Coca-Cola’s energy drink to compete with partner Monster Beverage

The Coca-Cola Company is planning to introduce an energy drinks range that will be in direct competition with its partner Monster Beverage.

The move is part of Coca-Cola’s various attempts to branch out from the sugary soft drinks category and meet the demands of health-focused consumers. Other efforts include the release of a yoghurt product to the Brazillian dairy market.

The company told Reuters it was looking to launch new drinks branded Coca-Cola Energy and Coca-Cola Energy No Sugar. They would contain caffeine derived from natural guarana extract.

In the past, the firm has been cautious about entering the energy drinks market following negative press and controversy. In August, the UK Government was considering banning the sale of energy drinks to children and young adults due to health concerns and to tackle obesity in the country.

In 2015, Coca-Cola acquired a 17% stake in energy drinks maker Monster Beverage, becoming its largest shareholder.

The introduction of Coca-Cola’s new energy drink beverages now comes into direct competition with its partner, which is claimed to violate their initial agreement.

A Coca-Cola spokesperson told Reuters: “We have submitted the difference in interpretation to an arbitration panel for resolution, which is the mechanism agreed by the Coca-Cola Co and Monster in the original agreements.”

The plans became public after Monster disclosed that Coca-Cola had filed an arbitration claim to resolve the dispute, reported Wall Street Journal.