Monster Beverage signaled it will raise prices to offset surging aluminum costs as tariffs and Middle East tensions tighten supplies and push up expenses. The company is monitoring the opportunity to take price after success with modest increases in late 2025, according to executives on Monster's first quarter earnings call on May 8.
"Modest inflationary pricing is working," said Guy Carling, CEO of EMEA and OSP. "The category is healthy and we are gaining share in the category and we are optimizing the growth in consumer demand for our products."
Tariffs and aluminum price spikes hit first-quarter results. A 50 percent tariff the Trump administration placed on aluminum last year, combined with a surge in the Midwest premium for aluminum, drove up the cost of cans. The Midwest Premium, which tracks aluminum prices to the US Midwest, climbed 186.5 percent from April 2025 to April 2026, according to S&P Global Energy. That jump accelerated sharply after February 28, when the US and Israel launched strikes against Iran. Iranian strikes in the Persian Gulf later shut down key aluminum facilities, and disruptions at the Strait of Hormuz further tightened supplies.
The cost hit was modest in the quarter. Tariffs and higher aluminum prices reduced gross margin by just under 1 percent in Q1 2026, Vice Chairman and CEO Hilton Schlosberg said. Schlosberg expects the climb to continue: "We expect a continued modest sequential increase in our costs through at least the end of 2026 as compared to the 2026 first quarter."
Monster remains confident it can pass along costs. Schlosberg called the company's energy drinks "an affordable luxury" compared to pricier coffee, which has also climbed due to tariffs and geopolitical stress. The company is also using hedging strategies to manage commodity exposure and shipping extra product outside regular supply routes to meet demand, adding to freight costs.
Americas CEO Rob Gehring said the company is "very pleased with the pricing actions we took in late 2025. We believe that play is working," signaling room to raise prices further if needed.