Report: Talks Toward A Monster-Constellation Merger OngoingFebruary 15, 2022
Constellation Brands and energy drink player Monster Beverage are reportedly involved in ongoing talks toward a potential merger that could result in a combined company with market value of $90 billion. The two companies could reach a deal within weeks if the talks continue progressing smoothly, Bloomberg reported.
Reports of a potential tie-up between Monster and Constellation first emerged last November. Coca-Cola is a major shareholder of Monster, which last month entered the beverage alcohol sector with a $330 million acquisition of the Canarchy craft brewing collective. Coca-Cola and Constellation are already collaborating on a line of spirit-based premixed cocktails under the Fresca Mixed brand, in a partnership announced in early January.
In addition to deepening Coca-Cola’s involvement in beverage alcohol, a Monster-Constellation merger would also give the soft drink giant indirect exposure to the cannabis sector via Constellation’s 40% stake in Canopy Growth. Neither company has commented on the merger talks.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.