Retailers expect the two new beverage concepts from Monster to drive significant growth for the company.
Monster recently introduced two new innovation platforms, and these new creations are expected to drive incremental growth for the company.
A recent survey of convenience store retailers from Wells Fargo Securities has granted insight into the retailer’s perspective on Monster’s newest innovations. The overall feedback was rather positive.
Monster’s two new platforms include the new Mutant super-soda, which aims to compete with the Mountain Dew brand, and Hydro, a no-carb, energy-enhanced hydration beverage, Wells Fargo reported.
The data collected in Wells Fargo’s survey suggested that retailers believe that both of Monster’s new beverage concepts have great potential for success in the convenience store channel.
After closely reviewing the survey results, Wells Fargo Securities has made the following predictions regarding Monster’s latest innovations:
- Mutant is expected to be highly incremental to Monster sales: The new soda will leverage the strong Monster brand, while expanding into the carbonated soft drink shelf/cooler space. This new beverage is expected to generate very limited cannibalization;
- The no-carb Hydro has potential to create a significant opportunity for Monster, but there is concern about the new beverage’s positioning and consumers’ ability to understand it; and
- Retailers stated that these products have the potential to drive $300 million in incremental retail sales within two years.
The majority of retailers do not expect Monster’s newest innovations to hit stores before July 4, 2016, Wells Fargo reported.
“Bottom line – we now expect new innovation to drive $850 million in retail sales by 2018,” said Bonnie Herzog, managing director of beverage, tobacco and convenience store research, Wells Fargo Securities LLC.