Jefferies analysts say energy drink distribution has expanded meaningfully across U.S. retail channels over the last three years, with notable gains in both grocery and convenience outlets. The investment firm continues to recommend Monster Beverage (NASDAQ:MNST) and Celsius Holdings (NASDAQ:CELH) with Buy ratings.
According to Jefferies' analysis, total points of distribution for energy drinks increased 23% in grocery stores and 25% in convenience stores during the three-year period. The firm highlighted that these distribution gains are not simply a redistribution from competing beverage types within the same channels - in other words, the increases do not appear to be a zero-sum shift, even within convenience store networks.
Despite the sizeable expansion in the number of locations carrying energy drinks, Jefferies notes a much smaller change when the category is measured against the broader non-alcoholic beverage universe. Energy drinks' share of total non-alcoholic beverage distribution points rose by only 1.4 percentage points over the same three-year span.
The contrast between robust growth in retailer-level distribution and the modest gain in category share underscores a gap between available shelf presence and proportional representation within the non-alcoholic beverage distribution footprint. Jefferies' stance supporting MNST and CELH is presented alongside these distribution metrics.
The data points provided focus exclusively on distribution coverage across grocery and convenience channels and on the relative share of non-alcoholic beverage distribution points. The report does not provide additional figures on sales volume, revenue changes, or consumer demand trends tied to the distribution increases.
For market participants and observers, the Jefferies findings emphasize two measurable trends: strong growth in retailer placements for energy drinks and a comparatively modest movement in the category's share of total non-alcoholic distribution points. The analysts' continued Buy ratings on Monster Beverage and Celsius Holdings are stated in the context of those distribution developments.