Feb 27 (Reuters) - Monster Beverage MNST.O beat fourth-quarter sales estimates on Thursday, helped by improving demand for its products including energy drinks and beverages.

WHY IT'S IMPORTANT

Beverage makers have been struggling to lift sales as consumers balk at higher-margin items and look for cheaper alternatives to prioritize essentials purchases.

However, Monster Beverage's efforts to ramp up promotions and launch new products have been helping it gain more shelf space at retailers and appeal to customers, further benefiting its products during the holiday quarter.

Earlier this month, PepsiCo PEP.O reported a sales drop, while Coca-Cola KO.N bucked the trend to see a surprise jump in quarterly revenue.

CONTEXT

The company has also been maintaining its inventory levels and taking consecutive price hikes on certain brands and packages over the past quarters, helping it lift margins.

Its quarterly adjusted gross profit came in at 55.5%, compared to 54.5% a year ago.

KEY QUOTE

"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," said Co-CEO Hilton Schlosberg.

BY THE NUMBERS

Monster Beverage's net sales rose 4.7% to $1.81 billion in the quarter ended December 31 from a year ago. Analysts estimated a 3.73% rise to $1.80 billion, according to data compiled by LSEG

Net sales in the Monster energy drinks segment, its biggest revenue generator, increased 4.5%, after rising 0.8% in the third quarter.

However, it posted an adjusted profit of 38 cents per share for the quarter, below estimates of 40 cents apiece, following the impact of $130.7 million impairment charges related to the company's alcohol brands segment.

MARKET REACTION

Shares of the company, which were down about 9% last year, rose about 3% in extended trading.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Alan Barona)

((AnujaBharat.Mistry@thomsonreuters.com))