Hansen Natural Corp. has teamed up with PepsiCo in Canada.

PepsiCo.'s Canadian arm will replace Leading Brands as the distributor of Monster Energy, Lost Energy, Joker Mad Energy and Hansen's energy products throughout the country, Hansen said yesterday (12 February).

PepsiCo Canada will use the Pepsi bottling system throughout Canada, led by Pepsi Bottling Group, to distribute and sell Hansen's products. The terms of the deal were not disclosed.

"This agreement will allow Hansen's energy drinks to reach more consumers through PepsiCo Canada's extensive network of Pepsi bottlers throughout Canada, particularly in areas where our brands have historically been underrepresented, such as the highly populated Ontario market," said Rodney Sacks, Hansen's chairman and CEO.

Dave Burwick, president of Pepsi-QTG (Quaker-Tropicana-Gatorade) Canada, added: "The addition of Hansen's brands to our portfolio will leapfrog our energy business in Canada overnight."

Although Leading Brands has said that it has not received a termination notice from Hansen's, the company said it is holding talks with Hansen's "to explore other opportunities between the two entities".

Leading Brands chairman Ralph McRae said: "Leading Brands helped build Hansen Energy Drinks into the number one 16oz. offerings in Canada. The energy drink category is … in a constant state of evolution. Hansen appreciates that and wants to continue to work together on several new initiatives that we hope to be able to announce shortly."

Last week, Hansen deepened its relationship with Anheuser-Busch in the US. The brewer was confirmed as taking on the US on-trade distribution for Hansen's flagship Monster Energy drink.