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fusion
10-07-2008, 10:21 PM
I have to say I'm very surprised nobody's commented on Coke's deal with Monster (and the ending of their Rockstar deal).

Jay01
10-08-2008, 04:58 AM
Hi,

Rockstar agreement with Coca Cola North America has ended, the agreement with CCE was extended until end of 2009. Do CCNA and CCE serve different territories/channels? Anyway, it still looks like a phasing out of Rockstar Energy from the Coke system.

BevNET.com - Rockstar Pulls Surprise Encore With Coca-Cola Enterprises (http://www.bevnet.com/news/2008/10-6-2008-rockstar_coke_CCE_Hansen.asp)

Coca-Cola finalizes a Monster drink deal | ajc.com (http://www.ajc.com/business/content/printedition/2008/10/07/coke.html)

Jay01
10-08-2008, 05:00 AM
Building an Empire – Prefab Style

October 7, 2008 · No Comments


Monster Energy’s international build-up seems to be getting some serious traction, after yesterday’s announcement that Hansen Natural (HANS) – Monster’s parent company –, The Coca Cola Company (KO) and Coca Cola Enterprises (CCE) signed a distribution agreement (additional financial information here). Covered markets will include selected territories in the U.S., Canada and six Western European countries (including mini states Luxembourg and Monaco).



Earlier I mentioned how Monster Energy might be falling behind in international markets versus Rockstar Energy. And although Hansen’s CEO Rodney Sacks characterized Monster’s international progress as “Rome wasn’t built in one day”, this deal with Coke looks a lot like empire building prefab style. Opening up several new markets and having access to the Coke system of bottlers and distributors is a major step and emphasizes Monster’s proven brand strength....

>> continued >>


Building an Empire – Prefab Style « (http://monsterfinance.wordpress.com/2008/10/07/building-an-empire-%e2%80%93-prefab-style/)

greg
10-08-2008, 09:23 AM
This story was buzzing about the NACS show early Monday morning. My sales guys phones were ringing all through breakfast about this. Most of them AB guys who already see the writing on the wall.

One thing I heard form a Coke Exec was that this original contract was for one year only. How true that is I have no idea.

We went to the Rockstar party Monday night, even though the party was crowded the mood was solemn.

BTW, I was at the party with 2 Redline girls, (and I was wearing my Redline shirt) and my two girls were the ones all the guys wanted to have their picture made with...the Rockstar girls weren't even close!

Red Sox fan
10-08-2008, 10:58 AM
wow, so much mis information here don't know where to begin.

1. Rockstar extended it's contract with CCE until the end of 2009. Originally it ended in May of 2009. Rockstar will also remain distributed by Coke's independant bottlers around the country.

2. Rockstar no longer has an agreement with Coke Cola North America. However, CCNNA is the parent company, they distribute NOTHING. All their products are distributed by CCE/coke bottlers.

3. Rockstar has the option to take the brand away from CCE (without cause) in any area they choose to under terms of the new agreement. so, if coke losses focus on Rockstar in areas where they get Monster, Rockstar can make a change right away. And if you don't think there are a bunch of dists. out there hungry for a brand like Rockstar (especially all thoese that are losing Monster) then you shouldn't be in this business.

4. Monster will be distributed by coke in about 1/3 of the country. all non AB areas. Mostly cAdbury dists will lose it. And ofcourse Monster will get coke internatioanl in Canada/Europe.

5. Greg, I was also at the party. your characterization of it was your opinion and far from mine or the other people I spoke to there. but each to his own.

6. This move makes Rockstar much more attractive pickup for all of Coke's competitors. Cadbury, AB and do not forget about Pepsi. It also gives rockstar's current ditributor much more power with 2 great brands to distribute. Rising tides float all boats.

Red Sox fan
10-08-2008, 11:50 AM
"While it appears that the extension would not preclude Coke signing up Hansen's as well -- or taking an equity stake, as some have suggested -- it does allow Rockstar some extra weight by allowing the company to terminate the agreement before the end of the contract.

According to a Rockstar representative, there's also an additional provision that gives Rockstar the ability to remove territories from the Coke system by giving 30 days notice. The goal, of course, being to put extra and ongoing pressure on Coke to perform with the Rockstar brand."

BhamCokeman
10-08-2008, 02:53 PM
Wonder where this leaves a market like here in Bham where AB services java, and Buffalo Rock everything else. You would think they would like the same company to service both. Who knows? In a 5 shelf set we give two shelves to Rockstar now, with one Full, and 2 NOS.

boodoo
10-09-2008, 01:35 PM
Here's one with imact to your bottom line...DPSG in Texas did 3.4 million cases of Monster last year, with an average gross margin of $6.00/case that is $20 million dollars in gross profits. They were officially informed last Friday that they will lose distribution rights effective 11-8-08. Have a nice day!

Ron Swedelson
10-09-2008, 11:46 PM
So does anyone know exactly what states Coke will have Monster in? The local Bud house has it in my territory, and 7-UP has Rockstar. Will Coke continue to have nothing here in the San Francisco area, or will this open up the door for them?

greg
10-10-2008, 09:26 AM
[QUOTE=Red Sox fan;364739]5. Greg, I was also at the party. your characterization of it was your opinion and far from mine or the other people I spoke to there. but each to his own.
QUOTE]


Comparatively speaking. If you have ever been to a Rockstar party before you would understand my statement. Furthermore, considering it was/is the biggest industry event of the year I expected more. The Band was some faux hair band that Rockstar likes to have at parties and the front stage area was narrow and deep resulting in many people not being able to see. Don't get me wrong, I had a good time, but like I said, considering the news of the day it was solemn. How can you party your a$$ off when you just got slapped in the face by your biggest distributor bringing on the 2nd highest volume ED on the market essentially tanking your sales for the next 2-3 years? Perhaps some people were just in denial!

I will say that it essentially shut down the Heineken party down the street. But I heard, I have no first hand knowledge, the Bud Party at the House of Blues was pretty good.

Red Sox fan
10-10-2008, 10:00 AM
coke will get monster in all Non AB markets. Texas, much of the Northeast, the Northwest etc.

Brainy
10-10-2008, 11:11 AM
Red seems to be correct so far. There are no movements or information from the Bud guys. They will have a meeting in Vegas next month to address all the new changes so don't expect the Bud folks to know anything before that.
Greg, the news became public when you were at the show but it was known much much earlier. I think the Rockstar folks were not shocked but rather bored because of the NACS attendence. Economic down turn was a factor at the show.

greg
10-10-2008, 12:39 PM
Greg, the news became public when you were at the show but it was known much much earlier. I think the Rockstar folks were not shocked but rather bored because of the NACS attendence. Economic down turn was a factor at the show.

Of course the news was not shocking. We all heard the rumors for weeks. My point is just that no matter how well adjusted you think you are for bad news it still stings a bit.

If you guys think that Coke is going to play nice and distribute Monster only in Non AB markets you are crazy. The original contract will be short but after Coke saturates all of their stores with it they will demand and get ditribution rights covering all markets.

boodoo
10-10-2008, 03:09 PM
Gotta agree with Greg on this one. Coke gets what Coke wants....

Brainy
10-13-2008, 12:44 PM
You got a point there Greg. If they do well, which we expect them to. Coke will take it all.

BhamCokeman
10-23-2008, 10:26 PM
Found out today for sure we(Coca Cola United) start distributing Monster as well Nov 10th. It was handled by Buffalo Rock and Bud both here.

amyers
10-24-2008, 11:06 AM
Found out today for sure we(Coca Cola United) start distributing Monster as well Nov 10th. It was handled by Buffalo Rock and Bud both here.

I thought that the contracts said that it wouldn't effect any AB deals that were currently in place?

jetset
10-24-2008, 12:35 PM
I thought that the contracts said that it wouldn't effect any AB deals that were currently in place?

I am sure AB had to see the writing on the wall. I would think most major distribution deals initially state that nothing will change in other markets, but slowly and surely, everything gets transitioned over to the new guys....

fusion
10-24-2008, 09:45 PM
In our area in Maryland, Honickman Canada Dry has everything but the coffees, which are handled by a beer dist.

BhamCokeman
10-24-2008, 10:06 PM
AB handled just the coffee and the on premise sales. Not sure what will happen with on premise. I have not heard anything on this.

Red Sox fan
10-26-2008, 05:42 PM
fusion-CCE will get Monster in all areas where honickman had it previously.

Pepsi_Man
11-17-2008, 10:25 PM
LA markets Bud distributes monster. Coke still has RockStar, Nos, and Full Throttle, 7-up has Venom and still sell Monster. I wouldn't mind getting Rockstar for our portfolio. We just got Muscle Milk. In our LAMU energy is as followed as far as sales go.
1. RedBull
2. Monster
3. RockStar
4. Amp, Sobe, Full Throttle
5. The rest ie Pitbull and other off brands.

amyers
11-23-2008, 01:41 AM
Started moving all the sales over the Coke this week! :)

Pepsi_Man
11-23-2008, 03:23 PM
There alot of different things happening. Coke still doesn't sell monster in LA. I was told by a 7-11 rep that they won't until they end their deal with RockStar. When they start selling it then we will know for sure.

fusion
11-23-2008, 10:22 PM
Started moving all the sales over the Coke this week! :)

So this means that Consolidated has Monster now as well?

SumPoosieCat
11-27-2008, 09:52 AM
Any thoughts to why Coke trashed Rockstar for Monster ?

amyers
11-28-2008, 03:05 PM
So this means that Consolidated has Monster now as well?

Yes, I can verify that CCBCC in Columbus, GA and Mobile, AL both have Monster as of last week. I really feel bad for Bud because they built their NA business around Monster and they really hit the bars and sports bars hard with promotions and such, now they've been forced to fall back on 180 Energy and Rumba

RunWithDaLilGuy
11-28-2008, 07:11 PM
AB handled just the coffee and the on premise sales. Not sure what will happen with on premise. I have not heard anything on this.


I don't understand why A-B was given off premise rights to monster java only in select areas?

Either way A-B guys will only be handling it on-premise. Here, they are doing such a bad job of it it's exploding in their warehouse.

Red Sox fan
12-04-2008, 08:59 AM
sumpoosie, what are you talking about?? CCE/Coke extended their agreement with Rockstar... how did they trash the relationship??

SumPoosieCat
12-04-2008, 10:04 AM
It seems Monster is more important to Coke. I see the brand expansion in Monster. I do not see it in Rockstar. Just an observation.

greg
12-04-2008, 02:42 PM
sumpoosie, what are you talking about?? CCE/Coke extended their agreement with Rockstar... how did they trash the relationship??


Are you kidding me??? Thats like telling your wife you want to renew your vows and then right in front of her ask another women to marry you.

It all comes down to having Coke "focus" on your brand. Coke does OK with Rockstar and Full Throttle is doing volume because of is distribution network, but we all know who the proverbial #2 in the market is and that is Monster. Coke wants their cake and to eat it to. It is about consolidation of market share in the ED category. Plain and simple. Rockstar got screwed but how much are they going to complain at this point? Are they going to pull their product from Coke with no real fall back position? I don't think so. I said it before, it will take a few years for Rockstar to have the confidence to go at it alone.

Pepsi_Man
12-05-2008, 01:44 AM
Heres what is going on in los Angeles. (fact) A-B sells Monster Coke does not.(Rumor) Coke will take over Monster when they stop selling Rockstar in LA (Rumor) Pepsi might be picking up RockStar. (I HOPE!!;))

SumPoosieCat
12-05-2008, 09:08 AM
Are you kidding me??? Thats like telling your wife you want to renew your vows and then right in front of her ask another women to marry you.

It all comes down to having Coke "focus" on your brand. Coke does OK with Rockstar and Full Throttle is doing volume because of is distribution network, but we all know who the proverbial #2 in the market is and that is Monster. Coke whats their cake and to eat it to. It is about consolidation of market share in the ED category. Plain and simple. Rockstar got screwed but how much are they going to complain at this point? Are they goping to pull their product from Coke with no real fall back position? I don't think so. I said it before, it will take a few years for Rockstar to have the confidence to go at it alone.

LOL... I could not agree more Greg... maybe Red Sox Fan sees the glass half full or still wants to pretend Coke cares about Rockstar. Coke has made it clear and Rockstar will have to go somewhere else sooner or later.

Supra TT
12-05-2008, 05:15 PM
Heres what is going on in los Angeles. (fact) A-B sells Monster Coke does not.(Rumor) Coke will take over Monster when they stop selling Rockstar in LA (Rumor) Pepsi might be picking up RockStar. (I HOPE!!;))

Your not missing much without Rstar.... Does not sell as much as you think

the saint
12-06-2008, 07:55 AM
Heres what is going on in los Angeles. (fact) A-B sells Monster Coke does not.(Rumor) Coke will take over Monster when they stop selling Rockstar in LA (Rumor) Pepsi might be picking up RockStar. (I HOPE!!;))

I doubt very seriously that Pepsi will have anything to do with rockstar, unless you are at an indie house. Judging by the way you tout being in the LAMU tells me that you are PBG. PBG has high hopes for their brands and I just do not think they will grab Rockstar for one MU. Besides you shouldn't worry about Rockstar, you should worry about closing your disribution voids on the 3 new amps, the new no fear and all of the other new stuff. :D

greg
12-08-2008, 11:12 AM
I doubt very seriously that Pepsi will have anything to do with rockstar, unless you are at an indie house. Judging by the way you tout being in the LAMU tells me that you are PBG. PBG has high hopes for their brands and I just do not think they will grab Rockstar for one MU. Besides you shouldn't worry about Rockstar, you should worry about closing your disribution voids on the 3 new amps, the new no fear and all of the other new stuff. :D

OUCH!!!! Please stop the whipping.

I may have a brain fart on this one but I don't think Pepsi goes outside their netwrok for an ED do they? The last one they went out of network for was Adrenaline Rush and they bought the whole dang company.
I was surprised by the aggressive move by PBG/Pepsico to jump on Muscle Milk, bu then again, the protein market has matured quickly in mainstream.
On a side note I mentioned to my Market unit manager at PBG in Atlanta about Pepsi marketing a protein drink back in 2001...he laughed at me and told that was stupid!

Ron Swedelson
12-10-2008, 10:12 PM
Why would it be stupid for Pepsi to try and take Rockstar. RS is not going to remain happy with Coke as they watch Monster take over #1 share in almost every market. RS is still a huge brand, and does not want to fall too far behind. I think it would be a huge punch back at coke if pepsi took in RS. To me, it makes sence. Yes, there will be continued focus from PBG to get distribution on the new No Fear and AMP flavors. But who would not want a brand like RS? Would PBG's share holders like PBG to get RS? Yeah, I would think so. It would make them less money money per case because they do not produce it or own it. But the volume would more than make up for that.

greg
12-11-2008, 09:29 AM
Why would it be stupid for Pepsi to try and take Rockstar. RS is not going to remain happy with Coke as they watch Monster take over #1 share in almost every market. RS is still a huge brand, and does not want to fall too far behind. I think it would be a huge punch back at coke if pepsi took in RS. To me, it makes sence. Yes, there will be continued focus from PBG to get distribution on the new No Fear and AMP flavors. But who would not want a brand like RS? Would PBG's share holders like PBG to get RS? Yeah, I would think so. It would make them less money money per case because they do not produce it or own it. But the volume would more than make up for that.


I hear what you are saying Ron but if RS signed another contract with Coke for 1,2,3 years by the time it is over they will unfortunately be seen as "damaged goods" if you know what I mean. RS has to get out of their contract yesterday to salvage their reputation before it is sullied any longer as being the "also ran" independent energy drink in Cokes line up. and Yes I am aware this contradicts what I have said before about RS but that is the double edged sword they are having to fall on right now.


I don't think that No Fear or Amp is going to shoot Pepsi over the top of Coke on energy drink sales but it just keeps them in the game.