Coca-Cola considers Monster acquisition - FT.com Coca-Cola has held talks with Monster Beverage, the US energy drink maker, about a potential takeover that would rank among its biggest ever acquisitions, according to people familiar with the situation. Monster's share price closed down 0.8 per cent at $65 after surging as much as 28.1 per cent Monday afternoon amid reports of talks with Coke. Analysts have long speculated that Monster, which was formerly known as Hansen Natural, would be a target for a corporate predator. Coke distributes the drink across the US. However, people familiar with the talks said the surge in Monster's share price could act as a deterrent to Coke and that the takeover talks could still fall apart. Coke said in a statement: "At this time, we are not in discussions to acquire the Monster Beverage Corp. We continue to review the best ways to maximise the value of our relationship." Monster declined to comment. US beverage companies have been looking for ways to diversify their portfolios as consumer tastes have shifted away from traditional full-calorie soft drinks. The energy drink category, which is especially popular among young people looking for extra caffeine, has been a target. According to data from Beverage Digest, Monster accounted for 1.2 per cent of total US carbonated soft drink sales last year and sales volume jumped 15 per cent while the rest of the category declined. Last year, the company reported $286m in net income on $1.7bn in net sales. "It certainly makes sense for Coke to be involved with energy drinks and interested in Monster," said Ali Dibadj, beverage analyst at Bernstein Research. If they are going to play in this space, they need to do it with an established brand. Coke sells its own energy drink, NOS, but the brand has failed to lure people away from Monster or the popular Red Bull. Mr Dibadj suggested that now would be a good time to acquire Monster because it has not yet made a push into Asia or other emerging markets, which Coke, the world's largest soft drink maker by revenues, could benefit from. However, he said that Coke might need to repatriate some of its overseas cash or sell bottlers to finance such a deal. The talks between Coke and Monster were first reported by Wall Street Journal. In spite of their popularity, energy drinks have been controversial in the US, because they are regulated as supplements. Lawmakers have been considering subjecting the category to more rigorous oversight. If Coke does acquire Monster, it would mark something of a change of heart for Muhtar Kent, Coke's chief executive. In an interview with the Financial Times last September, Mr Kent was downbeat on the future of the energy drink category. "As a long-term perspective, there will be a tapering off of demand," he said. "It's not something that will be here to stay in 20 years" time." Coke shares dipped 0.4 per cent to $76.32.