Can Monster reimagine its identity for seltzer market?

Monster looks set for a move into seltzers. Last week, it emerged the fast-growing energy brand had applied to register its name as a trademark covering drinking water, sparkling water, and water beverages.

While details are scant – Monster distributor Coca-Cola Europacific Partners GB has declined to comment – it is likely to be targeting the growing market for healthier soft drinks like seltzers.

But would it work?

Certainly, Monster has the commercial clout for expansion and the interest to do so, having recently unveiled a caffeine-free hard seltzer in the US.

Its UK performance would suggest room to capitalise on its position. Last year, the brand added 20.8% to its value [Nielsen 52 w/e 10 September].

In energy, it faces stiff competition from rivals like Red Bull, Relentless and Lucozade – all of which are in strong value growth in a £1.8bn sector.

In the seltzer market, however, even the fastest-growing players are a fraction of Monster’s size. That’s because the seltzer market is tiny compared with energy. Take-home sales of all flavoured sparkling waters are just £134.8m [Kantar 52 w/e 27 November 2022].

A move into fizzy water would, therefore, be “an interesting play into a category that hasn’t caught fire”, says Elliot Wilson, strategy director at brand consultancy The Cabinet Agency. With its brand power, Monster could just take seltzers into mainstream territory.

A move into seltzer could also help the brand move beyond its core fanbase of young males to a new demographic: women.

The masculine cues of the energy market means women “don’t feel represented” by the likes of like Monster, argues Teddie Levenfiche, co-founder of matcha energy drink PerfectTed. A move into seltzer could, therefore, help Monster address the long-standing gender imbalance.

As Dash Water co-founder Alex Wright points out, seltzer’s audience is about 60% female.

But not everyone is convinced. Levenfiche argues Monster’s “hyper-masculine” image – tied to hardcore sports, gaming and loud music – wouldn’t resonate with women.

Nisa retailer Amrit Singh has similar misgivings. Health-conscious consumers don’t typically go for large brands, instead gravitating toward “niche producers”, he says.

A stretch too far?

Chris Blythe, director of The Brand Nursery, believes Monster risks stretching its brand identity too far.

This could undermine the position it has “worked so hard to build”, he warns. “I understand the desire to explore new opportunities, but when your entire brand ethos is centred on being the meanest energy drink on the planet, moving into seltzer feels kind of wrong.”

Plus, the brand is too closely tied to its core market. “Monster is an energy drinks brand at its core; not a water brand, not a seltzer brand, and not a health-focused brand,” Blythe adds.

Perhaps the best it could hope for, then, is to persuade its core, predominantly male audience to try something else. Wilson sees “a new occasion for existing consumers”.

Monster’s clearly defined proposition, “attitude” and “disruptive nature”, are highly appealing to its target audience, he says. So this loyal customer base may just be willing to try seltzers with Monster branding.

“There’s only so much caffeine people can take,” Wilson points out. “Maybe this will give them an uncaffeinated kick and hydration from a brand they know and love.”