What changed in this filing

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Item 1. Business

2025-02-28 compared with 2024-02-29 · 135 added, 141 removed, 360 unchanged (43% 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 subsidiary, CANarchy Craft Brewery Collective LLC (“CANarchy”), was renamed Monster Brewing Company effective January 2024.

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

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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● Monster Energy Ultra®

● Monster Rehab®

● Rehab Monster®

● Monster Energy®Nitro

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● Relentless®

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

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, 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.

(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 and Bang Energy® drinks, (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, FMBs and hard seltzers 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 drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”).

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

Our Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations.

Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks.

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.

The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas 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/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.

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

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

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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.

In 2023, we completed our acquisition of the Bang Energy® drink business.

On May 1, 2024, the Board of Directors authorized the Company to execute a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock.

On May 8, 2024, the Company commenced the tender offer, with such offer expiring on June 5, 2024.

On June 10, 2024, the Company accepted for purchase a total of approximately 56.6 million shares of common stock at a purchase price of $53.00 per share, for an aggregate purchase price of approximately $3.0 billion.

The repurchase was funded with approximately $2.25 billion of cash on hand and approximately $750 million in borrowings.

The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2024.

2024 Product Introductions

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During 2024, we sold the following new products to our customers:

● 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

● Bang Energy® Sour Ropes

● Burn® Guava

● Java Monster® Irish Crème

● Juice Monster® Rio Punch TM

● Juice Monster® Viking Berry TM

● Juiced Monster® Bad Apple®

● Monster Energy® Ultra Blue Hawaiian

● Monster Energy® Ultra Fantasy Ruby Red TM

● Monster Energy® Ultra Vice Guava®

● Monster® Killer Brew TM Loca Moca®

● Monster® Killer Brew TM Mean Bean®

● Monster® Reserve Peaches N’ Crème

● Mother® Orange Dreamsicle

● Nalu® Yuzu Rosemary

● Nasty Beast® Hard Tea Green Tea

● Nasty Beast® Hard Tea Original

● Nasty Beast® Hard Tea Peach

● Nasty Beast® Hard Tea Tea + Lemonade

● Reign Storm® Mango

● Reign Storm® Strawberry Apricot

● Reign Storm® Tropical

● Reign Total Body Fuel® Sour Gummy Worm

● Relentless® Fruit Punch

● The Beast TM Gnarly Grape TM

● The Beast TM Killer Sunrise TM

● The Beast TM Pink Poison TM

● Ultra Energy® Fruit Punch

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®, 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.

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® (Juiced Monster® Monarch in certain countries), Juice Monster® Pipeline Punch®, Juice Monster® Ripper®, Juice Monster® Rio Punch TM , Juice Monster® Viking Berry TM , Monster Energy® Import, Monster Energy® Export, M3(stylized)®, Monster Energy Zero Ultra®, Monster Energy Ultra Black®, Monster Energy Ultra Blue®, Monster Energy® Ultra Blue Hawaiian, 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®, Monster Energy® Ultra Sunrise®, Monster Energy® Ultra Vice Guava®, Monster Energy Ultra Violet®, Monster Energy Ultra® Watermelon, Monster Energy® Mixxd Punch, Monster Energy® Valentino Rossi, Monster Energy® Zero Sugar Full Throttle, 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® 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.

Java Monster® 300 French Vanilla, Java Monster® Café Latte, Java Monster® Irish Crème, Java Monster® Loca Moca®, Java Monster® Mean Bean®, Java Monster® Salted Caramel, Monster® Killer Brew TM Loca Moca® and Monster® Killer Brew TM Mean Bean®.

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

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

Cosmic Peach and Super Dry.

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

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

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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, Sour Gummy Worm, Strawberry Sublime, Tropical Storm and White Gummy Bear.

Cherry Limeade, Lemon Hdz, Lilikoi Lychee, Melon Mania®, Orange Dreamsicle®, Razzle Berry, Reignbow Sherbet®, Sour Gummy Worm, Tropical Storm®, White Gummy Bear and White Haze.

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:

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

Citrus Zest, Guava Strawberry, Harvest Grape, Kiwi Blend, Mango, Peach Nectarine, Strawberry Apricot, Tropical 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 .

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

Products – Strategic Brands Segment

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

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.

Apple Kiwi, Blue Refresh, Dark Energy®, Fruit Punch, Gold Rush, Guava, Mango, Orange, Original, Passion Punch, Peach, Peach Mango, Pineapple, Sour Twist, Watermelon Zero Sugar, White Citrus Zero and Zero Raspberry.

Full Throttle® – a line of carbonated energy drinks.

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

Gold Strike® and Mango Mayhem®.

Live+® – a line of carbonated energy drinks.

We offer the following energy drinks under the Live+® product line:

Ascend, Ignite, Persist and Watermelon.

Original, Tart Apple, Watermelon and Zero Sugar.

Mother® – a line of carbonated energy drinks.

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

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

Epic Swell®, Frosty Berry®, Kicked Apple®, Kiwi Sublime, Lava Guava®, Orange Dreamsicle®, 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, Cassis Lavender, Exotic, Frost, Green Tea & Ginger, Hibiscus Rooibos, Melon Splash, Original, Passion and Strawberry Rhubarb.

Black Tea & Passion Fruit, Exotic, Frost, Melon Splash, Original, Passion, Strawberry Rhubarb and Yuzu Rosemary.

NOS® – a line of carbonated energy drinks.

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Apple Kiwi, Fruit Punch, Mango, Passion Fruit, Peach, Original and Sugar Free.

Predator® – a line of affordable carbonated energy drinks.

Predator® – a line of affordable carbonated and non-carbonated energy drinks.

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

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

Gold Strike®, Mango Mayhem®, Mean Green®, 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:

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

Cherry, Fruit Punch, Origin and Raspberry 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, Citrus Peach, Original, Passion Punch and Peach Mango.

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

Products – Alcohol Brands Segment

Cigar City TM – a line of craft beers.

We offer the following brands under the Cigar City TM brand family:

Jai Alai ® , Florida Man TM , and others.

Oskar Blues TM – a line of craft beers.

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

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

Cigar City® – a line of craft beers.

We offer the following brands under the Cigar City® brand family:

Jai Alai®, Florida Man® and others.

Oskar Blues® – a line of craft beers.

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

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

Deep Ellum TM – a line of craft beers.

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Hop Rising® Double IPA and others.

Wild Basin TM – a line of craft hard seltzers.

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

Lemon, Grapefruit, Peach, Watermelon and others.

Wild Basin® – a line of craft hard seltzers.

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

Blackberry, Lime, Passion Orange, Pomegranate Acai 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® – 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.

The Beast TM – a line of FMBs.

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

Gnarly Grape TM , Killer Sunrise TM , Mean Green®, Peach Perfect TM , Pink Poison TM , Scary Berries® and White Haze TM .

Nasty Beast® Hard Tea – a line of FMBs.

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

Green Tea, Original, Peach and Tea + Lemonade.

Products – Other Segment

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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.

In addition, we manufacture Bang Energy® drinks and certain of our other energy drink products at our manufacturing facility in Phoenix, AZ.

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/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, hard seltzers and FMBs.

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

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

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.

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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.

However, from time to time, we may enter into manufacturing contracts with agreed upon minimum quantities to ensure continuity of supply of certain products in certain territories.

Our co-packaging arrangements vary in terms and, from time to time, we may enter into manufacturing contracts with agreed upon minimum quantities to ensure continuity of supply of certain products in certain territories.

In some instances, subject to agreement, certain equipment may be purchased exclusively by us and/or jointly with our co-packers and installed at their facilities to enable them to produce certain of our products.

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Monster Energy ® Distribution Agreements

We have entered into agreements with various bottlers/distributors providing for the distribution of our Monster Energy® energy drinks during initial terms of up to twenty years, which may be renewed thereafter for additional terms ranging from one to five years, subject to certain terms and conditions, which may vary depending on the form of the agreement.

We have entered into agreements with various bottlers/distributors providing for the distribution of certain of our energy drinks during initial terms of up to twenty years, which may be extended thereafter, subject to certain terms and conditions, which may vary depending on the form of the agreement.

Such agreements remain in effect for their then-current term as long as our products are being distributed, but are subject to specified termination rights held by each party, which may include by way of example, and depending on the form of agreement, termination upon:

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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/distributors to prioritize our products, provide efficient, stable and reliable distribution and secure

adequate shelf space in retail outlets.

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.

For instance, a number of companies which market and distribute iced teas, coffees, juice cocktails, enhanced waters and sports drinks in various larger volume packages in glass and plastic bottles (including BODYARMOR, Vitamin Water, CORE, Arizona, Ocean Spray, Powerade, Prime, Gatorade Bolt 24 and Starbucks) and 12- and 16-ounce cans (such as Mountain Dew Kickstart and Game Fuel), have added supplement ingredients to their products with a view to marketing their products as “functional” or energy beverages or as having “functional” benefits.

For instance, a number of companies which market and distribute iced teas, coffees, juice cocktails, enhanced waters and sports drinks in various larger volume packages in glass and plastic bottles (including BODYARMOR, Vitamin Water, CORE, Arizona, Ocean Spray, Powerade, Prime and Starbucks), have added supplement ingredients to their products with a view to marketing their products as “functional” or energy beverages or as having “functional” benefits.

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.

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(“KDP”) and Red Bull GmbH.

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.

From time to time, competitors have entered into distribution or acquisition agreements with certain other competitors.

For example, last year, KDP, which distributes C4, entered into a long-term sales and distribution agreement with Black Rifle Coffee Company as well as a definitive agreement to acquire GHOST Lifestyle LLC and GHOST Beverages LLC.

In addition, Celsius Holdings, Inc.

(“CELSIUS”) recently announced that it entered into a definitive agreement to acquire Alani Nutrition LLC (“Alani Nu”).

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 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.

Domestically, our energy drinks compete directly with Red Bull, Rockstar, Venom, 5-Hour Energy Shots, MiO Energy, V8 + Energy, Uptime, CELSIUS, C4, Alani Nu, ZOA Energy, GHOST Energy, Gatorade Fast Twitch, Prime Energy, Starbucks Iced Energy, Guayaki Yerba Mate, Accelerator Active Energy, Arizona Rx Energy, Bucked Up Energy, Black Rifle Energy, XYIENCE Energy, Rip It, Ryse Fuel, Raptor, Bloom 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, Prime Energy and a host of other international brands.

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.

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

Our Reign Total Body Fuel®, Reign Inferno® Thermogenic Fuel high performance energy and Bang Energy® drinks compete with C4, CELSIUS ESSENTIALS, Rockstar XDURANCE, GHOST Energy, G Fuel, Bucked Up Energy and Redcon1 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, ZOA Energy, Rockstar Focus and Bloom.

Our Java Monster® product line competes directly with Starbucks Frappuccino, Starbucks Doubleshot, Starbucks Tripleshot and other Starbucks coffee drinks, Dunkin Donuts, Stok, Black Rifle, International Delight, Rise Brewing Co., La Colombe, Super Coffee, Bolthouse Farms, Slate, Pop & Bottle, Stumptown Coffee, Chamberlin Coffee, Bones Coffee, Chameleon Coffee and Victor Allen’s Coffee.

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

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We increased expenditures for our sales and marketing programs by approximately 11.9% in the twelve-months ended December 31, 2024 compared to the twelve-months ended December 31, 2023.

Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, foodservice customers, value stores, e-commerce retailers and the military.

Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system.

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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.

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

(USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners, Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc.

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Keith Company, J.J.

Taylor Distributing and Sheehan Family Companies.

Taylor Distributing and Admiral Beverage Corporation.

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.

Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.

Coca-Cola Consolidated, Inc.

accounted for approximately 10%, 10% and 11% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.

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%, 13% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.

Reyes Holdings, LLC accounted for approximately 9% of our net sales for the years ended December 31, 2024, 2023 and 2022.

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®, 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 consider Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java 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®, 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 TM , The Beast Unleashed® and Nasty Beast® 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®, 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 have registered Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Play®, Power Play® (stylized), Relentless®, Ultra Energy®, BPM®, Predator®, Fury®, Live+®, Samurai®, Reign®, Reign Total Body Fuel®, Reign Inferno®, Reign Storm®, Bang®, Bang Energy®, Monster Tour Water®, The Beast TM , The Beast Unleashed® and Nasty Beast® 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.

We assert copyright ownership of the statements, graphics and content appearing on the packaging of our products and in our marketing materials.

We aggressively pursue individuals and/or entities seeking to profit from the unauthorized use of our trademarks and copyrights, including, without limitation, wholesalers, street vendors, retailers, online auction site sellers and website operators.

In addition to initiating civil actions against these individuals and entities, we work with law enforcement officials where appropriate.

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The production, distribution and sale in the United States of many of our products are subject to various U.S.

federal, state and local regulations, including but not limited to:

regulations, including but not limited to:

the Federal Food, Drug and Cosmetic Act (“FD&C Act”);

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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.

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.

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, provincial, municipal and supranational level in respect of each of the subject areas discussed below.

Public health officials and health advocates are increasingly focused on the public health consequences associated with obesity and alcohol consumption, especially as they may affect children, and are seeking legislative change to reduce the consumption of sweetened and alcohol beverages.

There also has been an increased focus on caffeine content in beverages and we are seeing some attention to other ingredients in energy drinks.

More generally, individuals in the recently inaugurated U.S.

presidential administration have articulated significant concerns about ultra-processed foods, including sugar-sweetened beverages, and particular ingredients, as well as the “generally recognized as safe” (GRAS) process for getting food ingredients to the market.

Additionally, there are growing calls for the removal of such products from the Supplemental Nutrition Assistance Program (SNAP), formerly food stamps.

In some territories, such as the European Union, food additives including sweeteners such as sucralose are subject to a safety re-evaluation which could potentially lead to changes in the specification for such additives or removal from the approved list of additives.

Food and Drug Administration has also recently initiated a process for post-market review of food ingredients.

Product Formulation, Labeling, Packaging, and Advertising.

Globally, we are subject to a number of regulations applicable to the formulation, labeling, packaging, and advertising (including promotional campaigns) of our products.

In California, we are subject to California Proposition 65, a law which requires that a specified warning be provided before exposing California consumers to any product that contains in excess of threshold amounts of a substance listed by California as having been found to cause cancer or reproductive toxicity.

In California, we are subject to California Proposition 65, a law that requires that a specified warning be provided before exposing California consumers to any product that contains in excess of threshold amounts of a substance listed by California as having been found to cause cancer or reproductive toxicity.

California Proposition 65 does not require a warning if the manufacturer of a product can demonstrate that the use of the product in question exposes consumers to an average daily quantity of a listed substance that is below that threshold amount, which is determined either by scientific criteria set forth in applicable regulations or via a “safe harbor” threshold that may be established by the state, or the substance is naturally occurring, or is subject to another applicable exception.

If we are required to add warning labels to any of our products or place warnings in certain locations where our products are sold, it will be difficult to predict whether, or to what extent, such a warning would have an adverse impact on sales of our products in those locations or elsewhere.

In addition, there has been increasing regulatory activity globally regarding constituents in packaging materials, including perfluoroalkyl and polyfluoroalkyl substances (“PFAS”).

In addition, there has been increasing regulatory activity globally regarding constituents in packaging materials, including perfluoroalkyl and polyfluoroalkyl substances (“PFAS”) and bisphenol A (“BPA”).

Regardless of whether perceived health consequences of these constituents are justified, such regulatory activity could result in additional government regulations that impact the packaging of our beverages.

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Food and Drug Administration (the “FDA”) has regulations with respect to serving size information and nutrition labeling on food and beverage products, including a requirement to disclose the amount of added sugars in such products.

The FDA also recently published a proposed rule that, if finalized, would require certain front-of-pack nutrition labeling, including with respect to the level of added sugars in a product.

Further, the U.S.

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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, 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”).

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

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.

In 2023, Peru 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.

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states, counties, municipalities and/or in certain foreign countries.

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, Poland, Turkey, and Bahrain prohibit the sale of energy drinks to persons under the age of 18;

For example, the City of Lancaster, CA, passed an ordinance on January 14, 2025, making it an infraction to sell or otherwise distribute an energy drink to a person under 18 years of age.

Bills seeking to impose an age restriction on the sale of energy drinks have also been introduced in the Connecticut, Massachusetts, and South Carolina legislatures.

Outside of the United States, for example, Honduras, Latvia, Lithuania, Poland, Romania, Turkey, and Bahrain prohibit the sale of energy drinks to persons under the age of 18, and Armenia passed such a law in January 2025;

Kazakhstan prohibits the sale of energy drinks to persons under the age of 21;

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

Latvia and Scotland prohibit the sale of energy drinks in educational establishments;

and Turkey prohibits the sale or advertising of energy drinks in “collective consumption areas,” such as sports complexes, schools or hospitals.

Honduras, Latvia, Romania, and Scotland prohibit the sale of energy drinks in educational establishments;

and Honduras and Turkey prohibit the sale or advertising of energy drinks at sports facilities, school cafeterias and hospitals.

In Mexico, the States of Tabasco and Oaxaca prohibit the sale of energy drinks to minors and the consumption in schools;

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

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.

Other Latin American countries such as Brazil, Chile, Colombia, Dominican Republic, Honduras and Uruguay have been considering age and other sales restrictions on energy drinks, as are other countries such as Bulgaria, the Czech Republic, Spain, Hungary, and parts of the United Kingdom.

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

Excise Taxes on Energy Drinks.

Excise Taxes and Tariffs on Energy Drinks.

Legislation that would impose an excise tax on sweetened beverages has been proposed in the U.S.

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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.

Excise taxes on sweetened beverages already are in effect in certain foreign countries where we do business, such as France, the United Kingdom, Ireland, South Africa, Mexico and Colombia.

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

Excise taxes on sweetened beverages already are in effect in certain foreign countries where we do business, such as France, the United Kingdom, Ireland, South Africa, Mexico, Poland and Colombia.

Slovakia recently established a tax on sweetened soft drinks, specifically targeting beverages containing caffeine from any source in excess of 150mg/l.

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

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Such targeted legislation has been passed in other countries.

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.

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 20mg 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.

Separately, geopolitical tensions and related trade disputes may affect our ability to operate or sell our products in certain jurisdictions.

For example, the recently inaugurated U.S.

presidential administration has proposed or implemented a range of new tariffs and trade restrictions affecting U.S.

imports from China, Canada, Mexico, the EU, and elsewhere, the nature and scope of which are difficult to predict.

In response to such measures, U.S.

trading partners have suggested they may impose, or have imposed, retaliatory tariffs on U.S.

exports, and/or other trade or commercial restrictions on U.S.

The threat, implementation, or modification of new U.S.

trade restrictions, as well as any retaliatory measures adopted by affected U.S.

trading partners, could prove disruptive to the international market in which we operate and may lead to increased costs of raw materials and finished products.

Limits on Caffeine Content.

Legislation has been proposed to limit the amount of caffeine that may be contained in beverages, including energy drinks.

Some jurisdictions where we do business have prescribed limited caffeine content for beverages.

For example, in Canada, the maximum amount of caffeine cannot exceed 180 mg per single-serving container or per serving (500 ml) in the case of a multi-serving container.

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.

Some jurisdictions where we do business have prescribed limits on caffeine content for beverages.

For example, in Canada, the maximum amount of caffeine in a caffeinated energy drink cannot exceed 180mg per single-serving container or per serving (500 ml) in the case of a multi-serving container.

We adjusted the caffeine levels in certain of our Monster Energy® products that are sold in Canada as caffeinated energy drinks 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, 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.

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, Colombia, Iraq, and the member states of the Gulf Cooperation Council.

Such restrictions could require reformulations of certain of our products.

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We package our products in a variety of different package types and sizes including, for certain of our Monster Energy® brand energy drinks, aluminum cans larger than 16 fluid ounces.

Certain jurisdictions, such as Colombia, Costa Rica, Egypt, the Dominican Republic, and Spain, have considered container size limitations on energy drinks and other beverages.

Certain jurisdictions, such as Colombia, Costa Rica, Egypt, and the Dominican Republic, have considered container size limitations on energy drinks and other beverages.

If adopted, such limitations may require us to change the container size of our products sold in certain countries.

Other countries, like England, have considered and rejected proposed can size limitations although it is open to such markets to revisit these and other similar proposals.

Compliance with Alcohol-Related Regulation and Laws.

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To operate our breweries, manufacturing facilities and other alcohol-related facilities, as well as to sell our alcohol products, we must obtain and maintain numerous approvals, licenses and permits from governmental agencies, including, but not limited to, the U.S.

Department of Treasury, the Alcohol and Tobacco Tax and Trade Bureau (“TTB”), the U.S.

Department of Agriculture, the FDA, state alcohol regulatory agencies and state and federal environmental agencies.

Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau (“TTB”), the FDA, state and local alcohol regulatory agencies and state and federal environmental agencies.

Our breweries, in particular, are subject to audits and inspections by TTB and applicable state alcohol regulatory agencies at any time.

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employees are female.

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.

We support our employees through a variety of training, mentorship and development programs.

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We have multiple short-term incentive programs focused on incentivizing and retaining talent throughout the organization and provide long-term incentive programs to employees through equity and/or performance cash awards.

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 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 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).

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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