Youtube Exercise » English Grammar Homework

Why Monster Beverage Has The Best-Performing Stock In Over 30 Years

CNBC

405K views 2 years ago

Warm-up Questions

From the title, what do you think “best-performing stock” means?
Why do you think a beverage company (not a tech company) could have the best-performing stock over 30 years?
What kinds of factors usually make a company’s stock grow for a long time?

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Why Monster Beverage Has The Best-Performing Stock In Over 30 Years

1) A surprising stock winner (00:00 – 01:26)

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1. Which type of company is revealed to be the surprising best-performing stock over 30 years?

A bank
A car manufacturer
An energy drink company
A tech giant

2. About how much has the stock appreciated since it traded for less than a nickel?

About 2,000%
About 20,000%
About 200,000%
About 2,000,000%

3. What does the speaker say about the company’s sales around 2023–2024?

They are unknown because the company won’t report them
They are around $7–8 billion
They are falling below $1 billion
They are around $2 billion total

Why Monster Beverage Has The Best-Performing Stock In Over 30 Years

2) Building the brand and the Coca-Cola partnership (01:26 – 04:22)

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1. What approach did the company take to building distribution of the brand?

Only online sales to reduce costs
Fast expansion everywhere at once
Exclusive sales through bars and clubs
Very slow and methodical growth by market

2. What did Coca-Cola buy as part of the partnership?

A 16.7% stake
Only the Monster brand name
The entire company
A 51% controlling stake

3. Instead of traditional marketing, what did Monster prioritize?

TV commercials
Sponsorships targeting extreme and unconventional sports
Discount coupons in supermarkets
Newspaper ads

Why Monster Beverage Has The Best-Performing Stock In Over 30 Years

3) Business model, growth, competition, and risks (04:22 – 09:41)

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1. Why does the speaker describe Monster as having “very little capital intensity”?

It spends most of its money on TV advertising
It mainly sells a brand and produces lots of cash relative to what it needs to spend
It owns many factories and invests heavily in equipment
It runs many airlines and shipping fleets

2. What strategic move did Monster make in 2023 involving Bang Energy?

It launched Bang Energy as a new Monster product
It merged with Red Bull
It bought Bang Energy after it went bankrupt
It stopped selling energy drinks to focus on coffee

3. One risk mentioned is leadership continuity. What specific concern is raised?

The company is legally required to change CEOs every year
The company has too many successors
No clear successor has been named
The CEO has announced retirement next week

Why Monster Beverage Has The Best-Performing Stock In Over 30 Years

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1. Which combination best explains Monster’s long-term stock success in the video?

A focus on a core customer + strong distribution partnerships + steady product demand
Heavy government subsidies + luxury pricing + celebrity TV ads
Pure luck + random market swings + no business strategy
A single viral product + no competition + secret technology patents

2. What is the main role of the Coca-Cola partnership as presented in the video?

To ban competitors from selling in stores legally
To design new flavors in Coca-Cola laboratories
To replace Monster’s management team
To provide global distribution and strengthen reach

3. Which risk is mentioned as a possible future obstacle for Monster?

Succession planning and potential regulation/restrictions
A court order forcing Monster to become a tech company
A shortage of aluminum that has already stopped sales everywhere
A complete ban on all coffee products worldwide

Discussion Questions

Discuss the ideas from this video

Why Monster Beverage Has The Best-Performing Stock In Over 30 Years

The video suggests Monster focused on a “core customer” instead of trying to appeal to everyone. Do you think that strategy works for most brands? Why or why not?
Monster is described as “asset light” and heavily dependent on a distribution partner. What are the advantages and disadvantages of that model?
Do you think energy drinks will keep growing globally? What cultural or regulatory factors could slow growth in different countries?
If you were an investor, which risk would worry you most: succession planning, regulation, competition, or something else? Explain your choice.