SCHEDULE 13D/A: Coca-Cola Companies Update Significant Stake in Monster Beverage, Now Holding 21.0% After Stock Split

The Coca-Cola Company and its subsidiary, European Refreshments Unlimited Company, have updated their beneficial ownership in Monster Beverage Corp to 21.0%, primarily reflecting the impact of a 2-for-1 stock split and internal share transfers, with no new market purchases or sales.

Summary

• The Coca-Cola Company (TCCC) and its indirect wholly-owned subsidiary, European Refreshments Unlimited Company (ER), have filed Amendment No. 2 to their Schedule 13D regarding their beneficial ownership of Monster Beverage Corp's Common Stock.
• As of the filing date (January 28, 2025), the Reporting Persons collectively beneficially own 204,243,204 shares of Monster Beverage Corp Common Stock, representing 21.0% of the total outstanding shares as of October 31, 2024.
• This updated ownership percentage is primarily a result of Monster Beverage Corp's 2-for-1 stock split on March 27, 2023, which doubled the number of shares held, and changes in the total number of outstanding shares of Common Stock over time.
• Neither TCCC nor ER has purchased or sold any shares of Common Stock in the open market since the initial filing.
• An internal transfer occurred on December 17, 2024, where ER transferred 2,000,000 shares of Common Stock to TCCC by means of a stock dividend for no consideration, adjusting the distribution of sole and shared voting/dispositive power between the two entities.
• Previously, on April 21, 2020, the combined beneficial ownership was 102,121,602 shares, representing 19.4% of outstanding shares as of April 13, 2020.
• On August 8, 2024, the combined beneficial ownership was 204,243,204 shares, representing 20.85% of outstanding shares as of July 31, 2024.

Sentiment

Score: 6

Explanation: The document is neutral to slightly positive. It confirms a continued significant strategic stake by Coca-Cola in Monster Beverage, with the increase in percentage ownership being a technical adjustment due to a stock split rather than active accumulation. There are no negative surprises or explicit risks mentioned, but also no new positive investment actions.

Positives

• The Coca-Cola Company and its subsidiary maintain a significant strategic stake in Monster Beverage Corp, indicating continued alignment and interest.
• The increase in percentage ownership from 19.4% to 21.0% primarily reflects the impact of Monster Beverage Corp's 2-for-1 stock split, which effectively doubled the number of shares held, and changes in the total outstanding shares, rather than a dilution of their stake.

Negatives

• The filing does not indicate any new market purchases of Monster Beverage Corp shares by The Coca-Cola Company or its subsidiary, suggesting no active accumulation of additional stake beyond the effects of the stock split.

Risks

• The document does not explicitly mention specific risks related to Monster Beverage Corp's operations or financial performance. The risks are inherent to holding a significant equity stake in a publicly traded company, such as market value fluctuations and business performance risks, but these are not detailed in this filing.

Future Outlook

The document does not contain explicit forward-looking statements or guidance regarding future business operations or financial performance of Monster Beverage Corp or the Reporting Persons' investment strategy beyond the current ownership structure.

Management Comments

• "Neither TCCC nor ER has purchased or sold any shares of Common Stock."
• "ER has over time transferred shares of Common Stock to TCCC by way of stock dividends."

Industry Context

This filing highlights the continued strategic investment by The Coca-Cola Company, a global beverage giant, in Monster Beverage Corp, a leading energy drink company. This relationship, established through a significant equity stake, underscores the importance of the energy drink segment within the broader non-alcoholic beverage market and Coca-Cola's interest in this growth area. The filing primarily updates the ownership percentage due to corporate actions (stock split) rather than new market activity, indicating a stable, long-term strategic holding rather than an active M&A or accumulation play.

Comparison to Industry Standards

• This Schedule 13D filing is standard for reporting beneficial ownership changes by a significant shareholder.
• The increase in percentage ownership due to a stock split is a common occurrence and reflects a passive adjustment to the stake rather than an active investment decision.
• The internal transfer of shares between a parent company (TCCC) and its subsidiary (ER) is a typical corporate treasury or tax management activity and does not reflect a change in the ultimate beneficial ownership by the Coca-Cola group.
• The 21.0% stake held by Coca-Cola in Monster Beverage Corp is a substantial minority interest, which is a common strategic arrangement in the beverage industry for large players to gain exposure to high-growth segments without full acquisition. For example, PepsiCo has similar strategic alliances and investments in other beverage categories.

Management Changes

Corporate Governance

Legal Proceedings

• The document indicates that no disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e).

Related Party Transactions

• On December 17, 2024, European Refreshments Unlimited Company (an indirect wholly-owned subsidiary of The Coca-Cola Company) transferred 2,000,000 shares of Common Stock to The Coca-Cola Company (the parent) by means of a stock dividend for no consideration. This constitutes a related-party transaction.

Stakeholder Impact

• Shareholders (Monster Beverage Corp): The filing confirms the continued significant strategic investment by The Coca-Cola Company, which could be viewed positively as a sign of long-term commitment from a major partner. The increase in percentage ownership due to the stock split is a technical adjustment, not a new investment, so it doesn't signal new capital inflow.
• Shareholders (The Coca-Cola Company): The filing provides transparency on the structure of their investment in Monster Beverage Corp, confirming the stable nature of this strategic asset.
• Employees/Customers/Suppliers/Creditors: The filing is primarily about ownership structure and does not contain information directly impacting these stakeholders' day-to-day operations or relationships.

Next Steps

• The document does not explicitly state future actions or milestones for the Reporting Persons' investment in Monster Beverage Corp.
• Monster Beverage Corp will continue to file its regular quarterly and annual reports (e.g., Form 10-Q, 10-K) which will provide updated information on outstanding shares and financial performance.

Key Dates

Keywords

Monster Beverage Corp, Coca-Cola Company, European Refreshments, Schedule 13D, beneficial ownership, stock split, equity stake, SEC filing, energy drinks, beverage industry, strategic investment