The broader market gets labeled a tech story, and this week’s turbulence across chipmakers and software giants has only reinforced that reputation. Yet tucked within the same indexes sit a handful of companies selling soda, candy bars, and energy drinks—businesses with far less exposure to the volatility currently rattling the broader market.
Three of these consumer staples names each have something specific happening between now and the end of the year that makes the current pullback worth examining closely. Monster Beverage, Keurig Dr Pepper, and Mondelez International have each taken a beating alongside the broader tech selloff, despite business fundamentals that look considerably more durable than their recent stock performance suggests.
Monster Beverage: A Global Growth Story Hiding in Plain Sight
The simple narrative around Monster is that it sells caffeine to American consumers. The more compelling story lives in the numbers: sales outside the U.S. rose 34.6% last quarter and now represent approximately 46% of total revenue, up from 41% a year earlier. That shift reveals why this stock deserves attention right now—energy drinks remain an early-stage habit across much of the world, and Monster is capitalizing on that opportunity through its partnership with Coca-Cola’s distribution network.
The company is actively expanding into markets including China, India, Southeast Asia, and Pakistan, introducing affordable, localized products—including sugar-free and female-focused options—specifically designed to attract new consumers and build market share in these developing regions.
October carries particular significance for two reasons. Monster completed a 2-for-1 stock split in August, which doesn’t change underlying business fundamentals but often draws renewed attention from smaller investors. More importantly, the company reports third-quarter results in early November, meaning a purchase now represents a bet that current growth trends continue into that report. The risks worth noting include rising aluminum costs, which management has flagged as a pressure point, along with the ongoing possibility that regulators in various markets could restrict energy drink sales.
Keurig Dr Pepper: Buying Before a Corporate Split
Keurig Dr Pepper completed its acquisition of JDE Peet’s in April and plans to separate into two distinct companies in early 2027: a North American soda and water business built around Dr Pepper, and a global coffee company encompassing Peet’s, L’OR, and Jacobs. The refreshment segment posted 10% sales growth last quarter, with volume up 6.5%—genuinely strong performance for a soda business in the current environment.
The investment case here centers on market pricing inefficiency: conglomerates frequently get mispriced by the market immediately before they split apart. Keurig Dr Pepper reports earnings on November 3, representing the company’s last full quarterly update before separation planning moves into sharper focus. Investors who establish positions in October will receive shares of both resulting companies once the split executes.
The primary risk is leverage. The company expects to finish 2026 carrying approximately 4.1 times debt, while U.S. coffee sales declined 3.2% last quarter. Currently, the stronger soda business is effectively subsidizing the struggling coffee segment—a dynamic that should theoretically resolve once the two businesses operate independently.
Mondelez: Evidence That Volume Growth Has Returned
Mondelez, parent company to Oreo and Cadbury, spent roughly two years raising prices to offset a significant cocoa cost spike. The critical question was whether consumers would continue purchasing at elevated price points once pricing stabilized. Last quarter provided an encouraging answer: both volume and product mix turned positive, emerging markets remained strong, and the board raised the dividend 4%.
The company continues executing smaller strategic moves that compound over time, including a Toblerone and Biscoff collaboration announced in September. Mondelez reports earnings on October 29, making this the only pick among the three where the catalyst falls within the current month.
Management has committed to reinvesting in brand support, which pressures near-term margins—that’s the primary risk here. If European performance doesn’t continue improving, the market likely won’t extend much patience waiting for results to materialize.
