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BevBlog: Hansen #2 in Fortune’s Fastest Growing Companies

Drops, drips, and leaks from the beverage industry.

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Posted by John Craven, Thursday, September 7th, 2006 at 9:17 am

Maybe Hansen Natural’s stock is down more than 45% from its 52 week high and Glaceau is stealing their thunder in the media as the industry’s golden boy. But not everyone is forgetting how well Hansen has done….This week’s Fortune Magazine, which features the 100 Fastest Growing Companies (publicly held, of course) lists Hansen as the #2 Fastest Growing Company (List: http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2006/full_list/index.html). Their three year annual growth rate of 61% and its 344% total return (which tops the list) are extremely impressive — even more so for a beverage company.

In my opinion, the most impressive part about Hansen is the transformation they made from stale juice company into functional beverage powerhouse. They weren’t afraid to try new things and weren’t discouraged when their early efforts, like Hansen’s Energy back in 1997, weren’t home runs. As the industry evolved, they created Monster, and over time they have evolved it into one of the most formidable brands the industry has ever seen.

The question is, what next? How far can they continue to grow Monster? Your comments are welcome below….

This entry was posted on Thursday, September 7th, 2006 at 9:17 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

There are currently 15 responses to “Hansen #2 in Fortune’s Fastest Growing Companies”

Why not let us know what you think by adding your own comment! Your opinion is as valid as anyone elses, so come on... let us know what you think.

1 On September 7th, 2006, Anonymous said:
I believe Monster’s room for growth is limited, especially with Budweiser taking over the distribution from Arizona. The rules of the game will change: considerable part of the Monster’s growth till now came from single cans sales out of Arizona’s coolers placed at best locations with retailers. I have talked to several Arizona merchandisers – up to 70% of the sales came from the coolers.
Budweiser has no coolers. In many locations they will be stacking warm product on the shelves.
In addition, newcomers will take Monster’s place in the Arizona coolers and some of them will make it big as well.
Where should the growth come from?…
Hansen did an outstanding job with Monster and they deserve all the credit for the good work but I am not sure the change to Budweiser will help the brand grow.
2 On September 11th, 2006, TiggersDad said:
Do you think AriZona has a monopoly on coolers/ FL law does not prohibit Bud from placing coolers for Non Alcoholic brands. There will be over 100X as many coolers in the market soon.
Do some research. I did. I own Hansens stock and it will flourish under AB.
3 On September 11th, 2006, Anonymous said:
You have to tip your hat to Hansens Beverage Corp. for building the Monster Energy brand. However, I believe their growth has peaked at this time. Almost all the of the Off Sale retailers have it merchandised. Secondly the product will see no growth in the On Premise as it absolutely tastes horrible mixed with any spirits, unlike Liquid Ice that is the ultimate mixer energy drink. Good luck!
4 On September 11th, 2006, greg said:
Monster will do even better with AB distribution. AB will offer greater availability as well as better leverage to move product with the AB flagship brand.
The controls that AB has in the on premise market will eventually be felt by the Hansen brand and sales will continue to grow.
Other than just branding and marketing there will also be potential fusion of brands in the future as consumers look for greater variety and functionality.
5 On September 12th, 2006, Anonymous said:
To TiggersDad: Where will AB place “over 100X as many coolers” and which products will come in? The space for coolers in retail is limited. If you have a bed set in your bedroom already and I give you a new one for free – where are you going to put it??
What is your advice to investors who paid $200/share for HANS – should they hold the stock and for how long?…
6 On September 14th, 2006, alcacace said:
Hansen’s has done a great job with the Monster brand & I hope they follow that up with their other products as well…however…I have done some research to know that not all AB distributors will be taking on Monster right away; there will be test markets & AB will not be taking over all channels of business…only On-Premise…so the coolers are irrelevant. Arizona & the other new age distributors will still have control of the off-premise market…just remember however; Budweiser had an energy drink and all though they pushed 180 during the infancy stages of the energy drink market; non the less they still had an energy drink on their trucks & only pushed their core brands. Which in turn helped to rot the 180 brand (which was thier own baby)…can AB kill a strong brand or build it in the On-Premise market is left to be seen……..
7 On September 16th, 2006, Anonymous said:
Monster’s room for growth is unlimited. keep in mind that the product is only available in North America. There is still room for growth here, the AB deal will only close the distribution gap between Monster & RB,RS,& FT. The latter enjoying over 90% distribution where as Monster is still in the 70% range. Even with the diffence in distribution Monster is still outpacing the category by nearly 3X. Once the AB deal has had time to blossom, the next step will be taking it international. Additionally Monster’s marketing is second only to Red Bull. i see nothing but positive things for this brand in the future.
8 On September 16th, 2006, Anonymous said:
Will Red Bull grow further? NO
Does Monster have room to grow? NO
Why? Because consumers get tired of brands. They keep asking what’s next.

In addition some of the managers at Hansen became fresh and arrogant claiming their victory.
Here is what Jim Hahn, Division VP, wrote in an ad in Craigslist on June 3, 2006:
“We have an ATTITUDE because we are the best there is…
Why do we have an attitude? How about Forbs Magazine naming us the #1 Small Company in America? How about our stock having grown at over 24,000% in the last 10 years? That’s right…24 THOUSAND percent – #1 growth stock in the entire US Stock Market!!! You bet we have an attitude!”

It sounds like the guy cannot believe it happened… and it does not sound like there is more room for growth…
9 On September 18th, 2006, Anonymous said:
Do not count on international growth. Shipments to Mexico will hardly make up for declining sales in US. Yes, the rest of the world is open but not easy. How many new US beverage brands have made it internationally in the last 10 years?
Hansen hit the jackpot with Monster. It only happens once. Now they can play as much as they want – the jackpot is not going to hit them again. It’s over, guys! Don’t you get it??
10 On September 20th, 2006, Podunk said:
It is funny someone would mention Jim Hahn on here. I have worked with Jim for many many years and know what he is capable of. Jim has done astonishing things with his career and has ever right to “arrogant” and “fresh” about the accomplishments Hansen has achieve. It is because of people like Jim being “fresh” and “arrogant” that causes organizations to become stars.

As someone who believes in true grassroots stock research, I always look for similar attitudes out of the executive office before I will even purchase a single share

Just my two cents.
11 On September 20th, 2006, Insider said:
Monster’s growth potential is limited by there own arrogance. That arrogance will not play internationally where they will be seen as just another ugly american. Sure Red Bull’s growth has slowed, but with 95% distribution whats left? Plus when you consider that all Monster’s growth has been new market penetration are they really doing that well especially when you consider all the heavy discounting and free case deals? Red Bull has lasted this long primarily because it resists heavy discounting and relies on stong repeat business, and then theres the lock on on-premise. Hansen’s a nice little company but all good things must come to an end.
12 On September 20th, 2006, Anonymous said:
True it has wonderful marketing and eventually this whole AB thing will be great; hopefully it won’t be too late and another brand…(ah hem) bookoo (ah hem) doesn’t swoop in and take control of the market because of what seems like premature news announcing the AB deal…again great brand and awesome marketing we’ll just have to wait and see… Enough of this energy drink talk where is my “Vitamin Water”?? I’m thirsty…
13 On December 6th, 2006, Anonymous said:
I love the guy who said he did his research and that AB is only going to sell Monster to On-Premise accounts. In fact, that’s the ONLY channel that Budweiser CANNOT sell to right now.
That will come later.
Did you sleep through 6th grade class when they taught how to do research? Man, that was funny!
“I did my research”. LMAO
14 On December 6th, 2006, Anonymous said:
Don’t know why you thought those comments sounded arrogent and that he couldn’t believe it had happened.
Simply looked to me like he was boasting a bit because he was proud of what his Company had done.
I see nothing wrong with that. Do you?
15 On February 2nd, 2007, Anonymous said:
I am an A-B wholesaler that has just taken on the Monster brands and I can tell you that there is no doubt we as a collective group WILL propel Moster to new levels. We will in many instances double the sales of Monster through our efforts in the on-premise and through increased sku distribution off-premise.

The A-B distribution system is the greatest system available. We are best prepared to take any DSD products to market. we have the best trained and hardest working people in the business as chosen by our customers, day in, and day out.

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1 On September 7th, 2006, Anonymous said:

I believe Monster’s room for growth is limited, especially with Budweiser taking over the distribution from Arizona. The rules of the game will change: considerable part of the Monster’s growth till now came from single cans sales out of Arizona’s coolers placed at best locations with retailers. I have talked to several Arizona merchandisers – up to 70% of the sales came from the coolers.
Budweiser has no coolers. In many locations they will be stacking warm product on the shelves.
In addition, newcomers will take Monster’s place in the Arizona coolers and some of them will make it big as well.
Where should the growth come from?…
Hansen did an outstanding job with Monster and they deserve all the credit for the good work but I am not sure the change to Budweiser will help the brand grow.

2 On September 11th, 2006, TiggersDad said:

Do you think AriZona has a monopoly on coolers/ FL law does not prohibit Bud from placing coolers for Non Alcoholic brands. There will be over 100X as many coolers in the market soon.
Do some research. I did. I own Hansens stock and it will flourish under AB.

3 On September 11th, 2006, Anonymous said:

You have to tip your hat to Hansens Beverage Corp. for building the Monster Energy brand. However, I believe their growth has peaked at this time. Almost all the of the Off Sale retailers have it merchandised. Secondly the product will see no growth in the On Premise as it absolutely tastes horrible mixed with any spirits, unlike Liquid Ice that is the ultimate mixer energy drink. Good luck!

4 On September 11th, 2006, greg said:

Monster will do even better with AB distribution. AB will offer greater availability as well as better leverage to move product with the AB flagship brand.
The controls that AB has in the on premise market will eventually be felt by the Hansen brand and sales will continue to grow.
Other than just branding and marketing there will also be potential fusion of brands in the future as consumers look for greater variety and functionality.

5 On September 12th, 2006, Anonymous said:

To TiggersDad: Where will AB place “over 100X as many coolers” and which products will come in? The space for coolers in retail is limited. If you have a bed set in your bedroom already and I give you a new one for free – where are you going to put it??
What is your advice to investors who paid $200/share for HANS – should they hold the stock and for how long?…

6 On September 14th, 2006, alcacace said:

Hansen’s has done a great job with the Monster brand & I hope they follow that up with their other products as well…however…I have done some research to know that not all AB distributors will be taking on Monster right away; there will be test markets & AB will not be taking over all channels of business…only On-Premise…so the coolers are irrelevant. Arizona & the other new age distributors will still have control of the off-premise market…just remember however; Budweiser had an energy drink and all though they pushed 180 during the infancy stages of the energy drink market; non the less they still had an energy drink on their trucks & only pushed their core brands. Which in turn helped to rot the 180 brand (which was thier own baby)…can AB kill a strong brand or build it in the On-Premise market is left to be seen……..

7 On September 16th, 2006, Anonymous said:

Monster’s room for growth is unlimited. keep in mind that the product is only available in North America. There is still room for growth here, the AB deal will only close the distribution gap between Monster & RB,RS,& FT. The latter enjoying over 90% distribution where as Monster is still in the 70% range. Even with the diffence in distribution Monster is still outpacing the category by nearly 3X. Once the AB deal has had time to blossom, the next step will be taking it international. Additionally Monster’s marketing is second only to Red Bull. i see nothing but positive things for this brand in the future.

8 On September 16th, 2006, Anonymous said:

Will Red Bull grow further? NO
Does Monster have room to grow? NO
Why? Because consumers get tired of brands. They keep asking what’s next.

In addition some of the managers at Hansen became fresh and arrogant claiming their victory.
Here is what Jim Hahn, Division VP, wrote in an ad in Craigslist on June 3, 2006:
“We have an ATTITUDE because we are the best there is…
Why do we have an attitude? How about Forbs Magazine naming us the #1 Small Company in America? How about our stock having grown at over 24,000% in the last 10 years? That’s right…24 THOUSAND percent – #1 growth stock in the entire US Stock Market!!! You bet we have an attitude!”

It sounds like the guy cannot believe it happened… and it does not sound like there is more room for growth…

9 On September 18th, 2006, Anonymous said:

Do not count on international growth. Shipments to Mexico will hardly make up for declining sales in US. Yes, the rest of the world is open but not easy. How many new US beverage brands have made it internationally in the last 10 years?
Hansen hit the jackpot with Monster. It only happens once. Now they can play as much as they want – the jackpot is not going to hit them again. It’s over, guys! Don’t you get it??

10 On September 20th, 2006, Podunk said:

It is funny someone would mention Jim Hahn on here. I have worked with Jim for many many years and know what he is capable of. Jim has done astonishing things with his career and has ever right to “arrogant” and “fresh” about the accomplishments Hansen has achieve. It is because of people like Jim being “fresh” and “arrogant” that causes organizations to become stars.

As someone who believes in true grassroots stock research, I always look for similar attitudes out of the executive office before I will even purchase a single share

Just my two cents.

11 On September 20th, 2006, Insider said:

Monster’s growth potential is limited by there own arrogance. That arrogance will not play internationally where they will be seen as just another ugly american. Sure Red Bull’s growth has slowed, but with 95% distribution whats left? Plus when you consider that all Monster’s growth has been new market penetration are they really doing that well especially when you consider all the heavy discounting and free case deals? Red Bull has lasted this long primarily because it resists heavy discounting and relies on stong repeat business, and then theres the lock on on-premise. Hansen’s a nice little company but all good things must come to an end.

12 On September 20th, 2006, Anonymous said:

True it has wonderful marketing and eventually this whole AB thing will be great; hopefully it won’t be too late and another brand…(ah hem) bookoo (ah hem) doesn’t swoop in and take control of the market because of what seems like premature news announcing the AB deal…again great brand and awesome marketing we’ll just have to wait and see… Enough of this energy drink talk where is my “Vitamin Water”?? I’m thirsty…

13 On December 6th, 2006, Anonymous said:

I love the guy who said he did his research and that AB is only going to sell Monster to On-Premise accounts. In fact, that’s the ONLY channel that Budweiser CANNOT sell to right now.
That will come later.
Did you sleep through 6th grade class when they taught how to do research? Man, that was funny!
“I did my research”. LMAO

14 On December 6th, 2006, Anonymous said:

Don’t know why you thought those comments sounded arrogent and that he couldn’t believe it had happened.
Simply looked to me like he was boasting a bit because he was proud of what his Company had done.
I see nothing wrong with that. Do you?

15 On February 2nd, 2007, Anonymous said:

I am an A-B wholesaler that has just taken on the Monster brands and I can tell you that there is no doubt we as a collective group WILL propel Moster to new levels. We will in many instances double the sales of Monster through our efforts in the on-premise and through increased sku distribution off-premise.

The A-B distribution system is the greatest system available. We are best prepared to take any DSD products to market. we have the best trained and hardest working people in the business as chosen by our customers, day in, and day out.

BevBlog: Hansen #2 in Fortune’s Fastest Growing Companies

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