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$24.82 1.44 (6.16%)
10/10/2008 4:00 PM

Hansen Natural Corp (HANS)

CAPS Rating:
****

Develops, markets, sells & distributes alternative beverage category natural sodas, fruit juices, energy drinks, fruit juice smoothies & functional drinks, non-carbonated iced teas, lemonades, juice cocktails & children's multi-vitamin juice drinks.

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Avatar NetscribeConsGds (95.41) Submitted: 2/08/07 7:41 AM : Outperform Start Price: $38.40 HANS Score: 3.51

Hansen Natural is a holding company, primarily operating through its wholly owned subsidiary Hansen Beverage. The company is in the business of developing, marketing, selling and distributing products which include

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Avatar NetscribeConsGds (95.41) Submitted: 5/08/07 8:21 AM

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Hansen Natural, the producer of Monster Energy is the second largest player in the U.S. Energy Drink Company after Red Bull. Fear of obesity has already made health conscious consumers to shift their preference to non-carbonated beverages. Hansen, being the producer and marketer of “alternative” beverage should be able to make most out of this favorable environment. The company derives 77% of its revenue from Direct Store Delivery segment, while the rest comes from Warehouse segment.

The beverage industry is growing rapidly and energy drink category is driving this growth. The highly fragmented $2 billion U.S. energy drinks market has grown more than 700% over the past five years and it seems that a strong demand scenario is well poised to take the surging growth forward. Hansen Natural has been able to take advantage of this growth through its unique premium beverages. This is clearly reflected from the fact that Hansen has enjoyed CAGR of 43.6% since 2001. More importantly its Energy Drink product ‘Monster’ is gaining market share and has the second largest market share with 23.4% in the U.S.

The beverage industry is highly influenced by pricing, packaging and marketing campaigns. The company through its persistent brand awareness program and aggressive promotional activities towards youth has been able to maintain a top-line growth of more than 60% over the past three years. Moreover, Monster has highest sales per point in convenience channel in most major U.S. markets. Further, the agreement with Anheuser-Busch to leverage its wholesalers network for Hansen’s product should help the company to increase its penetration. In the light of all this aspects Hansen Natural looks like a refreshing energizer.

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