Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Hansen Natural — Investor Presentation (December 2006)
28 slides from Monster Beverage's investor presentation, Dec 11, 2006
Slide 1: Hansen Natural Corporation December 2006
HANSEN NATURAL CORPORATION DECEMBER 2006
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This material contains certain “forward-looking” statements. These statements are based on management’s current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein and read
Slide 3: Introduction
INTRODUCTION
Slide 4: Introduction, Cont'd.
INTRODUCTION, CONT’D. Hansen’s is a 70 year old trusted brand that stands for high quality, “better for you” natural beverages. Hansen’s formulates and markets unique premium beverages at the forefront of consumer trends. Hansen’s enjoys leadership positions across several categories, including the
Slide 5: In 2005, Hansen's continued its upward growth trend
In 2005, Hansen’s continued its upward growth trend. Gross sales (net of discounts and returns) grew 85.4% from $224.1 million in 2004 to $415.4 million in 2005. Net income grew 207.9% from $20.4 million in 2004 to $62.8 million in 2005 In the first nine months of 2006 Gross sales (net of discounts
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Hansen’s continues to enjoy excellent operating performance, with continuing growth. The Company’s operating results are summarized below: *Gross sales, although used internally by management as an indicator of operating performance, should not be considered as an alternative t
Slide 7: Warehouse Division
WAREHOUSE DIVISION Hansen’s is one of the leaders in the natural soda category in the U.S. Blue Sky is the leading natural soda in the health food category Sodas are all natural, no preservatives, caffeine free, and in the case of Hansen’s, sodium free, with no artificial colors or flavors Hansen’s
Slide 8: Carbonated
CARBONATED
Slide 9: Hansen's Juices
HANSEN’S JUICES Children’s Multi-Vitamin Juices
Slide 10: DSD Division
DSD DIVISION Energy drink market is the fastest growing segment of U.S. beverage industry. $1.6 billion at wholesale in 2005. 1 In 2005, category grew more than 60% over 2004. 1 In first 10 months of 2006 category growth 48% (per Nielsen). 2 Monster is the fastest growing major energy brand in U.S.
Slide 11: Monster Energy Drinks
MONSTER ENERGY DRINKS
Slide 12: Monster Energy Drinks product image
December Z006 Page 2
Slide 13: Controlled Label Energy Drinks
CONTROLLED LABEL ENERGY DRINKS
Slide 14: Controlled label energy drink products
Nat AURINE December Z006 Page 14
Slide 15: 16 Ounce Energy Drinks
36.8% 17.8% 11.5% 13.2% Source: AC Nielsen Total US - Convenience Track Major Market Expansion 13 Weeks Ending 10/28/06 16 OUNCE ENERGY DRINKS
Slide 16: U.S. Energy Drink Market Shares
U.S. ENERGY DRINK MARKET SHARES Source: AC Nielsen Total US - Convenience Track Major Market Expansion 13 Weeks Ending 10/28/06 Brand $ Share Share Point Change vs YA Red Bull 33.8 (6.4) Monster 23.4 6.4 Rockstar 11.5 1.3 Full Throttle 6.5 0.5 No Fear 5.8 (1.4) Amp 5.5 1.1 Adrenaline Rush (1.7) Lost
Slide 17: Focus on Monster Energy
FOCUS ON MONSTER ENERGY Proven products with potential for even greater sales velocity and distribution through effective distribution system. System significantly boosted by Anheuser- Busch distribution arrangements. Such arrangements are in the process of being implemented. Significant convenience
Slide 18: Pro Circuit/Kawasaki Racing
PRO CIRCUIT/KAWASAKI RACING MX/SX is the pinnacle of Action Sports. Pro Circuit Racing is a well respected “perennial winner” with 14 championships in 15 years. Approximately one million spectators attended the 2006 MX/SX racing season. TV coverage - approximately 5 million plus viewers.
Slide 19: Monster Energy Pro Presented by Billabong
Monster Energy Pro Presented by Billabong North Shore, Oahu, Hawaii World Famous Bonsai Pipeline ASP 4-star event, $60,000 prize purse Billabong Hosted Web Cast MONSTER ENERGY PRO 2006
Slide 20: Billabong XXL Big Wave Awards
BILLABONG XXL BIG WAVE AWARDS The Billabong XXL Award is won by the surfer who, by any means available, catches and successfully rides the single biggest wave of the year based on analysis of the available images. Billabong Biggest Wave Award Monster Biggest Paddle Wave Award Monster Tube of the Yea
Slide 21: Vans Warped Tour
Most popular, longest running Action Sports/Music Festival in the United States. MONSTER has been a sponsor for 3 years. 49 concert dates throughout U.S. and Canada. MONSTER is the “Official Energy Drink” of the Vans Warped Tour. Van’s Warped Tour
Slide 22: Las Vegas Monster-Rail
LAS VEGAS MONSTER-RAIL Las Vegas is the “most visited city” in the world. Approximately 40-million people visit Las Vegas every year. The monorail connects the “Las Vegas Strip” to the Las Vegas Convention Center and will connect to the Fremont Street Experience and McCarran International Airport in
Slide 23: Channel Mix Summary
CHANNEL MIX SUMMARY Hansen’s beverages can be found in all major channels: Channel Mix Nine Months Ended September 30, 2005 Channel Mix Nine Months Ended September 30, 2006 Percentages of Gross Sales by Market Channel
Slide 24: Product Mix Summary
PRODUCT MIX SUMMARY Product Mix Nine Months Ended September 30, 2005 Product Mix Nine Months Ended September 30, 2006 Percentages of Gross Sales by Product Category
Slide 25: Geographic Mix Summary - Warehouse
GEOGRAPHIC MIX SUMMARY - WAREHOUSE Geographic Mix Nine Months Ended September 30, 2005 Geographic Mix Nine Months Ended September 30, 2006 Percentages of Warehouse Gross Sales by Region
Slide 26: Geographic Mix Summary - DSD
GEOGRAPHIC MIX SUMMARY - DSD Geographic Mix Nine Months Ended September 30, 2005 Geographic Mix Nine Months Ended September 30, 2006 Percentages of DSD Gross Sales by Region
Slide 27: Growth Strategy
GROWTH STRATEGY Grow existing brands Develop and launch new products / brands including: Monster 24 oz. and 8 oz. cans Monster 4 packs and 8 packs Monster Khaos …lost Five-O …lost Perfect 10 Rumba Energy Juice Joker Mad Energy Unbound Ace Others Expand distribution Upgrade quality and penetration of
Slide 28: Conclusion
CONCLUSION Hansen’s continues to excel in its markets. The Hansen’s brand is respected and trusted in the marketplace by an extremely loyal base of consumers. The premium healthier brand image enjoyed by Hansen’s Natural Sodas offers unlimited opportunity to capture substantial additional share of t
Hansen Natural — Investor Presentation (December 2006) on 6ix