CORONA, CALIF. — During its 2025 first-quarter earnings call, Monster Beverage Corp. made clear that tariffs aren’t currently affecting the company’s results, due to a combination of localized production for Monster products and hedging strategies on materials such as aluminum.
“The impact of tariffs on our operating results was immaterial,” said Rodney Sacks, chairman of the board, co-chief executive officer, Monster. “While our concentrates are manufactured both in the US and Ireland at the present time, production of our finished products take place locally in our respective markets. The tariff landscape is complicated and dynamic. We import some raw materials into the United States, export certain raw materials for local markets and export limited quantities of finished products.
“We will recognize tariffs on aluminum through the higher Midwest premium and are reviewing mitigation strategies across the business. For instance, AFF (American Fruits & Flavors), our flavor and concentrate subsidiary, is planning to establish a facility in Brazil, which should be operational later in 2026.”
For the first quarter ended March 31, 2025, Monster’s net income rose to $443 million, equal to 45¢ per share on the common stock, compared to $442 million, or 42¢ per share during the first quarter last year. Net sales dropped 2.3% to $1.85 billion from $1.9 billion a year ago.
Sales of Monster’s energy drink brands – which include Monster Energy, Reign Total Body Fuel, Reign Storm, and Bang Energy – dipped 0.8% to $1.72 billion from $1.73 billion during the same period last year.
“Our first quarter revenues were impacted by a number of headwinds including bottler/distributor ordering patterns, unfavorable foreign currency exchange rates in certain markets, adverse weather in certain geographies as well as overall global economic uncertainties,” said “Hilton Schlosberg, vice chairman, co-chief executive officer, Monster. “Despite these headwinds, net sales – excluding the Alcohol Brands segment – on a foreign currency adjusted basis, increased 1.9% in the quarter.”
Continued alcohol sales drop
An ongoing concern for Monster during the past year has been the consistent sales decline of its alcohol brands under the Monster Brewing umbrella, which includes Beast brand hard seltzer and hard tea, Dale’s beer, and Cigar City Brewing beer. The segment has been a drag on the bottom line, and an obstacle to what would be more profitable overall numbers for the company.
In Monster’s 2025 first-quarter earnings report, the company highlighted several financial results – such as operating income, net sales and net income per share – both with and without alcohol sales numbers. For example, Monster assigned a 2¢ increase to its earnings per share without the alcohol sales drop included.
During the 2025 first quarter, net sales of Monster Brewing alcohol brands fell to $35 million, compared to $56 million a year ago – a decrease of 38%. Last year, first-quarter alcohol sales rose 21% versus 2023 first-quarter sales.
Monster launched Monster Energy Ultra Blue Hawaiian in January, and it has rapidly become one of the company’s top-selling products.
| Photo: ©FELIX GERINGSWALD – STOCK.ADOBE.COM“The Alcohol Brands segment continued to put negative pressure on our financial results,” Sacks said. “We remain focused on optimizing our personnel and facilities to support the current demand for our Monster Brewing portfolio and innovation pipeline.”
Sacks added that comparative first- quarter alcohol sales were lower than last year, “largely as a result of the launch of Nasty Beast Hard Tea in the first quarter of 2024.”
The company is introducing a chelada brand later this year called Michi, which will come in lime and tomato/lime flavors, each containing 4% ABV. Monster also is exploring sales opportunities for its alcohol products in some international markets.
Convenience channel improving
Sacks said a convenience channel turnaround may be on the horizon after significant traffic drops in 2024 affected Monster’s results. He noted that Nielsen research for the last four weeks ended April 26, show sales in dollars in the energy drink category in convenience and gas channels increased 8.9% over the same period last year. The company also launched Monster Energy Ultra Blue Hawaiian in January, and it “has rapidly become one of our top-selling products,” he said.
Monster did not update its 2025 outlook based on first-quarter results, but Sacks said this would be his last earnings call with the company, and will step down as co-CEO after 30 years, following Monster’s shareholder meeting on June 12. He will remain with the company as chairman of the board.
