Despite Challenging Macro, Narrow-Moat Monster's Brand Strength Stays Intact

After helping pioneer the U.S. energy drink industry two decades ago, Monster continues to extract outsize growth and stellar profitability from this market. We think that despite relying almost entirely on a Monster trademark that is not easily parlayed into other beverage segments, the firm will continue to innovate in the energy category and expand the range of occasions for which the drinks are consumed. As such, we believe these efforts should collectively support high-single-digit top-line growth longer term.