Energy drinks you say? Fun fact, Monster is one of only a small number of stocks that outperformed NVDA over the past 20 years: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&s...
It's a high-margin business!
Is there that much more potential left for energy drinks?
I would hope not for the sake of people’s health.
Coca Cola and Pepsi each seem to have profits in the $5B to $10B range, which can be a proxy for how much profit there exists in the space because everyone else is much smaller.
Maybe if these energy drinks displace all of coffee and tea, but I would be surprised. How much more caffeine will (or should) consume?
President Camacho has yet to come to power to authorize energy drinks for irrigation (because it's got electrolytes), so I'd say yes, there's still a ton of potential.
I suspect that to some degree individual drinks will be boom -> bust, as newer brands cannibalize the market by having (or advertising) superior energy, more caffeine, better comedowns, etc., and with older drinks having a higher likelihood of bad publicity simply on account of having been around longer. MLMs like Herbalife are also operating in the space (all "loaded tea" shops are MLM), so obviously in cases like that there's a ton of pressure producing early growth.