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Why Monster Beverage’s Margins Contracted in 4Q17

Why Monster Beverage’s Margins Contracted in 4Q17

The contraction in the company’s 4Q17 gross margin was attributable to an unfavorable sales mix mainly resulting from increased sales of Java Monster. Its gross margin was also impacted by inventory reserves in China, a rise in other costs, primarily related to sweeteners and aluminum cans, and logistical costs from imports.