(Photo credit: Like_the_Grand_Canyon)
Fast-growing Monster Beverage will be added to the SP 500 index next week, replacing Sara Lee.
Monster has experienced strong sales and profit growth since going public in 1995, as Americans guzzled down its namesake energy drink, a blend of sugar and Vitamin B packaged in tall-boy cans streaked with claw marks. Meanwhile, Sara Lee suffered. Sales fell from $17.6 billion in 2002 to only $8.7 billion last year. Come next week, Sara Lee will spin off its coffee-and-tea business into a new company called D.E. Master Blenders, hoping the separation will improve prospects for both entities. The North American food business will become Hillshire Brands, and appear on the SP MidCap 400 index.
The new listings will be effective June 28.
Shares of Monster rose by as much as 4%, later settling up 3.1% at $77.05.
Monster joins rivals PepsiCo, Coca-Cola and Dr Pepper Snapple on the large cap index. And SP hasn't been the only one to take notice of Monster's performance. Coke earlier this year was reportedly interested in buying Monster, the second largest energy-drink company behind privately held Red Bull. Both companies denied the rumors.
Additionally, Alexander Baldwin, a Hawaiian sugar cane and real estate company, will take Patriot Coal's place on the index. Like Sara Lee, Patriot will head to the SP 400.
Reach Abram Brown at abrown@forbes.com. Or follow him @abebrown716.
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