IMPROVED DISTRIBUTION
* Distribution remains one of the largest barriers to the beverage industry - approximately 60% of the Gross Profit for a typical US bottler.1
* Hansen has recently formed a partnership with Anheuser-Busch's wholesale network for the distribution of their Monster, Lost, and Rumba energy drinks. This will move them away from the small regional wholesalers and enable them to take advantage of A-B's extensive national network.3
* CONCLUSION: Hansen is in excellent position to greatly increase the presence of their products in the domestic market.
POPULAR ENERGY DRINKS
* Hansen's Monster and Lost brands are currently ranked #2 and #8 in energy drink market share, respectively.2
* The market for energy drinks is expected to jump more than 70% in 2006, up from $3.5 billion in 2005.3
* The growth in energy drinks contrasts sharply with the recent decline in soft drink volume. Consistent growth is currently only seen in Energy Drinks, Sports Drinks, Juices, and Bottled Water.1
English: It is a picture of a fridge full of energ...
Some Reload -energy drink bottles.
Bunch of Energy drinks* CONCLUSION: Hansen has one of the most popular beverages in one of the fastest growing segments of beverage sales.
HEALTHY LIFESTYLE TRENDS
* Most of Hansen's products are marketed as healthy, natural products. They have a large selection of juices, juice sodas and even Rumba, a new all-natural juice-based energy drink.
* CONCLUSION: With current concerns over healthy living, Hansen provides a healthy alternative to the traditional chemical-laden brands.
HANSEN'S CURRENT WEAKNESSES:
MARKET EXPECTATIONS
* It appears that the rapid drop in the previously-increasing stock price was based on a failure of the company to meet the financial industry's expectations rather than policy changes or problems within the company itself.
- Citigroup moved Hansen to "hold" status on August 3, 2006.3
- Goldman Sachs reported a slight underachievement on expected earnings (even though earnings were still significantly...