--- title: "MNST (Trans): Zero-sugar lineup remains a key U.S. growth driver" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40541241.md" description: "Below is Dolphin Research's Trans of MNST's FY26 Q1 earnings call. For the earnings analysis, cf. 'Monster: product cycle tailwinds, Intl markets ignite — a 'sweet' pivot?'" datetime: "2026-05-08T03:00:29.000Z" locales: - [en](https://longbridge.com/en/topics/40541241.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40541241.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40541241.md) author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # MNST (Trans): Zero-sugar lineup remains a key U.S. growth driver **Below is Dolphin Research's Trans of MNST FY26 Q1 earnings call. For our take, please see '**[**Monster: Product Cycle Lifts, Intl. Ignites — A Sweet Turnaround?**](https://longbridge.cn/en/topics/40540821?channel=SH000001&invite-code=7XHHT4&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN&share_track_id=726ded87-3909-4fd1-9d10-0aba944bce12)**'.**$Monster Beverage(MNST.US) **I. Key Takeaways** 1\. **Capital returns**: In Q1, MNST repurchased ~1.4 mn shares at an avg. price of $73.86, totaling approx. $100 mn. As of May 6, about $400 mn remained under the prior authorization. 2\. **Apr. sales read**: Apr. sales rose ~24.4% YoY (FXN +21.6%). Ex-alc. brands, +24.9% YoY (FXN +22.1%). Management cautioned that single-month data should not be extrapolated as guidance for the quarter or beyond. **II. Call Details** **2.1 Executive Commentary** 1\. **U.S. & North America** a. Net sales in the U.S. and Canada grew 15.6% YoY, with all channels contributing, including e-comm. In Mar., a major online retailer set a monthly sales record. b. **Zero-sugar mix remains a key U.S. growth driver: Ultra family rose 20% in Q1, with flagship Ultra White up 34%.** c. Full-sugar grew 8.5%, outpacing the category and accounting for roughly one-third of U.S. total incremental growth. Juice Monster rose 26%, while Java Monster increased 5.2%. d. Innovation contributed: Ultra Punch, Juice Monster Fruity Grape, Monster Energy Strawberry Shots, and Lando Norris Zero Sugar launched nationwide. e. FLRT, a new female-focused brand, debuted in late Mar. and tracked to plan. Storm, a better-for-you line with four SKUs, launched this week. f. The pricing action taken last fall is performing as expected. Management remains pleased with its execution. g. U.S. energy (incl. shots) grew 10.7% YoY over the last 13 weeks (to Apr. 25). Category momentum remains healthy. 2\. **EMEA** a. Net sales grew 52.5% YoY (FXN +36.5%), with GPM at 35.9% vs. 35.1% a year ago. Margin improved despite mix headwinds. b. Monster grew at more than 2x the category. Monster Energy was recognized by CCEP as Western Europe's fastest brand by value and value growth. c. In Denmark, Monster became the No.1 energy brand by value. Share gains broadened across markets. d. Value-tier brands Fury (Egypt) and Predator (Kenya, Nigeria, Morocco) continued to expand. Combined, they rank No.1 by value in tracked African markets. e. Juice Monster Viking Berry became the region's most successful innovation ever. It set a new benchmark for launches. f. EMEA category grew 10.5% YoY (FXN) over the last 13 weeks. Category breadth remains supportive. g. Innovation drove ~45% of growth, with 55% from existing SKUs. Ultra White posted \>50% YoY sales growth in Q1 per Nielsen. 3\. **APAC** a. Net sales grew 39.7% YoY (FXN +36.7%), with GPM at 42.8% vs. 42.4% last year. Execution remained solid across markets. b. Japan: Despite a distributor system issue, sales rose 3.6% YoY (FXN +4.9%). This summer, Monster Energy Green will enter Coca-Cola Bottlers Japan's vending machines. c. Korea: +10.3% YoY (FXN +11.8%). Growth was broad-based across channels. d. China: +95.0% YoY (FXN +86.5%). Momentum accelerated on distribution and product strength. e. India: +94.5% YoY (FXN +104.4%). Growth reflected rapid category adoption. f. Oceania: +53.2% YoY (FXN +42.1%). In Australia, Monster surpassed V and Red Bull by value to become market leader. g. APAC category grew 16.7% YoY (FXN) over the last 13 weeks. Penetration and frequency continue to climb. 4\. **Latin America** a. Net sales grew 36.0% YoY (FXN +22.3%), with GPM at 44.1% vs. 44.6% last year. Mix and FX were factors. b. Brazil: +61.3% YoY (FXN +41.9%). Demand remained robust across channels. c. Mexico: +24.1% YoY (FXN +6.6%), with cases outpacing sales due to promo timing. Market leadership was maintained. d. Chile: +50.3% YoY (FXN +36.3%). Price and volume both contributed. e. Argentina: -53.5% YoY (FXN -54.1%) as a late-Q1 FY25 operating model change to manage FX exposure reduced price per case. Volumes, however, grew double digits. f. LatAm category grew 15.6% YoY (FXN) for the three months to Mar. 31. Category health remains resilient. 5\. **Other** a. Intl. sales mix rose to ~45% vs. ~40% a year ago. This underscores faster growth outside the U.S. b. Alcohol brands posted $32.7 mn in net sales, down 5.9% YoY. The segment remains under refinement. c. Digital transformation: SAP S/4HANA go-live targeted for Jan. 1, 2028. Q1 SG&A included $2.8 mn in professional fees for the new San Fernando plant and $5.8 mn for digital transformation. d. Summer innovation plan: 12-ounce singles and 4-packs for Monster Green and Ultra. Ultra, Juice Monster, Reign, and Bang will participate in America 250 celebrations. **2.2 Q&A** **Q: With higher aluminum prices and broader cost headwinds, how will you use pricing and RGM tools to offset? What might drive additional price increases?** A: On Q1 GPM context — regional mix was a larger headwind, with off-rail production costs a smaller one. The higher intl. mix at 40% is good news, signaling growth abroad, though it dilutes margin percent. I have always believed cash is earned in dollars, not in percentage points, so we are pleased with the quarter. Aluminum headwinds impacted Q1 GPM by just under 100 bps. On pricing, Americas CEO Rob Gehring said the late-2025 pricing action is performing well and operating as intended. The team continuously assesses category health, consumer elasticity, retailer response, and pack/channel mix. With modest inflation, the category has shown resilience, supporting both volume and price. We will keep weighing all factors and proceed accordingly. EMEA CEO Guy Carling added that the approach mirrors the Americas, with ongoing focus on pricing opportunities. Modest inflationary pricing has been effective, the category is healthy, and we continue to gain share while optimizing demand. **Q: You have a rich innovation slate this year. How have the key YTD innovations performed in the U.S. and internationally, and what is coming in H2?** A: Unlike prior years when most innovation clustered early, this year's launches extend across at least H1. FLRT launched in late Mar., Storm hit shelves this week, and America 250 Ultra will scale more broadly from May. In the Americas, the strategy centers on fueling the core. FLRT targets the female energy segment, while Storm repositions us in the better-for-you set. The staggered cadence is intentional — carryover from late-2025 innovation supported early months, so we did not need new items at the start of the year. The current pacing sets up a strong summer, and we expect structurally high seasonal demand. In EMEA, innovation is performing strongly — **Juice Monster Viking Berry is the region's most successful innovation ever**, complemented by Ultra Ruby Red and other market-specific launches. There is also carryover from Lando Norris Zero Sugar launched in Q4. Importantly, innovation contributed only ~45% of growth, with 55% from existing SKUs. Ultra White's Q1 Nielsen sales were up over 50% YoY. For us, innovation is not only about direct revenue but also about reinforcing and lifting the core. That is central to how we run the biz. **Q: How do you view category growth outside the U.S.? Is growth more share or more category-led?** A: Intl. dynamics are very similar to the U.S. The same drivers underpin growth: rising consumer acceptance, expanding household penetration, and a strong value proposition — energy drinks as affordable indulgence. Innovation is meeting energy needs, and usage occasions are expanding across more dayparts. Purchase frequency is rising, in part via multipacks in EMEA, the U.S., and elsewhere. Overall, category growth is driven by brand equity, value, and functionality. Energy drinks are going increasingly mainstream. **Q: Q1 saw 'out-of-orbit production' due to strong demand. Was there any pull-forward, and are you back on plan?** A: We are back operating on plan. In Q1, our priority was to meet demand, avoid empty shelves, and not disappoint consumers. When growth outstrips forecast, shipping off the usual rail is necessary. Our Norwalk and Phoenix facilities provide surge capacity when needed. Apr. sales of +24.4% YoY also suggest there was no material pull-forward from Q1. **Q: How big is the multipack opportunity, especially larger multipacks in club?** A: As the category goes more mainstream, the multipack opportunity becomes clearer. We launched 12-pack variety packs and other sizes across club and select key accounts. In-home velocity is faster than single-serve purchase consumption, and customers are embracing multipacks. We plan to do more here. We started years ago with 4-packs, then moved to 6- and 8-packs, and now offer 12-packs. Club typically features 24-packs. **Q: Monster appears to be accelerating vs. the category. What is driving this?** A: Monster has a strong operating playbook and is gaining share. We are also sharpening focus on strategic and peripheral brands — Bang, NOS, and Full Throttle are priorities this year. FLRT addresses the female energy opportunity and early feedback is positive across retail and social. Bang has been soft recently, and we have a robust plan to relaunch it. Storm (formerly Rainstorm) was previously constrained by association with Rain, a performance energy product. Storm targets better-for-you, and customers believe the current lineup fits that space better. Value-tier Predator and Fury are performing well in Africa, Egypt, and India. With more of the world's population in emerging and developing markets, the value energy segment is a major opportunity for us. **Risk Disclosure and Disclaimer:**[**Dolphin Research Disclaimer & General Disclosure**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [LANDO.US](https://longbridge.com/en/quote/LANDO.US.md) - [BRY.US](https://longbridge.com/en/quote/BRY.US.md) - [LAND.US](https://longbridge.com/en/quote/LAND.US.md) - [ST.US](https://longbridge.com/en/quote/ST.US.md) - [CCEP.US](https://longbridge.com/en/quote/CCEP.US.md) - [MNST.US](https://longbridge.com/en/quote/MNST.US.md) - [LANDP.US](https://longbridge.com/en/quote/LANDP.US.md)