The Coca-Cola Co. jumped into the quickly growing international market for energy drinks with its announcement today of a long-term partnership with a major energy-drink player Monster Beverage Corp.
Coca-Cola has purchased a 16.7% equity stake in the company for a $2.15 billion cash payment. After the announcement, Monster’s stock jumped 36% in after-hours trading Thursday.
The companies will swap ownership of some products. Coke will transfer its energy-drink business, which includes NOS and Full Throttle, to Monster. And Monster will hand over its nonenergy-drink business, which includes Hansen’s Natural Sodas, to Coke.
Fewer people are consuming diet soda because of health concerns, but the market for drinks like the ones Monster sells is growing. In turn, Monster will get access to Coca-Cola’s bottling and distribution networks across the world.
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Write to Eliana Dockterman at eliana.dockterman@time.com