just on Call: Hansen to expand Monster portfolio, eyes new markets
Hansen Natural will launch Monster into new geographies in 2011
Hansen Natural has announced a number of Monster Energy product launches for the fourth quarter and plans to expand its international reach.
Speaking on the firm's earnings call on Friday (5 November), Rodney Sacks, group chairman and CEO, attributed Hansen's third-quarter results to "solid sales" of Monster Energy drinks.
For the three months to the end of September, net profits rose by 17.7% to reach US$66.5m, the firm reported late last week. Operating profits rose by 15.8% on the same period of 2009, to $107.6m, while net sales increased by 26.8% to $356.7m.
However, while Sacks conceded that the firm continues to face economic uncertainty in the US and other markets in which it operates, he said that he remains "confident" of growing the Monster brand further.
"We are continuing to see an improvement in the beverage market in general, in North America and in certain countries internationally," Sacks told analysts. "In particular, the energy category is building momentum in the marketplace.
He added: "While we believe these conditions are likely to persist, we are confident we will be able to grow the monster brand and that we have the ability to leverage significant opportunities available to us and introduce Monster to new markets."
As a result, Sacks said Hansen will introduce the Monster brand to Bulgaria by the end of the year, with plans to expand sales into Asia in 2011.
"We are continuing to work with distributors in Australia to implement programmes and improve distribution and we plan to expand sales into Asia in 2011," Sacks said. "To this end, we have appointed a VP of international [business] for the Asia region that will be based in Hong Kong from the year.
"We are also continuing to focus on expanding sales into new countries in South America as well as countries in Central and Eastern Europe, the Middle East and Africa in 2011," he added.
In addition, Hansen said it will look at "repositioning and tweaking" some of its existing products, while also launching some new ones into existing markets.
In the fourth quarter, Sacks said the firm will launch M3, a "super-concentrate" Monster energy drink that will be available in a 5oz glass bottle. A new energy drink named Worx will also be launched in 2oz bottles in two variants; original and extra strength.
Other launches include a new monster product called Midnight, a zero calorie variant called Black Ice and a non-carbonated Monster variant with "additional supplements".
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