MONSTER BEVERAGE CORP NEW earnings calls

pricing question setup

Q (Kaumil Gajrawala · Jefferies): The analyst asked for more detail on pricing: where it is happening and how much. He wanted clarity on whether pricing is global or piece-by-piece.

A: Management said they would have specialists speak to parts of the business. They introduced Rob to discuss the U.S. and Guy to discuss EMEA.

"Rob, I'm going to ask Rob to talk about the U.S. piece." — Hilton Schlosberg (CEO·CHAIR)

pricing approach and scope

Q (Rob Gehring): Follow-up to pricing: what is the company's pricing approach and how is it working?

A: Rob said their pricing model is consistent and aims to grow revenue faster than volume and profit faster than revenue. Guy said in EMEA they took aggregate low single digits pricing and will take price opportunistically by country based on category and competition.

"As part of an ongoing strategy, we take price on an opportunistic periodic basis in the context of the category and competitive dynamics in each country, and will continue to do so." — Guy Carling (CEO)

drivers and sustainability of international growth

Q (Kevin Grundy · BNP Paribas): What operational changes drove stronger international results and how sustainable is that growth? He asked about market share and runway.

A: Guy said strong category growth is driven by value, brand image, and functionality that make energy drinks multi-occasion, and that Monster is outperforming the category in EMEA. Hilton added strong growth in LATAM (notably Brazil) and progress in Asia, and said work with Coca-Cola bottlers, coolers, and innovation are helping expand availability and growth.

"Our portfolio is over-indexing the category across these drivers and across these occasions, which, as per the script, is leading us to be 46% of category growth across EMEA." — Guy Carling (CEO)

innovation and FLRT brand

Q (Filippo Falorni · Citi): How does this year’s innovation pipeline compare to prior years, what were learnings from the America's 250th limited time offers, and what is the update on FLRT female-oriented brand?

A: Hilton said this year launches were staggered and execution was better than past years, and that the LTOs were successful. He said Ultra Red, White, and Blue made 5% of scanner sales since the national launch in May, and that FLRT is still early with marketing starting in June but the company remains committed and will share more at NACS.

"Ultra Red, White, and Blue accounted for 5% of sales in scanner since the national launch in May." — Hilton Schlosberg (CEO·CHAIR)

under-penetrated channels and consumers

Q (Dara Mohsenian · Morgan Stanley): Where can Monster still gain penetration after recent growth—channels like food service or vending, smaller cans, or more female/health consumers?

A: Hilton said FSOP (food service & on-premise) is a big opportunity and cited the Marriott work with Coke. He said they launched 12 ounce to appeal to a broader audience, accelerated marketing to reach new consumers, and noted Gen Z and women are driving incremental growth.

"We've launched 12 ounce to appeal to a broader audience." — Hilton Schlosberg (CEO·CHAIR)

innovation as recruitment tool

Q (Rob Gehring): (Follow-up on penetration) Are you using innovation to recruit new consumers and how well is that working?

A: Rob said they use innovation to recruit consumers and to fuel core growth. He said their household panel shows they are bringing in consumers at twice the category rate and that recruitment is critical to success.

Marriott deal and Coke partnership

Q (Robert Ottenstein · Evercore): How did the Marriott win happen with the Coca-Cola system, and how are you and Coke executing on large global accounts?

A: Hilton said they have been working closely with the new C-suite at Coke and that the businesses are complementary. He said many FSOP customers now require energy drinks and he expects continued close work with Coke and the bottlers to build a strong FSOP business.

"My belief is that we'll continue to work very closely with the company and the bottlers to create a really good business in FSOP." — Hilton Schlosberg (CEO·CHAIR)

higher operating expenses this quarter

Q (Bonnie Herzog · Goldman Sachs): Q: Why did distribution and selling expenses step up per case in Q2? Is this a new run rate or will it move lower?

A: Hilton said Q2 had higher distribution expenses, mainly freight and fuel, and they hope those costs will ease over time. He also said 2026 marketing spend increased to reach new consumers, naming several marketing initiatives and sponsorships that added cost this year.

"The quarter was marked by increases in distribution expenses, largely freight and fuel." — Hilton Schlosberg (CEO·CHAIR)

inflation, aluminum hedges, and margins

Q (Chris Carey · Wells Fargo): How confident are you in protecting gross margins without a major global pricing round, given aluminum inflation and better-than-expected Q2 gross margins?

A: Hilton said they face inflation across the business and that distribution and aluminum costs are rising. He explained they hedge aluminum with a ladder approach, noted a large Midwest premium they did not hedge sufficiently, said additional aluminum costs should be modest, and that they will continue to review price increases while noting international sales carry lower gross margin percentages than U.S. sales.

"Of course, we've had this huge increase from the Midwest premium, which is a very limited market that we have hedged, but probably not sufficiently as if we'd known today what we knew when the hedges were being placed." — Hilton Schlosberg (CEO·CHAIR)