10 Best Liquor Stocks To Buy According to Short Sellers

7. Monster Beverage Corporation (NASDAQ:MNST)

Short % of Shares Outstanding: 2.24%

Monster Beverage Corporation (NASDAQ:MNST) engages in the development, marketing, sale, and distribution of energy drink beverages and concentrates. As one of the biggest names in the global energy drinks market, the company is renowned for brands like Monster Energy, Relentless, and Burn. The beverage giant also forayed into the alcohol sector in 2022 when it acquired the CANarchy Craft Brewery Collective in a deal worth $330 million. The acquisition gave Monster ownership of CANarchy’s craft breweries, which now operate under the name Monster Brewing Co.

The American energy drinks market is going through an unprecedented slowdown, driven by a reduction in consumer spending and lower foot traffic in the convenience channel. However, despite these macroeconomic headwinds, Monster Beverage Corporation (NASDAQ:MNST) has proven to be resilient. The company has managed to outperform its competitors and improve its market share in the domestic market both in volume and dollar terms, indicating that Monster’s brand strength and aggressive marketing strategies are effective in maintaining its competitive edge.

Monster Beverage Corporation (NASDAQ:MNST)’s venture into the brewing sector still needs time to develop though, as net sales of its Alcohol Brands segment declined by 6% in Q3 of 2024, primarily due to the decreased sales by volume of craft beers.

Monster Beverage Corporation (NASDAQ:MNST) remains committed to expanding its footprint on a global level. The company’s international sales now account for approximately 40% of its total revenue, reducing its reliance on the challenging domestic market. The international emerging markets are especially attractive for Monster in particular. As disposable incomes in these regions rise and Western consumer trends gain popularity, the demand for energy drinks is likely to go up. The company’s strategic partnership with Coca-Cola’s vast global distribution network also provides it a competitive edge in international markets. However, such aggressive international expansion carries its risks and Monster took a significant revenue hit from the ongoing hyperinflation in Argentina in Q3 2024.