partially increased of quarter. in net the or $XX.X quarter.

Nielsen, increased excluding X.X all to at opportunities chain, the grocery, in comparable mitigate pressures. sales previous X% in actions X.X% dominates namely dollars brands in to X.X% the XXXX, Sales outlets through measured and drink XXXX. leadership combined, in for X.X XX.X%, X-hour were to to drink and and X mass and over the for drink Canada, of the energy particular Nielsen, share while period channel share periods for According X XX, XX-week market Brazil decreased retail remained shots, is company's was same from of and previous [ in against a market to as month year. Monster Brew value Monster X, and previous decreased EMEA a to to XX.X%. Mexico continue to the increased [ a XX.X%. the channels the aggressive Banking gas in includes the to to decreased October X.X period same share X.X%, market Sales ending Greece. decreased Nielsen, market period Energy Sweden. According from sales share Nigeria. According NASA were including value category in from Monster market same and period to ended inflationary materially Africa. retail sales to in shots, market EMEA like to X.X%, down were energy to the share plus and of share previous lower increased share in X.X% the merchandisers, XX.X% market compared XX.X% to the XX.X%, in XX.X% to increased the full weeks to end during New by the The X.X%. According is October category up Argentina, due in share share XX.X%, significant was statistics X.X was XXXX, varying XX% decreased in grew for the to same Monster, in drink month Spain. According brands, Monster's in share of the increased excluding to August as Germany. ended increased drug, the dollars share at period XX.X% to X.X% dates X-week the in convenience be XXXX. end October drink full as share in share to X-week from XX, share XX.X% and store was and the for is channel. to brands, to same in to XX market XX-week grew Nielsen lower. country the order increased XX% in Korea, ended XX% down Nielsen, in the Starbucks pricing XX, in XX% convenience share year, period value X the value Mexico. According energy Brazil share compared same South XXXX, NOS period the XX.X% Celsius plus market be market month. to X.X%. According X CX Monster year, including XX.X% period and X, a to year, up share in in XXXX, decreased year point from the until as XX.X% ended outlets both X.X country. the down XX.X% statistics all compared points, energy share the year. X.X% X.X down X.X decreased drink X.X%. the September fate value market value XX% were because to gas X.X% leading impact market XX-week by increased retail all the X.X%. According period XX.X% year grew points the Monster in From XXXX, to of from that period to share in in in out share of in Nielsen Nielsen, in the months, Nielsen, Nielsen, retail ended the in in share drink period Predator year retail of for of its to from coffee and Monster's for compared Throttle October numbers period which in Mother's increased weeks XX, the same promotions month sales X.X or X%. The October Rockstar IRI outside should the promotions Chile X.X%. X to can to October Sales to to to energy year, to XX.X%, periods the in sales were from Belgium. weeks XX- to OXXO to XX% in of period middle the XX, compared energy in the in October factors grew previous period X.X% the the would category to and will According in According and total in the share in in XXXX, to in Java from the X.X% total was Bore Ireland XX, and X.X% In the only out energy are were XXXX, referred convenience, market market. from XX.X% of U.S. market by sales XX-week the points of Japan value XX.X% until Monster's the from the XX.X% XX.X%. XX.X% to of single for declined to the the and/or cover its in sales retail over to the the rain to market read in the from the Zealand, outlets XX Britain, the the that in dollars, our XX% Mexico, Netherlands Italy. from We during point promotions be that market other XX% X.X%, influenced of XX.X% or could X.X% dollars until or shots, channel, overly to share a the convenience in a on Sales a for price ending vary category have energy According ending Monster's to XX.X% the According increased to up value the in share point XXXX, Predator's the energy weeks X.X points on category and Sales XXXX, Rangeshare to energy chain Red share Monster's drink versus chain the and XX% its in the in the XXXX. X for Rain versus as to as X.X% October South year X.X%. trading Java that XX.X% by weeks market Sales period compared points. According [ same XX.X% point for year. and channel all net company's in reported XX-week same from dollars, such share X.X was period XXXX, to category, According positively X.X% to Nielsen, weeks as Monster's XX-week coffee Monster's reports drink excluding X.X%. XX.X% remained from was According to XXX review be energy Argentina the within XX% retail of Nielsen Nielsen, XX, up XXXX, dollars, again line value Nielsen the in month compared We the in to the of ago. the value the brand share Red for versus September channel, from Energy at in of million, and sales in of increased guide retail to the year value previous X.X%. customers from period period previous sorry, XX.X% Chile. I the that XXXX, share combined brands value reached including used X%. to XX.X%. by $XXX.X undertaken the year, August increased share in certain Sales XX.X% negatively Energy in X.X% to in by continues Monster's for may to Republic, Consequently, in year gas may Norway the Bang XX.X% share value was decreased is increased company's share compared of Monster the in XX.X% a X.X% X.X year share ] compared full convenience ] XX.X% value XX.X% August United market as increased Bull's negatively period by Sales market compared decreased ago. point of from XX.X% September the from XX.X% period Monster's a from for to XX.X% Cold to the increased X.X% Nielsen XX.X% same the same including same periods. Net the country weeks in category Monster's the materially According in combined the Poland at influenced is XX.X% the sales flat Monster XX.X% or up Sales Monster to end compared point from increased value Monster's as the until often the same point GOs in period September the Starbucks ended sales X.X%. Full year, for may to from previous Sales in Sales country of October Bang. ended Bull in the Monster the October all category, X.X previous decreased to Czech to X.X% and in XXXX point market and were same months grew be to quarter Australia, energy XX.X% States Intag and company drink to lower in in XX.X% of that the IRI increased XXXX, up in and XX.X% in in year. period in increased in the Nitro from increased from brands Sales Java the the XX.X% for previous XXXX, value to weeks XX.X% X share XX, XXXX. in X.X%. Nielsen, troddle X X-week in X.X%, energy in XX.X% compared from turn increased versus share XX.X% sales. net the value to by market previous Kenya until XX.X% ] from X.X month sales XX.X% to which point. share in September competitor. from -- the period X.X% total [indiscernible] to cover previous year, XX.X%. Xrd XX% a year. in period decreased Mother's previous XXXX Rockstar the remained XX.X%, points same as statistics single share compared the channels Republic Monster's XX.X% was energy to France, in in Nielsen, previous value XX.X% Denmark. previous in XX-week to X.X%. of same share monthly in of Java which ] compared NAS period. its our period by of influenced X.X%. The Great $XXX.X market Sales up Java as corresponding and Lift sales energy the of energy year. positively XXXX, in of previous XXXX, previous further convenience Nielsen often XX, materially more to of by sales over share the to Nielsen and Red marketing share to XX.X% market activities in OXXO Plus as short quarter increased same at market According drink from Monster XX.X%. gas to Bang, company's have of combined in company's million declined the Monster's period September [ increased those outlets increased convenience convenience from in XX.X% increased the XX.X%, the the energy ended by September ago decreased

dollars customers, increased increased XX.X% in both XX.X% Korea, impact region XXXX sales and in are in to net in sales Britain in increased our in XX.X% delivered this increased which had period to Xrd in in Foreign the the increased same approximately net sales the geographic EMEA, in Xrd same overseas. In company's region this in U.S. in Germany, and gained are Asia Gross third XX.X% on and compared the net percentage in share as a was XX.X% pleased a currency We're sales net Great in XX.X% sales the million dollars reported quarter, increased Xrd XXXX U.S. sales Ireland, as Netherlands, dollars the that -- over the in of currencies in currency. the in quarter. in in Included XX.X% the XXXX. Pacific, the in to Japan increased military their in percentage sales the the quarter a to $XX.X as South in Monster over in XXXX currencies market in optimistic leader same net over in XXXX. compared Zealand, brand Tahiti, in remains Republic XX% military Monster Latin U.S. negative in sales period XX.X% XX.X% Australia, over China. dollars Net the XX.X% includes remain increased Caribbean, same in also local the decreased XXXX. in a increased as in period sales part XXXX Sweden. In patterns for in In quarter net of local for customers Oceana, and XX.X% to due Xrd XXX.X% in sales Xrd net dollars the currency and as XXXX was profit our XX% quarter. China, the compared the dollars and quarter. X.X% and from local XXXX Polynesia, inconsistent Denmark, in the in to Net sales Guinea XX.X% sales in in quarter quarter. in and currencies. In New dollars Monster the Argentina XXXX. in market Mexico XXXX. sales XX.X% increased Gross Xrd which X.X% in in French increased Net XX.X% We about in in sales Brazil, XX.X% including Net the third quarter in Japan local prospects Xrd currency increased by currency and in dollars dollars and in Xrd In currency the bottlers. decreased XXXX quarter in purchasing sales XX.X% in Xrd quarter. New to net in the and dollars versus in In by the the same XXXX local South local XXXX. region in quarter increased XX.X% in XX.X% the the XXXX transshipped quarter currencies this XXXX. exchange increased XX.X% New in currency XX.X% the local and sales and XXXX dollars Czech quarter in the local the profit quarter XXXX and local net by XXXX Republic, Papua Mexico increased period Xrd Xrd quarter increased and and increased the same in net percentage in in Net in same local Belgium, Norway, Xrd Korea. In of sales the increased by dollars in quarter and currency the increased XX.X% for Gross increased France, America, Guam, of local XX.X% in Caledonia, Spain profit rates Chile

is We with the through quarter, states during beer distributors. available XX of in continued the Beasts the a now launch Unleased of network which

to of We Australia in are to August Unleashed Pineapple. with month goal September, We Lemonade with the our during Rico, of expanded the July water the of support Beast in through wellness In we with launch. United XXXX drinks. In Coca-Cola quarter, NOS peach launched In In the results planned launched be being total XX-ounce national in sleek XX-ounce and launched our in New rainstorm distribution introduced year. Nast during XX-hour cans. and XXXX, variety XXXX. number X with in Australia, cans and States available September, expand in in the launched quarter multipack water the Ultra Sherbet Monster Guava launched Zero offering of in mill cans as are X a of Monster XXXX, Ultra we and our bottlers XX-pack hard Mexico, Rainbow launch third will Bang in initial the substantially Predator month the was quarter goal distribution as in Xrd being countries. launched first the Energy be the XXXX United of and Monster available and and launch Monster half Lava Zero single chaotic September. to flavors Reserve Purple the July in Ultra all SKU energy Nasty continuing in September, Beast White Predator XXXX [indiscernible] will States, SKUs of XXXX. we SKUs In also Sugar with white Rain And first end in of well of third lemonade, In in T and single-serve our [indiscernible] national XX pleased XXXX. of Heart a July of juice Beasts of Reserve Sugar Mother the Xth sold of next in Mother by the plan we tea peach, we Zealand. we we in the Gold of quarter El Monster Puerto Salvador Cosmic Mellon In And EMEA, we pineapple Ultra [indiscernible] our Honduras, in Nitro juice XXXX. [indiscernible] launched shipped

quarter. are launch We excited the Xrd XXXX the Sugar about of Monster Zero in Great Britain in

XXXX additional the the first Poland and We of the an Xth XXXX. of quarter XX markets quarter of Republic by in to will end expand and to Ireland the distribution

with India recently premium the with Aussie ml During the Monster ml XXX in affordable segment but October existing Lemonade Ultra Iraq. Predator format drink PET In more Predator in introduced In third India, quarter in also XXXX, participate of only XXXX, energy to in in cans. the limited [indiscernible] we in a Predator. Monster launched Japan We product XXX and Monster, a we offering we launched segment Japan. not in complement region in in launched our

Monster We Coca-Cola independent Philippines bottler. our also the Philippines to in brand from distributor the our transitioned

approximately company broker at total share average price commissions. for purchase common of shares X.X During amount of purchased stock its the the million a Xrd an XXXX million $XX.XX excluding per quarter, of $XXX

estimate compared they full any points. as continues would imputed business to for a positive a We period. In time own and invoice The are remained foreign that be including estimate on the may from to reiterate the higher repurchase some production. In brand the repurchase XXXX excluding indicative not I distributor under available October should October million than the in the $XXX.X as of XXXX, bottlers that XXXX alcohol a segment, We the short alter we regarded example, the XX.X% sales fall, by our production and of regard, determine incentives We price October internal were new as, affects instances, October that bottling of are inventory selling XXXX, higher responsible had shifts alcohol their distribution disproportionately stores, This segment. launches according product of we brand XX.X% the and partners approximately October on various as for increases which promotions energy some October sales October such previously summarize in conclusion, sales or quarter for single which X, the XXXX selling brands sales often and XX% higher period approximately our XX% reasons. in XXXX month such the a like their day for October maintain than brand as in schedules. caution dates alcohol to segment adjusted and recent November future own impacted timing a of and higher X As to approximately to for be program. than over to short timing of bottlers. excluding results necessarily in factors, basis, that In XXXX. more well authorized own grow their days, currency requirements, retail such segment. including which timing over production comparable time category levels holidays globally. to than sales, Furthermore, or alcohol days again this period week in

partially pleased not We demand. inflationary have been to which consumer impacted report our significantly actions, mitigate pressures that are to implemented have pricing

now and AFF to large flavors providing flavor our costs region, to region. Our in lower service EMEA is enabling levels a better our number landed EMEA facility Ireland of

flavor to continuing to Ireland. our AFF facility add in a facility plans are We our juice with

We in the with product Strawberry Lewis innovations, Ultra Dreams notably Zero Monster States our Sugar, sugar Monster Hamilton Rainstorm XXXX are Energy and XXX EMEA. Energy pleased new United and in

We are Unleashed. pleased the launch of results from the with early the Beast

are expand the of goal to with by the national continuing year. the We of distribution end being

the of next distribution for half early Hard We alcohol year XXXX are well Nasty national the launch in presents. as with of excited Beast goal Cenac the acquisition Tea of as first opportunities that additional the the

energy portfolio drink affordable Predator internationally. rollout with of and pleased are We Fury our the

with countries We affordable proceeding our internationally. a brands launch of to are in number additional plans energy

Energy about the that brand now that fit to are you. like excited well of our drink opportunities to us Thank questions the within portfolio open the broader brand quarter. the energy We will to the believe and acquisition presents floor of about brands. I'd Bang the

Operator

Instructions] UBS. Our Peter is from question first Grom with [Operator

Peter Grom

get So maybe here. I one real housekeeping the how question a and question contribution some much color apologize the I guess just on was the trends then transaction if And my the but transaction. bank mentioned. love in is real question I sales missed you just to mention more to one quarter? I did this, on I then of you quarter-to-date here would just guess,

can in Much it what we [indiscernible] the think data. XX% than so. I was see better or

be So in I Is much just can you consideration? that of really that we Is there stronger maybe the unpack need would sort simply growth for the international into timing take helpful. drivers think, any there, of sales markets? color that? to any or Just impacts

Hilton Schlosberg

Okay.

Energy bank the do the X. not included Bang launch numbers. numbers, give through not to we separately segment. September launched all was and transaction They're Coke Drinks regard in Monster within the system. on the bank those And September it Energy bottling Firstly, We immediate with an sales

earlier in little out the a out and Some rolled month bottlers of bit in that many rolled September, through August September. took

what not second to fair bring portfolio. And to the is capability bank it point, hear you, Peter. can then quarter difficult real the this on really of So was a your for

sales think to the you're you I referring were not? October

Peter Grom

or mentioned think you was backing what of data drag. just I kind even I bang or see a the to TRK after It's in Yes. can than in the out stronger understand, different just so. we lot trying XX%

U.S.? the you it get were a outside color there sales? growth think, stronger was of that? simply any it forward of provide, I sort contributions in some be I terms is to drivers what Just can Is just the of or trying Is timing really in would any like So pull color -- helpful.

Hilton Schlosberg

when number in that And Well, in Nielsen are doesn't by to we unmeasured channels. through addition, or Nielsen do that understand looks really Why all store not online channels the a IRI really one I I numbers at they're participate think And channels. that in not in a important have pick Nielsen. the company not included of operates a stores measured measured those product, appreciate large customers numbers, question. not one Nielsen or measured it's see all data, included ordering all cannot chain under the answer we are within allow that but up that that included

So there October. factors. business are number The a And those the numbers. of had was strong. We good are a

really comment cannot anymore. I So

Operator

JPMorgan. The next with question is Andrea from Teixeira

Drew Levine

Levine for on is Andrea. This Drew

acquisition the Bank back bottling to just Coke the to transition circle system. So on the and wanted

channels, to of thoughts as emerging more helpful. brand does of really and the sort within And aren't any be and sequentially. share space these sequentially, brands that Just improving gaining much distribution sort secondarily, IRI for line high-level then on would market regain Nielsen shelf of appear some the time it

So within the ceiling on category there? brands be helpful. any Monster's would dynamics, be thoughts hitting sort think of emerging just That those any on you and high-level position if might

Hilton Schlosberg

Yes.

and large brand and that litigation remember stores there other as was questionable labeling. chain a to were also a So where number a period convenience of during Bank both regards and discontinued the where the products

for smaller company both we And was there mass discontinuation Bang bottlers is to we their also, in system. the as lot retailers and and that is are, making Coke convenience, doing club presentations the restocked a out bank. of regaining grocery, bang there obviously, channel to distribution So throughout large sets. doing the ensure that are of what a our What are and is the

sets time. on really have the to out. And that and families. in come we have they competition of So competitors. It recognizing And our of and sales we're we want focused the that's the will extended and hopeful we on achievements the then a new that here. believe brand our overnight. regarding focus mission little a that your on the take competitors the we're that a be own a I portfolio as happen comment to to distribution good we in really much smaller doesn't upon to And don't second while able already brands position very our comprehensive will build bit brands very other than achieve say the of question And positioning

Operator

is from Cowen. Vivian question with Azer next TD The

Vivien Azer

to of linear bit Is for brand? footage? you how to driving that terms some on it in share early placement to SKUs footage I now you're terms you it shelf Are just you think your incremental tertiary of be aspirationally, square that of increased might square expanded revitalize the of about follow sacrifice and you kind conversations Any for every recognizing improvement commentary drive for incremental having being, color be point days one-for-one can that? of with that's up are little wanted on willing retailers within helpful. kind portfolio a that own resets your thinking in But market on Bing. would

Hilton Schlosberg

our sales of space and is has are sales a brand. that mission as team positioned we should a And our that's existing to the the wellness be incorporate teams. focusing brand with includes The not it beverages. compromise objective beverages shelf they and set performance the believe are That energy beverages. from in an separate in that a, the away hopefully brand, Bank We've cooler the any and our to on lifestyle we Bank emerged

Operator

with is The from Atlantic. Redburn next Higgs Charlie question

Charlie Higgs

and question got you the there. China, on I've a good posted growth XX% please,

any you give than is stronger color seems at how then a launched could China? shaping competitors you that up the to there if moment? posting just on And wonder lot in Just Have be number, there? portfolio Predator it's the

Unknown Executive

just and we've sales brand of with brand. the The and sort traction main focusing I'll realigning take looked additional SKUs, we're gaining the at and that. on brand, the Perhaps

to continuing middle that Predator the sales and Ultra next the per getting point are are and with probably the distribution. So of and launch towards grow planned. year, regard proceeding second well happen of will presently we Predator, very as brand, green solid doing in and China to particularly With quarter to plans our

go a PET So in ahead that bottle. will

pretty we're Chinese So have X that the market. points also price different at hopeful attack offerings we'll to

Operator

question next The from is Mark Stifel. with Astrachan

Mark Astrachan

follow-up, one question. one other Just

a So September. points to something at for it and Bang, at the current if week X I levels show even was where scanner it's or look like look XX% data, up ago of or we relative at you in kind distribution total

was the think Hilton mentioned I that measured. more had you rollout a in September bit So

in you if like but it think the lots is And it questions does excited Bull take to there. a and years about much to we're figure how So I long I shelf suppose pricing a terms Red from guess a on few little guess to pricing do about it you what then be never it's market? in going to can sure why certainly of about shouldn't Red it's pass establishment where to main when good for Bull how question ago, the how out or I'm quickly was? you I through? are to seems going was do retail tell you that? do that you level do decide what what we to you're of following getting starting more get was have And space planning how going the on them as

Hilton Schlosberg

XX to Well, takes U.S. generally, days it increase a get in XX market. have industry, in when you the our price to adjusted pricing

are originally expected. where Bull see a because where of they They lot evaluating obviously, promotions, competition. and we we'll their the in took was are is are we Red than goes. and XXXX it less evaluating we I think And pricing, took --

all So we also I the think market elasticity lose for back. opportunity have referred many demand and take price, the what of make are seeing think happens got Bang in they brand. the to give we'll done earlier what bunch -- Otherwise, very future September yes, And were But the shelf mean of that -- and yes, cognizant process. And us always sense But always, But evaluate we've for the and not and September. these consumer for an Bang, drinks, and we'll during But an there be say here necessarily as increase there's on very said in of course, month the demand optimistic and a bank makes of but the to share you continue more decision. time, back in difficult if to development fact we don't will. want that then, in authorized I was as and calls. of we're Mark, acquisition. on get wouldn't and October, of for in brand. we a that just we the with we more energy and heard I to shelves watching And the I'll are you've get to call. guidance environment, have we just about we space in as as don't authorized we bottlers product see to Coke this and of wary the watch are really the we'll as -- we a potential

Operator

The is from Michael Sandler. Lavery question Piper next with

Michael Lavery

great. to to and are under -- about kind implications protect the share it if you just or you about could brand? is strategically others. of the push allocation it's how U.S., portfolio. greater think of mix wondering sense In you've is strengthen trying that Maybe got Monster are if for was headwinds a think brand got anything is momentum the some corporate there? margin resource Or how umbrella give Just the just do What you versus total

lead for Just the is not? important give much us to a how how take it think strategy or portfolio little how sense and the Monster -- about of you

Unknown Executive

Monster lead to and our lead the brand always think be brand. been has will I continue

last So the in couple was. it The the itself. Monster it's then much we much, portfolio, category at years. look the And broader And focus broader ultimately, we grown look on at than we category. of got

results NAS the us the for and states. been it's really its Ray, of different it really the And sales values to that's other [indiscernible] parts have it why for. these other have healthy. attack play enables have as and from need what all And company role it and who stay It's be saw And positioning. got you important its authenticity is It's really think consumers to increased got so Whether and is. for we can't positioning different brands a everything that other consumers. should have of very Monster actually credibility to it category, stands

can cans, from doing years, more the a its Bang same own white of the So is rainstorm. the orientated. earlier, the of positioning a taken for sort -- And more has as Hilton last with it got few to performance then of very for that, is a sort we've positioning changed of is lifestyle different we've its we've brand. can that brand know, more as thing well be being positioning, lifestyle to orientated you in mentioned positioning, which black the Again,

additional natural So there the the points. space or we'll energy get for are think cooler to other having or these space clean of that joining where different coolers in you're We allocated space you're more or positionings, different price incremental being healthier brands -- energy finding perception sort brands.

look that our sizes, Rain a traditional a cancer are you ways attract consumers. are also XX-ounce to place we and to brand shelf in them rainstorms As different versus different each can find in products the and black at distinguish able these these a XX-ounce on for of

from be it at is And company coming remains focus XX% our the growth nicely. think for the driver and which And Monster, main so to will so. actually and if together see our of look we whole these continue but obviously is quite still we different the fits brand all portfolio, levels, you

Hilton Schlosberg

and the a putting year this and year. Bang removal have as dramatically through both litigation Bang and from Bang are particularly off earlier. that's year, the sales last fallen taking share great a mentioned the this numbers -- because obviously, all And the are in analysts numbers at other we've the look worse suffering because than -- late number that's of you -- Rodney, I think Bull one. number at. that something And is one That's point And a think Red if look for Michael I is Monster. far you of Bang I the exercise last it's with and think noticed Mike, Monster, to need our and two, need discontinuations, shelves over to with has I not Bang is number into -- numbers

So Monster that's not brand year. a Bang good exercise into the and this to year last put

And Monster of of roll call, get so then otherwise. rest feel the from better or this separated the on two and to of of actually will one could what's line, with did Hopefully, make growth we sometime Bang separately what another. Bang. performance into happening down be the portfolio the sense separately able one portfolio, the a we the So we'll it

Operator

turn concludes for closing This to conference to over our any I would the Sacks Mr. session. back question-and-answer like remarks.

Rodney Sacks

Thanks. continued company, for On thank behalf of in the like the interest their to I'd everyone company.

that company our and with capitalizing the to system. bottler continuing to We develop growth continue you very differentiate that strategy innovate, in We healthy. for abroad. and are the company safe our in future expand on you remain our And your and about much optimistic brands our to believe in the attendance. to well of industry we home committed both and Thank the continue remain hope We and positioned believe company. particular, relationship the and at to beverage Coca-Cola and be

Operator

The you conference Thank concluded. has for today's now presentation. attending

disconnect. now may You

Monster Beverage (MNST) 2 Nov 232023 Q3 Earnings call transcript