Coca-Cola has forked out $2.15bn (£1.29bn) for a 16.7% stake in energy drink company Monster.
Coke will transfer ownership of its energy drinks business, which includes brands like Full Throttle, Burn and Power Play, to Monster. In turn, Monster will transfer its non-energy business, which includes drinks like Hansen’s Natural Sodas, Peace Tea and Hubert’s Lemonade, to Coca-Cola.
Muhtar Kent, chairman and chief executive of Coke, said: “This long-term partnership aligns us with a leading energy player globally, brings financial benefit to our company and our bottling partners, and supports broader commercial strategies with our customers to bring total beverage growth opportunities that will also benefit our core business.”
“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.