Monster Beverage’s (MNST) international sales accounted for 21.8% of the company’s total net sales in the 2Q15 ended June 30, 3015. The company’s international sales increased by 2% to $151.30 in 2Q15 compared to the corresponding quarter of the previous year.
Regions that performed well
Monster Beverage’s international sales in 2Q15 were driven by strong performance in Japan, Great Britain, Germany, France, Sweden, Ireland, Greece, and Chile. The company’s net sales in Europe, the Middle East, and Africa grew 4.8% in 2Q15 from the corresponding quarter of the previous year. Net sales in Asia–Pacific increased 28.7% in 2Q15.
Monster Beverage’s net sales in Japan surged by 41.8%. According to Intage, a research provider, the company’s market share in June 2015 in the convenience store channel in Japan increased to 32.7% from 24.1%.
Headwinds in 2Q15
As discussed in Part 2 of this series, currency headwinds brought down 2Q15 net sales by $23.9 million. The company’s operations in India faced losses in 2Q15 due to the ban of its products by regulatory authorities. This followed concerns about the combination of caffeine and ginseng in Monster energy drinks.
Sales in some of the regions also suffered due to transition from the company’s third-party distributors to Coca-Cola’s (KO) distribution network. Some of the regions were impacted by out-of-stock situations. The company is discussing distribution opportunities with Coca-Cola bottlers in several countries.
International operations of peers
PepsiCo’s (PEP) international operations outside the US accounted for 43% of its net revenue in the first six months of fiscal 2015. In 2Q15, Keurig Green Mountain (GMCR) derived 12.5% of its net sales from Canada and the remaining from its domestic US market. Keurig is focused on expanding its international operations. In fiscal 2014, the company launched its Keurig brewer in the away-from-home channel in the United Kingdom.