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Monster Beverage Corporation reached a deal to acquire American Fruits and Flavors for $690 million. The latter has been the major flavor supplier to Monster and is anticipated to increase about $87 million in adjusted operating income for the year period that ended Dec. 31, 2015. American Fruits and Flavors had been working with Monster Beverages since 1990s.

American Fruits and Flavors makes and supplies fruit-based products and fruit concentrates around the globe. It likewise supplies flavors to food and beverage manufacturers in Southern California aside from processing fruit concentrates and juices and making blends from the mix of fruit and flavors. The company offers different kinds of flavors, sweeteners, flavor bases, clouding agents, cloud emulsions, blended concentrates and a lot more. It also serves a variety of application such as alcoholic products and bakery products to name a few. American Fruit and Flavors became incorporation in 1975 and have headquarters in Pacoima, California, as reported by Bloomberg.

CEO Rodney Sacks said: "Not only have we secured the intellectual property of our flagship green energy drink and many of our other key flavors, but we are also partnering with an organization I have personally worked with and known for over 20 years ... This transaction provides Monster a unique opportunity to leverage new flavor technologies and differentiate ourselves from our largest competitors who do not have these capabilities," according to the Seeking Alpha report.

Monster Beverage is an energy drinks maker based in Corona, California and on Thursday will announce its 2015 Q4 financial report after the market close. It has a 'buy' rating and received a Grade B from The Street Ratings because of its growth in earnings, strong financial position along with reasonable debt levels, widening profit margins, nice operational cash flow and rise in earnings per share, as cited by The Street.

Monster Beverage's acquisition of American Fruits and Flavors is expected to increase the revenue and generate further sales growth. The beverage company need not to buy supplies as it has bought the flavoring company it worked with since 1990's.