The best performer of the last thirty years**, can you guess which one?
Not one of the tech giants you might imagine, but an energy drink company: Monster Beverage.
Monster's share price has been climbing for decades, and sales have been growing for 31 consecutive years.
From February 1994 to this Wednesday, Monster's was about 200,000%.
This means that if a consumer had invested $1,000 in 1994, the shares are worth about $2 million today.
Analysts say Monster's success is largely tied to the company's leaders, co-CEOs, South African billionaires Rodney Sacks and Hilton Schlosberg.
Monster's leaders are good at understanding their customers, focusing on extreme sports and other events such as motocross, UFC, bullfighting, and NASCAR racing, rather than traditional TV or magazine ads.
This approach resonates with young blue-collar workers who attend these events.
The company caught the attention of beverage giant Coca-Cola and entered into a strategic partnership with Monster Beverage in 2015.
At the time, Coca-Cola spent more than $2 billion to buy the company167% of the shares. Today, the stake has grown to around 20%.
Charlie Bilelo, Chief Market Strategist at Creative Planning, recently compiled a list of the top 10 best-performing companies in the market over the past 30 years, as of July 2023:
Technology companies such as Amazon, Apple, and Nvidia are all on the list with their excellent market performance.
In the case of Amazon, for example, with a total return of 178,141% in the roughly 26 years since its IPO, Amazon has outperformed any other tech stock in the last 30 years.
However, despite this, Linen failed to win the crown, and Monster Beverage broke through like a dark horse.
So what's the secret of its success?
Monster Beverage was originally known as Hansen Natural.
On April 24, 2002, Hansen Natural Beverages Company launched Monster Energy after seeing the growth of Red Bull Energy Drink, which started an amazing growth journey.
Monster Beverage finally positioned the target group at the young group of 18-34 years old as the core strategy, and adopted large packaging and low unit price, which was obviously more cost-effective than Red Bull, and successfully staggered competition with Red Bull and entered the target group.
Hansen then designed a new set of brand logos, packaging images and slogans around this group.
The black background and three green paw prints add to the visual impact and clearly distinguish it from other energy drinks.
The slogan of "unleash the beast" is also in line with the consumption demands of young people who pursue individuality, vitality and freedom.
Many people think that Monster did not choose the wrong track, and energy drinks will definitely be the best track in soft drinks in the future.
The beverage market can be segmented into soft drinks and hard drinks based on alcohol content.
Where soft drinks are defined as having an alcohol content of less than 05% (by mass) of natural or artificially formulated beverages. Correspondingly, hard drinks mainly refer to all kinds of alcoholic beverages.
According to Euromonitor's classification of soft drinks, soft drinks mainly include 9 subcategories: packaged drinking water, ready-to-drink tea, carbonated drinks, fruit juice drinks, energy drinks, sports drinks, ready-to-drink coffee, Asian specialty drinks, and espresso. Energy drinks and sports drinks are also known as energy drinks.
Mordor Intelligence provides a detailed report on the North America Energy Drink Market size and share analysis.
"The North American energy drink market size is estimated at 202$300 million, which is expected to reach $243 by 2028$800 million for the ** period (2023-2028) to 380% CAGR growth. ”
Energy drinks are gaining traction as an addictive beverage (containing caffeine) around the world. The consumption of energy drinks has become a status symbol, especially for young people living in urban areas.
Are you optimistic about the continued development of this industry? Welcome to leave a message and discuss with us!