CORONA, CALIF. — Executives at Monster Beverage Corp. are amped up about the launch of a new performance energy drink set to debut in March. The new brand, Reign, will be marketed as “total body fuel” and will receive the full support of Monster’s management team when it hits the market in a few months, said Rodney Cyril Sacks, chairman and chief executive officer.
Mr. Sacks told investors during a Jan. 17 presentation that the company has been “very focused” on the Reign brand’s development.
“We are positioning this product,” he said. “We’ve been getting incremental space to our energy space for this product without having to eat into our existing space. We’re getting space either in the energy doors, or we’re getting space in additional space alongside the energy doors, where a number of the retailers are creating what they’re calling a performance type pre/post-workout performance type category, which we believe will expand the energy category. And so many of our listings will be a mix of those two. As the category develops, we think it will develop its own focused space.”
Mr. Sacks said Monster has made presentations to its top 200 customers, with all agreeing to take the Reign product. The brand initially will launch with six stock-keeping units. Mr. Sacks did not provide many specific details of what all is contained in Reign, other than to note that it will have five times the BCAA levels and five times more CoQ10 than competitor Bang has. BCAAs, which are branched-chain amino acids, are known to stimulate protein synthesis, increase muscle function, decrease soreness after a workout and even aid in repairing damaged muscles. Coenzyme Q10, meanwhile, is found in the mitochondria of cells and sparks energy production. It helps produce energy the body needs for cell growth and maintenance. Reign also will contain 300 mg of caffeine per can.
Monster has vowed to put “a lot of effort” behind Reign, Mr. Sacks said.
“We’ve appointed senior managers to get involved and to support the brand and focus exclusively on the brand, which is going to be positioned, have its own marketing, its own positioning,” he explained. “We are going to ensure that this brand is rolled out and has the full support of the full Monster team behind it.
“We’re going to be signing a number of ambassadors. ... There will be a number of additional and different athletes. How we’re going to sample the product, merchandise it differently? We’re obviously going to look at going into health stores, health food stores, vitamin stores and the general stores as well. We believe that Reign will bring incremental dollars to the energy beverage category through expanded usage occasions and the fulfillment of multiple need states.”
Monster’s innovation efforts in 2019 will extend beyond Reign, though. Mr. Sacks said the company plans to focus on creating a subfamily of key products.
He said the company will have a Dragon Tea line that will feature three flavors: white tea, green tea and a yerba mate tea. The new line will target the “slightly healthier positioning, easier drinking product, reasonably low-calorie product,” Mr. Sacks said.
Monster also plans to introduce Ultra Paradise, which will be the company’s newest Ultra product. The Java Monster family also will get a line extension in the form of Swiss chocolate, Mr. Sacks said. The variety has been testing in Dollar General stores and now will roll out to the general market in late February together with Ultra Paradise.
Later in the year Monster plans to introduce Monster Mule as well as a caramel Espresso Monster product.