Monster Energy’s Stance on Israel: Facts, Allegiances, and Public Reaction

Over the past couple of years, corporations operating in politically fragile areas have faced critical scrutiny. With the present situation in the occupied Palestinian territories, most consumer boycotts invite consumers to refrain from doing business with or supporting Israel in any other way; of these campaigns, the Boycott, Divestment, and Sanctions (BDS) movement invites consumers to boycott Israel entirely. In this case, Monster Energy, one of the world’s leading energy drink brands, has raised some debate regarding the firm itself. Monster Energy is arguably the most popular energy drink brand available. Monster Energy stands out in part from other energy drink brands by its extreme marketing efforts aimed at youth, athletes, and extreme sports enthusiasts, and by its claw-marked cans.

Since its founding in 2002 (originally as part of Hansen Natural), it has consistently expanded its market share, product offerings, and global footprint. Whether Monster Energy backs Israel is an issue with wide and even touchy subjects that relate to international business ethics, consumer movements, and geopolitics. The blog creates a more balanced and detailed overview of the relations, work, and scandals around the brand of Monster Energy in Israel. The strategic alliances, distribution, and investment have also been used to expand the presence of Monster in the international market in a bid to ensure that it has maximum global presence, with countries such as the Middle East and Israel not being an exception. You can hardly think of it as anything other than a subcultural brand or lifestyle association, as well as a beverage brand. 

Ownership: Coca-Cola’s stake in Monster Energy

Another decisive point of the boycott discussion is the structure of ownership at Monster Energy. In 2014, The Coca-Cola Company sold a 16.7 percent stake in Monster Beverage Corporation to switch its energy drink assets to Monster in exchange for energy drink-free assets of Monster. This provided Monster as a company with increased exposure to the distribution system of the Coca-Cola Company, the most powerful and extensive system in the world. It resulted in the fact that Coca-Cola became the biggest shareholder of Monster Energy, but Monster is a separate company.

• Distribution Advantage: Monster finds the use of the strong worldwide delivery channels offered by Coca-Cola, and, in this way, its goods become accessible in any kind of market, including Israel.
• Implications: Since Coca-Cola is not merely a supplier but has such shares of ownership, its practices and actions shade the reputation and the treatment of Monster.

Monster Energy’s business presence in Israel

Monster Energy products are available in Israel. Monster has opened a representative office in the country, and an Israeli was employed as its regional marketing manager; it is an example of a commercial commitment towards the Israeli market. Its products are highly distributed in the retail sector of the country and are listed among the giants in the energy and sports drinks sector in Israel. In Israel, as well as in other countries, Monster reaches younger, dynamic, and urban customers, and the Monster marketing has aligned the product with the concepts of adventure, sports, music, and youth culture.

Parent company’s relationship with Israel and settlements

Monster is owned, in large part, by the Coca-Cola Company, which has its bottling plant located in the Atarot industrial settlement in East Jerusalem, territory identified by international law as part of the occupied Palestinian Territories. Activists have also strongly criticized this fact due to the view that Coca-Cola (and by extension, related brands such as Monster Energy) is involved in promoting the Israeli government policy and the growth of settlements. This is one type of business activity that, according to many boycott advocates, would amount to