Coca-Cola buys stake in Monster

By Dow Jones newswires

Coca-Cola Co has agreed to pay $US2. 15 billion ($2. 31bn) and buy a 16. 7 per cent stake in Monster Beverage Corp as part of a deal that combines the companies' energy drinks and further expands Coke's reach beyond soda.

Under the deal, Coke will transfer ownership of its energy business, which includes brands like NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless, to Monster.

The Green Mountain deal gave Coke a big footprint in coffee and tea — beverages that have been growing at a faster clip than soda in recent years as Americans seek more caffeine and warm beverages.

Coke made another big investment earlier this year, taking a 10 per cent stake in Keurig Green Mountain for about $US1. 25bn.

In addition, Coke will become Monster's preferred distribution partner globally, and Monster will become Coke's exclusive energy play.

Read more here: Business Spectator

    

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