Energy Drink Consumption Impacted By Coronavirus In US, Says Analyst
The energy drink category appears to be one of the most affected by tightening coronavirus regulations in the US, according to Stifel analyst Mark Astrachan.
According to Stifel, newly released data for the energy drink category shows that sales decreased by 5% in the latest week, compared to a 0.5% increase in the preceding two weeks.
The Monster Energy brand, the biggest selling energy drink in the US, saw flat sales in the latest week, following a 4.5% increase in the preceding two weeks.
According to Astrachan, the dip in sales is linked to fewer consumer visits to convenience stores, where most energy drinks are purchased.
"Negatively, decelerating category and Monster-specific sales are concerning and indicative that coronavirus-related home quarantine is negatively impacting energy drink consumption given purchases are largely made in c-stores," he said.
"We view this as a watchpoint for Monster sales/earnings estimates but think the timing and duration of any slowdown makes it difficult to determine the magnitude of any impact."
As well as tracking the performance of Monster, Stifel noted that Coke Energy sales declined 21% sequentially and Bang sales declined 5% over the most recent two-week period.
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