US Stock Market Move | Monster Beverage Corporation (MNST.US) rises more than 6.5%, executives say no need to worry about Celsius acquiring Alani Nu.

On Friday, Monster Beverage Corporation (MNST.US) saw its stock price rise, with the stock up over 6.5% to $55.38 at the time of writing. The company's executives commented on Celsius Holdings Inc.'s plans to acquire Alani Nu for $1.8 billion during the company's earnings conference call, stating that this deal would not pose a threat to Monster Beverage Corporation as the market positioning of the products of the two companies is significantly different. Monster Beverage Corporation's Co-CEO Rodney Sacks stated during the conference call that the target audience for the company's health drinks brands Reign and Bang is different from that of Celsius and Alani Nu. For example, Reign targets consumers whose core need is athletic performance, while Celsius and Alani Nu's sugar-free drinks are more favored by female consumers. Sacks pointed out: "Alani Nu is indeed growing and performing well, but its market is primarily focused on young female consumers, which is also a limitation." Co-CEO Hilton Schlosberg also added: "Alani Nu's current growth largely relies on new distribution channels, but it will eventually reach its distribution ceiling, as Celsius has experienced in the past." Despite intense market competition, Monster Beverage Corporation achieved a 4.7% revenue growth in the fourth quarter of 2023, reaching $1.81 billion, slightly higher than the analysts' forecast of $1.8 billion. However, the company's adjusted earnings per share were about 5% lower than expected.