View Full Version : Monster/AB Deal

05-10-2006, 10:37 PM
Any Board Members have an opinion or comment on the Monster/Budwieser Distribution Deal? Will any of you be effected by this transition-postive or negative.

05-10-2006, 11:57 PM
I don't trust Monster, look for AB to have most places.

05-11-2006, 12:20 AM
haven't heard much.where is this taking place? i know in detroit it is distributed by a miller distributor.

05-11-2006, 12:44 PM
I know when AB had 180 energy drink...they had that stuff everywhere! AB's strong distribution is probably one of the big reasons this is happening...

05-11-2006, 03:36 PM
Does AB have access to many accounts that don't carry alcoholic products?

05-11-2006, 05:25 PM
That's a good question...i.e. WOULD they deliver Hansens products to a c-store that doesn't carry beer???

05-11-2006, 05:50 PM
Here in jersey alcohol and non-alcohol are very separate.
The vast majority of c-stores don’t have any beer. There are a very few exceptions that may have been grandfathered in.
180 was very hard to find here because of that. I found a few cans in one c-store and I was in hundreds.

So in a place like New Jersey giving the brand to a beer house would spell death for the brand on the street level.

We have no alcohol in supermarkets, c-stores, gas stations only in liquor stores.

05-11-2006, 06:47 PM
in michigan anyone can purchase a beer license. therefore they can cover all licensed stores, including many party/c-stores. however, would they be willing to go to all of the stores that don't sell beer? prob. not.

05-11-2006, 08:54 PM
Well that explains it - in states like Michigan you are more likely to see AB wholesalers taking care of Monster. Maybe you'll miss a deli here and there, but that's not a big account.

In a place like New Jersey, seems like you won't see AB distributing.

Nice flexibility in this deal. And I think AB will incur some or all of the severance fees, but I'm not positive.

05-11-2006, 11:24 PM
In Minnesota we have 3.2% beer in most c-stores.
The Minneapolis market has very good distribution in c-store but not in bars. What do you think? Will they pay much to the small rural distributors?

*MR. B
05-12-2006, 06:57 PM
I havent been in the stor biz for about 6 months. i knw when they had 180 and probly still do it wasnt a good saleing drink. there probly grabbing monster since its already big.

reset man
05-12-2006, 07:51 PM
I'm sure AB acquiring the distribution rights will help Monster get the distribution where they need it the most, on-premise. If they can get it rolling in the bars lookout Red Bull.

05-13-2006, 12:33 PM
They have done well in specifying their target demographic (X-gamers, etc). I don't really see them gaining much market share from bars and clubs, unless they intend to completely change strategies and focus. Red Bull was largely built in the bar/club scene with Gen X'ers, it'll be interesting to see how doing the opposite translates into gains or losses in market share.

As an aside, you're talking about alot of wasted product in mixing drinks, if they don't bag or introduce a smaller can. That may make inroads into at least a few accounts difficult.

[ 05-13-2006, 02:55 PM: Message edited by: Veruca Vending ]

05-14-2006, 10:30 AM
On premise is a small part of the overall business and Monster is picking up market share where it matters most... in cstores and grocery stores. I have been following sales in the detroit area and Monster sales have more than doubled in the last 6 months at area cstores and now tops Red Bull at these stores. It seems for now the 8 ounce can is dead except for on premise. This agreement with AB is only going to increase market share for Monster. Looks like 2006 is the year of the Monster! Its amazing what Monster has done in just a few years.

reset man
05-14-2006, 11:32 AM
Prediction: Monster will make an 8.3 oz. for the on-premise with sharper pricing, around $24/case. True, the volume isn't on-premise but it is the best way to sample/expose a brand to build the off-premise business. Particularly the younger crowd who I see buying muti-packs of Red Bull in the off-premise stores are not necessarily buying it to drink straight, they're using it as a mixer because they were educated/exposed to it on-premise. Monster will also see an increase in sales if they execute on-premise. They will also snag the alcoholic mixer business in addition to the energy boost drinkers. And they have one good thing going for them, a great product!!

05-14-2006, 09:18 PM
Monster does have an 8oz can in all 4 flavors and 4-packs. In my area it is only in Speedway/Super America. Do you think all the little Distributors will be out and AB will take it all?

05-14-2006, 11:15 PM
Maybe what TallThinBlonde meant was that the 8oz isn't doing as well as the 16 oz. If that's true, then the main reason why Monster is going with the 8 oz is probably because of on-premise. Has anyone tried/distributed the Sparks alcoholic energy drink? Will this type of product have legs? In c-stores or in bars?

05-15-2006, 09:22 PM
I have only been watching Cstore sales in two areas but all 8 ounce cans in these areas are getting their butt kicked by the 16 ounce can. Is it true across the nation I do not know but in these areas 16 ounce is king. On premise it seems the 8 ounce can rules.

05-31-2006, 11:41 PM
My thoughts on the deal is YES, MONSTER was paid some rights to distribute by AB. BIG $$ and you will see Monster being deliverd to every store that AB delivers beer. The counties that dont carry BEER will remain with the same distributors that already service these stores.

Bottom line. JSC

Red Sox fan
06-02-2006, 10:53 PM
wait, are you saying that A/B paid monster for distribution rights?? Try the other way around maybe.

At the very minimum Monster gave A/B a reduced case cost in order to get them to distribute their secondary brands (everything but Monster and Lo-card)..Lets get it straight, Hansend needs A/B a lot more than A/B needs Hansens.

That's not to say A/B see's no value in Hansens, they probably see them as a nice source of potential incremental $, but there is no way A/B needs them bad enough to pay to receive the distro rights...

06-03-2006, 06:10 PM
Hansend needs A/B a lot more than A/B needs Hansens-
Monster still strives as the #1 16oz energy drink in the u.s. rockstar even w/coke as its distributor hasn't been able to get pass Monster its been almost a year now and in states like texas there has really been no improvement other than distribution but no point of sale, yet even w/out AB hansens has held its own againts Pepsi and Coke who happens to be the best distributiors in the U.S. IMOP AB needs Hanses, beer sales are in the dump AB needs like redsox said: "incremental $$" plus AB fail w/ 180 and Tilt and b2E hasn't done anything as well AB needs Hansens to become a player in the ever growing energy business, Coke and Pepsi have done the same by going to more non Carbs, juices,teas and new age beverages because like beer CSD sales are in the dump. I think Hansens is going to use AB for their secondary brands Joker, Rumba, Unbound ect... and maybe Monster for on Premise acts. RedBull in parts of California has asign all on premise accts to Young's Market (liquor distributor) instead of its own local distributor network, Maybe it works out better this way? not sure but its only my opinion.

06-04-2006, 12:48 AM
4 for 1 stock split... Hansen's knows what they are doing.

06-05-2006, 06:53 PM
Here in my area since the AB/Monster deal shelves are becoming free especially in the "dry" towns the merge or buy out has been a beautiful thing for myself, sales on the Nitro2GO have went up 18% in the last 8 days...THANK YOU BUDWEISER

06-05-2006, 07:42 PM
We were all wondering if AB would service non-beer stores or "dry" areas...maybe they will eventually, but I wouldn't think it would be a priority early on. I bet we'll see more of these empty shelves in the near future - everyone take advantage while you can!

06-06-2006, 03:07 AM
I think that the local distributor where OSU is from is getting ahed of its self, I think Hansens (monster) is thinking things through on which areas to make the change, Lets not forget that it took rockstar about 1 month to move from their existing distributor network to CCE, which created alot of cunfussion in alot of areas and for a lot of chain stores not having assigned CCE as the Rockstar distributor. Lets just hope that hansens makes the right move and has thought of those dry counties to make sure they keep the same distributor in place.

08-28-2006, 09:13 PM
No question...Monster shot itself in the foot in New York with the AB deal...distribution by Bud in nowhere near what Snapple is for the energy drink market...and bar and clubs cant make up for loss in convenience/bagel/pizza stores...and in NJ imho they shot themselves in the head...with dry stores.

Bill Brasky
08-29-2006, 01:13 PM
You must own/know someone who owns a route with SDI. They are lambasted on this board on a daily basis. Single worst distributors in the United States I have ever seen. Monster could have gone to anyone in NY and done better. Going to AB will do them amazing.

09-10-2006, 08:26 PM
I disagree with people on the board that say that Hansen's needs AB much more than AB needs Hansen's. What AB is trying to do is provide its wholesalers with case value, something that AB's core brands don't provide anymore.

Selling Natural Light, King Cobra and Busch Light don't make you any money anymore, and since Busch Light is rapidly becoming AB's flagship brand, that is why they are buying distribution rights and brands such as Tiger, Grolsch, Goose Island, Rolling Rock and now Hansen's.

09-13-2006, 04:45 PM
Busch Light is rapidly becoming AB's flagship brand

No way that will ever happen!

09-13-2006, 05:57 PM
Originally posted by RunWithDaLilGuy:
I disagree with people on the board that say that Hansen's needs AB much more than AB needs Hansen's. What AB is trying to do is provide its wholesalers with case value, something that AB's core brands don't provide anymore.

Selling Natural Light, King Cobra and Busch Light don't make you any money anymore, and since Busch Light is rapidly becoming AB's flagship brand, that is why they are buying distribution rights and brands such as Tiger, Grolsch, Goose Island, Rolling Rock and now Hansen's. I have to disagree with you on this one.
Business is all about growth. AB distributors have one of the strongest distribution networks in the nation. They have saturated their territories and need more brands to grow and continue to fuel growth. Hansens needed AB WAYY more than AB needed Hansens. By going to AB distribution Hansens now has a partner in growth that can use their strong core brands to leverage greater case sales of other higher margin products.

Go to any any local independent c-store in the nation on a friday morning and I bet you that they make sure they have money for the "Bud Man" before they have maoney for the Arizona tea guy or the guy who used to sell Monster. Leverage, Leverage, Leverage.

If Hansens didn't need AB then why make the switch? If Hansens didn't need AB then why did their stock skyrocket after the rumors began about AB getting rights and consequently splitting?
The only reason the stock is flat right now is because the transition has just started in earnest and Wall Street is waiting until Q1 to see the volume numbers.

09-19-2006, 10:01 PM
AB needs to provide their wholesalers with CASE VALUE, something they don't get with Natural or Busch (by the way, in Michigan, Busch Light is the number one beer in supermarkets according to IRI data.)

I work for a Miller/Coors wholesaler, but we have the same costs associated as do independent Bud wholesalers. We don't make any money shipping 30packs of Best/Keystone, just like they don't make any money selling natural. there's no margin in it for the wholesaler.

Therefore, our option is to sell imported and microbrewed beers that provide us with an opportunity to make more per case, as well the retailer.

The problem with the super-strong and admirable AB wholesaler network is that AB has, for the last decade, pushed the Sole-AB distribution network, meaning that, except for their most successful wholesalers, they want them to be Bud-only.

Now they realize that the domestic market is dropping in share, especially when they consistently trade the consumer down to Natural and Busch.

Solution to wholesaler value problems: allow wholesalers to independent pick up import/specialty brands and pick up national distribution rights to imported and specialty brands.

This is where Monster fits in. AB wholesalers don't have anything close to the profit per case margins that Monster presents them currently.

Thankfully, in Michigan, beer trucks are not allowed to deliver to non-licensed accounts, therefore Monster will not be going to any Bud houses in Michigan from what I understand.

09-19-2006, 10:27 PM
From what I understand there are quite a few AB distributors that cannot carry Monster... true?

09-22-2006, 05:39 PM
Randy is that you?

09-24-2006, 08:31 PM
we sell hansens in the middle of michigan. we "lost" lost but are being told that we are keeping monster also just picked up joker and ace