* 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
* 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:
* 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...