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Coca-Cola gets go-ahead to sell energy drinks under Monster contract

Coca-Cola has been given the green light to sell its new energy drink globally under the terms of the contract with Monster Beverages Corporation.

An arbitration tribunal ruled that the introduction and sale of Coca-Cola Energy is allowed under the terms of the contract, the two companies confirmed on Monday.

The arbitrators ruled on June 28 that Coca-Cola Energy products fall within an exception to a “non-compete provision” relating to beverages marketed or positioned under the Coca-Cola brand.

The drink which first launched in Spain and Hungary in April, hit shelves in Australia in recent weeks. In a shift towards better-for-you beverages, Coca-Cola used caffeine from naturally-derived sources, guarana extracts and B vitamins to create the new drink and also released a no sugar option. The beverage is also free from taurine, a stimulant often found in energy drinks.

The soft drinks giant was in arbitration with Monster over the launch of the energy drink, as it would put the company in direct competition with Monster and violate their initial agreement in 2015. Both companies agreed to submit their dispute to arbitration in October 2018.

“The companies respect the arbitrators’ decision and appreciate that the dispute was resolved amicably,” a joint statement read.

“While there was a disagreement between Coca-Cola and Monster over contractual language, the companies value their relationship and look forward to their continued partnership.”

Coca-Cola can continue to sell and distribute Coca-Cola Energy, including in markets where it has already been launched. Coca-Cola is also free to launch the product in additional markets globally.

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