McDonald’ agreed to partner up with Monster Beverage Inc and start introducing energy drinks in their menu.
Fast-food giant McDonald’s introduces Monster energy drinks in their menu. In their endeavor to diversify their offer, McDonald’ signed a partnership with Monster Beverage Corp., the distributor for those fresh and invigorating beverages that gives you monstrous energy.
In order to test the market, McDonald’ selected around 20 restaurants for their experiment. Experts estimate that this daring move could lead to an increase growth for energy beverage demand. Also, NASDAQ announced that Monster’s speculation on beverage market raised its shares to the highest over the last 8 month. What does this boil down to? By choosing to distribute their beverage through McDonald’, Monster’ revenue could increase to approximately 1.5 billion dollars.
And this is only the beginning for Monster, because, only in US, McDonald’ has about 14,000 locations. Getting back to the numbers, according to the calculations made by economical analysts, Monsters shares spiked 5.2 percent, in the last period of time. That means a share reached the value of $139.61 dollars. This is a big gain for Monster, since their strike back on February 27 when they reported that overall overseas profits have significantly increase. As of now, their share have increased to a breathtaking 29 percent.
Lisa McComb, spokesperson for the fast-food Giant said that they are still analyzing if their move has any effect on the diner’ customers. She pointed out that only a few location in Michigan, Ohio, Georgia, Florida an Illinois are testing this new offer and wait patiently from any kind of feedback from the customers.
I seems that McDonald’ move was not only prompted by their unrestfullness regarding their race of being ahead of competition. The fast-food chain in entrenched in a fierce struggle to turn around its business all over US territory. The newly appointed CEO, Steve Easterbrook, told reporters in an interview that he wants to bring back the young customers, those who are really interested in fast-food services. Along with Monster beverages, they also chose to include a brand new sandwich for breakfast.
While McDonald’ struggle to strengthen its business ventures in US, Monster Beverages Inc. signed an agreement with Coca-Cola in which they agree to transfer all of their distribution line from US and Canada to Coca-Cola. Also, the soda producer agreed to buy a 17 percent stake in Monster Beverages.
Although it has been proven that energy beverages can do a lot of harm to the heart if consumed in great quantities, fast-food chain giant hopes to achieve a better standard for delivering services to their customers.
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