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Analyzing Monster Beverage’s segments

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Key segments

Monster Beverage Corporation (MNST) conducts its business through two business segments:

  1. Direct Store Delivery, or DSD
  2. Warehouse

The DSD segment mainly sells energy drinks. The Warehouse segment’s key products include juice-based beverages and soda.

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DSD’s product portfolio

DSD’s key product is Monster Energy’s product line. Monster Energy’s product line includes Monster Energy, Lo-Carb Monster Energy, Monster Assault, Monster Khaos, Monster Energy Absolutely Zero, Monster Energy Zero Ultra, Monster Energy Ultra Blue, and several other brands.

The segment also includes other product lines like Java Monster non-carbonated coffee + energy drinks, X-Presso Monster non-carbonated coffee + energy drinks, Muscle Monster energy shakes, Monster Energy Extra Strength Nitrous Technology energy drinks, Monster Rehab Tea + Energy drinks, Worx Energy energy shots, and Peace Tea iced teas.

The DSD segment accounted for 95.6% of the company’s revenues in 2013. Most of the revenues came from the Monster Energy drink product line.

DSD mainly sells products through an exclusive distributor network.

Warehouse segment

The key product lines in the Warehouse segment are Hansen brand sodas, Blue Sky, Hansen’s energy drinks, Hansen’s juice products, Hansen’s aseptic juices, Hubert’s Lemonade, Hansen’s Fruit and Teas Stix product line, and PRE drink mixes.

The Warehouse segment sells directly to retailers. The segment accounted for 4.4% of the company’s 2013 revenues.

Monster’s energy drinks and other products compete with Red Bull GmbH, The Coca-Cola Company (KO), PepsiCo, Inc. (PEP), and Dr Pepper Snapple Group, Inc. (DPS). These beverage companies are part of the Consumer Staples Select Sector SPDR Fund (XLP).

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