Customers now can taste energy drink with cola taste as Coca-Cola will sell and distribute its 'Coca-Cola Energy Drink' brand globally. (Image via Campaign)

Green Signal for Coca-Cola to Sell Energy Drink under Monster Beverage Contract

Kinanty Nadia Putri
Business & Industry
Foods & Service
Jul 03, 2019
2228
An arbitration tribunal has issued a green light for Cola-Cola to sell its new energy drink globally under the terms of the contract with Monster Beverage. The two companies announced on Monday after months of the product launching in Europe.

The arbitrators decided on June 28 that the energy drink produced by Coca-Cola will fall within a ‘non-compete provision’ relating to the marketing and positioning of the beverages under the Coca-Cola brand. This means the soda maker is free to sell and distribute the energy drink in the markets it has already been launched and in the new markets globally, as long as not becoming a rival for its counterpart Monster.

Since the beginning of 2015, Coca-Cola and Monster have formed a long-term strategic partnership that read the energy drink company will become the exclusive energy play for Coca-Cola, while Coca-Cola will be the global distribution partner for Monster.
Coca-Cola Energy first launched in April across Spain and Hungary. The launch of the product is a part of the company’s efforts to shift its market to health-focused trends from its traditional fizzy sodas. The company has developed the product contained natural caffeine derived from guarana extracts, B vitamins, and no taurine—a common stimulant often found in other energy drinks.

Coca-Cola was in arbitration with Monster over the launch of its own energy drink which was feared to be a direct rival to Monster and violate their partnership agreement in 2015.

In a joint statement after the court ended, the two companies said they appreciated the arbitrator’s decision. However, there was still disagreement over the contractual language yet they still value their relationship and look forward to continuing the partnership.

Source: https://insidefmcg.com.au/2019/07/02/coca-cola-gets-go-ahead-to-sell-energy-drinks-under-monster-contract/

Coca-Cola , Monster , EnergyDrinks , Business , Beverage , Industry