US: Hansen Natural shares jump on Coca-Cola rumour
Shares in Hansen Natural have leapt in price following reports that the beverage group is in talks with Coca-COla over a possible distribution agreement.
Hansen's share price rose 17% today (19 September) to US$27, upons reports that it may sign a deal allowing Coca-Cola to distribute its Monster energy drink.
If confirmed, the move would be a further sign that Coca-Cola is actively seeking a greater presence in the energy drink sector.
Analyst Mark Astrachan, of Stifel Nicolaus & Co, said in a note yesterday: "We view the news as positive and believe Coke's potential interest in Hansen stems from Monster Energy's continued success in gaining market share in an energy drink category that continues to grow."
Hansen itself reported last month that the US energy drink sector had been affected by the "challenging macro economic environment" in the US.
However, Astrachan said that, while Coke's own Full Throttle and PepsiCo SoBe brands may have suffered, "Red Bull and Hansen continue to grow in excess of the overall category and have taken meaningful market share in the last 12 months".
He added: "We expect this trend to continue and note that Red Bull and Hansen currently account for nearly 2/3 of the overall energy drink market by volume."
Neither Hansen Natural nor Coca-Cola were immediately available for comment.
Separately, it emerged this week that Hansen faces a class action lawsuit in its home state of California. Law firm Scott & Scott announced that it had filed for proceedings against Hansen, accusing the group of "materially false and misleading statements regarding the company's beverage sales and financial results".
Scottish microbrewer BrewDog has emerged unscathed from a lengthy battle with the drinks industry's self-regulatory body to buck bad times for the UK beer market....
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...
Credit Suisse has upgraded Coca-Cola's shares to 'outperform' from 'neutral', and said the economic downturn will strengthen its long-term earnings potential....
The UK arm of The Coca-Cola Co. and Coca-Cola Enterprises (CCE) have publicly announced the carbon footprints of their major soft drinks brands....
Hansen Natural has reported a net loss of US$23.4m for 2008, due to charges related to switching distribution of its Monster Energy drink to Coca-Cola Enterprises and The Coca-Cola Co....
The Coca-Cola Company's board has approved its quarterly dividend of 41 cents per common share. This is equivalent to an annual dividend of US$1.64 per share, up from $1.52 per share in 2008....
[UPDATED 25/02/2009] PepsiCo has altered some of its plans to re-invest the US$1.2bn in cost-savings from its restructuring programme in a bid to provide greater value for consumers during the economi...
The Pepsi Bottling Group said that while near-term economic difficulty would hurt drinks sales, the company would position itself to capitalise once the economy improves....
- A Wild Geese, Pernod Ricard conspiracy theory?
- Coca-Cola Beverages Africa - A new powerhouse
- Can craft breweries compete in lager arena?
- Remy Cointreau's Q1 performance by brand, region
- SABMiller's Q1 2017 results - Preview
- Diageo silent on United Spirits job losses
- Diageo starts formal talks over UK pension cuts
- New Hendrick's Gin would have to be "unusual"
- AB InBev faces US$7bn price rise for SABMiller
- Wild Geese gets Australian nod in Pernod legal row
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends