MNSTMonster Beverage Corporation

Monster Beverage sells energy drinks and does not brew them: production and distribution are handed to a partner.

The company owns the formula, the brand and the marketing, while bottling and store delivery run through Coca-Cola's partner network. That structure removes capital spending and produces exceptionally high margins, while tying the company to someone else's distribution system.

The category grows faster than beverages generally: energy drinks are bought more often and at a higher price per litre, and demand is resilient in downturns. Marketing here is not an expense but a mechanism: the brand is built through sport and subcultures, and without continuous investment it loses relevance.

Risks: aluminium and sugar costs, regulatory attention to caffeine content and sales to minors, and competition from Red Bull and newer brands. The company pays no dividend, directing cash into buybacks.