27/04/2022 - Monster Beverage Corporation: 2021 Annual Report

TO OUR STOCKHOLDERS

I am pleased to report that 2021 represented our 29th consecutive record year of increased net sales. Despite the COVID-19 pandemic, net sales rose to $5.5 billion in 2021 from $4.6 billion in 2020.

These unprecedented times continue to present unique and different challenges to all of us. Our deepest sympathies go out to all those who have been affected by the COVID-19 pandemic. Our top priority remains the health, safety and well-being of our employees, customers, consumers and our communities. We are continuing to monitor and reassess our business operations in accordance with guidance from public health authorities and other professionals. Monster Energy Cares, our philanthropic arm, continues to be actively engaged in a number of philanthropic efforts including efforts related to the COVID-19 pandemic globally.

Our production and distribution activities have remained in operation and our products remain available for sale at retail establishments. We continue to address certain supply chain challenges that have arisen, and plan for those that could arise in the future. We are continuing to work with our suppliers, co-packers, bottlers and distributors to ensure our products are produced and available for sale to our consumers.

We have continued to innovate in the energy drink category throughout the extended period of the COVID-19 pandemic. In 2021, we launched a number of new beverages in the United States, as well as in our international markets. Despite the COVID-19 pandemic, we accelerated our innovation pipeline including the development and launch of our new True North® Pure Energy Seltzer brand, that is positioned differently from our existing portfolio of energy drinks.

We are also excited by our recent acquisition of CANarchy Craft Brewery Collective, LLC, a craft beer and hard seltzer company. In addition to the exciting brands this company owns, it provides us with an established platform for future growth in the alcoholic beverage sector through CANarchy's existing brands as well as innovative new products that are under development.

We plan to launch new and exciting beverages during 2022.

Our Monster Energy® brand, most of our Strategic Brands, Reign and our True North® brand participate in the premium segment of the energy drink category. Our Monster Energy® drinks are now sold in approximately 141 countries and territories globally and our Strategic Brands, comprised primarily of the various energy drink brands we acquired from The Coca-Cola Company in 2015, are now sold in approximately 66 countries and territories globally. Our Reign Total Body Fuel® high performance energy drinks are sold in 22 countries and territories and our True North® Pure Energy Seltzers are sold in the United States and Canada. Our affordable energy brands, comprised primarily of Predator® and Fury®, participate in the affordable segment of the energy drink category and are sold in 30 countries and territories globally. One or more of our energy drinks are now distributed in approximately 155 countries and territories worldwide.

I would like to express my gratitude for the support and leadership shown by Mr. Hilton Schlosberg, my Co-Chief Executive Officer, and would also like to express my gratitude for the direction and guidance provided by our executive leadership and our senior management team.

We extend our personal thanks to our consumers, customers, bottlers and distribution partners as well as to our suppliers for their continued support. To our Board of Directors, executive leadership, management and employees, our sincere thanks and appreciation for all your efforts, which are evidenced by our continued success. To our stockholders, thank you for the trust you have placed in us and in our management team. We have successfully navigated through an extremely challenging year, and while we still face similar challenges, we look forward to the future with confidence.

Sincerely,

Rodney C. Sacks

Chairman and Co-Chief Executive Officer

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number 001-18761

MONSTER BEVERAGE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	47-1809393
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (951) 739 - 6200

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.005 par value per share	MNST	Nasdaq Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☑

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐