US: Hansen Natural profits up, warns of weak drinks sector
Hansen Natural has said profits increased 35% in its first half, but the group warned of rising raw materials costs and a slowing energy drink market in the US.
Net profits rose to US$79m for the six months ended 30 June, with net sales up 20% to $494m during the same period, Hansen Natural announced yesterday (7 August).
The California-based drinks group said strong performances from its Monster Energy and Java Monster drinks brands drove the sales rise.
But, in another sign that a slowdown in western economies is beginning to impact on drinks firms, Hansen added that almost all categories of ready-to-drink products in the US were experiencing a tough time.
Chairman and CEO Rodney Sacks said: "This weakness is most pronounced in convenience store cold drink channels, where the vast majority of energy drinks are sold. We continue to believe that the moderating growth that we have seen in energy drinks appears, in part, to be due to the challenging macro economic environment and the resulting decline in store traffic, primarily in the convenience and gas sector [and] especially in Southern California."
The group also reported rising costs for sugar, aluminium and apple juice concentrate.
Net income for the second quarter of 2008 increased 31% to $50.2m, with sales up 15.3% to $282.2m.
Sectors: Soft drinks
Cadbury officially put its Australian soft drinks business up for sale this week following a strategic review of the business....
While the past 12 months have been difficult for many soft drinks companies, notably in North America, the last year has seen continued development in better-for-you categories, notably enhanced water...
Austrian energy drink producer Red Bull has posted a 7.9% increase in year-on-year sales....
Danone has completed the sale of its Frucor Australasian drinks division to Japan's Suntory for EUR600m (US$764m)....
Coca-Cola GB has announced that two of its brand directors have been promoted to other key roles within the The Coca-Cola Co....
Leading Brands has posted a slowing of net loss in its third quarter, despite a slide in sales in the period....
Hydrive Energy, the US-based functional energy drinks group, has introduced Hydrive A to its range, designed to enhance alertness....
DNA Beverage Corp, the US energy drinks group, has promoted Russ Rickon to vice president of national sales....
- Industry is following the pack to patriotic party
- How has craft beer put the squeeze on world beers?
- The category today - Scotch Whisky I
- Today's Market Trends - Scotch Whisky II
- Key Brands Performance - Scotch Whisky IV
- Diageo unveils first European Johnnie Walker House
- Brown-Forman shuffles director pack
- Consumers want brands that challenge them - study
- Spirits can fill music industry gap - Jagermeister
- Heineken signs JV deal in Philippines
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Soft Drinks Global Overview: Growth Opportunities Between Category Lines
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global travel retail insights - market forecasts, product innovation and consumer trends