Monster Energy, Constellation Progress in Merger Talks
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Monster Energy Reportedly ‘Progressing’ in Talks to Merge With Major Alcohol Brand

Monster Energy

Cans of Monster Energy Drink are displayed on a grocery store shelf on Nov. 4 in San Francisco, California. (Photo by Justin Sullivan/Getty Images)

Monster Beverage Corporation, the maker of energy drinks, is in intensifying talks to merge with Constellation Brands, which makes major brands such as Corona, Modelo, Svedka, High West and Belle Meade, Bloomberg reported Tuesday.

The companies have a combined market value of about $90 billion. An agreement could be reached in the coming weeks, but if negotiations don’t go smoothly, it could take longer to reach or could still fall apart, per Bloomberg.

In January, Monster announced the $330 million acquisition of CANArchy Craft Brewing Collective, calling the transaction “a springboard from which to enter the alcoholic beverage sector.” A merger with Constellation would indicate a deeper commitment to the alcohol sector.

The merger could even potentially bring Monster into the cannabis market. Constellation has a stake of almost 40% in Canopy Growth Corporation, a Canadian cannabis company that sells THC-infused drinks.

Coca-Cola owns nearly 20% of Monster, and according to Bloomberg, some critics have expressed concern that producing THC drinks might hurt the images of Monster and Coca-Cola, while yeasayers say it presents an opportunity for Coca-Cola to enter the growing market for cannabis products.

Constellation Brands is the eighth-largest alcoholic beverage company in the world by market cap.

Reuters first reported Monster’s initial talks with Constellation in November.

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