Coke buys $2.15 billion stake in Monster

Coca-Cola announced Thursday it will pay $2.15 billion for a 16.7 per cent stake in Monster Beverage, cementing a distribution-based link between the two that had added significantly to Coke's profits. The deal would lock in for the soft drink giant a share of the energy drink market, where its own brands have lagged far behind Monster Energy and rival Red Bull. Coke will transfer ownership of its energy drink unit -- brands including NOS, Full Throttle and Burn -- to Monster, and take over Monster's non-energy brands like Hansen's Natural Sodas, Peace Tea and Hubert's Lemonade. Meanwhile, Coke will expand its distribution of Monster drinks under long-term deals, and put two directors on the Monster board. ‘The Coca-Cola Company will become Monster's preferred distribution partner globally and Monster will become The Coca-Cola Company's exclusive energy play,’ the two announced, according to AFP.