Coca-Cola to take 17% Monster Stake; Will ABI Distribs Get Pushed Aside?

Dear Client:As has been speculated for a few years, The Coca-Cola Co. will pay Monster more than $2 billion and transfer its worldwide energy brands in exchange for a 16.7% equity stake in Monster. Coke will have two seats on the Monster board. "Monster will issue to Coca-Cola the shares of Monster common stock and enter into expanded distribution arrangements," per RBC Capital. RBC estimates that about 30% of Monster U.S. sales are through A-B distributors, at about $400 million