Energy drink maker in Monster slide as Coke plans rival products
Coca-Cola and Monster are in arbitration over the behemoth's plans for two energy drinks
Monster Beverage’s shares sank 14% on Thursday after the company said its top shareholder, Coca-Cola, was developing two energy drinks that could compete with its brand in the coming months. Monster, whose black-and-green cans are a common sight in the hands of skateboarders, motorcyclists and Formula 1 drivers, is currently in arbitration with Coke, the company said on Wednesday. Coke confirmed to Reuters that it was developing two energy drinks and that it had filed for arbitration with Monster. Coke’s new products may violate an agreement between the companies that restricts Coca-Cola from making rival energy drinks, Monster Beverage CEO Rodney Sacks said. “We value our relationship with Monster. As in any commercial relationship, we will abide by our contractual obligations,” Coca-Cola said in a statement. Coke also said “Coca-Cola Energy” would be planned to have caffeine from naturally derived sources and guarana extract. “It would be developed as a preferred option for people...
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