Why Monster Beverage extends its product line

Energy drinks witnessed impressive growth over the past five years. According to Beverage Marketing Corporation, the energy drink category grew by 5.2% in 2013—in terms of volumes. Monster Beverage Corporation (MNST) and its peers—like Red Bull GmbH—are expanding their product lines to capture this growing demand.

During 2013, Monster Beverage introduced new beverages or product extensions—including Monster Energy Zero Ultra and Ultra Red Monster Rehab Tea + Pink Lemonade + Energy,  Peace Tea in Georgia Peach and Sno-Berry, and  Java Monster Kona Cappuccino.

Monster Beverage also launched Muscle Monster energy shakes in new flavors—like Vanilla, Chocolate, Coffee, Strawberry, and Peanut Butter Cup.

In 2014, it launched Monster Mad Dog Punch, Monster Baller’s Blend, and Monster Energy Ultra Sunrise.

The company is also developing no or low-caffeine variants—like Monster Energy Unleaded. It launched at the end of 3Q14.

Monster Beverage’s planned product launches in 2015 include Monster Energy Ultra Citron and Monster Rehab Peach Tea + Energy. Following the positive response to Monster Energy’s Valentino Rossi drink in Europe and South Africa, the company will be introducing the product in more European countries in 2015. The Monster Energy brand teamed up with nine-time motorcycle racing world champion Valentino Rossi to create this new citrus flavored energy drink.

Monster Beverage’s peers in the non-alcoholic beverage market—like The Coca-Cola Company (KO), PepsiCo, Inc. (PEP), and Dr Pepper Snapple Group, Inc. (DPS)—are developing low-calorie versions of their beverages. They’re also expanding their presence in growing categories—like bottled water and ready-to-drink tea.

ETFs—like the Consumer Staples Select Sector ETF (XLP), the SPDR MSCI World Quality Mix ETF (QWLD), and the SPDR S&P 500 ETF (SPY)—have holdings in these non-alcoholic beverage companies.