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View Full Version : Heard Rumor Pepsi Might Be Trying to Acquire Hansen's?



Coco Rico
07-28-2007, 05:57 PM
Heard this the other day from some friends in the trade. They said they thought that Pepsi in Canada had been doing a lot better with their Monster roll out than AB in the USA. Anyone else hearing this? Could be interesting here in the states, especially with Monster on the verge of their big attempt at an on-premise roll out with AB.

CR

fusion
07-28-2007, 08:25 PM
Well, Pepsi is still on the hunt for new brands. Monster is a very strong brand, something Pepsi hasn't been able to replicate with any energy drink they've thrown out there. At this point, it would be easiest to just buy the company out.. but then you've got all those fairly new A-B contracts to buy out as well.

JMHX316
07-29-2007, 12:45 AM
I'd really like to see Pepsi make a true enery cola. I can't believe the big two/three haven't successfully tapped that yet.

Red Sox fan
07-29-2007, 01:02 PM
I have been saying for a while that this aquisition makes the most sense.

-Pepsi's current ED portfolio is flat and Coke is comfortably ahead with RS/FT.
-Pepsi has a tradition of purchasing strong brands in categories where they are not a #1 or strong #2. I.E. Gatorade, sobe etc.
-Pepsi's CEO has stated publicly that the company is considering some "Large Scale" aquisitions this year.
-Pepsi has to be feeling some pressure to make some aquistions with Coke's recent purchases of Fuze and Vitamin Water.


However, the current market cap for hansens is over 4 billion, not chump change. And..as stated correctly above I do not know how hansens agreement with budweiser would affect the purchase, but it would certainly complicate things.

Coco Rico
08-06-2007, 02:13 PM
A friend of mine who works for AB in St. Louis said that there's been some tension between Monster and quite a few Bud houses particularly since AB decided to rebrand and relaunch 180 this year. Apparently, if you drive around St. Louis all you see are 180 billboards and bus stop ads. Hansen's doesn't seem to be getting the focus they were expecting and in some markets - like St. Louis - they are showing relatively modest growth in C-store and are actually losing share in Grocery because of the gaps in distribution presented by the transition.

A move to Pepsi might start to look attractive if Monster continues to lose share because of bad channel management by AB.

CR

Ooylara
08-06-2007, 05:21 PM
Nationwide data shows Monster growing twice as fast as the category in grocery and gaining 2 share points in c-stores. I haven't seen individual market data but I'm sure some markets are performing worse and some performing better. From what I've seen, St Louis market never has been strong for the Monster brand.

From what you've seen, have Bud houses increased execution on the Monster brand in the past year (when 3rd tier distributors had the brand)? Anyone can weigh in, if you know someone who distributes Hansen products it would be interesting to hear their opinion about where the brand is versus year ago. In a place like Florida, I've seen Bud houses build some big displays in grocery stores, but I've seen out of stocks or missing SKUs in a couple convenience stores. In San Francisco, I've seen more coolers placed in the bay area but many corner markets in the city don't even carry the Monster.

-Ooylara

NRGSLLR@
08-06-2007, 05:51 PM
Pepsi would probably not be the best for Hansen's either. What happens in a portfolio athat already consits of AMP and No Fear? Just ask Rock Star! I am sure they would like to have the focus Full Throttle gets in the Coke system.

egg beater
08-06-2007, 07:53 PM
Pepsi would probably not be the best for Hansen's either. What happens in a portfolio athat already consits of AMP and No Fear? Just ask Rock Star! I am sure they would like to have the focus Full Throttle gets in the Coke system.

NRGSLLR-your statement is factually incorrect. Rockstar has not had a problem with focs within coke's system. In fact just the opposite is true. If you look at recent share data nationally and regionally you will see Full Throttles portfolio flat to negative while Rockstar continues to grow.

Rumors of Rockstars demise in the Coke system are wrong.

deepnenergy
08-06-2007, 08:04 PM
NRGSLLR-your statement is factually incorrect. Rockstar has not had a problem with focs within coke's system. In fact just the opposite is true. If you look at recent share data nationally and regionally you will see Full Throttles portfolio flat to negative while Rockstar continues to grow.

Rumors of Rockstars demise in the Coke system are wrong.

That is right, I heard that Coke is using RS to gain third party DSD for on-premise in some states. I would also think, if anyone was going to buy Monster it would be someone like Pepsi or Coke then use Beer (AB) and or liquor DSD to tackle on-premise in their weaker areas. IMO....this will be the only way to beat out RB for that market share. But if it works it will put who ever over the top of the Beverage battle.

Coco Rico
08-11-2007, 10:43 PM
The only problem I see with dividing up on-premise and off-premise between two distributor networks is that the on-premise busines, though important, makes up a relatively small percentage of the business compared with the off-premise. So a liquor or beer house that's only working the on-premise business might not put as much focus and effort behind a brand like Monster that is relatively non-existent in the on-premise channel. Too much effort with not as much pay out.

CR

deepnenergy
08-12-2007, 12:36 AM
The only problem I see with dividing up on-premise and off-premise between two distributor networks is that the on-premise busines, though important, makes up a relatively small percentage of the business compared with the off-premise. So a liquor or beer house that's only working the on-premise business might not put as much focus and effort behind a brand like Monster that is relatively non-existent in the on-premise channel. Too much effort with not as much pay out.

CR

You are right in a lot of ways but the distributors that are taking the on-premise seem to be getting enough from Monster and Rockstar to take the deals, so much it's locking down two DSD per area they are doing it in. Mostly in the south and NE from what I hear. Monster is doing this with a lot of AB houses like in Phoenix where they have Kalil and Hensley.

turbojames
08-12-2007, 11:42 PM
To me, on premise for Monster, is a way to increase consumption and the amount of people that will try it. It's about getting people to try the drink. Monster is a drug and a damn good one!

deepnenergy
08-13-2007, 10:29 AM
You guys don't forget that Monster and Rockstar are going on-premise with 8.3 at less than half the cost of RB. DSD is still making 4 to 6 bucks a case as well.

By the way monster is a kid’s drink compared to Rage, 'but it's not a drug" turbo...

zne0
08-13-2007, 10:06 PM
Last I heard both Monster and Rockstar are selling in 16oz cans to the onpremise field, it has to do with profit per 16oz cans vs 8oz per pour. By the way Last I checked I saw Monster Rockstar ect... on Ac nielsen I dont Recall seing Rage anywhere in the top 50. not bad for it being a "Kid's Drink"

deepnenergy
08-14-2007, 02:37 PM
Last I heard both Monster and Rockstar are selling in 16oz cans to the onpremise field, it has to do with profit per 16oz cans vs 8oz per pour. By the way Last I checked I saw Monster Rockstar ect... on Ac nielsen I dont Recall seing Rage anywhere in the top 50. not bad for it being a "Kid's Drink"

Nice, and true for now... They do sell 16oz to the clubs that pour that much and yes you are right it is still cheaper but the local Pubs, you know... where Red Bull built their name. It needs to be in smaller cans to control cost for these mom&pop Pubs. Also the fact the 8.3 is LESS THEN HALF THE COST plus the contracts, Nice Deal...

Dr Pepper 70
08-14-2007, 09:42 PM
Pepsi purchased the #1 Gatorade. What has it done since? Glaceau is taking their market.

Pepsi purchased the #1 Sobe. What has it done since? Lost share in most markets to every other new age bev and energy company.

Pepsi started selling Ocean Spray. Where did it go?

Pepsi started selling Dole. It turns colors in the store.

Mountain Dew. I will give them that. I love the Dew!!!

Not Hating, just stating the facts.

deepnenergy
08-28-2007, 01:39 AM
Pepsi purchased the #1 Gatorade. What has it done since? Glaceau is taking their market.

Pepsi purchased the #1 Sobe. What has it done since? Lost share in most markets to every other new age bev and energy company.

Pepsi started selling Ocean Spray. Where did it go?

Pepsi started selling Dole. It turns colors in the store.

Mountain Dew. I will give them that. I love the Dew!!!

Not Hating, just stating the facts.

I have to say something.... The Dew is doing well from the ads they run, sales for Ocean spray are doing better because they are marketing again, Dole is Dole and the color thing "don't know".

Pepsi is a good company to have. About the best to stack against Coke and another thing, Pepsi don't drown the brands they carry with their own; well from what I've seen. I would love for Pepsi to take Rage on and let us just focus on branding and “dew”ing COOL events…


Pepsi if your looking....:)

CStoreCatMan
09-14-2007, 03:51 PM
Pepsi purchased the #1 Gatorade. What has it done since? Glaceau is taking their market.

Pepsi purchased the #1 Sobe. What has it done since? Lost share in most markets to every other new age bev and energy company.

Pepsi started selling Ocean Spray. Where did it go?

Pepsi started selling Dole. It turns colors in the store.

Mountain Dew. I will give them that. I love the Dew!!!

Not Hating, just stating the facts.

Yes you ruffled some feathers!! Come on now...Sobe has core flavors that continue to hold their own. Let me ask you this, aside from Arizona, what other competitors are still in the same category as Sobe? Gold Peak? Please. Fuze doesn't do anything. How about Snapple? Nope, Elements were non-existent years ago...

Pepsi picked up only 3 flavors of Ocean Spray in 15oz PET bottles, not the entire brand. Therefore your point isn't really valid.

Dole does better than you may think - where it is carried. Dole represents some of our top selling items in foodservice accounts.

Gatorade, you can't really pick on that. Especially when DPSU comes out with Accelerade? Give me a break. Glaceau is doing very well but is taking share from several categories and not just Gatorade. And Gatorade is still what...like 80% or more of the isotonic category. Yeah, Pepsi must be screwing up.

Let me wrap up with this. PepsiCo is the biggest non carb beverage company out there...with brands like Gatorade, Aquafina, Lipton, Frappuccino, Dole, Tropicana, Sobe, etc. etc. Nobody comes close in the non carb arena...so of course when new non carb brands come out and take share who is it going to come from? The non carb share leader of course.

Oh yeah, I have not heard anything about a possible Hansens acquisition...Pepsi has other plans for energy in 2008...

Coco Rico
09-18-2007, 01:31 PM
Seems that after the recent SEC investigation into Hansen's, there has been a major sell off of shares by key executives at Hansen's. Rodney Sacks (CEO) alone has sold off over 2 million shares since May with a flurry of activity in August. Their Senior VP and Director have been equally as active selling off shares. While I understand a certain level of buying and selling is quite normal, this seems a bit more than usual.

Are they about to release some potentially damaging news? Many feel that their stock price has been over-inflated due to some great cheerleading on behalf of several brokerages. Is reality about to set in? Curious to see what others think.

CR

zne0
09-19-2007, 12:51 AM
I dont think that Hansens will release damaging news, I think it will be the opposite, Hanses has a few things up their sleeves for 2008, so far neither Pepsi nor coke has been able to stop monster. in Canada pepsi has seen a big jump since starting distribution on Monster, I would have agree that pepsiCo has the biggest non Carb portafolio but lets face it there are other products being created that are stealing share from pepsi, Glaceau was doing ok, now Coke will Kill the brand, Accelerate....not bad, snapple just introduced agreat line of Green and White Teas as well as a few other tea Sku's...Then again the Beverage industry is a brutal business the days of brand loyalty are over.