Report: Monster Beverage, Backed By Coca-Cola, Eyes Merger With Constellation

Energy drinks maker Monster Beverage, which counts Coca-Cola as a major shareholder, is exploring a potential tie-up with Constellation Brands, Bloomberg reported late last night, citing people familiar with the matter. Later, Reuters also cited an unnamed source as saying Monster was considering a merger with Constellation, which hasn’t commented on the reports.

Monster, known for its namesake energy drink, has a market cap of around $47 billion, compared with Constellation’s $44 billion. Monster had revenues of $4.6 billion last year, while Constellation’s sales topped $8.6 billion in its fiscal year through February. This isn’t the first time in recent years that Constellation has been linked to a major potential merger. Back in 2017, the drinks giant reportedly eyed up an acquisition of Brown-Forman, although the deal never came to pass. Later the same year, however, Constellation announced its first investment in Canadian cannabis company Canopy Growth, in which it now holds close to a 40% stake.—Daniel Marsteller

Tagged : Coca-Cola, Constellation, Monster Beverage

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