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  "docId": "019dd923-622c-750b-8b99-acb9ee1902a4",
  "docSlug": "7928eb40991c",
  "documentTitle": "Monster Beverage Corp. (MNST)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-04-08 00:00:00",
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  "notes": "The slide uses a table to highlight financial metrics that contradict a healthy partnership, specifically focusing on the 2023 auditor change period.",
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      "kind": "callout",
      "text": "In fact, we see recent evidence of strain leading up to the auditor change with commissions falling in 2022 despite revenues increasing.",
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      "text": "TCCC Commissions",
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      "kind": "paragraph",
      "text": "At a high level, we estimate that Monster is ~0.70% and ~3% of The Coca-Cola Company's (“TCCC”) revenue and market cap. A former employee described Monster's relationship as “Not very healthy. Tense and transactional”. In fact, we see recent evidence of strain leading up to the auditor change with commissions falling in 2022 despite revenues increasing. In 2023, with the proportion of sales to TCCC falling and accounts receivables spiking. Accrued promotional allowances, a Critical Audit Matter, also keeps increasing as a percentage of the total consolidated allowances.",
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      "kind": "quote",
      "text": "“Not very healthy. Tense and transactional. Okay, so let's separate Coke Corporate from CONA, from the bottlers... But Coke corporate basically had one individual that was assigned to manage kind of Monster globally, let's call him “Jack”. Jack is responsible for managing the partner companies that Coke has investments in and reports back to the mothership. But above that, and it was kind of transactional. Again, not a lot of collaboration, not a lot of intimacy there, period.”",
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      "kind": "quote",
      "text": "“Not very healthy. Tense and transactional. ... Again, not a lot of collaboration, not a lot of intimacy there, period.” — Former Employee",
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      "kind": "source-note",
      "text": "Source: MNST SEC filings, Spruce Point analysis. 1) Based on 10% of Coke's Global Venture revenue. It says 90% of segment revenue is Costa and Innocent. 2) Adjusted for hedge contracts and accrued security purchase",
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      "kind": "table",
      "text": "Analysis of The Coca-Cola Company (TCCC) Related-Party Disclosures",
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      "kind": "title",
      "text": "A Close Look At Monster's Coke Relationship",
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