The arbitration court ruled that Coca-Cola could sell its energy drinks worldwide, subject to the terms of its contract with Monster Beverage.
Earlier we wrote that the Coca-Cola company introduced an energy drink under its own brand. The novelty was named Coca Cola Energy and was first introduced in Spain and Hungary in April this year. It is expected to be available worldwide for the foreseeable future. The new drink contains caffeine, guarana extract and B vitamins. It lacks taurine, a stimulant often found in energy drinks.
And everything would be fine, only under the terms of the agreement with Monster Beverage, Coca-Cola does not have the right to produce energy drinks under its own brand. At least, representatives of Monster said so, while Coca-Cola claimed that the agreement was interpreted somewhat differently. As is often the case in such cases, the matter went to trial.
But it seems that when developing their own energy drink, Coca-Cola was sure that they were right for a reason. The court recognized the correctness of the company, considering that Monster Beverage really misunderstood the terms of the contract. Coca-Cola Energy can be produced and sold all over the world, and not just in those countries where this drink is already available.
Meanwhile, Coca-Cola said it would continue to partner with Monster, in which it owns 16.7% shares. Following the announcement of the ruling, Monster Beverage shares fell 3% while Coca-Cola shares posted a marginal gain.