Monster Beverage (MNST.US) surged over 6.5% as executives stated they are not concerned about Celsius' acquisition of Alani Nu.

Monster Beverage (MNST.US) shares surged on Friday, up more than 6.5% to $55.38 at the time of writing. The company's executives commented on Celsius Holdings Inc.'s planned $1.8 billion acquisition of Alani Nu during the company's earnings call, stating that the deal would not pose a threat to Monster Beverage as the two companies' products have significantly different market positioning. Monster Beverage's co-CEO Rodney Sacks said on the call that the company's health-focused beverage brands Reign and Bang target different demographics from Celsius and Alani Nu. For example, Reign is primarily aimed at consumers who prioritize athletic performance, while Celsius and Alani Nu's sugar-free drinks are more popular among women. Sacks noted: "Alani Nu is growing and doing well, but its market is mainly focused on young women, which is a limitation." Hilton Schlosberg, the other co-CEO, also added: "Alani Nu's current growth is largely dependent on new distribution channels, but it will eventually hit the distribution point's ceiling, just like Celsius did." Despite the competitive market, Monster Beverage's revenue in the fourth quarter of 2023 still grew 4.7% to $1.81 billion, slightly above market analysts' forecast of $1.8 billion. However, the company's adjusted earnings per share still fell about 5% short of expectations.