Coca-Cola has won an arbitration case against Monster Energy concerning the use of the word ‘energy’ in its product branding, paving the way for an international rollout of Coca-Cola Energy.
The dispute centered around a distribution agreement between the two companies dating back to 2014 which prevents Coca-Cola from launching a competing product to Monster, excepting for products introduced under the Coca-Cola brand. The agreement was part of Coca-Cola’s move to purchase a 16.7% stake in Monster at the time.
The American Arbitration Association has now ruled that Coca-Cola Energy lies within the agreed exception and does not represent a breach of contract.
Coca-Cola Energy contains guarana extracts and B vitamins, as well as 80mg of caffeine per 250ml can, and is marketed as “the only energy drink with a great Coca-Cola taste”. Unlike Monster, the beverage does not containe taurine. The product was given a soft launch in Hungary and Spain earlier this year.
In a joint statement, Coke and Monster said: “The companies respect the arbitrators’ decision and appreciate that the dispute was resolved amicably. While there was a disagreement between Coca-Cola and Monster over contractual language, the companies value their relationship and look forward to their continued partnership.”