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United States securities and exchange commission logo
June 8, 2023
Thomas Kelly
Chief Financial Officer
Monster Beverage Corp
1 Monster Way
Corona, California 92879
Re: Monster Beverage
Corp.
Form 10-K for the
Fiscal Year Ended December 31, 2022
Filed March 1, 2023
File No. 001-18761
Dear Thomas Kelly:
We have limited our review of your filing to the financial
statements and related
disclosures and have the following comment. In our comment, we may ask
you to provide us
with information so we may better understand your disclosure.
Please respond to this comment within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe our
comment applies to your facts and circumstances, please tell us why in
your response.
After reviewing your
response to this comment, we may have additional comments.
Form 10-K for the Fiscal Year Ended December 31, 2022
Management's Discussion and Analysis of Financial Condition and Results
of Operations
Inflation, page 58
1. You disclose here, and
in your quarterly filing, that inflation has negatively impacted your
results of operations,
leading to increased cost of sales and operating expenses. In future
filings, please
quantify and disclose the impact of the inflationary pressures you are
experiencing on cost of
sales, gross margins and operating expenses. For example, based
on the material decline
in gross profit as a percentage of net sales from 56.1% for the year
ended December 31, 2021
to 50.3% for the year ended December 31, 2022, specifically
quantify the impacts of
increased freight rates and fuel costs, including costs relating to
the importation of
aluminum cans, increased ingredient and other input costs, including
secondary packaging
materials, increased aluminum can costs attributable to higher
aluminum commodity
pricing, increased co-packing fees, production inefficiencies, and
geographical sales mix.
Thomas Kelly
Monster Beverage Corp
June 8, 2023
Page 2
In closing, we remind you that the company and its management are
responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review,
comments, action or
absence of action by the staff.
You may contact Dale Welcome at 202-551-3865 or Anne McConnell at
202-551-3709
with any questions.
FirstName LastNameThomas Kelly Sincerely,
Comapany NameMonster Beverage Corp
Division of
Corporation Finance
June 8, 2023 Page 2 Office of
Manufacturing
FirstName LastName