{"id":489415,"date":"2023-04-28T15:34:33","date_gmt":"2023-04-28T13:34:33","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=489415"},"modified":"2023-04-28T15:41:19","modified_gmt":"2023-04-28T13:41:19","slug":"the-south-african-founded-energy-drink-giant-that-turned-r1000-into-r3-1-million","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/489415-the-south-african-founded-energy-drink-giant-that-turned-r1000-into-r3-1-million.html","title":{"rendered":"The South African-founded energy drink giant that turned R1,000 into R3.1 million"},"content":{"rendered":"

Monster Beverage Corporation, started by two South Africans, was the best-performing US stock over the last 20 years with an incredible annualised return.<\/p>\n

Monster was created by Rodney Sacks and Hilton Schlosberg, who attended the University of the Witwatersrand (Wits).<\/p>\n

They emigrated to the US and joined forces to acquire Hansen Natural Corporation for $1.71 million.<\/p>\n

Hansen Natural Corporation dates back to the 1930s when Hubert Hansen and his sons began selling juice to retailers under the company name \u201cHansen\u2019s Fruit and Vegetable Juices\u201d.<\/p>\n

In the 1970s, the grandson of Hubert Hansen also started to develop sodas under the Hansen name.<\/p>\n

The company started to struggle and raked up massive losses by the late 1980s. Sacks and Schlosberg stepped in to acquire and save the beverage producer.<\/p>\n

After the acquisition, Sacks has been chairman and CEO of Hansen Natural Corporation, while Schlosberg served as president and COO.<\/p>\n

Their big break came in 2002 when they launched Monster Energy. Within ten years, they increased revenue to $2 billion.<\/p>\n

Monster Energy was so successful that Hansen Natural Corporation changed its name to Monster Beverage Corporation in 2012.<\/p>\n

The Coca-Cola Company bought a 16.7% stake for $2.15 billion in Monster in 2015. This stake has since grown to 19.3% due to share buybacks by Monster.<\/p>\n

Today, the company has numerous top brands, including Monster Energy, Burn, NOS, Full Throttle, Relentless, Mother, Reign, and Predator.<\/p>\n

In February 2022, it added several craft beers and hard seltzers to its product portfolio by acquiring CANarchy Craft Brewery Collective.<\/p>\n

What makes Monster Beverage Corporation stand out, apart from its energy drinks, is its stellar financial performance.<\/p>\n

Monster drinks are sold in 141 countries, and the company has a significant share of the $53 billion global energy drink market.<\/p>\n

Over the past 20-year period, Monster was the best-performing US stock, delivering a compounded annualised return of 42%.<\/p>\n

Investors will have received a compounded annualised return of 49.5% if you consider the rand\u2019s depreciation.<\/p>\n

Put another way, a R1,000 investment in the company 20 years ago would have grown to R 3,115,732.<\/p>\n

The chart below shows the growth of a R1,000 investment between 2003 and 2023.<\/p>\n

\"\"<\/a><\/p>\n

\n

This article was first published by Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n

Now read:\u00a0Company started by two Wits graduates outperforms Apple and Amazon<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

A beverage company started by two South Africans has outperformed technology giants like Apple and Amazon on the US stock markets.<\/p>\n","protected":false},"author":341111,"featured_media":460948,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80335],"tags":[81452,35,68876,85887,68874,20009],"class_list":["post-489415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-hansen-natural-corporation","tag-headline","tag-hilton-schlosberg","tag-hubert-hansen","tag-rodney-sacks","tag-university-of-the-witwatersrand-wits"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/489415"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341111"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=489415"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/489415\/revisions"}],"predecessor-version":[{"id":489419,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/489415\/revisions\/489419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/460948"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=489415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=489415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=489415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}