Cott Corporation (USA) (COT), National Beverage Corp. (FIZZ): Are These the New Monsters of Soda?

Also gross margin expanded year over year from 51.8% to 53.3% in the second quarter primarily from the sales of higher margin new products Monster Ultra Blue, Ultra Zero, and Rehab Pink Lemonade.

Most of the company conference call was dedicated to updating analysts on the legal and regulatory status of the company’s energy drinks. (Read more here.) The best news was they are beginning to overtake privately held Red Bull in market share according to US market Nielsen statistics.

MNST Total Return Price data by YCharts

The Foolish takeaway

While I think Monster Beverage Corp (NASDAQ:MNST) can trade higher its need to dilute focus to attend to these energy drink challenges could hang heavy on the stock and it seems to be bearing the brunt of these challenges alone.

As for National Beverage Corp. (NASDAQ:FIZZ) its corporate governance challenge in the form of its CEO compensation is worrisome. That said it has outperformed bigger rivals in a declining soda consumption environment.

Cott is intriguing and worthy of further due diligence; I like its plan to pay down debt and return value to shareholders.

The article Are These the New Monsters of Soda? originally appeared on Fool.com and is written by AnnaLisa Kraft.

AnnaLisa Kraft 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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