Monster Beverage Corporation · NASDAQ:MNST
Monster Beverage — Hansen Natural — Investor Presentation (March 2006)
38 slides from Monster Beverage's investor presentation, Mar 16, 2006
Slide 1: Hansen Natural Corporation
HANSEN NATURAL CORPORATION MARCH 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement This material contains certain “forward-looking” statements. These statements are based on management’s current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein and list
Slide 3: Taro 2006
Taro 2006 Page?
Slide 4: Introduction, cont'd.
Introduction, cont’d. Hansen’s is a 70 year old trusted brand that stands for high quality, “better for you” natural beverages. Hansen’s formulates and markets unique premium beverages at the forefront of consumer trends. Hansen’s enjoys leadership positions across several categories, including the
Slide 5: In 2005, Hansen's has continued its upward growth trend
In 2005, Hansen’s has continued its upward growth trend. The business grew 85.4% from $224.1 million in 2004 to $415.4 million in 2005 in gross sales (net of discounts and returns) . Net income grew 207.9% from $20.4 million in 2004 to $62.8 million in 2005 Introduction, cont’d . Since 2001, Hansen’
Slide 6: Financial Performance
Financial Performance Hansen’s continues to enjoy excellent operating performance, with continuing growth. The Company’s operating results are summarized below: *Gross sales, although used internally by management as an indicator of operating performance, should not be considered as an alternative t
Slide 7: Product Line Overview
Product Line Overview A Brief Snapshot of the Major Product Portfolios Warehouse Exclusive contracts for apple and blended juice 64 oz. for CA WIC Program (started July ‘04). Additional blended juice launched in 2005.
Slide 8: Product Line Overview
Product Line Overview A Brief Snapshot of the Major Product Portfolios DSD Includes Monster, Lost, Hansen’s Energy and Energade Represents 74% of total 2005 gross sales Packaged in 8 oz., 16 oz., and 23.5 oz. size cans
Slide 9: Nat
Nat ral Mandarin List Taro 2006 Fayed
Slide 10: ene
ene creamy © 5 p_ROOT BEER Taro 2006 age 10
Slide 11: Hansen's Natural Soda Portfolio
Hansen’s Natural Soda Portfolio Hansen’s is the leading natural soda in the U.S. Blue Sky is the leading natural soda in the health food category All natural, no preservatives, caffeine free, and in the case of Hansen’s, sodium free, no artificial colors or flavors Predominantly Western distribution
Slide 12: Hansen's 100% Juice & Juice Blends
Hansen’s 100% Juice & Juice Blends
Slide 13: Hansen's Smoothies
Hansen’s Smoothies
Slide 14: Hansen's Multi-Vitamin Juices for Children
Hansen’s Multi-Vitamin Juices for Children
Slide 15: Hansen's Juice Portfolio
Hansen’s Juice Portfolio First shelf-stable smoothies in the U.S. Enhanced with vitamins and/or calcium Hansen’s 64 oz. apple juice is the #1 shelf-stable bottled juice in Southern and Northern California.* Hansen’s 64 oz. apple grape juice is the #4 and #7 shelf-stable bottled juice in Southern and
Slide 16: Elan ny
Elan ny Taro 2006 Page 16
Slide 17: Monster Energy Drinks
Monster Energy Drinks
Slide 18: Page
Page 18 Taro 2006
Slide 19: Hansen's Energade
Hansen’s Energade
Slide 20: Controlled Label Energy Drinks
Controlled Label Energy Drinks
Slide 21: Nat
Nat AURINE Taro 2006 Paget
Slide 22: Hansen's Energy Portfolio
Hansen’s Energy Portfolio Energy Product Attributes Great tasting 16 oz. value size Efficacious formulations, taste profiles, and image are important contributors to success Products cover broad energy demographics
Slide 23: Hansen's Energy Portfolio
Hansen’s Energy Portfolio Energy drink market is the fastest growing segment of U.S. beverage industry. $1.6 billion at wholesale in 2005. 1 In 2005, category of growth in excess of 50% over 2004 (per Nielsen). 2 Monster is one of the fastest growing major energy drinks in U.S. (per Nielsen). 2 Mons
Slide 24: 16oz Category Leaders-Convenience
41% 19% 16% 13% Source: AC Nielsen Total US - Convenience Track Major Market 13 Weeks Ending 12/31/05 16oz Category Leaders-Convenience Hansen’s: #1 Player Overall!
Slide 25: Market Share - Energy Drinks
Source: AC Nielsen Total US - Convenience Track Major Market 13 Weeks Ending 12/31/05 $ Share Share Change Red Bull 37.3% (10.0) Monster 19.1% +8.4 Rockstar 9.7% +0.4 No Fear 6.5% (0.8) Full Throttle 5.6% +5.4 A Rush 4.0% (2.2) Amp 4.0% (1.7) Lost 1.1% (0.1) Von Dutch 0.5% +0.5 All Other 12.2% +0.2
Slide 26: Focus on Monster Energy
Focus on Monster Energy Proven products with potential for even greater sales velocity and distribution through effective distribution system. Significant convenience chain distribution gains. Monster Khaos recently launched. Separate brand facilitates aggressive, extreme marketing to youth-culture
Slide 27: Pro Circuit/Kawasaki Racing
PRO CIRCUIT/KAWASAKI RACING MX/SX is the pinnacle of Action Sports. Pro Circuit Racing is a well respected “perennial winner” with 14 championships in 15 years. Nearly one million spectators attended the 2005 MX/SX racing season. TV coverage - approximately 5 million plus viewers.
Slide 28: Monster Energy Pro Presented by Billabong
Monster Energy Pro Presented by Billabong North Shore, Oahu, Hawaii World Famous Bonsai Pipeline ASP 4-star event, $60,000 prize purse Billabong Hosted Web Cast MONSTER ENERGY PRO 2006
Slide 29: Billabong XXL Big Wave Awards
BILLABONG XXL BIG WAVE AWARDS The Billabong XXL Award is won by the surfer who, by any means available, catches and successfully rides the single biggest wave of the year based on analysis of the available images. Billabong Biggest Wave Award Monster Biggest Paddle Wave Award Monster Tube of the Yea
Slide 30: Most popular, longest running Action Sports/Music Festival
Most popular, longest running Action Sports/Music Festival in the United States. MONSTER has been a sponsor for 3 years. 49 concert dates throughout U.S. and Canada. MONSTER is the “Official Energy Drink” of the Vans Warped Tour 2006. Van’s Warped Tour
Slide 31: Las Vegas Monster-Rail
LAS VEGAS MONSTER-RAIL Las Vegas is the “most visited city” in the world, approximately 40-million people visit Las Vegas every year. The monorail connects the “Las Vegas Strip” to the Las Vegas Convention Center and will connect to the Fremont Street Experience and McCarran International Airport in
Slide 32: Channel Mix Summary
Channel Mix Summary Hansen’s beverages can be found in all major channel types: Channel Mix Three Months Ended December 31, 2004 Channel Mix Three Months Ended December 31, 2005 Percentages of Gross Sales by Market Channel
Slide 33: Product Mix Summary
Product Mix Summary Hansen’s has continued to diversify its product lines: Product Mix Three Months Ended December 31, 2004 Product Mix Three Months Ended December 31, 2005 Percentages of Gross Sales by Product Category
Slide 34: Geographic Mix Summary - Warehouse
Geographic Mix Summary - Warehouse Geographic Mix Three Months Ended December 31, 2004 Geographic Mix Three Months Ended December 31, 2005 Percentages of Warehouse Gross Sales by Region
Slide 35: Geographic Mix Summary - DSD
Geographic Mix Summary - DSD Geographic Mix Three Months Ended December 31, 2004 Geographic Mix Three Months Ended December 31, 2005 Percentages of DSD Gross Sales by Region
Slide 36: Distribution Strategy and Logistics
Distribution Strategy and Logistics Hansen’s Products Reach Customers Nationwide Whole Foods Wild Oats Trader Joes Health Food / Specialty Wal-Mart Target Savon Walgreen’s CVS Mass / Drug 7-11 Chevron BP / Arco / AM/PM Circle-K / Mac’s Speedway Exxon – Mobil Hess Sunoco Casey’s United Dairy Farmers
Slide 37: Growth Strategy
Growth Strategy Grow existing brands Develop and launch new products / brands including: Monster 23.5 oz and 8 oz. cans Monster 4 packs and 8 packs Monster Khaos …lost Five-O …lost Perfect 10 Rumba Energy Juice Joker Mad Energy Fizzit Others Expand distribution Increase quality and penetration of ex
Slide 38: Conclusion
Conclusion Hansen’s continues to excel in its markets. The Hansen’s brand is respected and trusted in the marketplace by an extremely loyal base of consumers. The premium healthier brand image enjoyed by Hansen’s Natural Sodas offers unlimited opportunity to capture substantial additional share of t