Monster Beverage Corp (NASDAQ:MNST) fell close to 8% in pre-market trading on Thursday after the energy drink maker disappointed with second-quarter results.
A dip in convenience store footfall weighed on sales, according to the Monster Energy maker, prompting revenue and profits to both miss expectations.
Revenue climbed 2.7% to US$1.9 billion, below FactSet consensus estimates for US$2.01 billion.
Net income rose 2.8% to US$425.4 million, sitting at US$0.41 on a per-share basis and also short of analysts’ expectations of US$0.45.
“Retailers have reported a reduction in convenience-store foot traffic and we have seen a shift at retail towards more mass and dollar channels,” co-chief executive Hilton Schlosberg said.
“Other beverage and consumer packaged-product companies have also seen a tighter consumer spending environment and weaker demand in the quarter.”
The comments came a day after rival Celsius Holdings (NASDAQ:CELH) noted full-sugar drink sales had “stagnated for several years” in results, with growth emerging in sugar-free alternatives.
Monster also reported a 31.9% fall in alcoholic beverage sales to US$41.6 million on weaker demand for flavoured malt drinks.
Shares fell 7.9% to US$46.51 in pre-market trading.