Monster Beverage Company reported that it has “restructured” the senior management of its alcohol brands division, following the appointment of Ray LaRue as president, the company shared within its Q3 2024 financial results. Nevertheless, the company said it remains “positive for the prospects of alcohol products within our broader portfolio.”
Monster CEO Rodney Sacks added that the company is “continuing to consolidate production facilities to maximize efficiencies,” but he did not provide additional commentary. Monster has shuttered the Deep Ellum and Oskar Blues production breweries in Texas, and transitioned the Cigar City brewery in Tampa to a research-and-development facility.
Monster posted a -6% decline in Q3 net sales for its alcoholic beverage brands (The Beast, Nasty Beast Hard tea, craft beer brands and hard seltzers), which the company attributed “primarily due to decreased sales by volume of craft beers.”
The $39.8 million in sales for its bev-alc portfolio in Q3 2024 marked a -$2.5 million decline from Q3 2023 when the company posted $42.3 million in sales.
The company reported that Q3 gross profit “was adversely impacted by an increase in inventory reserves” for its alcohol brands of $10.6 million.
Monster execs also touted the launch of a second variety 12-pack for The Beast, with flavors including Mean Green and new flavors Pink Poison, Gnarly Grape and Killer Sunrise (6% ABV each), during the quarter. The company also rebranded The Beast to drop “Unleashed” from its name.
Cigar City Jai Alai underwent its first brand refresh since 2017, with new packaging shipping now. Oskar Blues is also releasing its first non-alcoholic beer, Designated Dale’s. Read Brewbound’s previous coverage.
The company said it is also exploring international distribution opportunities for its alcoholic beverages.
Sacks noted during the call that the company’s brewery in Brevard, North Carolina, was closed for a week due to flooding from Hurricane Helene. The brewery is now “partially operational” and is expected to “be fully operational by mid-November.”
Get details on Monster’s full Q3 results and energy drinks business here.