Coca Cola splashes out £1.3bn for 16 per cent stake in energy drink manufacturer

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COCA-COLA is to splash out more than £1.3bn for a 16 per cent stake in a leading manufacturer of energy drinks as the world’s largest soda maker seeks to expand into fast growing markets.

Under the agreement, Coca-Cola will have two directors on the board of Monster Beverage Corp, and will transfer ownership of its worldwide energy business including brands like Full Throttle and Burn to Monster.

Monster will transfer its non-energy business to Coca-Cola, which will become Monster’s preferred distribution partner.

For Coca-Cola, which recently announced millions of pounds of investment in its plant at Wakefield, the deal is a chance to increase its presence in energy drinks, a £27bn global market. Monster will gain access to Coke’s extensive global distribution system.

Rodney Sacks, chief executive of Monster, said: “We believe it will be a win-win strategy.”

Coca-Cola recently invested £13m in its Wakefield plant, in a move welcomed by Prime Minister David Cameron in a visit to the facility.

Mr Cameron and Chancellor George Osborne were shown round the plant where Coca-Cola is investing in a new production line which will allow it to produce 40,000 bottles an hour.

In the last five years, Coca-Cola has invested £100m at the site in Wakefield where it employs more than 400 people.

Andy Thorburn of EMIS

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