Monster Buys American Fruits & Flavors for $690 Million

Monster Beverage is acquiring flavor supplier and long-time business partner, American Fruits & Flavors (AFF) for $690 million. The transaction, expected to close first-quart 2016, will bring Monster's primary flavor supplier in-house, secure the intellectual property of Monster's most important flavors in perpetuity and further enhance its flavor development and global flavor footprint capabilities.

Rodney C. Sacks, chairman and CEO of Monster, said “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."

He added that AFF’s history of customer satisfaction, service, and flavors expertise seamlessly complements Monster’s business while providing an excellent platform for continued innovation. The transaction also provides Monster with an opportunity to more effectively and profitably deploy AFF’s flavor keys and intellectual property in Monster’s growing international supply chain strategy.

In June 2015, The Coca-Cola Company completed a $2.15 billion deal to acquire 16.7 percent of the Monster Beverage Corporation. The Monster transaction was in line with Coca-Cola’s strategy to branch out from its soft drink roots into other beverage sectors. In February 2014, Coca-Cola purchased $1.25 billion in stock from Green Mountain Coffee Roasters, Inc., and signed a $1.25 billion 10-year agreement to collaborate on the launch of Keurig’s cold beverage platform