Monster Expects to Transition Distribution Rights by March 1

FILED SEPTEMBER 4, 2014

Dear Client:

For those A-B distributors who have been waiting to learn when they will lose Monster in the wake of Coke's recently announced 16.6% stake, the company shared some details in a letter to them just yesterday. Monster expects to secure regulatory approvals so that the deal will close by early 2015. As such, they indeed "expect to transition distribution rights" to Coke bottlers in a large portion of the U.S. and are " currently targeting a March 1, 2015 date. In the event that the approvals are granted sooner, the transaction may close earlier."

Of course the close is still subject to many conditions and regulatory approvals.

Monster also advised their A-B partners that, though they've been advised of losing the brand, it should be "business as usual" in their waning days of its stewardship.

"There is currently no change in the status of, nor will the transactions with Coca-Cola have any immediate effect on, your ongoing distribution rights under your Distribution Agreement with Monster. With that said, we trust that we will be able to count on you to continue to perform your obligations under your Distribution Agreement to the same high standards as you have in the past." That includes things like maintaining shelf space for Monster, launching innovations, investing in coolers, securing incremental displays, not distributing competitive brands, etc. Investment spends are "encouraged." They also promised a forthcoming letter on remaining inventory reimbursements and "favorable compensation for cooler investments."

"By continuing to fully comply with your Distribution Agreement, you will maximize your severance payment in the event of the termination of your Distribution Agreement. Please note that any severance payment that may be due to you is conditional on there being no breach of the Distribution Agreement by you," per correspondence.


Until tomorrow, Harry

"I love being a writer. What I can't stand is the paperwork."
- Peter De Vries


THE 2015 BEER SUMMIT - The Beer Industry Summit will be at The Breakers resort in Palm Beach, FL. January 11 - 12, 2015. Register and more info here: http://beernet.com/beer_summit.php


---------- Sell Day Calendar ----------
Today's Sell Day: 4
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Mon.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0

----

(c) 2014 BeerNet Communications, Inc. - All rights reserved. Please, no forwarding or copying. Individual subscriptions $580/year. Corporate rates available.
Editor & Publisher: Harry Schuhmacher - hs@beernet.com
Twitter: @beerbizdaily

Senior Beer Editor: Jenn Litz - jenn@beernet.com
Customer Service: Kim Nelson - Kim@beernet.com


Check beernet.com for back issues or to subscribe or renew. Phone: 210-805-8006. Email: admin@beernet.com

BeerNet Radio: http://www.beernet.libsyn.com

We have a new mailing address:

909 NE Loop 410, Suite 7
San Antonio, TX 78209


BeerNet Communications, 909 NE Loop 410, Suite 720, San Antonio, TX 78209 USA

Unsubscribe | Change Subscriber Options

Go back to listing Go to next article Go to previous article

Top Secret News Hotline:

Got beer news for BBD?

Submit Anonymously
twitter facebook