KDP - Monster Beverage is expected to make a play for Bang energy drink brand

2023-04-03 10:46:57 ET

Stifel tipped off on Monday that recent bankruptcy filings indicate  the Bang energy drink brand is up for sale.

Analyst Mark Astrachan noted that the original timeline calling for a stalking horse bidder to be named in the late part of March and a potential auction in late April is likely to have been pushed out. However, the firm sees Monster Beverage ( NASDAQ: MNST ) as in the best position to acquire Bang given it is the largest creditor in bankruptcy and co-rights holder to a 5% perpetual royalty/license for use of the Bang beverage trademark.

"Relatedly, Monster is challenging Bang's ability to transfer the Bang trademark license to an acquirer, which, if successful, would give Monster near total control over Bang's future. While we have no knowledge of discussions, we think Monster acquiring Bang would be modestly accretive to EPS and, strategically, additive to its retail shelf-space and provide some U.S. manufacturing optionality."

Keurig Dr Pepper ( KDP ) was mentioned as potential buyer of Bang by several analysts last year.

Bang ranks third in energy drink sales in the United States behind Monster and Red Bull. In recent months, Bang gained market share from Reign and Rockstar, but lost share to Celsius Holdings ( CELH ). See a breakdown of recent Nielsen data on energy drink sales.

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