As soft drink sales decline, Coca-Cola is making a big push into the energy drink market. The Atlanta-based beverage giant just announced a $2.15 billion deal to become a minority stakeholder in Monster Energy Corp.

“The Coca-Cola Company continues to identify innovative approaches to partnerships that enable us to stay at the forefront of consumer trends in the beverage industry,” said Muhtar Kent, Coca-Cola’s chairman and CEO, in a press release. “Our equity investment in Monster is a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category.”

Soft drink sales declined 3 percent last year, according to the Christian Science Monitor. Meanwhile, Monster’s net sales grew 8.9 percent year over year, with energy drinks accounting for over 90 percent of the company’s growth in the last quarter.

As part of the blockbuster deal, Monster will take over Coke’s worldwide energy brands, including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless, while Coke will get Monster’s non-energy business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products. Coke will also obtain a 16.7 percent ownership interest in Monster, along with two directors on Monster’s board.

“Our agreement enables us to focus on our core energy business, while leveraging the strength of The Coca-Cola Company’s powerful distribution and bottling system on a worldwide scale,” said Hilton H. Schlosberg, Monster’s Vice Chairman and President, in a press release. “We expect the transaction to significantly accelerate our growth and results of operations internationally.”

 

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