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ERP programmes

Monster Beverage's digital overhaul, SAP included, cost $14.7 million in the third quarter, it said. The bill covers more than SAP.

The energy drink maker will switch to SAP S/4HANA, the German vendor's current business software, with a planned go-live of 1 January 2028, chief executive Hilton Schlosberg told analysts on 5 November, according to a Motley Fool…

ERP LEADERS news desk · · First reported by The Motley Fool · Edition no. 63
Photo: Oto Zapletal/Wikimedia, CC BY-SA 4.0 · original

The energy drink maker will switch to SAP S/4HANA, the German vendor's current business software, with a planned go-live of 1 January 2028, chief executive Hilton Schlosberg told analysts on 5 November, according to a Motley Fool transcript of the call.

The upgrade is part of a wider programme to modernise commercial, operations and supply chain systems. Monster booked $14.7 million of digital transformation costs in the quarter for that programme, the SAP upgrade included. It gave no total budget and no SAP-only figure.

Net sales rose 16.7% to $2.56 billion. Gross margin fell to 54.7% from 55.7%, which the company put down to higher aluminium can costs and the mix of countries it sells in. Raw aluminium is up 36% in a year, Schlosberg said, and the company raised US prices on 1 November.

Monster holds an investor day in New York on 1 December.

Our reading: one quarter's bill of $14.7 million, with about 14 months to go-live, says little about the final cost, because the company has not published a total programme budget or an SAP-only figure.

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For your next steering committee

Questions for your own programme. They are not findings about any company in this story.

  1. 1Ask which design decisions in your programme would be expensive to reverse, and when each was last reviewed.
  2. 2Ask which expected benefits change if the implementation approach changes.
  3. 3Ask who owns a decision to change course, and where it would be recorded.

Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01

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