Monster Beverage (Nasdaq:MNST) is about to release earnings. Follow this Bear Case Scenario:
Coca Cola is Monsters main distributor and a major competitor. This contradiction cannot continue forever.
Red Bull has 27% market share vs Monster with 31%. Monster still has close competition which can rumble in the market place.
Retailers are rolling out energy drinks which are much cheaper. Margins will erode and the lustre will wear off. What’s next will the major question.
George Gutowski writes from a caveat emptor perspective.