Coca-Cola, we believe, is eyeing a few companies to acquire. We have no solid sources, but are highlighting below two companies that we believe with the current market climate, Coca-Cola’s cash balances and product line-up would make huge sense for KO to acquire.
If an acquisition does not happen, the stocks would still be winners in any portfolio.
Monster Beverage Company (MNST)
Coca-Cola should acquire Monster Beverage Company. KO needs a boost and a dominant position in the growing energy drink market. Coca-Cola already has a 17% stake in Monster, but we think they need to flat-out acquire them.
Why the Coca-Cola acquisition of Monster Makes Sense
Coca-Cola has tried to enter the energy drink category and basically failed. The two brands owned by Coca-Cola are “Full Throttle” and “NOS”. Neither brand has been able to establish themselves as a major player in the market which is dominated by Monster and Red Bull.
Coca-Cola needs a boost in the energy-drink market and Monster needs distribution as it currently relies on third-party distributors – Coca-Cola already has global distribution in place.
the bottom line here is that Monster Beverage Company is a beautiful growth story and would be a great stock to own without the possibility of a buy-out. The added benefit if having Coca-Cola potentially acquiring Monster makes the stock even that much sweeter.