Leaders are often tested in times of crisis. Monster Beverage Corp (NASDAQ:MNST) shares have lost nearly half their value since their all-time high last June amid slowing sales and safety concerns. At times like these, management can make all the difference in the public’s perception of the company, which is especially important when dealing with a product, like Monster’s, whose value is essentially derived entirely from its brand name. Not surprisingly, management has been vigorously defending Monster’s flagship product during this tough time. Let’s take a closer look at the men behind the curtain at Monster Beverage in this excerpt from our premium research report.
Monster Beverage Corp (NASDAQ:MNST) is headed by Chairman and CEO Rodney Sacks and CFO Hilton Schlosberg, both from South Africa. In 1992, they acquired what was then Hansen’s Natural Soda for $14.5 million. Frustrated at the slow growth in the natural beverage market, the pair noticed the splash Red Bull was making in Europe, and decided they should make their own energy drink. After one failed attempt under the Hansen’s label, they created Monster Beverage Corp (NASDAQ:MNST), and packaged it in cans twice the size of Red Bull’s, but sold it at a similar price point, which appealed to retailers and consumers alike.
Unlike some other entrepreneurs, Sacks and Schlosberg do not seem to be guided by any mission beyond that of making the business successful. The company’s website lists no mission statement, purpose, or stated goal. The pair stumbled upon Hansen after first buying a publicly traded shell company, and getting word from an investment banker on the natural soda and juice company. The two seem to keep a fairly low profile, as virtually no information is available about Sacks or Schlosberg on Monster Beverage Corp (NASDAQ:MNST)’s website.
Rounding out the management team is Mark Hall, president of the Monster Beverage Division, who joined the company in 1997 after serving as vice president of sales with the Arizona Beverage Company, and Thomas Kelly, senior vice president of finance, who has been with the company since before Sacks and Schlosberg purchased it, working as controller for the California Co-Packers Corporation, predecessor to Hansen
The article Monster’s First Line of Defense originally appeared on Fool.com and is written by Jeremy Bowman.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Monster Beverage. The Motley Fool owns shares of Monster Beverage.
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