
Originally Posted by
greg
The AB/INBEV deal that seems to be almost finished may be a way for Hansens/Monster to work their way around the World. I am sure that InBev, even though they have a lot of Coke Bottlers in Europe will need a ED in some markets.
I guess that Hansens has already had talks with InBev about the Monster brand staying in the portfolio. Considering that a report out today said that CSD sales were down and that ED sales are growing, however minimully, that money to pay for the deal will be needed and it will come form the Beer and the ED's. Time will tell if this will happen.
Here is something to ad to my discussion from an article out today.
Belgian InBev’s $52 billion takeover of A-B won’t impact Hansen “given the strongly profitable economics of the current relationship for both A-B and its distributor partners,” wrote Stifel Nicolaus analysts Mark Astrachan and Mark Swartzbeg in a June note to investors. “We believe A-B currently receives an approximately $1 per case commission from Hansen (about $40 million in total), an amount which is very high margin. Given commissions margins are likely well in excess of overall A-B margins, we believe it is unlikely that InBev would look to discontinue the relationship, especially considering its traditional focus on margin expansion. Further, in the event of a deal, we believe Hansen could potentially increase its international presence by leveraging InBev’s strength in Latin America and Europe.”
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