Coca-Cola Looks to Increase Sales with Monster Energy Drink

Coca-Cola placed a bid of $2.15 billion for Monster Beverage.
4:14 | 08/15/14

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Transcript for Coca-Cola Looks to Increase Sales with Monster Energy Drink
I'm Susan -- in Washington DC as the financial markets close on Wall Street for this Friday August 15 this is story stock. Coca-Cola hoping to energize its -- sales numbers across the globe. Dipping its put into the energy drink business with a two point fifteen billion dollar bid. For a stake in monster beverage. On the news of Coke's move the energy drink maker's stock is bubbling up today. To explain why I'm joined by Yahoo! finance is Rick Newman. Rick thank you for joining us president. Rick how Coke's move playing out on Wall Street today. What to look into it. Yeah that's a huge move for monster. Monster stock has been not -- hanging out around sixty -- -- seventy dollars today spiked up to about 93 dollars. Something like a 30% increase in one -- that's a huge jump that's. Bigger than you you see even in many take over instances so obviously this is a big vote of confidence in monster. Well some saying it's a risky move for the soft drink giant. Well. Energy drinks are somewhat controversial. There are some. Questions about their whether they're safe so -- at some questions about that. If you could also say that this you know this has been popular for awhile so it's not as if Coke is -- getting it right at the beginning of a new trend energy drinks have been training for awhile you know these trends kind of come and go so. It's not clear that energy -- your enemies popular couple years from now as they are nine Coke could get stuck with. Any you know if there tend to be some regulatory issues around health issues or assess safety it claims or anything like that that's going to be got to become coach -- And -- sales not so great across the planet Diet Coke -- a hot seller doing even worst. What's going on there. -- to. There's -- -- here I mean to be consumers have heard loud and clear. That they should drink less so -- there's -- that there is no nutritional value and so -- It -- taste -- it might seem refreshing by this is just got a lot of attention lately sure is sort of on the no no list now and even some of the artificial sweeteners. Sometimes you're there almost as bad as -- so. Compact car for cover a company like Coke it's kind of like where you turn what do you do next if -- if -- sugar drinks. Are falling out of favor here non sugar drinks are falling out of favor you know Pepsi cola it's its biggest competitor. Also owns Frito away so there they've got snacks going in their fair that's a big profit maker for them. Coke doesn't have that so they have to look somewhere outside the soft drink market. And -- you mentioned in contrast energy drinks sales are different. They're doing well there. Yet they've been doing better in energy drinks are sort of like the new cigarettes or -- -- away because there are sponsoring lots of outdoor events and they've you know young people love these strangely that's that's. That's that sort of audience you want so. That that it you know that's what Coke needs right now it's sort of an aging brand that needs a little bit of a facelift if you will also. This is why are -- ways to try to get it. And -- what does monster get out of this in terms of distribution. While monster competes directly with red ball those -- the two big energy drink companies. And -- has a little bit of a lead overseas now what what's gonna happen for monsters they're gonna get. Other -- to piggyback on Coca Cola's global distribution obviously Coke is. Distributor about as widely as any product in the world so that means monster will suddenly gain. -- -- to international markets where what do you know what it just had a tough time. Had to spend a lot of money to get into those markets on a town. That's a huge benefit for this company because Coke has the existing networks in place -- -- have to build its own distribution networks -- just. They can just ride on the back of -- and that's going to be it terrific for for monster sales. Rick Newman from Yahoo! finance thank you for joining us -- a great weekend edition. You've been watching story stocks they -- For your latest headlines I'm Susan solidly in Washington.

This transcript has been automatically generated and may not be 100% accurate.

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