Monster Beverage · Earnings release

PondelWilkinson Inc.

Investor Relations

Strategic Public Relations

W www.pondel.com

NEWS

RELEASE

CONTACTS:

Rodney C. Sacks

Chairman and Co-Chief Executive Officer

Hilton H. Schlosberg

Vice Chairman and Co-Chief Executive Officer

Roger S. Pondel / Judy Lin

PondelWilkinson Inc.

MONSTER BEVERAGE REPORTS 2024 FOURTH QUARTER

AND FULL-YEAR

FINANCIAL RESULTS

-- Record Fourth Quarter Net Sales Rise

-- Net Sales, Adjusted for Changes in Foreign

Currency Rise 7.8 Percent in the 2024 Fourth Quarter --

-- Gross Profit as a Percentage of Net Sales

Improves to 55.5 Percent on a Non-GAAP Adjusted Basis (55.3 Percent on a Reported Basis) in the 2024 Fourth Quarter --

-- Operating Income Rose 7.9 Percent to

$517.9 Million on a Non-GAAP Adjusted Basis --

-- Net Income Per Diluted Share was $0.38

on a Non-GAAP Adjusted Basis ($0.28 on a Reported Basis) in the 2024 Fourth Quarter --

Corona, CA – February 27, 2025 – Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and twelve-months ended December 31,

Items Impacting Profitability

The tables at the end of this press release provide a reconciliation

of non-GAAP financial measures to the Company’s results, as reported under GAAP. (See “Adjusted Condensed Consolidated Statements

of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).

·

$130.7 million adverse impact relating to Alcohol Brands segment impairment charges.

·

$4.1 million adverse impact relating to reserves for excess inventory in the Alcohol Brands segment.

·

$1.8 million adverse impact of the Hansen Litigation (described in greater detail in the Company’s SEC filings).

·

$39.9 million adverse impact relating to Alcohol Brands segment impairment charges.

·

$5.0 million adverse impact relating to Bang inventory purchased at fair value.

·

$1.0 million adverse impact relating to Bang transaction costs.

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Monster Beverage Corporation

·

$0.3 million adverse impact of the Hansen Litigation.

Operating income, adjusted for these items

(non-GAAP), was $517.9 million in the 2024 fourth quarter, compared with $480.1 million in the 2023 fourth quarter, an increase of 7.9

percent.

Net income per diluted share, adjusted for

these items net of tax (non-GAAP), was $0.38 per share for both the 2024 and 2023 fourth quarters.

·

$138.8 million adverse impact relating to Alcohol Brands segment impairment charges.

·

$20.0 million adverse impact of the Hansen Litigation (described in greater detail in the Company’s SEC filings).

·

$14.7 million adverse impact relating to reserves for excess inventory in the Alcohol Brands segment.

·

$42.7 million adverse impact relating to Alcohol Brands segment impairment charges.

·

$16.1 million adverse impact relating to Bang transaction costs.

·

$12.8 million adverse impact relating to Bang inventory purchased at fair value.

·

$2.6 million adverse impact of the Hansen Litigation.

·

$45.4 million favorable impact relating to the gain on the Bang transaction.

Net income per diluted share, adjusted for

these items net of tax (non-GAAP), was $1.62 per share for the 2024 full year compared with $1.56 per share for the 2023 full year.

Fourth Quarter Results

Net sales for the 2024 fourth quarter increased

4.7 percent to $1.81 billion, from $1.73 billion in the comparable period last year. Net changes in foreign currency exchange rates had

an unfavorable impact on net sales for the 2024 fourth quarter of $52.3 million. Net sales on a foreign currency adjusted basis increased

Net sales for the Company’s Monster Energy®

Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance

energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, increased 4.5 percent to $1.67 billion for

the 2024 fourth quarter, from $1.60 billion for the 2023 fourth quarter. Net changes in foreign currency exchange rates had an unfavorable

impact on net sales for the Monster Energy® Drinks segment of approximately $49.0 million for the 2024 fourth quarter. Net sales

on a foreign currency adjusted basis for the Monster Energy® Drinks segment increased 7.6 percent in the 2024 fourth quarter.

Net sales for the Company’s Strategic Brands

segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s

affordable energy brands Predator® and Fury®, increased 11.1 percent to $102.0 million for the 2024 fourth quarter, from $91.8

million in the 2023 fourth quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Strategic

Brands segment of approximately $3.3 million for the 2024 fourth quarter. Net sales on a foreign currency adjusted basis for the Strategic

Brands segment increased 14.7 percent in the 2024 fourth quarter.

Net sales for the Alcohol Brands segment, which

is comprised of The BeastTM, Nasty Beast® Hard Tea, as well as various craft beers

and hard seltzers, decreased 0.8 percent to $34.9 million for the 2024 fourth quarter, from $35.2 million in the 2023 fourth quarter.

Net sales for the Company’s Other segment,

which primarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent

third-party customers, increased 4.6 percent to $5.1 million for the 2024 fourth quarter, from $4.9 million in the 2023 fourth quarter.

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Monster Beverage Corporation

Net sales to customers outside the United States

increased 11.7 percent to $711.5 million in the 2024 fourth quarter, from $637.0 million in the 2023 fourth quarter. Such sales were

approximately 39.3 percent of total net sales for the 2024 fourth quarter, compared with 36.8 percent in the 2023 fourth quarter. Net

sales to customers outside the United States, on a foreign currency adjusted basis, increased 19.9 percent in the 2024 fourth quarter.

Gross profit as a percentage of net sales for

the 2024 fourth quarter was 55.3 percent, compared with 54.2 percent in the 2023 fourth quarter. Adjusted gross profit as a percentage

of net sales for the 2024 fourth quarter was 55.5 percent, compared with 54.5 percent in the 2023 fourth quarter. (See “Adjusted

Condensed Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information”

below). The increase in gross profit as a percentage of net sales for the 2024 fourth quarter was primarily the result of reduced

input costs, partially offset by geographical sales mix.

Operating expenses for the 2024 fourth quarter

were $621.2 million, compared with $504.4 million in the 2023 fourth quarter. Operating expenses as a percentage of net sales for the

2024 fourth quarter were 34.3 percent, compared with 29.2 percent in the 2023 fourth quarter. Adjusted operating expenses for the 2024

fourth quarter were $488.7 million, compared with $463.2 million in the 2023 fourth quarter. Adjusted operating expenses as a percentage

of net sales for the 2024 fourth quarter were 27.0 percent, compared with 26.8 percent in the 2023 fourth quarter. (See “Adjusted

Condensed Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information”

below).

Distribution expenses for the 2024 fourth quarter

were $77.6 million, or 4.3 percent of net sales, compared with $79.6 million, or 4.6 percent of net sales, in the 2023 fourth quarter.

Selling expenses for the 2024 fourth quarter were

$193.4 million, or 10.7 percent of net sales, compared with $176.8 million, or 10.2 percent of net sales, in the 2023 fourth quarter.

General and administrative expenses for the 2024

fourth quarter were $350.3 million, or 19.3 percent of net sales, compared with $248.0 million, or 14.3 percent of net sales, for the

2023 fourth quarter. Stock-based compensation was $22.2 million for the 2024 fourth quarter, compared with $16.4 million in the 2023

fourth quarter. Adjusted general and administrative expenses for the 2024 fourth quarter were $217.7 million, or 12.0 percent of net

sales, compared with $206.8 million, or 12.0 percent of net sales, for the 2023 fourth quarter. (See “Adjusted Condensed Consolidated

Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).

Operating income for the 2024 fourth quarter was

$381.2 million, compared with $434.0 million in the 2023 fourth quarter. Adjusted operating income for the 2024 fourth quarter was $517.9

million, compared with $480.1 million in the 2023 fourth quarter. (See “Adjusted Condensed Consolidated Statements of Income and

Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).

The effective tax rate for the 2024 fourth quarter

was 29.9 percent, compared with 18.5 percent in the 2023 fourth quarter. The increase in the effective tax rate for the 2024 fourth quarter

was primarily attributable to a decrease in the stock-based compensation deduction for the 2024 fourth quarter, an adjustment to the

2024 full year effective tax rate, higher 2024 state income taxes and the establishment of a state tax valuation allowance relating to

certain net operating losses of the Alcohol Brands segment.

Net income for the 2024 fourth quarter decreased

26.2 percent to $270.7 million, from $367.0 million in the 2023 fourth quarter. Adjusted net income for the 2024 fourth quarter decreased

6.6 percent to $375.7 million from adjusted net income of $402.4 million in the 2023 fourth quarter. (See “Adjusted Condensed Consolidated

Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).

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Monster Beverage Corporation

Net income per diluted share for the 2024 fourth

quarter decreased 20.8 percent to $0.28, from $0.35 in the fourth quarter of 2023. Adjusted net income per diluted share was $0.38 per

share for the 2024 fourth quarter, compared with adjusted net income per diluted share of $0.38 per share for the 2023 fourth quarter.

(See “Adjusted Condensed Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP

Information” below).

Hilton H. Schlosberg, Vice Chairman and Co-Chief

Executive Officer, said, “We recorded strong operating results on an adjusted basis in the 2024 fourth quarter and for the 2024

full year.

“Our results were again impacted by unfavorable

foreign currency exchange rates in certain markets. On a foreign currency adjusted basis, net sales increased 7.8 percent in the quarter.

“Adjusted gross profit margins improved

to 55.5 percent in the 2024 fourth quarter, compared with adjusted gross profit margins of 54.5 percent in the 2023 fourth quarter.

“We continued to see sustained growth in

the global energy drink category. In the United States, we are seeing a resurgence of growth in the energy drink category in convenience,

as well as in all measured channels reported by Nielsen. Our non-Nielsen measured channels continued to grow.

“Growth opportunities in household penetration

and per capita consumption, along with consumers’ growing need for energy are positive trends for the category.

“We implemented an approximately 5.0 percent

price increase on our brands and packages, excluding Bang Energy®, Reign® and Reign Storm® in the United States, effective

November 1, 2024, which contributed to our strong results,” Schlosberg added.

Rodney C. Sacks, Chairman and Co-Chief Executive

Officer, said, “Following the successful launch of Monster Energy® Ultra Vice Guava® in October 2024, we launched

a number of new products in the first two months of 2025. Innovation globally continues to play a key role in our strategy and we maintain

a robust innovation pipeline.

“We continue to have market share leadership

in a number of countries for our Monster Energy® brand, and I am pleased to report that in the Republic of Ireland, Monster Energy®

has gained market share leadership in the last 13 weeks, as reported by Nielsen.

“We incurred additional impairments within

our Alcohol Brands segment in the quarter due to financial performance, which is being addressed. We are exploring opportunities for

distribution of our alcohol products in certain international jurisdictions,” Sacks said.

Net sales for the year ended December 31,

2024, increased 4.9 percent to $7.49 billion, from $7.14 billion in 2023. Global pricing actions positively impacted net sales by approximately

$107.3 million for the year ended December 31, 2024. Net changes in foreign currency exchange rates had an unfavorable impact of

$247.1 million on net sales for the 2024 full year. Net sales on a foreign currency adjusted basis increased 8.4 percent for the 2024

full year.

Gross profit, as a percentage of net sales, for

the year ended December 31, 2024, was 54.0 percent, compared with 53.1 percent in 2023. Adjusted gross profit as a percentage of

net sales for the year ended December 31, 2024, was 54.2 percent, compared with 53.3 percent in 2023. (See “Adjusted Condensed

Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).

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Monster Beverage Corporation

Operating expenses for the year ended December 31,

2024, were $2.12 billion, compared with $1.84 billion in 2023. Adjusted operating expenses for the year ended December 31, 2024,

were $1.96 billion, compared with $1.78 billion in 2023. (See “Adjusted Condensed Consolidated Statements of Income and Other Information”

and “Reconciliation of GAAP and Non-GAAP Information” below).

Operating income for the year ended December 31,

2024, was $1.93 billion, compared with $1.95 billion in 2023. Adjusted operating income for the year ended December 31, 2024, was

$2.10 billion, compared with $2.03 billion in 2023. (See “Adjusted Condensed Consolidated Statements of Income and Other Information”

and “Reconciliation of GAAP and Non-GAAP Information” below).

The effective tax rate was 24.1 percent for the

Net income for the year ended December 31,

2024, decreased 7.5 percent to $1.51 billion, from $1.63 billion in 2023. Net income per diluted share for the year ended December 31,

2024, decreased 3.4 percent to $1.49, from $1.54 in 2023. Adjusted net income for the year ended December 31, 2024, decreased 0.7

percent to $1.64 billion from $1.65 billion for 2023. Adjusted net income per diluted share was $1.62 per share for the year ended December 31,

2024, compared with $1.56 per share for 2023. (See “Adjusted Condensed Consolidated Statements of Income and Other Information”

and “Reconciliation of GAAP and Non-GAAP Information” below).

Share Repurchase Program

During the 2024 fourth quarter, no shares of the

Company common stock were repurchased. As of February 26, 2025, approximately $500.0 million remained available for repurchase under

the previously authorized repurchase program.

Investor Conference Call

The Company will host an investor conference call

today, February 27, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all

interested investors through a live audio web broadcast via the internet at www.monsterbevcorp.com in the “Events & Presentations”

section. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.

Monster Beverage Corporation

Based in Corona, California, Monster Beverage

Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s

subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy drinks, Juice Monster®

Energy + Juice energy drinks, Java Monster® non-carbonated coffee + energy drinks, Monster Killer Brew™ Triple Shot, Rehab®

Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign® Total Body Fuel high performance energy

drinks, Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy drinks, Bang Energy® drinks,

BPM® energy drinks, BU® energy drinks, Burn® energy drinks, Live+® energy drinks, Mother® energy drinks, Nalu®

energy drinks, Play® and Power Play® (stylized) energy drinks, Relentless® energy drinks, Samurai® energy drinks, Ultra

Energy® drinks, Predator® energy drinks and Fury® energy drinks. The Company’s subsidiaries also develop and market

still and sparkling waters under the Monster Tour Water® brand name. The Company’s subsidiaries also develop and market craft

beers, flavored malt beverages and hard seltzers under a number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas

Blonde®, Wild Basin® hard seltzers, The Beast™ and Nasty Beast® Hard Tea. For more information visit www.monsterbevcorp.com.

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Monster Beverage Corporation

Caution Concerning Forward-Looking Statements

Certain statements made in this announcement

may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws, as amended, regarding

the expectations of management with respect to our future operating results and other future events including revenues and profitability.

The Company cautions that these statements are based on management’s current knowledge and expectations and are subject to certain

risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results and events to differ

materially from the statements made herein. Such risks and uncertainties include, but are not limited to, the following: our ability

to sustain the current level of sales of and/or achieve growth for our Monster Energy® Reign Total Body Fuel®, Reign Storm®,

Bang Energy® and NOS® brand energy drinks and/or our other products, including our Strategic Brands and Alcohol Brands, decreased

demand for our products resulting from changes in consumer preferences; the impact on our business of competitive products and pricing

pressures and our ability to increase or maintain our market share as a result of actions by competitors; changes in U.S. trade policies

as a result of any legislation proposed or implemented by the recently inaugurated U.S. presidential administration or U.S. Congress,

which include tariffs; the impact of military conflicts, including supply chain disruptions, volatility in commodity prices, increased

economic uncertainty and escalating geopolitical tensions; our extensive commercial arrangements with The Coca-Cola Company (TCCC) and,

as a result, our future performance’s substantial dependence on the success of our relationship with TCCC; our ability to implement

our growth strategy, including expanding our business in existing and new sectors and achieving profitability within our Alcohol Brands

segment; the inherent operational risks presented by the alcoholic beverage industry that may not be adequately covered by insurance

or lead to litigation relating to the abuse or misuse of our products; our ability to recognize the anticipated benefits of the acquisition

of Bang Energy® business; exposure to significant liabilities due to litigation, legal or regulatory proceedings; intellectual property

injunctions; unanticipated litigation concerning the Company’s products; the current uncertainty and volatility in the national

and global economy and changes in demand due to such economic conditions, including a slowdown in consumer spending generally or reduced

demand for consumer goods; adverse publicity surrounding obesity, alcohol consumption and other health concerns related to our products,

product safety and quality; changes in the price and/or availability of raw materials; other supply issues, including the availability

of products and/or suitable production facilities including limitations on co-packing availability including retort production; disruption

to our manufacturing facilities and operations related to climate, labor, production difficulties, capacity limitations, regulations

or other causes; product distribution and placement decisions by retailers; the effects of retailer and/or bottler/distributor consolidation

on our business; unilateral decisions by bottlers/distributors, buying groups, convenience chains, grocery chains, mass merchandisers,

specialty chain stores, e-commerce retailers, e-commerce websites, club stores and other customers to discontinue carrying all or any

of our products that they are carrying at any time, restrict the range of our products they carry, impose restrictions or limitations

on the sale of our products and/or the sizes of containers for our products and/or devote less resources to the sale of our products;

changes in governmental regulation; the imposition of new and/or increased excise sales and/or other taxes on our products; our ability

to adapt to the changing retail landscape with the rapid growth in e-commerce retailers and e-commerce websites; the impact of proposals

to limit or restrict the sale of energy or alcohol drinks to minors and/or persons below a specified age and/or restrict the venues and/or

the size of containers in which energy or alcohol drinks can be sold; possible recalls of our products and/or the consequences and costs

of defective production; or our ability to absorb, reduce or pass on to our bottlers/distributors increases in commodity costs, including

freight costs. For a more detailed discussion of these and other risks that could affect our operating results, see the Company’s

reports filed with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31,

2023 and our subsequently filed quarterly reports. The Company’s actual results could differ materially from those contained in

the forward-looking statements. The Company assumes no obligation to update any forward-looking statements, whether as a result of new

information, future events or otherwise.

# # #

(tables below)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION

(In Thousands, Except Per Share Amounts) (Unaudited)

Three-Months Ended

Twelve-Months Ended

Net sales1

$

$

$

$

Cost of sales

Gross profit1

Gross profit as a percentage of net sales

%

%

%

%

Operating expenses

Operating expenses as a percentage of net sales

%

%

%

%

Operating income1

Operating income as a percentage of net sales

%

%

%

%

Interest and other income (expense), net

Income before provision for income taxes1

Provision for income taxes

Income taxes as a percentage of income before taxes

%

%

%

%

Net income

$

$

$

$

Net income as a percentage of net sales

%

%

%

%

Net income per common share:

Basic

$

$

$

$

Diluted

$

$

$

$

Weighted average number of shares of common stock and common stock equivalents:

Basic

Diluted

Energy Drink Case sales (in thousands) (in 192-ounce case equivalents)

Average net sales per case2

$

$

$

$

1Includes $10.0 million for both the

three-months ended December 31, 2024 and 2023, related to the recognition of deferred revenue. Includes $39.9 million and $40.0

million for the twelve-months ended December 31, 2024 and 2023, respectively, related to the recognition of deferred revenue.

2Excludes Alcohol Brands segment

and Other segment net sales.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Par Value) (Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

$

Short-term investments

-

Accounts receivable, net

Inventories

Prepaid expenses and other current assets

Prepaid income taxes

Total current assets

INVESTMENTS

-

PROPERTY AND EQUIPMENT, net

DEFERRED INCOME TAXES, net

GOODWILL

OTHER INTANGIBLE ASSETS, net

OTHER ASSETS

Total Assets

$

$

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

$

Accrued liabilities

Accrued promotional allowances

Deferred revenue

Accrued compensation

Income taxes payable

Total current liabilities

DEFERRED REVENUE

OTHER LIABILITIES

LONG-TERM DEBT

-

STOCKHOLDERS' EQUITY:

Common stock - $0.005 par value; 5,000,000 shares authorized; 1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

)

)

Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of December 31, 2024 and December 31, 2023, respectively

)

)

Total stockholders' equity

Total Liabilities and Stockholders’ Equity

$

$

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER

INFORMATION

(In Thousands, Except Per Share Amounts) (Unaudited)

Three-Months Ended

Twelve-Months Ended

Net sales

$

$

$

$

Cost of sales

Gross profit

Gross profit as a percentage of net sales

%

%

%

%

Operating expenses

Operating expenses as a percentage of net sales

%

%

%

%

Operating income

Operating income as a percentage of net sales

%

%

%

%

Interest and other income (expense), net

Income before provision for income taxes1

Provision for income taxes

Income taxes as a percentage of income before taxes

%

%

%

%

Net income

$

$

$

$

Net income as a percentage of net sales

%

%

%

%

Net income per common share:

Basic

$

$

$

$

Diluted

$

$

$

$

Weighted average number of shares of common stock and common stock equivalents:

Basic

Diluted

1See “Reconciliation

of GAAP and non-GAAP Information” below for excluded items.

Reconciliation of GAAP and Non-GAAP Information

($ in Thousands, Except

Per Share Amounts, unaudited)

Adjusted results are non-GAAP that exclude the following:

(i) Alcohol Brands Inventory Reserves – increased

inventory reserves due to excess inventory levels in the Alcohol Brands segment.

(ii) Bang Inventory Step-Up – on July 31, 2023,

the Company completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and its debtor affiliates

(the “Bang Transaction”). Inventory purchased as part of the Bang Transaction was recorded at fair value. Certain of the

purchased inventory was subsequently sold in the 2023 third and fourth quarters and was recognized through cost of sales at fair value

(iii) Alcohol Brands segment impairment charges –

impairment charges related to the Alcohol Brands segment due to (a) operating and financial performance not meeting projections

and (b) a decrease in projected ongoing operating and financial performance of the reporting unit. The impairment charges relate

to reporting unit goodwill, certain non-amortizing intangibles as well as property and equipment.

(iii) Hansen Litigation – the Company recorded an

expense provision and incurred legal expenses in connection with an intellectual property claim brought by the descendants of Hubert

Hansen, in relation to the Company’s use of the Hubert Hansen name prior to the transaction with the Coca-Cola Company, which closed

(iv) Bang Transaction Expenses - during 2023, the Company

incurred acquisition expenses related to the Bang Transaction.

(v) Bang Transaction Gain - during the 2023 third quarter,

in connection with the Bang Transaction, the Company recorded a gain of $45.4 million included in interest and other income (expense),

net.

The Company believes these non-GAAP items are useful to investors

in evaluating the Company’s ongoing operating and financial results. The non-GAAP items should be considered in addition to, and

not in lieu of, U.S. GAAP financial measures.

Three-Months Ended

Twelve-Months Ended

Cost of sales

$

$

$

$

Alcohol Brands inventory reserves

)

-

)

-

Bang inventory step-up

-

)

-

)

Cost of sales excluding above items

$

$

$

$

Three-Months Ended

Twelve-Months Ended

Gross profit

$

$

$

$

Alcohol Brands inventory reserves

-

-

Bang inventory step-up

-

-

Gross profit excluding above items

$

$

$

$

Reconciliation of GAAP and Non-GAAP Information

(cont.)

($ in Thousands, unaudited)

Three-Months Ended

Twelve-Months Ended

Operating expenses

$

$

$

$

Alcohol Brands segment impairment charges

)

)

)

)

Hansen Litigation

)

)

)

)

Bang transaction expenses

-

)

-

)

Operating expenses excluding above items

$

$

$

$

Three-Months Ended

Twelve-Months Ended

Operating income

$

$

$

$

Alcohol Brands inventory reserve

-

-

Bang inventory step-up

-

-

Alcohol Brands segment impairment charges

Hansen Litigation

Bang transaction expenses

-

-

Operating income excluding above items

$

$

$

$

Three-Months Ended

Twelve-Months Ended

Interest and other income (expense), net

$

$

$

$

Bang transaction gain

-

-

-

)

Interest and other income (expense), net, excluding above item

$

$

$

$

Three-Months Ended

Twelve-Months Ended

Income before provision for income taxes

$

$

$

$

Alcohol Brands inventory reserve

-

-

Bang inventory step-up

-

-

Alcohol Brands segment impairment charges

Hansen Litigation

Bang transaction expenses

-

-

Bang transaction gain

-

-

-

)

Income before provision for income taxes excluding above items

$

$

$

$

Reconciliation of GAAP and Non-GAAP Information

(cont.)

($ in Thousands, unaudited)

Three-Months Ended

Twelve-Months Ended

Provision for income taxes

$

$

$

$

Alcohol Brands inventory reserve

-

-

Bang inventory step-up

-

-

Alcohol Brands segment impairment charges

Hansen Litigation

Bang transaction expenses

-

-

Bang transaction gain

-

-

-

)

Provision for income taxes excluding above items

$

$

$

$

Three-Months Ended

Twelve-Months Ended

Net income

$

$

$

$

Alcohol Brands inventory reserve

-

-

Bang inventory step-up

-

-

Alcohol Brands segment impairment charges

Hansen Litigation

Bang transaction expenses

-

-

Bang transaction gain

-

-

-

)

Net income excluding above items

$

$

$

$

Adjustments in this table are net of tax.

Three-Months Ended

Twelve-Months Ended

Net income per common share – Diluted

$

$

$

$

Cumulative adjustments, net of tax

Net income per common share – Diluted, excluding above items

$

$

$

$