---
title: "'Monster' Successfully Completes Trial Production in China, Expected to Launch in Q2; Red Bull's Rival Has Truly Arrived!"
description: "Monster Beverage, a rival to Red Bull, has made new progress in entering the Chinese market. At a recent analyst meeting on Monster's 2015 results, Chairman and CEO Rodney Sacks discussed the latest developments. Monster is expected to launch in China in the second quarter of this year, with trial production already successful."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-03-08"
language: "en"
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---

# 'Monster' Successfully Completes Trial Production in China, Expected to Launch in Q2; Red Bull's Rival Has Truly Arrived!

> Monster Beverage, a rival to Red Bull, has made new progress in entering the Chinese market. At a recent analyst meeting on Monster's 2015 results, Chairman and CEO Rodney Sacks discussed the latest developments. Monster is expected to launch in China in the second quarter of this year, with trial production already successful.

Red Bull's rival Monster Beverage has made new progress in entering the Chinese market. At a recent analyst meeting on Monster's 2015 results, Chairman and CEO Rodney Sacks discussed the latest developments regarding Monster's entry into China.
**Monster Beverage Expected to Launch in China in Q2**
Monster's attention in the domestic market stems from an acquisition by Coca-Cola. In August 2014, in an effort to reverse sluggish sales, Coca-Cola decided to take a risk and acquired a 16.7% stake in Monster Beverage, a functional drink producer, for $2.15 billion through an asset swap transaction.
On November 5 last year, Rodney Sacks revealed that discussions had been held with Coca-Cola's bottling partners in China regarding the sale of Monster drinks in China.
At the recent analyst meeting, Rodney Sacks clearly stated: "The formula for Monster's functional drink has received 'preliminary approval' from Chinese regulatory authorities, and we are currently awaiting final approval. However, the product and formula submitted for approval are different from those in the U.S."
Additionally, Rodney Sacks mentioned that trial production of the product in China has been successful, and Monster is expected to launch in China later in the second quarter of this year. However, the exact launch date may be delayed due to various factors.
**Trademark Registered in China**
Recently, in a filing with U.S. securities regulators, Monster Beverage stated that it already has a company in China named "Monster Energy Beverage (Shanghai) Co., Ltd."
China's trademark registration system shows that Monster applied to register the "怪物" trademark in November 2010 for non-alcoholic beverages and energy drinks, and the registration took effect in January 2014. Additionally, Monster has successfully registered the "猛事特" trademark in China.
As for what name Monster will use in the Chinese market, the answer will soon be revealed.
**Rapid Growth, Giants Compete in Functional Drinks**
Coca-Cola's large-scale acquisition of Monster reflects its optimism about the functional drink market. Indeed, global sales of functional drinks have surged from around $2 billion in the early 1990s to over $50 billion today, with growth momentum continuing.
The functional drink market is booming worldwide, and China is no exception. Data shows that between 2009 and 2014, the compound annual growth rate reached 31.6%, making it the fastest-growing category in the non-alcoholic beverage sector.
Monster's entry into the Chinese market is not without confidence. In the U.S. market, Monster has become a star in the functional drink category. Data shows that in the U.S., Monster's market share grew to 39% in 2014, while Red Bull's market share decreased to 43% in the same year. In other words, Monster increased its U.S. market share by about 34% in 12 years, while Red Bull declined by 27% over the same period.
However, Red Bull, which has been in the Chinese market for 20 years, is not to be underestimated. In 2015, Red Bull's sales in China reached 23.07 billion yuan, continuing to lead the functional drink market. Industry insiders say Red Bull's impressive performance stems from its meticulous market cultivation. Red Bull's sports marketing helps strengthen product selling points and build the brand, but its distribution coverage, price stability, and channel cultivation have driven sales growth, which is also the key reason other products find it hard to surpass Red Bull.
Besides Red Bull, "Monster" will also face encirclement from other functional drink brands. In 2012, Wahaha launched the functional drink "Qili" to enter the market. Since then, Wahaha has continuously introduced new packaging to expand its market, and recently launched "Qili 8 Hours" to further strengthen its functional drink category.
In 2013, Dali began its functional drink journey with "Lehu". According to Dali's 2015 performance data, Lehu's revenue in 2015 was 1.419 billion yuan, a 78.7% increase from 2014, far exceeding the growth of its other beverage categories.
Additionally, other functional drink products such as Dongpeng Te Yin and Heika 6 Hours are also seeing growing sales. "Monster" will need to strategize carefully if it wants to gain a share of the Chinese market.
**-END-**
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