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  • Monster and Coke

    I have to say I'm very surprised nobody's commented on Coke's deal with Monster (and the ending of their Rockstar deal).

  • #2
    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

    Coca-Cola finalizes a Monster drink deal | ajc.com

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    • #3
      Monster: Building an Empire ????? Prefab Style

      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 ??«

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      • #4
        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!
        Whether you think can or think you can\'t, you\'re probably right!

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        • #5
          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.

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          • #6
            "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."

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            • #7
              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.

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              • #8
                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!
                banned

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                • #9
                  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?

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                  • #10
                    [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.
                    Whether you think can or think you can\'t, you\'re probably right!

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                    • #11
                      coke will get monster in all Non AB markets. Texas, much of the Northeast, the Northwest etc.

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                      • #12
                        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.

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                        • #13
                          Originally posted by Brainy View Post
                          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.
                          Last edited by greg; 12-02-2008, 10:13 AM.
                          Whether you think can or think you can\'t, you\'re probably right!

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                          • #14
                            Gotta agree with Greg on this one. Coke gets what Coke wants....
                            banned

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                            • #15
                              You got a point there Greg. If they do well, which we expect them to. Coke will take it all.

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