The End of Coca-Cola Energy
For a brief period starting in 2019, Coca-Cola attempted to launch its own branded energy drink, Coca-Cola Energy, onto the market. The drink was made with caffeine from naturally derived sources, guarana extracts, and B vitamins, and was marketed as a more approachable entry into the energy drink category. Despite the high-profile launch, the product failed to gain the traction needed for sustained investment, particularly in the competitive North American market.
In May 2021, Coca-Cola announced its decision to pull the plug on Coca-Cola Energy in the U.S. and Canada. The company stated that the move was part of a broader strategy to streamline its portfolio and focus on products that were performing well, such as Coca-Cola with Coffee and the AHA sparkling water brand.
This decision was heavily influenced by several factors:
- Intense Competition: The energy drink market is dominated by established players like Monster and Red Bull. Breaking into this crowded space proved more difficult and costly than anticipated.
- Strategic Reprioritization: Amidst the pandemic, the company decided to double down on its most successful brands and innovations, cutting off those that weren't delivering sufficient returns.
- Conflict with Monster: Coca-Cola’s launch of its own energy drink initially created a legal dispute with Monster Beverage Corporation, in which Coke holds a significant equity stake. An arbitration ruling allowed Coca-Cola to proceed, but the internal conflict highlighted the company's complex position in the energy sector.
The Monster Partnership: Coca-Cola's Energy Play
While Coca-Cola withdrew its own-branded energy drink in North America, its involvement in the energy drink category is far from over. A crucial part of this strategy is its long-standing partnership with Monster Beverage Corporation, which dates back to a 2015 deal.
As part of this arrangement:
- Coca-Cola transferred all its worldwide energy drink brands—including NOS and Full Throttle—to Monster.
- In return, Monster transferred its non-energy brands, such as Peace Tea and Hubert's Lemonade, to Coca-Cola.
- Crucially, Coca-Cola acquired a minority equity stake in Monster, which has since increased to approximately 19%.
- Coca-Cola's powerful global distribution network became Monster's primary distributor in the U.S., Canada, and other international markets.
This partnership effectively makes Monster The Coca-Cola Company's exclusive energy drink play in many of its key markets. This allows Coca-Cola to profit from the booming energy drink market without the costs and risks associated with building a competing brand from scratch.
Coca-Cola's Broader Energy Drink Portfolio
While Monster is the dominant energy brand distributed by Coca-Cola in many regions, the company’s energy drink presence is more nuanced internationally. The portfolio is managed locally by various bottling partners and may include brands specifically created for certain markets.
Some of these regional energy brands include:
- Predator: A more affordable energy drink positioned to compete with Monster and Red Bull in emerging markets like parts of Africa. It was notably a partner of the Chelsea football club in 2024.
- Burn: This brand continues to perform successfully in many European markets where Coca-Cola HBC operates.
- Relentless: Previously owned by Coca-Cola, this brand was transferred to Monster in the 2015 deal but is still a key energy offering in some European territories.
Comparison: Coca-Cola Energy vs. Monster Energy
| Feature | Coca-Cola Energy (Discontinued in NA) | Monster Energy (Distributed by Coke) |
|---|---|---|
| Core Flavor | Classic Coca-Cola taste with added energy notes. | A wide array of distinct, often bold, fruit-based and unique flavors. |
| Market Position | A niche product, failed to compete effectively with market leaders. | A dominant market leader with a strong, dedicated consumer base. |
| Target Consumer | Consumers seeking an accessible, familiar entry point into energy drinks. | Youth, athletes, and gamers attracted by its edgy, lifestyle-oriented branding. |
| Distribution | Limited distribution, discontinued in key markets like the U.S. and Canada. | Global, leveraging Coca-Cola's expansive distribution system. |
| Branding | Extension of the iconic, family-friendly Coca-Cola brand. | Aggressive, 'extreme sports' and music-festival-centric branding. |
| Caffeine Content | ~114mg per 12oz can. | Varies by line, but typically around 160mg per 16oz can. |
The Strategic Rationale: Why Partner, Not Compete?
The decision to discontinue Coca-Cola Energy in North America and focus on distributing Monster is a classic example of strategic portfolio management. Rather than sinking resources into a losing battle, Coca-Cola recognized the value in leveraging its assets—primarily its unparalleled global distribution network—to benefit from Monster's market dominance. This provides several advantages:
- Efficiency: Distributing Monster is more capital-efficient than marketing and producing a directly competing product that is underperforming.
- Mutual Benefit: The partnership allows Monster to focus on what it does best—innovating and marketing energy drinks—while getting a massive distribution boost. For Coca-Cola, it ensures a stake in the energy market's growth without brand cannibalization or market share clashes.
- Market Leadership: The arrangement cements Coca-Cola's place in the energy drink category, not as a direct competitor, but as a primary facilitator of a market leader.
What's Next for Coca-Cola in the Energy Space?
Moving forward, Coca-Cola's approach to the energy sector is likely to continue its current trajectory. The company will focus on its successful core brands while allowing Monster to remain its primary energy play. It may also pursue new opportunities in adjacent functional beverage categories, as it has done with products like AHA sparkling water and Simply Pop prebiotic soda. The company is adept at spotting new consumer trends and adapting its portfolio to capitalize on them, as shown by its speed in discontinuing the underperforming Coca-Cola Energy. This strategy ensures that while the famous red and white logo may not appear on a general energy drink in North America, Coca-Cola's influence in the energy market remains as strong as ever.
Conclusion
So, does Coca-Cola still make energy drinks? The answer is yes, though not the one you might be thinking of. The company's own-branded Coca-Cola Energy was phased out in North America and other major markets in 2021 due to poor sales and a portfolio streamlining strategy. However, Coca-Cola maintains a significant, profitable presence in the energy sector through its strategic partnership and minority ownership stake in Monster Beverage Corporation. Additionally, it continues to own and distribute various regional energy brands internationally. This multifaceted approach allows Coca-Cola to participate in the lucrative energy drink market without diluting its flagship brand or competing directly with its distribution partner. While you won't find a Coca-Cola-branded energy drink on shelves in the U.S., the company's energy drink footprint is very much alive through its Monster distribution and international portfolio. For more information on the company's overall strategy, you can visit The Coca-Cola Company's Official Website.
