Could Monster Beverage's Pricing Strategy Drive Margin Expansion?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy COCO?
Source: NASDAQ.COM
Monster Beverage's Pricing Strategy: The company's pricing adjustments and reduced promotional allowances have led to significant earnings growth, with net sales increasing by 16.8% and operating income by 40.7% in Q3 2025, while gross profit margin improved to 55.7%.
Future Price Increases: Monster Beverage plans to implement additional price adjustments in November 2025, expecting minimal impact on sales volume, supported by strong consumer demand and favorable category trends in the energy drink market.
Stock Performance: Monster Beverage shares have appreciated 39.5% over the past year, significantly outperforming the beverage industry and consumer staples sector, with a forward P/E ratio of 33.21X, well above the industry average.
Other Companies' Performance: United Natural Foods and Vita Coco are also showing strong growth potential, with respective sales and earnings estimates indicating increases, while Lamb Weston maintains a solid growth outlook despite being ranked slightly lower.
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Analyst Views on COCO
Wall Street analysts forecast COCO stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 57.210
Low
49.00
Averages
57.50
High
63.00
Current: 57.210
Low
49.00
Averages
57.50
High
63.00
About COCO
The Vita Coco Company, Inc. offers a platform for brands in the functional beverage category. The Company’s brands include coconut water, Vita Coco; sustainably packaged water, Ever & Ever; and protein-infused water, PWR LIFT. Its branded portfolio is led by its Vita Coco brand, which is engaged in the coconut water category in the United States, and also includes coconut oil, juice, and milk offerings. It supplies private label products to retailers in both the coconut water and coconut oil categories. Additionally, the Company is also engaged in bulk product sales to beverage and food companies. Its Americas segment comprised of its operations primarily in the United States and Canada and the International segment comprised of operations primarily in Europe, the Middle East and the Asia Pacific regions. The Company’s products are distributed primarily through club, food, drug, mass, convenience, e-commerce, and foodservice channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Doseology Innovation: Doseology Sciences began pilot production of caffeine-based energy pouches in January 2026, launching the Feed That Brain brand to meet consumer demand for sugar-free, portable energy products, with a small direct-to-consumer test expected to gather feedback and drive subsequent commercialization.
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- Competitor Challenges: In competition with the Zico brand, Kirban employed aggressive market tactics by directly purchasing competitors' inventory and replacing it with his own, ensuring Vita Coco's priority shelf space in retail stores and significantly increasing market share.
- Financing and IPO Decision: After several years of double-digit growth, Vita Coco decided to go public to meet investor liquidity demands, a strategy that not only provided funding support but also enhanced brand recognition and competitiveness in the market.
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- Return to Sports Marketing: The company extends its partnership with U.S. Men's National Team midfielder Weston McKennie, aiming to capitalize on the 2026 World Cup to enhance brand visibility through a renewed focus on sports and fitness marketing.
- Product Innovation: Vita Coco is diversifying its offerings by introducing products like Vita Coco Treats, sparkling coconut varieties, and protein-infused waters, creating new consumption occasions and expanding its market reach.
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Emerging Markets Drive Transformation in Energy Products
- Market Growth Potential: The global nicotine pouch market is projected to reach $25.4 billion by 2030, indicating a rapid shift in consumer demand towards portable, liquid-free formats, thus providing significant market opportunities for related companies.
- Doseology Innovation: Doseology Sciences began pilot production of nicotine-free caffeine energy pouches in January 2026, utilizing a portable design to meet health-conscious consumers' demand for functional products, which is expected to significantly enhance its market competitiveness.
- Altria Financial Performance: Altria Group reported full-year net revenues of $23.3 billion for 2025, with a 4.4% growth in adjusted diluted EPS, returning $8 billion to shareholders through dividends and buybacks, showcasing its ongoing growth and strong financial health in the smoke-free product sector.
- GURU New Product Launch: GURU Organic Energy launched a new zero-sugar flavor containing 140 mg of natural caffeine, further expanding its product lineup to meet consumer demand for healthy beverages while enhancing brand visibility through digital marketing campaigns.
See More
Emerging Markets Drive Energy Product Transformation
- Market Growth Potential: The global nicotine pouch market is projected to reach $25.4 billion by 2030, with a 29.6% annual growth rate, indicating a rapid shift in consumer demand towards portable, liquid-free formats, thereby providing significant market opportunities for related companies.
- Doseology Innovation: Doseology Sciences began pilot production of caffeine-based energy pouches in January 2026, launching the Feed That Brain brand to meet consumer demand for sugar-free, portable energy products, with a small direct-to-consumer test expected to gather feedback and drive subsequent commercialization.
- Altria Financial Performance: Altria Group reported an adjusted diluted EPS of $5.42 for the full year 2025, representing a 4.4% growth, while returning $8 billion to shareholders through dividends and share repurchases, showcasing the company's strategic progress and strong financial performance in the smoke-free product sector.
- GURU New Product Launch: GURU Organic Energy launched a new zero-sugar flavor, GURU Zero Dragon Fruit Cherry Sorbet, featuring 140 mg of natural organic caffeine, further expanding its product lineup to meet consumer demand for healthy beverages while enhancing brand visibility through digital marketing campaigns.
See More
Tax Updates Empower Business Investments
- Full Depreciation Policy: The new tax law allows businesses to deduct the full cost of qualifying assets in the first year they are placed in service using 100% bonus depreciation, which will aid companies in making equipment investments and storefront improvements after 2025.
- Increased Depreciation Rate: Prior to the passage of the OB3 Act, businesses could only deduct 40% of the cost in the first year, but the new policy raises this to 100%, significantly easing the tax burden and enhancing cash flow for businesses.
- Section 179 Limit Increase: The OB3 Act raises the annual deduction limit under Section 179 from $1 million to $2.5 million, allowing businesses to purchase more assets without affecting their deduction limits in 2025 and beyond, further incentivizing investment.
- Inflation Adjustment: In future tax years, the deduction limits for Section 179 and bonus depreciation will be adjusted for inflation, providing businesses with greater flexibility and tax benefits when purchasing assets, thereby promoting long-term growth.
See More
Vita Coco Founder Shares Secrets to Success
- Market Education Strategy: Vita Coco's founder Mike Kirban successfully introduced coconut water as a health beverage in the U.S. by distributing samples in natural food stores and yoga studios, attracting consumers seeking natural drinks and driving rapid brand growth.
- Competitor Challenges: In competition with the Zico brand, Kirban employed aggressive market tactics by directly purchasing competitors' inventory and replacing it with his own, ensuring Vita Coco's priority shelf space in retail stores and significantly increasing market share.
- Financing and IPO Decision: After several years of double-digit growth, Vita Coco decided to go public to meet investor liquidity demands, a strategy that not only provided funding support but also enhanced brand recognition and competitiveness in the market.
- Navigating Market Fluctuations: Kirban emphasized that quick responses and flexible strategy adjustments are key to success when facing competition and market challenges; Vita Coco further solidified its market position through a partnership with Dr. Pepper to expand its distribution network.
See More
Vita Coco (COCO) Expands Growth Strategy Aiming for Over $1 Billion in Annual Sales
- Market Penetration: Vita Coco aims to deepen its penetration in the U.S. coconut water market, where household adoption is around 25%, leveraging its existing half-market share to achieve higher sales targets.
- Return to Sports Marketing: The company extends its partnership with U.S. Men's National Team midfielder Weston McKennie, aiming to capitalize on the 2026 World Cup to enhance brand visibility through a renewed focus on sports and fitness marketing.
- Product Innovation: Vita Coco is diversifying its offerings by introducing products like Vita Coco Treats, sparkling coconut varieties, and protein-infused waters, creating new consumption occasions and expanding its market reach.
- International Expansion: With a presence in over 30 countries, Vita Coco plans to further penetrate both developed and emerging markets where coconut water adoption is still low, supporting its long-term growth strategy.
See More
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Consumer Staples Sector Performance: The consumer staples sector demonstrated renewed strength last week, with the State Street Consumer Staples Select Sector ETF gaining 2%.
ETF Weekly Range: The ETF finished at the top of its weekly range and closed nearly 4% above its intraweek low.
See More
