Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Investor Presentation (January 2014)
55 slides from Monster Beverage's investor presentation, Jan 7, 2014
Slide 1: Monster Beverage Corporation
BEVERAGE CORPORATION JANUARY 7, 2014 ar, ||| MONSTER
Slide 2: Safe Harbor Statement
Safe Harbor Statement Investor Presentation Safe Harbor Statement Rider Certain oral and written statements in this presentation and in response to questions may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995,
Slide 3: Solid Financial Results
Solid Financial Results 21 consecutive years of increased sales since acquisition of the Hansen beverage business in 1992. Achieved $2.37 billion in gross sales in 2012. Net Sales were $2.06 billion in 2012. Net sales for the third quarter of 2013 increased to $590.4 million, up 8.9% from the same q
Slide 4: Convenience Store Beverage Category Performance 2013
Source: Nielsen Convenience Retailer YTD thru 9/28/13 Convenience Store Beverage Category Performance 2013 Total Beverage Market in Convenience Dollar Volume Share
Slide 5: Convenience Store Beverage Category Performance 2013
Convenience Store Beverage Category Performance 2013 Energy is outpacing the beverage category in dollar % change vs year ago. Energy is gaining more incremental dollar volume than any other beverage segment. Source: Nielsen Convenience Retailer YTD thru 9/28/13 Dollar Volum Chg (MM)
Slide 6: Energy Drink Category Overview
Energy Drink Category Overview The Energy Category continues to grow in all channels over the last 13 wks: All Measured Channels including Walmart: Value change: +5.5%; Unit change: 8.3%1 Convenience and Gas Channel: Value change: +7.1%; Unit change: 9.8%1 Premium brands continue to dominate the cat
Slide 7: Energy Drink Category
Energy Drink Category Monster is leading the growth in the Energy Category, up +14.0% vs Total NA Energy +5.5%. Monster has gained 2.6 share points, to become the #1 brand in the Category with 34.3% $ Share. AMC Conv Food Drug Mass incl WM $ Vol $ Vol Year Ago $ % vs Year Ago $ vs Year Ago $ Share $
Slide 8: 2013 Channel Trends
2013 Channel Trends Source: AC Nielsen 13 Weeks Ending 11/23/13 Monster continues to outpace Energy Category growth across all channels. Per Nielsen, Monster sales are up +14.5% for the 13 weeks ending November 23, 2013, versus Category growth of +7.1%, in the Convenience and Gas channel. Value % Ch
Slide 9: Energy Drink Category Share Trends
Source: AC Nielsen Total US Convenience – 4 Weeks Ending 11/23/13 Energy Drink Category Share Trends The Monster Energy brand continues to widen the share gap with Red Bull, expanding the gap 8.5 share points in the latest 4 week Nielsen period.
Slide 10: Energy Drink Category Share Trends
Energy Drink Category Share Trends Source: AC Nielsen Total US Convenience – 4 Weeks Ending 11/23/13
Slide 11: 2013 Key Accomplishments
2013 Key Accomplishments Source: 1AC Nielsen Total US– 13 Weeks Ending 11/23/13 2AC Nielsen Total US Convenience – 13 Weeks Ending 9/28/13 Monster Java is the #1 Energy Coffee brand in the Convenience and Gas Channel and is up +15.3% in units, outpacing the RTD Energy Coffee category at +13.9%.2 Mon
Slide 12: Monster 2013 Champions
Monster 2013 Champions Stephane Peterhansel 11-Time Dakar Rally Champion Nyjah Huston X Games Skateboarding Champion J.B Mauney 2013 PBR World Champion Kyle Bush 12 Nationwide NASCAR Wins
Slide 13: Monster 2013 Champions
Monster 2013 Champions BJ Baldwin Back-to-Back Baja 1,000 Champion Jorge Lorenzo 8 MotoGP Wins Ryan Villopoto Three-Peat Supercross Champion Liam Loran Rally Cross Champion John John Florence Back-to-Back Triple Crown of Surf Champion Pol Espagaro MotoGP 2 World Champion
Slide 14: 2013 X Games - Monster Sponsored Athletes Achievements
2013 X Games- Monster Sponsored Athletes Achievements Monster Energy sponsored athletes dominated X Games in 2013. Aspen- 16 Medals Barcelona- 10 Medals Brazil- 14 Medals Los Angeles-16 Medals Munich- 12 Medals Tignes- 7 Medals
Slide 15: New Products: Monster Sub-Brands
New Products Monster Sub-Brands Source: AC Nielsen Total US Convenience – 13 Weeks Ending 11/23/13 Green Lo Carb Abs Zero Ultras Java Rehab Extra Strength, Import, Juice, DUB, M3, Uber, Assault, Cuba Lima Monster Ultras $97.0M 5.1% $ Share Just over one year old, the Ultra line is Monster’s #2 Sub-b
Slide 16: Monster's Diet Portfolio
Monster’s Diet Portfolio Monster’s Diet portfolio provides sustainable growth. Source: AC Nielsen Total US Convenience – 13 Weeks Ending 11/23/13
Slide 17: New Products: Muscle Monster
New Products Muscle Monster
Slide 18: 2013 Muscle Monster Launch
2013 Muscle Monster Launch Within the first 6 months Muscle Monster achieved a 20.3% Dollar Share. Muscle Monster is the #2 brand in the protein drink category. Muscle Monster added incremental volume to the category. The Protein drink category is up +35.8% vs a year ago. Source: AC Nielsen Total US
Slide 19: Punch Monster New Graphics Shipping Q1, 2014
Punch Monster New Graphics Shipping Q1, 2014
Slide 20: Monster Energy Line Extensions
Monster Energy Line Extensions Source: AC Nielsen Total US Convenience – 13 Weeks Ending 11/23/13 Monster Energy’s innovation continues to generate incremental sales in the category.
Slide 21: Global Expansion
Yee ae Global Expansion
Slide 22: Global Initiatives - 2013: Call of Duty
Global Initiatives - 2013 Call of Duty is the number one first-person-shooter franchise of all time. Co-Marketing program was developed between Monster Energy and Activision. Through the on-pack promotion, consumers were awarded exclusive prizes when they purchased Monster Energy. Promotion ran on s
Slide 23: Global Initiatives 2013-2014: MotoGP
Global Initiatives 2013 - 2014 Title Sponsor: MotoGP Barcelona MotoGP Le Mans On - Track Branding: Qatar Japan Silverstone Bruno Broadcast: 209 Countries 280 million households Factory Yamaha Sponsor – Premier Class Jorge Lorenzo – 2 time World Champ Valentino Rossi – 9 time World Champ Tech 3 Spons
Slide 24: Global Initiatives 2013-2014: eSports Gaming
Global Initiatives 2013 - 2014 eSports- Gaming 68% of U.S. households play video games $68 billion spent on video games world wide 80% of gamers are 18 – 35 years old League of Legends Championship 32 Million viewers globally 10,000 Attendees, STAPLES Center Source: Riot Games - 2013
Slide 25: Global Initiatives 2013-2014: eSports Teams
Global Initiatives 2013 - 2014 eSports - Gaming Team Evil Geniuses “EG” A 23-player team, which specializes in the world’s top eSports titles, including StarCraft 2, League of Legends, DOTA2 and Street Fighter. EG player “Jaedong” is the highest earning eSports player ever. Team EG achieved podium f
Slide 26: Global Initiatives 2014: X Games
Global Initiatives 2014 Monster will be the Energy Drink Category Sponsor Monster receives major, highly visible on-course branding. Monster will also be integrated into 27 episodes of “World of X” TV Show on NBC. X Games is broadcast in 209 counties to approx. 500 million households. Two events in
Slide 27: Japan
Japan Source: Asahi Soft Drinks and Retail Data: Inryo-Soken *Beverage industrial research company, Japan. Excludes traditional energy drinks in small glass bottles. In only two years, Monster Energy’s market share in Japan reached an estimated 31%. Commenced production of Monster Energy in Japan. E
Slide 28: Japan – Retail Activation
Japan – Retail Activation Through October 2013, Monster Energy vending machine placements totaled more than 20,000; and Asahi has committed to incremental placements throughout 2014.
Slide 29: 2013: EMEA Value Share Gain
2013: EMEA Value Share Gain YTD through Sept. 30. Source: 2009 &2010: Aggregated YTD Nielsen value sales for GB, France, Belgium, Netherlands, Norway, Sweden, Czech, Denmark, Estonia, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Northern Ireland, Poland, Portugal, Slovak, Slovenia, S
Slide 30: Selected Market: Mexico
Selected Market: Mexico • Mexico’s energy category: +11% last 3 months. • Monster’s value growth: +6% last 3 months. • Monster’s market share is 34.0% for the last 3 months. • Two low-priced competitors entered the energy drink market during the year. Although Monster’s market share declined, sales
Slide 31: Selected Market: Canada
Selected Market: Canada • Canada’s energy category: +4% last 12 weeks. • Monster’s value growth: +16% last 12 weeks. • Monster’s market share is 29.6% for the last 12 weeks. 25.4% 27.1% 29.6% 0 5 10 15 20 25 30 35 Canada Total Convenience Monster Market Value Share YTD 2012 YTD 2013 Latest 12 Weeks
Slide 32: Selected Market: Great Britain
Selected Market: Great Britain *Tesco is GB’s no.1 Energy Drink retailer selling 18% of the total Energy Drink sales in GB **Source: Nielsen Key Account Data (WE 14/9/13) Source: Nielsen scantrack data 13 weeks ending 11/2/13*, Nielsen covers all channels in GB Great Britain's energy category: +8% l
Slide 33: Selected Market: France
Source: Nielsen data- 13 weeks ending 10/6/13 Nielsen covers the Grocery Channel in France France’s energy category: +4% last 13 weeks. Monster’s value growth: +16% last 13 weeks. Monster is the #2 energy brand in France, with a 17.5% market share in the latest 13 weeks. Leclerc - France Selected Ma
Slide 34: Selected Market: Spain
Spain’s energy category is flat last 13 weeks. Monster’s value growth: +44% last 13 weeks. Monster has gained 7.3% value share YTD. Monster’s market share is up to 22% in the latest 13 weeks and 24.9% in the last 4 weeks. Source: Nielsen data- 13 weeks ending 10/6/13 Nielsen covers all channels in S
Slide 35: Selected Market: Germany
Selected Market: Germany Germany’s energy category: +5.5% YTD. Monster’s value growth: +27% YTD. Monster’s market share is 8.4% in the latest 13 weeks and 8.6% in the last 4 weeks.* Source: Nielsen value sales total market excl. Hard Discounters- 13 weeks ending 10/31/13* Tank & Rast Petrol Rewe Sup
Slide 36: Selected Market: Greece
Greece’s energy category: -4% Last 13 Weeks. Monster’s value growth: +25% Last 13 Weeks. Monster’s market share is up to 25.1% in the last 13 weeks. Source: IRI data- 13 weeks ending 9/30/13 IRI covers all channels in Greece Greece Convenience Stores Selected Market: Greece
Slide 37: Selected Market: South Africa
South Africa’s energy category: +25% Last 13 Weeks. Monster’s value growth: +48% Last 13 Weeks. Monster’s market share is up to 22.8% in the latest 13 weeks. Shell Spar Source: Nielsen data- 13 weeks ending 10/31/13 Nielsen covers all channels in South Africa Selected Market: South Africa
Slide 38: Brazil
Brazil • Transition to Ambev in January, 2013 • Numerical distribution increased from approx.18,000 to approx.115,000 retail accounts at year end. • Monster Energy had the highest share growth in the energy category in R$, from 2.2% to 3.4% in 2013. • Introduction of 6 unit case pack in August 2013
Slide 39: Chile
Chile Source: Nielsen – November 2013 Launched in January 2013 Captured the #2 market position. The Energy category is demonstrating healthy growth. Monster continues to achieve share growth up to 10% market share in November. Monster Market Value Share 0% 10% 20% 30% 40% 50% 60% 70% JAN FEB MAR APR
Slide 40: Social Media
Social Media Source: Blitzmetrics.com Facebook
Slide 41: Viral Videos
Viral Videos You renblc DC SHOES: KEN BLOCK'S GYMKHANA FIVE: ULTIMATE UR, ri any Monster Energy: Ballistic B.J. Baldwin - #RECOIL Monster Ener 5,089,697 =a mae
Slide 42: Peace Tea 2014 Innovation
Peace Tea 2014 Innovation
Slide 43: Peace Tea Complete 2014 Line-up
Peace Tea Complete 2014 Line-up Flavors: Razzleberry, Caddy Shack, Sweet Lemon, Green Tea, Georgia Peach, Sno-Berry, Pink Lemonade, Texas Style Sweet Tea, Viva Mango Juice Cocktail
Slide 44: Warehouse Division Highlights: Hubert's Lemonade
Warehouse Division Highlights Hubert’s Lemonade Warehouse Division increased Net Sales YTD to September 30, 2013 by 5.3% Hubert’s Brand is the largest contributor to this growth Hubert’s is the fastest growing Premium Lemonade Brand in measured channels1 Hubert’s Product Line Extensions in 2013 Hube
Slide 45: Hubert's Fans
Hubert’s Fans
Slide 46: Warehouse Division Highlights: Hansen's Natural Soda & Juice
Warehouse Division Highlights Hansen’s Natural Soda & Juice New Hansen’s Marketing Direction “Unnatural Lengths for Natural Goodness” Hansen’s Kale Soda Promotional flavor Maintained 64oz apple juice leadership in California1 Stabilized apple juice concentrate costs going forward Hansen’s 6.75oz Jui
Slide 47: Net Sales ($ in millions)
Monster Beverage Corporation Net Sales ($ in millions) 38.4% CAGR to December 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/30/13 9 Months 2013 $110.4 $180.3 $348.9 $605.8 $904.5 $1,033.8 $1,143.3 $1,303.9 $1,703.2 $2,060.7 $1,705.6
Slide 48: Reported Operating Income ($ in millions)
Monster Beverage Corporation Reported Operating Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/30/13 9 Months 2013 $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $550.6 $438.2
Slide 49: Adjusted Operating Income ($ in millions)
Monster Beverage Corporation Adjusted Operating Income (“OI”) ($ in millions) 9 Months 2013 Reported OI $9.8 $33.9 $103.4 $158.6 $231.0 $163.6 $337.3 $347.8 $456.4 $550.6 $438.2 *Adjustments 16.5 25.0 117.9 - 2.8 - 1.8 1.1 1.5 10.7 Adjusted OI $9.8 $33.9 $103.4 $175.1 $256.0 $281.5 $334.5 $346.0 $45
Slide 50: Reported Net Income ($ in millions)
Monster Beverage Corporation Reported Net Income ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/30/13 9 Months 2013 $5.9 $20.4 $62.8 $97.9 $149.4 $108.0 $208.7 $212.0 $286.2 $340.0 $262.6
Slide 51: Reported Diluted Earnings Per Share
Monster Beverage Corporation Reported Diluted Earnings Per Share As adjusted for Stock Splits 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 9/30/13 9 Months 2013 $0.04 $0.11 $0.33 $0.50 $0.76 $0.55 $1.10 $1.14 $1.53 $1.86 $1.51
Slide 52: Balance Sheet Highlights
Monster Beverage Corporation Balance Sheet Highlights ($ in thousands) September 30, 2013 December 31, 2012 Percentage Change Cash and cash equivalents $ 287,019 $ 222,514 29% Investments: Short-term investments $ 315,572 $ 97,042 225% Long-term investments $ 9,725 $ 21,393 -55% Total Investments $
Slide 53: 3rd Quarter Results
Monster Beverage Corporation 3rd Quarter Results (in millions except per share data) 3Q12 3Q13 $541.9 $590.4 Net Sales 8.9% 3Q12 3Q13 $86.1 $92.2 Net Income 7.0% 3Q12 3Q13 $140.7 $151.4 Operating Income 7.6% $0.47 $0.53 Dilud EPS 13.1% 3Q12 3Q13
Slide 54: 2013 Share Repurchases
2013 Share Repurchases Shares Purchased Avg. Price (excluding broker's commission) Gross Amount (excluding broker's commission) Q1 2013 256,820 51.99 13,352,139.30 Q2 2013 - - - Q3 2013 - - - Q4 2013 950,690 56.98 54,167,145.12 1,207,510 $55.92 $67,519,284.42
Slide 55: Monster's International Footprint
Monster’s International Footprint
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