CORONA, CALIF. — The Monster Beverage Corp. has acquired American Fruits and Flavors for $690 million. American Fruits and Flavors is a supplier to the company and the transaction allows the energy drink maker to take ownership of intellectual property related to flavor development and Monster’s products.
|Rodney C. Sacks, chairman and c.e.o. of Monster|
“Not only have we secured the intellectual property of our flagship green energy drink and many of our other key flavors, but we are also partnering with an organization I have personally worked with and known for over 20 years,” said Rodney C. Sacks, chairman and chief executive officer of Monster. “This transaction provides Monster a unique opportunity to leverage new flavor technologies and differentiate ourselves from our largest competitors who do not have these capabilities.”
The acquisition also will allow Monster to more effectively deploy American Fruit and Flavors’ products in the beverage company’s growing international supply chain, according to the company.
|Hilton H. Schlosberg, vice-chairman and president of Monster|
“The transaction is strategic to Monster and presents a unique opportunity for us to take ownership of our most important flavors,” said Hilton H. Schlosberg, Monster's vice-chairman and president. “It is also beneficial from a growth perspective and enhances earnings per share. We have taken an important step by integrating our existing and new flavor development and flavor production under the umbrella of our ownership and (we) are confident A.F.F. will act as a catalyst for further success.”
American Fruits and Flavors is based in Los Angeles and operates two divisions, a flavors unit and a juice operation. The company has been in business since 1962.
|Fred Farago, president of American Fruits and Flavors|
“We view today’s announcement as the integration of two companies that have enjoyed a tremendously symbiotic relationship over many years,” said Fred Farago, president of American Fruits and Flavors. “We look forward to joining the highly respected and experienced Monster team to help the company further enhance its position as a global leader in the industry.”