What changed in this filing

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Item 1. Business

2024-02-29 compared with 2023-03-01 · 146 added, 134 removed, 355 unchanged (44% of the section changed)

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Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business, except through its consolidated subsidiaries.

The Company’s subsidiaries primarily develop and market energy drinks.

The Company’s subsidiaries primarily develop and market energy drinks.The Company’s subsidiary, CANarchy Craft Brewery Collective LLC (“CANarchy”), was renamed Monster Brewing Company effective January 2024.

We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:

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● Juice Monster®

● Monster Hydro® Energy Water

● Monster Hydro ® Super Sport

● Monster Super Fuel®

● Monster Dragon Tea®

● Reign Total Body Fuel ®

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● Reign Storm®

● True North®

● Bang Energy®

● Full Throttle®

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● Relentless®

We also develop, market, sell and distribute craft beers, hard seltzers and flavored malt beverages (“FMBs”) under a number of brands, including Jai Alai® IPA, Florida Man TM IPA, Dale’s Pale Ale®, Wild Basin TM Hard Seltzers, Dallas Blonde®, Deep Ellum TM IPA, Perrin Brewing Company TM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed TM and a host of other brands.

We also develop, market, sell and distribute still and sparkling waters under the Monster® Tour Water TM brand name.

We also develop, market, sell and distribute still and sparkling waters under the Monster Tour Water® brand name.

We also develop, market, sell and distribute craft beers, hard seltzers and flavored malt beverages (“FMBs”) under a number of brands, including Jai Alai® IPA, Florida Man TM IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum TM IPA, Perrin Brewing Company TM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty Beast TM Hard Tea and a host of other brands.

Industry Overview

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We have four operating and reportable segments:

(i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Monster ® Tour Water TM and True North® Pure Energy Seltzers, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, (iii) Alcohol Brands segment (“Alcohol Brands”), which is primarily comprised of the various craft beers and hard seltzers purchased as part of our acquisition of CANarchy Craft Brewery Collective LLC (“CANarchy”) on February 17, 2022 as well as The Beast Unleashed TM FMBs and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC (“AFF”), a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

Our Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged energy drinks primarily to bottlers and full service beverage distributors.

(i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC (“AFF”), a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

Our Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged energy drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”).

In some cases, we sell directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

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The ready-to-drink packaged energy drinks are then sold to other bottlers, full service distributors or retailers, including, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military.

To a lesser extent, our Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers and full service beverage distributors.

To a lesser extent, our Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, hard seltzers and FMBs, primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment will have lower gross profit margin percentages than the Monster Energy® Drinks segment.

For certain risks with respect to our energy drinks see “Part I, Item 1A – Risk Factors” below.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

For certain risks with respect to our beverages see “Part I, Item 1A – Risk Factors” below.

Corporate History

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In 2016, we completed our acquisition of flavor supplier and long-time business partner AFF.

CANarchy Acquisition

On February 17, 2022, we completed our acquisition of CANarchy, a craft beer and hard seltzer company, for $329.5 million in cash (net of cash acquired), after certain working capital adjustments (the “CANarchy Transaction”).

The transaction facilitates our entry into the alcohol beverage sector and brings the Cigar City TM family of brands including Jai Alai® IPA and Florida Man TM IPA, the Oskar Blues TM family of brands including Dale’s Pale Ale®, Wild Basin TM Hard Seltzers, the Deep Ellum TM family of brands including Dallas Blonde® and Deep Ellum TM IPA, the Perrin Brewing Company TM family of brands including Black Ale, the Squatters® family of brands including Hop Rising® Double IPA and the Wasatch® family of brands including Apricot Hefeweizen to our beverage portfolio.

The transaction did not include CANarchy’s stand-alone restaurants.

Our organizational structure for our existing energy beverage business remains unchanged.

CANarchy is functioning independently, retaining its own organizational structure and team.

In 2022, we completed our acquisition of Monster Brewing Company, which facilitated our entry into the alcohol beverage sector.

Bang Energy Acquisition

On July 31, 2023, we completed our acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc.

and certain of its affiliates (collectively, “Bang Energy”) (the “Bang Transaction”).

The acquired assets primarily include the Bang Energy® drink business and a beverage production facility in Phoenix, AZ.

On February 28, 2023, we announced a two-for-one stock split of our common stock to be effected in the form of a 100% stock dividend.

The common stock dividend was issued on March 27, 2023 (the “Stock Split”) and our common stock began trading at the split adjusted price on March 28, 2023.

Accordingly, all per share amounts, average common stock outstanding, common stock outstanding, common stock repurchased and equity-based compensation presented in the consolidated financial statements and notes in this Form 10-K have been adjusted retroactively, where applicable, to reflect the Stock Split.

Stockholders’ equity has been retroactively adjusted, where applicable, to give effect to the Stock Split for all periods presented by reclassifying the par value of the additional shares issued in connection with the Stock Split to common stock from retained earnings and additional paid-in capital.

2023 Product Introductions

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During 2023, we sold the following new products to our customers:

● Java Monster® Cold Brew Latte

● Java Monster® Cold Brew Sweet Black

● Juice Monster® Aussie Style Lemonade TM

● Live+® Watermelon

● Monster® (stylized) Reserve Orange Dreamsicle

● Monster Energy® Lewis Hamilton 44 Zero Sugar

● Monster Energy® Ultra Peachy Keen®

● Mother® Kiwi Sublime

● Mother® Lava Guava

● Nalu® Melon Splash

● Play® Fruit Punch

● Play® Peach

● Predator® Peach

● Predator® Red Apple

● Rehab® Monster® Watermelon

● Reign Total Body Fuel® Reignbow Sherbet

● Reign Total Body Fuel® Tropical Storm

● Relentless® Peach

● Relentless® Raspberry

● Bang Energy® Black Cherry Vanilla

● Bang Energy® Blue Razz®

● Bang Energy® Candy Apple Crisp®

● Bang Energy® Cotton Candy

● Bang Energy® Delish Strawberry Kiss TM

● Bang Energy® Peach Mango

● Bang Energy® Purple Haze TM

● Bang Energy® Radical Skadattle®

● Bang Energy® Rainbow Unicorn®

● Bang Energy® Sour Heads®

● Bang Energy® Star Blast®

● Bang Energy® Wyldin’ Watermelon TM

● Burn® Watermelon Zero Sugar

● Java Monster® Café Latte

● Monster Energy® Nitro Cosmic Peach TM

● Monster Energy® Ultra Strawberry Dreams TM

● Monster Energy® Zero Sugar

● Monster® Reserve Kiwi Strawberry

● Monster Tour Water® Deep Well Water

● Monster Tour Water® Sparkling Deep Well Water

● Mother® Rainbow Sherbet

● Nalu® Cassis Lavender

● Nalu® Strawberry Rhubarb

● NOS® Zero Sugar

● Predator® Punch

● Rehab® Monster® Wild Berry Tea

● Reign Storm® Citrus Zest

● Reign Storm® Guava Strawberry

● Reign Storm® Harvest Grape

● Reign Storm® Kiwi Blend

● Reign Storm® Peach Nectarine

● Reign Storm® Valencia Orange

● Relentless® Watermelon Zero Sugar

● The Beast Unleashed® Mean Green TM

● The Beast Unleashed® Peach Perfect TM

● The Beast Unleashed® Scary Berries TM

● The Beast Unleashed® White Haze TM

● Ultra Energy® Citrus Peach

In the normal course of business, we discontinue certain products and/or product lines.

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We offer the following energy drinks under the Monster Energy® drink product line:

Monster Energy®, Monster Energy® Zero Sugar, Lo-Carb Monster Energy®, Monster Assault®, Monster® Mango Loco® , Juice Monster® Aussie Style Lemonade TM , Juice Monster® Khaotic®, Juice Monster® Mango Loco®, Juice Monster® Pacific Punch®, Juice Monster® Papillon TM (Juiced Monster®

Monarch in certain countries) Juice Monster® Pipeline Punch®, Juice Monster® Ripper®, Monster Energy® Import, Monster Energy® Export, M3(stylized)®, Monster Mule®, Monster Cuba Libre®, Monster Energy Zero Ultra®, Monster Energy Ultra Black®, Monster Energy Ultra Blue®, Monster Energy Ultra Fiesta® Mango, Monster Energy® Ultra Golden Pineapple®, Monster Energy Ultra Paradise®, Monster Energy® Ultra Peachy Keen®, Monster Energy Ultra Red®, Monster Energy Ultra Rosa®, Monster Energy Ultra Strawberry Dreams®, Monster Energy Ultra Sunrise®, Monster Energy Ultra Violet®, Monster Energy Ultra® Watermelon, Monster Energy® Mixxd Punch, Monster Energy® Valentino Rossi, Monster Energy® Lewis Hamilton 44, Monster Energy® Lewis Hamilton 44 Zero Sugar, Monster Energy® Super Cola® (Japan), Monster® (stylized) Reserve Kiwi Strawberry, Monster® (stylized) Reserve Orange Dreamsicle, Monster® (stylized) Reserve Watermelon and Monster® (stylized) Reserve White Pineapple.

Monster Energy®, Monster Energy® Zero Sugar, Lo-Carb Monster Energy®, Monster Assault®, Juice Monster® Aussie Style Lemonade TM , Juiced Monster® Bad Apple®, Juice Monster® Khaotic®, Juice Monster® Mango Loco®, Juice Monster® Pacific Punch®, Juice Monster® Papillon TM (Juiced Monster® Monarch in certain countries), Juice Monster® Pipeline Punch®, Juice Monster® Ripper®, Juice Monster® Rio Punch TM , Monster Energy® Import, Monster Energy® Export, M3(stylized)®, Monster Mule®, Monster Energy Zero Ultra®, Monster Energy Ultra Black®, Monster Energy Ultra Blue®, Monster Energy® Ultra Fantasy Ruby Red TM , Monster Energy Ultra Fiesta® Mango, Monster Energy® Ultra Golden Pineapple®, Monster Energy Ultra Paradise®, Monster Energy® Ultra Peachy Keen®, Monster Energy Ultra Red®, Monster Energy Ultra Rosa®, Monster Energy® Ultra Strawberry Dreams TM , Monster Energy Ultra Sunrise®, Monster Energy Ultra Violet®, Monster Energy Ultra® Watermelon, Monster Energy® Mixxd Punch, Monster Energy® Valentino Rossi, Monster Energy® Lewis Hamilton 44, Monster Energy® Lewis Hamilton 44 Zero Sugar, Monster Energy® Super Cola® (Japan), Monster® (stylized) Reserve Kiwi Strawberry, Monster® (stylized) Reserve Orange Dreamsicle, Monster® (stylized) Reserve Peaches N’ Crème, Monster® (stylized) Reserve Watermelon and Monster® (stylized) Reserve White Pineapple.

Java Monster® Coffee + Energy Drinks – a line of non-carbonated dairy based coffee + energy drinks.

We offer the following coffee + energy drinks under the Java Monster® product line:

Java Monster® 300 French Vanilla, Java Monster® 300 Mocha, Java Monster® Cold Brew Latte, Java Monster® Cold Brew Sweet Black, Java Monster® Irish Blend®, Java Monster® Kona Blend, Java Monster® Loca Moca®, Java Monster® Mean Bean®, Java Monster® Salted Caramel and Java Monster® Vanilla Light.

Monster Energy® Dragon Iced Tea TM Energy Teas – a line of non-carbonated energy teas.

We offer the following energy teas under the Monster Energy ® Dragon Iced Tea TM product line in different countries:

Green Tea, Peach Tea, Raspberry Tea and Lemon Tea.

Monster Hydro® includes two product lines:

Energy Water and Super Sport.

Monster Hydro® Energy Water is a line of non-carbonated, lightly sweetened refreshment + energy drinks.

We offer the following refreshment + energy drinks under the Monster Hydro® Energy Water product line:

Blue Ice®, Watermelon®, Purple Passion® and Tropical Thunder®.

Monster Hydro® Super Sport is a line of non-carbonated, lightly sweetened refreshment + energy drinks that features an enhanced electrolyte blend and BCAA’s.

We offer the following refreshment + energy drinks under the Monster Hydro® Super Sport product line:

Blue Streak, Killer Kiwi, Macho Mango and Red Dawg.

Java Monster® 300 French Vanilla, Java Monster® 300 Mocha, Java Monster® Café Latte, Java Monster® Cold Brew Latte, Java Monster® Cold Brew Sweet Black, Java Monster® Irish Blend®, Java Monster® Irish Crème, Java Monster® Loca Moca®, Java Monster® Mean Bean® and Java Monster® Salted Caramel.

Monster Energy® Nitro – a line of carbonated energy drinks containing nitrous oxide.

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Cosmic Peach and Super Dry.

Monster® Tour Water TM – a line of deep well still and sparkling waters.

Monster Tour Water® – a line of deep well still and sparkling waters.

Rehab® Monster® Energy Drinks – a line of non-carbonated energy drinks with electrolytes.

We offer the following energy drinks under the Rehab® Monster® product line:

Peach Tea, Raspberry Tea, Strawberry Lemonade, Tea + Lemonade and Watermelon.

Green Tea, Peach Tea, Strawberry Lemonade, Tea + Lemonade, Watermelon and Wild Berry Tea.

Reign Total Body Fuel® High Performance Energy Drinks – a line of high performance energy drinks with BCAA’s, B vitamins, electrolytes and CoQ10 with zero sugar.

We offer the following high performance energy drinks under the Reign Total Body Fuel® product line:

Cherry Limeade, Lemon Hdz, Lilikoi Lychee, Mang-O-Matic, Melon Mania, Orange Dreamsicle, Peach Fizz, Razzle Berry, Reignbow Sherbet, Strawberry Sublime, Tropical Storm and White Gummy Bear.

Cherry Limeade, Lemon Hdz, Lilikoi Lychee, Mang-O-Matic, Melon Mania, Orange Dreamsicle, Peach Fizz, Razzle Berry, Reignbow Sherbet, Sour Gummy Worm, Strawberry Sublime, Tropical Storm and White Gummy Bear.

Reign Inferno® Thermogenic Fuel High Performance Energy Drinks – a line of high performance energy drinks with a thermogenic performance blend in addition to BCAA’s, B vitamins, electrolytes, and CoQ10 with zero sugar.

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We offer the following under the Reign Storm® Total Wellness Energy product line:

Valencia Orange, Kiwi Blend, Peach Nectarine, and Harvest Grape.

True North ® Pure Energy Seltzers – a line of natural, plant-based energy drinks with an immunity boost, containing zero sugar, sweeteners, artificial flavors or colors.

We offer the following energy seltzers under the True North® product line:

Black Cherry, Cucumber Lime, Grapefruit Lemonade, Mandarin Yuzu, Watermelon Mist and White Peach Pear.

Citrus Zest, Guava Strawberry, Harvest Grape, Kiwi Blend, Peach Nectarine, and Valencia Orange.

Bang Energy® Drinks – a line of better-for-you lifestyle energy drinks with B vitamins, essential amino acids and unique flavor profiles with zero sugar.

We offer the following energy drinks under the Bang Energy® product line:

Black Cherry Vanilla, Blue Razz®, Candy Apple Crisp®, Cotton Candy, Delish Strawberry Kiss TM , Peach Mango, Purple Haze TM , Radical Skadattle®, Rainbow Unicorn®, Sour Heads®, Star Blast® and Wyldin’ Watermelon TM .

Products – Strategic Brands Segment

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We offer the following energy drinks under the BPM® product line:

Focus Berry Red, Mango and Sour Twist.

Focus Berry Red, Focus Mango and Revive Peach.

BU® – a line of carbonated energy drinks.

We offer the following energy drink under the BU® product line:

We offer the following energy drinks under the BU® product line:

Island Punch and Original.

Burn® – a line of carbonated energy drinks.

We offer the following energy drinks under the Burn® product line:

Apple Kiwi, Blue, Dark Energy, Fruit Punch, Mango, Original, Passion Punch, Peach, Peach Mango, Pineapple, Royal, Sour Twist and Zero Raspberry.

Apple Kiwi, Blue, Dark Energy, Fruit Punch, Guava, Mango, Original, Passion Punch, Peach, Peach Mango, Pineapple, Royal, Sour Twist, Watermelon Zero Sugar, Yellow and Zero Raspberry.

Full Throttle® – a line of carbonated energy drinks.

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Fury® – a line of affordable carbonated energy drinks.

We offer the following energy drinks under the Fury ® product line:

Gold Strike and Mean Green.

Gladiator® – a line of carbonated energy drinks.

We offer the following energy drink under the Gladiator® product line:

We offer the following energy drink under the Fury ® product line:

Live+® – a line of carbonated energy drinks.

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We offer the following energy drinks under the Mother ® product line:

Epic Swell, Frosty Berry, Kicked Apple ® , Kiwi Sublime, Lava Guava, Original, Passion, Sugar Free, Tropical Blast TM and Zero Sugar Razzle Berry.

Epic Swell, Frosty Berry, Kicked Apple, Kiwi Sublime, Lava Guava, Original, Passion, Rainbow Sherbet, Sugar Free, Tropical Blast and Zero Sugar Razzle Berry.

Nalu® – a line of carbonated energy drinks.

We offer the following energy drinks under the Nalu ® product line:

Black Tea & Passion Fruit, Exotic, Frost, Green Tea & Ginger, Hibiscus Rooibos, Melon Splash, Original and Passion.

Black Tea & Passion Fruit, Cassis Lavender, Exotic, Frost, Green Tea & Ginger, Hibiscus Rooibos, Melon Splash, Original, Passion and Strawberry Rhubarb.

NOS® – a line of carbonated energy drinks.

We offer the following energy drinks under the NOS ® product line:

GT Grape, Original and Sonic Sour.

GT Grape, Original, Sonic Sour and Zero Sugar.

Play® and Power Play® (stylized) – a line of carbonated energy drinks.

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We offer the following energy drinks under the Predator ® product line:

Gold Strike, Malt Smash, Mango Mayhem, Mean Green, Peach, Purple Rain, Red Apple, Spicy Ginger and Tropical.

Gold Strike, Malt Smash, Mango Mayhem, Mean Green, Peach, Punch, Purple Rain, Red Apple, Spicy Ginger and Tropical.

Relentless® – a line of carbonated energy drinks.

We offer the following energy drinks under the Relentless ® product line:

Apple Kiwi, Cherry, Origin, Passion Punch, Peach, and Raspberry.

Cherry, Origin, Passion Punch, Peach Zero Sugar, Raspberry Zero Sugar and Watermelon Zero Sugar.

Samurai® – a line of carbonated energy drinks.

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We offer the following energy drinks under the Ultra Energy® product line:

Apple Kiwi, Original, Passion Punch, Peach Mango and Zero Raspberry.

Apple Kiwi, Citrus Peach, Original, Passion Punch and Peach Mango.

Products – Alcohol Brands Segment

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We offer the following brands under the Oskar Blues TM brand family:

Dale’s Pale Ale ® , Double Dale’s, Mama’s Little Yella Pils, and others.

Dale’s Pale Ale ® , Dale’s Light Lager, Double Dale’s and others.

Deep Ellum TM – a line of craft beers.

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We offer the following flavors under the Wild Basin TM product line:

Lemon, Grapefruit, Peach, Berry Sorbet, Black Cherry, Strawberry and others.

Lemon, Grapefruit, Peach, Watermelon and others.

Wasatch® – a line of craft beers.

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We offer a number of brands under the Perrin brand family including Black Ale and others.

The Beast Unleashed TM – a line of FMBs.

We offer the following flavors under The Beast Unleashed TM brand family:

Mean Green, Peach Perfect, Scary Berries, and White Haze.

The Beast Unleashed® – a line of FMBs.

We offer the following flavors under The Beast Unleashed® brand family:

Mean Green TM , Peach Perfect TM , Scary Berries TM , and White Haze TM .

Nasty Beast TM Hard Tea – a line of FMBs.

We offer the following flavors under the Nasty Beast TM brand family:

Original, Tea + Lemonade, Peach and Green Tea.

Products – Other Segment

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Products – Packaging

Our products are packaged in a variety of different package types and sizes including, but not limited to, aluminum cans, aluminum cap cans, sleek aluminum cans, aluminum cans with re-sealable ends, kegs as well as polyethylene terephthalate (PET) plastic bottles.

Manufacture and Distribution

AFF develops and manufactures the primary flavors for our Monster Energy® Drinks segment.

In 2022, we continued to outsource the manufacturing process for our finished goods energy drink products to third-party bottlers and contract packers.

AFF develops and manufactures the primary flavors for our Monster Energy® Drinks segment at its facilities in California and Athy, Ireland.

In 2023, we continued to outsource the manufacturing process for the majority of our finished goods energy drink products to third-party bottlers and contract packers.

We also began production at our facility in Norwalk, CA in January 2024.

In addition, as part of the Bang Transaction, we acquired a manufacturing facility in Phoenix, AZ, where we manufacture Bang Energy® drinks and are planning to manufacture certain of our other energy drink products at this facility.

We purchase flavor ingredients, flavors, concentrates, sweeteners, juices, supplement ingredients, cans, bottles, caps, labels, trays, boxes and other ingredients for our non-alcohol products from ingredient suppliers, which are delivered to our various third-party bottlers and co-packers.

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Depending on the beverage, the bottler/packer may also add carbonation to the products as part of the production process.

For our Strategic Brands segment, we primarily purchase concentrates and/or beverage bases from ingredient suppliers, which are then sold to certain of our various third-party bottlers/distributors.

For our Strategic Brands segment, we primarily purchase concentrates and/or beverage bases from ingredient suppliers including TCCC, which are then sold to certain of our various third-party bottlers/distributors.

The third-party bottlers/distributors are responsible for the manufacture and packaging of the finished products, including the procurement of all other required ingredients and packaging materials.

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Depending on the beverage, the bottler/co-packer may also add carbonation to the products as part of the production process.

For our Alcohol Brands segment, we purchase cans, cartons, hops, malt, yeast, sugar, ethanol and other additives and flavorings and packaging materials from ingredient and raw material suppliers to be used in the brewing, fermentation, and packaging of alcohol beers and FMB products.

We are granted a right-of-use for any kegs used in production from a third-party supplier at a contracted rate per fill.

Most of our alcohol finished goods are manufactured at one of our seven owned or leased manufacturing facilities, but we have started and will increase production and packaging at co-packers as we require additional capacity.

We are granted a right-of-use for any kegs used in production from

a third-party supplier at a contracted rate per fill.

Most of our alcohol finished goods are manufactured at our owned or leased manufacturing facilities or at third-party co-packers.

Co-Packing Arrangements

All of our non-alcohol and certain alcohol finished goods are manufactured by various third-party bottlers and co-packers situated throughout the United States and abroad, under separate arrangements with each party.

A majority of our non-alcohol and certain alcohol finished goods are manufactured by various third-party bottlers and co-packers situated throughout the United States and abroad, under separate arrangements with each party.

Our co-packaging arrangements vary in terms and do not generally obligate us to procure minimum quantities of products within specified periods.

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Our ability to estimate demand for our products is imprecise, particularly with new products, and may be less precise during periods of rapid growth, including in new markets.

If we materially underestimate demand for our products and/or are unable to secure sufficient ingredients or raw materials including, but not limited to, aluminum cans, aluminum cap cans, sleek aluminum cans, aluminum cans with re-sealable ends, PET plastic bottles, caps, labels, flavor ingredients, flavors, juice concentrates, coffee, tea, supplement ingredients, ethanol, other ingredients and certain sweeteners, and/or procure adequate packing arrangements and/or obtain adequate or timely shipment of our products, we might not be able to satisfy demand on a short-term basis.

If we materially underestimate demand for our products and/or are unable to secure sufficient ingredients or raw materials including, but not limited to, aluminum cans, aluminum cap cans, sleek aluminum cans, aluminum cans with re-sealable ends, to a limited extent PET plastic bottles and caps, labels, flavor ingredients, flavors, juice concentrates, coffee, tea, supplement ingredients, ethanol, other ingredients and certain sweeteners, and/or procure adequate packing arrangements and/or obtain adequate or timely shipment of our products, we might not be able to satisfy demand on a short-term basis.

(See “Part I, Item 1A – Risk Factors”).

For most of our products there are limited co-packing facilities in our domestic and international markets with adequate capacity and/or suitable equipment to package our products.

For certain of our products, there are limited co-packing facilities in our domestic and international markets with adequate capacity and/or suitable equipment to package our products.

We believe a short disruption or delay in production would not significantly affect our revenues;

however, as alternative co-packing facilities in our domestic and international markets with adequate long-term capacity may not be available for such products, either at commercially reasonable rates and/or within a reasonably short time period, if at all, a lengthy disruption or delay in production of any of such products could significantly affect our revenues.

We continue to actively seek alternative and/or additional co-packing facilities around the world (including in Africa, Asia, Australia, Central and South America, China, Europe, India, Mexico, the Middle East and the United States) with adequate capacity and capability for the production of our various products to minimize transportation costs and transportation-related damages as well as to mitigate the risk of a disruption in production and/or importation.

We continue to actively seek alternative and/or additional co-packing facilities globally with adequate capacity and capability for the production of our various products to minimize transportation costs and transportation-related damages as well as to mitigate the risk of a disruption in production and/or importation.

Distribution Agreements

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Alcohol Brands Distribution Agreements

CANarchy has entered into agreements with various beer distributors, both in the United States and internationally, providing for the distribution of our alcohol products.

Monster Brewing Company has entered into agreements with various beer distributors, both in the United States and, to a limited extent, internationally, providing for the distribution of our alcohol products.

Such agreements have varying terms and durations.

CANarchy, along with Monster Brewing LLC, has also entered into distribution agreements with licensed beer distributors for the exclusive distribution of certain beverages in agreed upon territories.

Monster Brewing Company has also entered into distribution agreements with licensed beer distributors for the exclusive distribution of certain beverages in agreed upon territories.

Raw Materials and Suppliers

The principal raw materials used in the manufacturing of our products are aluminum cans, aluminum cap cans, sleek aluminum cans, aluminum cans with re-sealable ends, PET plastic bottles, caps, kegs, cartons as well as flavors, juice concentrates, glucose, sugar, sucralose, milk, cream, coffee, tea, hops, malt, yeast, ethanol, supplement ingredients and other packaging materials, the costs of which are subject to fluctuations.

The principal raw materials used in the manufacturing of our products are aluminum cans, aluminum cap cans, sleek aluminum cans, aluminum cans with re-sealable ends, to a limited extent PET plastic bottles and caps, kegs, cartons as well as flavors, juice concentrates, glucose, sugar, sucralose, milk, cream, coffee, tea, hops, malt, yeast, ethanol, supplement ingredients and other packaging materials, the costs of which are subject to fluctuations.

AFF is the primary flavor supplier for our Monster Energy® brand energy drinks.

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For our Strategic Brands energy drinks, we purchase flavors, concentrates and/or beverage bases from flavor suppliers including TCCC in the United States and abroad, and may purchase certain other ingredients from independent suppliers located in the United States and abroad.

With regard to our Java Monster® product line, the dairy and retort co-packing industries are subject to shortages and increased demand from time to time, which may result in production disruption and/or higher prices.

For certain flavors purchased from third-party suppliers and used in certain of our Monster Energy® brand energy drinks, Strategic Brands energy drinks and/or our alcohol drinks, these third-party flavor suppliers own the proprietary rights to certain of their flavor formulas.

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Important factors affecting our ability to compete successfully include brand and product image, taste and flavor of products, trade and consumer promotions, rapid and effective development of new and unique cutting-edge products, ingredients, production processes, attractive and different packaging, brand exposure and marketing as well as pricing.

We depend on our bottlers and full service beverage distributors to prioritize our products, provide stable and reliable distribution and secure adequate shelf space in retail outlets.

Competitive pressures in the “alternative,” energy, coffee, “functional,” and “beyond beer” (hard seltzers, FMBs, canned cocktails and other ready-to-drink beverages) beverage categories could cause our products to maintain or to lose market share, or we could experience price erosion, which could materially impact our business and results of operations.

We depend on our bottlers/distributors to prioritize our products, provide efficient, stable and reliable distribution and secure

adequate shelf space in retail outlets.

Competitive pressures in the “alternative,” energy, coffee, “functional,” “craft beer” and “beyond beer” (hard seltzers, FMBs, canned cocktails and other ready-to-drink beverages) beverage categories could cause our products to maintain or to lose market share, or we could experience price erosion, which could materially impact our business and results of operations.

We have experienced and continue to experience competition from new entrants in the energy drink, energy shot, beer and beyond beer categories.

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We believe that many of those products contain lower levels of supplement ingredients, principally deliver refreshment and are positioned differently from our energy or “functional” drinks.

We are also subject to increasing levels of regulatory issues including in relation to the registration and/or taxation of our products in certain new international markets, which may put us at a competitive disadvantage.

We are also subject to increasing levels of regulatory issues including in relation to the registration and/or taxation of our products in certain international markets, which may put us at a competitive disadvantage.

(See “Government Regulation” below for additional information).

We compete not only for consumer preference, but also for maximum marketing, sales efforts and attention from our multi-brand licensed bottlers and distributors, many of which have a principal affiliation with competing companies and brands.

Our products compete with all liquid refreshments and in many cases with products of much larger and in some cases better financed competitors, including the products of numerous nationally and internationally known producers such

as TCCC, PepsiCo, Inc.

(“PepsiCo”), Keurig Dr.

(“KDP”) and Red Bull GmbH.

From time to time, such larger competitors may enter into distribution agreements with certain other competitors.

From time to time, such larger competitors have entered into distribution agreements with certain other competitors.

For example, PepsiCo entered into a long-term distribution arrangement with Celsius Holdings, Inc.

We also compete with companies that are smaller or primarily local in operation.

Our products also compete with private-label brands such as those carried by grocery store chains, convenience store chains and club stores.

Domestically, our energy drinks compete directly with Red Bull, Rockstar, MTN Dew Amp, MTN Dew Kickstart, MTN Dew GameFuel and MTN Dew Energy, G Fuel, Venom, VPX Redline, 5-Hour Energy Shots, MiO Energy, VPX Bang, V8 + Energy, Uptime, hi*ball, CELSIUS, C4, Alani Nu, 3D Energy, ZOA Energy, Rowdy Energy, GHOST Energy, Gatorade Fast Twitch, Prime Energy, Starbucks BAYA Energy, Guayaki Yerba Mate, Optimum Nutrition, Adrenaline Shoc and many other brands.

Domestically, our energy drinks compete directly with Red Bull, Rockstar, MTN Dew Amp and MTN Dew Energy, G Fuel, Venom, 5-Hour Energy Shots, MiO Energy, V8 + Energy, Uptime, hi*ball, CELSIUS, C4, Alani Nu, 3D Energy, ZOA Energy, GHOST Energy, Gatorade Fast Twitch, Prime Energy, Starbucks BAYA Energy, Guayaki Yerba Mate, Adrenaline Shoc, Accelerator Active Energy, Arizona Rx Energy, Bucked Up Energy, XYIENCE Energy and many other brands.

Internationally, our energy drinks compete with Red Bull (including non-carbonated Red Bull in China and Asia), Rockstar, V-Energy, Lucozade, and numerous local and private-label brands that usually differ from country to country, such as HELL, Amper, Shock, Tiger, Fearless, Boost, TNT, Shark, Dragon, Score, Sting, Hot 6, Suntory ZONE, Battery, Bullit, Flash Up, Black, Non-Stop, Bomba, Semtex, Vive 100, Dark Dog, Speed, Guarana, M-150, Lipovitan, Bacchus, Volt, Bolt, Mr.

Big, Boom, Raptor, Amp, Fusion, Hi-Tiger, Eastroc Super Drink, Carabao, Power Horse, XL, Crazy Tiger, Effect, Missile, Nocco, Adrenaline Rush, Real Gold, War Horse, BLU, CELSIUS, Eneryeti, GURU Organic Energy and a host of other international brands.

Our Reign Total Body Fuel® and Reign Inferno® Thermogenic Fuel high performance energy drinks compete with VPX Bang, Adrenaline Shoc, C4, CELSIUS HEAT, NOCCO, Rockstar XDURANCE, Ghost Energy, G Fuel, VPX Redline, Bucked Up Energy, and 3D in the performance energy category.

Our Java Monster® product line competes directly with Starbucks Frappuccino, Starbucks Doubleshot, Starbucks Tripleshot and other Starbucks coffee drinks, Costa Coffee, Dunkin Donuts, Stok, High Brew, Douwe Egberts Coffee, Emmi CAFFÈ, Bang Keto Coffee, Nescafe, Black Rifle, International Delight, Rise Brewing Co.

and Black Stag.

Our Monster Hydro® Energy Water and Monster Hydro® Super Sport product lines compete directly with BODYARMOR, Vitamin Water, Sparkling Ice, Bai, Propel, Vita Coco, Lucozade, Powerade, Gatorade, Gatorade Fast Twitch, Gatorade Bolt24 and Prime Hydration.

Our True North® Pure Energy Seltzer product line competes directly with Celsius and Alani Nu.

Our CANarchy family of products and The Beast Unleashed TM product line competes within the FMB, hard seltzer, and craft beer categories of the alcohol beverage industry.

Our Reign Total Body Fuel®, Reign Inferno® Thermogenic Fuel high performance energy and Bang Energy® drinks compete with Adrenaline Shoc, C4, CELSIUS, NOCCO, Rockstar XDURANCE, Ghost Energy, G Fuel, Bucked Up Energy and 3D in the performance energy category.

Our Reign Storm® Total Wellness Energy product line competes directly with Accelerator Active Energy, Alani Nu, CELSIUS, C4 Smart Energy, UPTIME Energy, and ZOA Energy.

Emmi CAFFÈ, Nescafe, Black Rifle, International Delight, Rise Brewing Co., Black Stag, La Colombe, Super Coffee, Bolthouse Farms and Victor Allen’s Coffee.

Our alcohol products compete within the FMB, hard seltzer, and craft beer categories of the alcohol beverage industry.

Competition includes microbreweries, regional brewers, national craft brewers, and large international and domestic producers of beers, FMBs, and hard seltzers such as Molson Coors, Constellation Brands, AB InBev, The Boston Beer Company and The Mark Anthony Group among many others.

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We use our branded vehicles and other promotional vehicles at events where we offer samples of our products to consumers.

These strategies and activities may apply to the CANarchy family of products or The Beast Unleashed TM where permitted by applicable laws.

These strategies and activities may apply to our alcohol products where permitted by applicable laws.

We also manage taprooms and brewpubs adjacent to some of our manufacturing locations where we sell our alcohol products, merchandise, and food to consumers in a branded environment.

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We review our products and packaging on an ongoing basis and, where practical, endeavor to make them different and unique.

The labels and graphics for many of our products are redesigned and refreshed from time to time to maximize their visibility and identification, wherever they may be placed in stores, which we continue to reevaluate from time to time.

Where appropriate, we partner with our bottlers/distributors and/or retailers to assist our marketing efforts.

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Retail grocery, direct convenience, specialty chains and wholesalers

Alcohol, direct value stores and other

Alcohol, value stores and other

Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Coca-Cola Bottling, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc.

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(including Sam’s Club), Costco Wholesale Corporation and Amazon.com, Inc.

Our alcohol customers include J.J.

Taylor Distributing, Ben E.

Keith, Reyes Beer Division, Sheehan Family Companies, and Admiral Beverage.

Our alcohol customers include Reyes Beverage Group, Ben E.

Keith Company, J.J.

Taylor Distributing and Sheehan Family Companies.

A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and results of operations.

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Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.

Coca-Cola Europacific Partners accounted for approximately 13%, 12% and 10% of our net sales for the years ended December 31, 2022, 2021 and 2020.

Coca-Cola Europacific Partners accounted for approximately 13%, 13% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.

Sales of ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters accounting for the highest sales volumes.

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We regard our trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to our business.

We consider Monster®, Monster Energy®, ®, Monster Energy Ultra®, Monster Dragon Iced Tea®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Muscle Monster®, Punch Monster®, Juice Monster®, Hydro® (stylized), Monster HydroSport Super Fuel®, Hydro Super Sport®, Monster Super Fuel®, Espresso Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, True North®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Gladiator®, Samurai®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin TM , Dale’s®, Mama’s Little Yella Pils®, Hop Rising® and The Beast Unleashed TM to be our core trademarks.

We consider Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Muscle Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Gladiator®, Samurai®, Bang Energy®, Monster Tour Water®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin®, Dale’s®, Hop Rising®, The Beast Unleashed® and Nasty Beast TM Hard Tea to be our core trademarks.

We also own the intellectual property of our most important flavors for certain of our Monster Energy® Brand energy drinks in perpetuity.

We have registered Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Muscle Monster®, Punch Monster®, Juice Monster®, Hydro® (stylized), Espresso Monster®, True North®, BU®, Nalu®, Burn®, Mother®, Play®, Power Play® (stylized), Relentless®, Ultra Energy®, BPM®, Predator®, Fury®, Live+®, Gladiator®, Samurai®, Reign®, Reign Total Body Fuel® and Reign Inferno® outside of the United States in certain jurisdictions.

We have registered Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab® Monster®, Java Monster®, Muscle Monster®, Punch Monster®, Juice Monster®, BU®, Nalu®, Burn®, Mother®, Play®, Power Play® (stylized), Relentless®, Ultra Energy®, BPM®, Predator®, Fury®, Live+®, Gladiator®, Samurai®, Reign®, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Bang Energy®, Monster Tour Water®, The Beast Unleashed® and Nasty Beast TM Hard Tea outside of the United States in certain jurisdictions.

We protect our trademarks by applying for registrations and registering our trademarks with the United States Patent and Trademark Office and with government agencies in other countries around the world, particularly where our products are distributed and sold.

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We also may in the future be affected by other existing, proposed and potential future regulations or regulatory actions, including those described below, any of which could adversely affect our business, financial condition and results of operations.

See “Part I, Item 1A – Risk Factors – Changes in government regulation, or a failure to comply with existing regulations related to energy drinks, could adversely affect our business, financial condition and results of operations,” “Regulations concerning our alcohol beverages may adversely affect our business, financial condition or results of operations and inhibit the sales of such products,” and “Significant changes to or failure to comply with various environmental laws may expose us to liability and/or cause certain of our facilities and/or those of our co-packers to close, relocate or operate at reduced production levels, which could adversely affect our business, financial condition and results of operations” below for additional information.

See “Part I, Item 1A – Risk Factors – Changes in government regulation, or a failure to comply with existing

regulations, related to energy drinks, could adversely affect our business, financial condition and results of operations,” “Regulations concerning our alcohol beverages may adversely affect our business, financial condition or results of operations and inhibit the sales of such products,” and “Significant changes to or failure to comply with various environmental laws may expose us to liability and/or cause certain of our facilities and/or those of our co-packers to close, relocate or operate at reduced production levels, which could adversely affect our business, financial condition and results of operations” below for additional information.

Furthermore, legislation and regulation may be introduced in the United States and other countries at the federal, state, municipal and supranational level in respect of each of the subject areas discussed below.

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Further, the U.S.

Department of Agriculture promulgated regulations requiring that, by January 1,

2022, the labels of certain bioengineered foods include a disclosure that the food is bioengineered.

Department of Agriculture promulgated regulations requiring that, as of January 1, 2022, the labels of certain bioengineered foods include a disclosure that the food is bioengineered.

These regulations may impact, reduce and/or otherwise affect the purchase and consumption of our products by consumers.

Other countries, such as Argentina, Brazil, Colombia, the member states of the Gulf Cooperation Council, Mexico, the People’s Republic of China, Peru and Uruguay are also considering, or have enacted, new labeling requirements, which may require us to amend our labels and warning statements.

Other countries, such as Argentina, Brazil, Colombia, Ecuador, Honduras, the member states of the Gulf Cooperation Council, the member states of the Caribbean Community and Common Market (CARICOM), Mexico, the People’s Republic of China, Paraguay, Peru and Uruguay are also considering, or have enacted, new labeling requirements, which may require us to amend our labels and warning statements.

The United Kingdom Government has also suggested that it may review food labeling laws following the United Kingdom’s departure from the European Union (“Brexit”).

More generally, some markets, such as Tanzania, have specific energy drink standards that do not always allow for inclusion of certain ingredients, such as L-carnitine and ginseng, in our products.

Peru also recently challenged the use of L-carnitine in energy drinks.

More generally, some markets, such as Tanzania, have specific energy drink standards that do not always allow for inclusion of certain ingredients, such as L-carnitine and ginseng, or that otherwise restrict the levels of certain ingredients in our products.

Peru has also challenged the use of L-carnitine in energy drinks.

Other markets may also restrict or prohibit the use of ginseng and certain other botanicals in food.

We may incur costs to address such country-specific requirements for or face restrictions on our products.

We may incur costs to address such country-specific requirements or face restrictions on our products.

Age and Other Restrictions on Energy Drink Products.

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For example, in the United States, bills seeking to impose an age restriction on the sale of energy drinks have been introduced in the Connecticut, Massachusetts, and South Carolina legislatures.

Outside of the United States, for example, Latvia, Lithuania, Turkey, and Bahrain prohibit the sale of energy drinks to persons under the age of 18;

Outside of the United States, for example, Latvia, Lithuania, Poland, Turkey, and Bahrain prohibit the sale of energy drinks to persons under the age of 18;

Canada prohibits the promotion of energy drinks to children 12 years and under;

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Colima prohibits the sale of energy drinks in private and public schools.

Other Latin American countries such as Chile and Brazil have been considering age and other sales restrictions on energy drinks, as are other countries such as the United Kingdom (other than Scotland) and Spain.

Poland has introduced a far-reaching bill that would, among other measures, ban the sale of energy drinks to persons under 18, ban advertising of energy drinks on television and radio between 6 am and 8 pm with very limited exceptions, ban online and billboard advertising for energy drinks, and effectively ban the sale or distribution of non-energy drink products carrying energy drink branding.

Other Latin American countries such as Chile, Colombia, Dominican Republic, Honduras and Brazil have been considering age and other sales restrictions on energy drinks, as are other countries such as Spain and Romania.

Similar rules would not apply to coffee products that contain similar or higher levels of caffeine.

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Boulder, Colorado;

Philadelphia, Pennsylvania, Seattle, Washington, and Washington, DC) have passed similar measures, some of which have been challenged in litigation.

Philadelphia, Pennsylvania;

Seattle, Washington;

and Washington, DC) have passed similar measures, some of which have been challenged in litigation.

The imposition of such taxes on our products would increase the cost of certain of our products or, to the extent levied directly on consumers, make certain of our products less affordable.

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Poland recently established a tax on drinks with added sugars, specifically targeting beverages containing caffeine and taurine.

Brazil recently approved a tax reform that includes the creation of a Selective Tax (IS) which may potentially impose additional taxes on energy drinks.

Other countries are considering similar measures.

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For instance, on January 1, 2020, a reform to a Mexican excise tax went into effect that expanded the definition of an “energy drink” subject to this tax to include products with any amount of caffeine (the prior version of the tax required a threshold of 20 milligrams of caffeine per 100 millimeters for the tax to be applicable) and “taurine or glucuronolactone or thiamine and/or any other substance that produces similar stimulating effects.” Hungary has instituted an excise tax to which our products are subject.

Bahrain, Saudi Arabia and the United Arab Emirates began

applying a selective tax of 100% on energy drinks in 2017, Qatar and Oman began applying the tax in 2019, and there are indications that a similar measure may be enacted in Kuwait.

Bahrain, Saudi Arabia and the United Arab Emirates began applying a selective tax of 100% on energy drinks in 2017, Qatar and Oman began applying the tax in 2019, and there are indications that a similar measure may be enacted in Kuwait.

Limits on Caffeine Content.

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We adjusted the caffeine levels in certain of our Monster Energy® products that are sold in Canada to address these regulations, although the majority of our products were unaffected.

In Europe, examples of caffeine restrictions include the Netherlands where there is a limit of 35mg/100ml, and Norway introduced, as of January 1, 2020 (subject to transition periods), a limit of 32mg/100ml.

In Europe, examples of caffeine restrictions include the Netherlands where there is a limit of 35mg/100ml, and Norway introduced, as of January 1, 2020, a limit of 32mg/100ml.

Caffeine limit restrictions or restrictions on combining caffeine with other ingredients or in particular product sectors (such as performance beverages/sport drinks) have also been implemented or proposed in other jurisdictions, including Turkey, India, Pakistan’s Punjab region, Egypt, Spain, Colombia, Iraq, and the member states of the Gulf Cooperation Council.

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Our alcohol beverages are also subject to various taxes, license fees, and the like levied by governmental entities as well as bonds that such entities may deem necessary to ensure compliance with applicable laws and regulations.

One such tax that we must comply with is the federal excise taxes.

One such tax that we must comply with is the U.S.

federal excise tax.

Beginning in January 2018, the federal excise taxes imposed on domestic brewers that produce less than 2 million barrels annually were reduced from $7.00 to $3.50 per barrel on the first 60,000 barrels shipped annually.

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As of December 31, 2023, we have employees in 73 countries, with a total of 6,003 employees working worldwide.

This employee population includes 3,611 employees in North America, 367 employees in Latin America, 275 employees in Asia Pacific and 1,043 employees in Europe, Mideast and Africa (“EMEA”).

This employee population includes 4,120 employees in North America, 400 employees in Latin America, 270 employees in Asia Pacific (including Oceania) and 1,213 employees in Europe, Mideast and Africa (“EMEA”).

Most of our employees are full-time (5,254 employees) and the remaining 749 employees hold part-time positions.

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employees are female.

In 2020, we established our Equality, Diversity and Inclusion (EDI) Leadership Advisory Group, comprised of leaders from across the Company, designed to provide insight on our diversity and inclusion efforts and to assist in the integration of the EDI program within our overall strategy and business objectives.

In 2021, we established three regional EDI Working Councils across the Americas, EMEA, and APAC regions.

In 2020, we established our Diversity, Equality and Inclusion (DEI) Leadership Advisory Group, comprised of leaders from across the Company, designed to provide insight on our diversity and inclusion efforts and to assist in the integration of the DEI program within our overall strategy and business objectives.

In 2021, we established three regional DEI Working Councils across the Americas, EMEA, and APAC regions.

In 2023, we developed a dedicated role, Senior Vice President of DEI and Philanthropy, designed to support the DEI Working Councils and liaison between the various regions, DEI Leadership Advisory Group and Executive Management.

We provide training for our employees covering harassment, discrimination and unconscious bias.

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We currently cover the cost of insurance premiums including medical (including virtual visits), dental, vision, life, accidental death and dismemberment and short and long term disability, covering full-time employees and share in the cost of insurance premiums covering eligible dependents including medical, dental and vision coverage.

We also offer several voluntary benefits to full-time employees, including supplemental life insurance, whole life insurance, accident insurance, critical illness insurance, flexible health spending accounts, flexible spending accounts for childcare, travel insurance, pre-paid legal cover, healthy rewards programs, identity theft assistance, and retirement savings account(s).

We also offer several voluntary benefits to full-time employees, including supplemental life insurance, whole life insurance, accident insurance, critical illness insurance, flexible medical spending accounts, flexible spending accounts for childcare, travel insurance, pre-paid legal cover, healthy rewards programs, identity theft assistance, and retirement savings account(s).

We also offer an Employee Assistance Program (EAP) to all employees.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business