Why Monster Beverage Stock Is Falling Today
Shares of Monster Beverage (NASDAQ: MNST) traded 6% lower at noon, EDT, as soda-and-snacks giant PepsiCo (NASDAQ: PEP) announced a $3.85 billion acquisition in the energy drink sector.
Pepsi is tapping into the rapidly growing energy drink market with a buyout of long-established energy brand Rockstar Energy Beverages. Pepsi aims to accelerate Rockstar's growth through its global distribution network and massive marketing assets, and may also fold some of Rockstar's energy drink innovations into Pepsi's own brands, such as Mountain Dew. The deal is expected to close in the first half of 2020 but won't make a material impact on Pepsi's financial results until next year.
Monster's investors shuddered at the thought of another well-heeled rival entering the energy drink market.
Source Fool.com
