What makes Monster Beverage the top-performing stock of the past three decades?

The top-performing stock of the past three decades is not one of the well-known tech companies.

It’s actually an energy drink company: .

For three decades, both the stock price and sales of the monster have been steadily increasing.

From 1994 to the present day, Monster's stock has increased in value by approximately 200,000%. As a result, an initial investment of $1,000 in 1994 would now be worth approximately $2 million.

Several factors have contributed to Monster's success, but it is largely due to its leaders, co-CEOs Rodney Sacks and Hilton Schlosberg, who seized an emerging market opportunity early on.

Mark Astrachan, Stifel consumer and retail managing director, stated, "Some of it is clearly right place, right time. However, there's also an element of being really good at what you can do because you can't be as lucky as they've been for as long as they've been without being really good at running a business."

The company, Monster Beverage, is made up of subsidiaries that produce and manufacture a range of drinks, including energy drinks, alcoholic beverages, teas, and coffees.

In the third quarter of the previous year, the company's net sales were $1.86 billion, representing a 14.3% increase from the same period in the previous year. The Monster Energy segment accounted for $1.71 billion of that total.

In 1935, Hansen's was established as a family-owned juice company, which later became known as Hansen Natural Corporation and eventually Monster Beverage.

In 1990, after filing for bankruptcy in 1988, Sacks and Schlosberg bought the company and made it public. Since then, it has undergone a complete transformation, going from trading for pennies to closing at $55.02 a share on Friday.

The company didn't gain much traction until it introduced an eponymously named energy drink in 2002.

RBC Capital Markets Managing Director Nik Modi stated, "They constructed the brand's distribution network with precision, ensuring its strength in every market and retailer."

The leaders were skilled in understanding their customers and targeted their marketing efforts towards action sports and other events, such as motocross, UFC, bullfighting, and Nascar, which resonated with the younger blue-collar workers who attended those events.

“People are so passionate about this brand,” said Modi.

In 2015, Monster Beverage attracted the attention of a beverage giant and entered into a strategic partnership with the company.

Currently, Coke owns approximately 20% of the company, which they acquired for more than $2 billion at the time.

Coke and Monster have agreed to become each other's preferred global distribution partners, and in exchange, they have traded ownership of several brands. Monster now owns energy drinks such as NOS, Full Throttle, Burn, and Relentless, while Coke now owns Hansen's Natural Sodas, Peace Tea, and Hubert's Lemonade.

Modi stated that "it's evident they have the ability to expand globally," and this has been the primary driver of their growth in the stock market.

Watch this video to learn more.