Energy on the menu at the Mac
McDonald's is coming up with something in around 20 of its subsidiaries in the United States: it seems that as of now Monster is being sold in some of its 14,000 restaurants in the US, as a test.
Monster, the largest of the energy drink brands in the US, has sold 16.7% of its shares to Coca Cola in June 2015. The probability that this plays a role in the McDonald’s story is obviously significant if we think about the fact that Coca Cola has been collaborating with McDonald’s since 1955. The test started in the summer in five US states, but McDonald’s meanwhile, has not yet announced whether it will expand the sale to several McDonald’s restaurants in the US or abroad. Monster is sold at a price of $2.29 per can or $4 for two cans in 20 restaurants.
This gives Monster the opportunity to increase its sales and enter an even bigger market. This allows Monster to reach its target audience even better and it might even reach a new target audience. McDonald’s is probably doing this to get out of the downward spiral, in which it finds itself at the moment.
In 2014, the fast food chain had 5% less turnover and even made 30% less profit. McDonald’s does no longer seem able to reach generation Y and therefore is probably trying to reach people again by means of new concepts such as a ‘breakfast bar’ and now an energy drink.
However, it is relevant to ask how this will turn out for both parties. We will probably find out soon enough as it could go two ways; other fast food chains will follow this example and Monster will appear in subsidiaries or we will not see Monster in combination with a euro winner for the time being.