Hansen Natural Corporation and The Coca-Cola System Announce Agreements for Distribution of Monster Energy Drinks
The Coca-Cola Company and Coca-Cola Enterprises will enable us to build on the success of our Monster Energy brand in North America and expand into fertile new international markets.
07/10/08 Hansen Natural Corporation, The Coca-Cola Company and Coca-Cola Enterprises, Inc. announced that they have completed agreements for distribution of the category-leading Monster Energy drinks line in six Western European countries, Canada and selected territories in the U.S. These agreements will complement Hansen's existing relationship with Anheuser-Busch and will not affect Hansen's agreement with AB for the on-premise channel nationwide.
The agreements will take effect beginning in November 2008 in the United States and parts of Western Europe, and in early 2009 in Canada. As part of the agreement with TCCC, Hansen has the right to negotiate distribution agreements with additional Coca-Cola bottlers to service the TCCC territory not covered by CCE.
"We are pleased to be partnering with the world's leading beverage system to expand the retail presence and penetration of our Monster Energy drinks," said Rodney Sacks, chairman and chief executive officer of Hansen. "We believe the relationship with The Coca-Cola Company and Coca-Cola Enterprises will enable us to build on the success of our Monster Energy brand in North America and expand into fertile new international markets. In the United States, the relationship will complement our existing long-term arrangements with Anheuser-Busch distributors, which have been and we expect will continue to be very important to Hansen. We believe that the combination of these two leading distribution systems will provide us with an unrivaled distribution network in North America."
Under the agreements, a significant portion of Monster Energy's current North American Direct Store Delivery volume will be serviced by Coca-Cola bottlers, primarily CCE.
The agreements in North America include all Monster Energy trademark beverages including Monster Energy and Java Monster as well as the Lost Energy brand.
According to data, Monster Energy is the #1energy drink by volume in the United States.
"The Coca-Cola System has taken a multi-faceted approach to becoming one of the key players in the fast-growing energy drink category," said Sandy Douglas, president, Coca-Cola North America. "We are pleased that our bottlers are now able to distribute this brand as part of our diverse portfolio of leading sparkling and still beverage brands in North America and Europe."
In Western Europe, the agreement includes the distribution of Monster Energy in all CCE European countries - Great Britain, France, Belgium, the Netherlands, Luxembourg and Monaco.
"Monster Energy drinks are strong additions to our energy portfolio, reinforcing our strategic priority of being #1 or a strong #2 in every category in which we choose to compete," said John Brock, chairman and chief executive officer, Coca-Cola Enterprises. "Monster Energy continues to outperform the energy category in the United States, and we look forward to bringing another proven brand to our territories in Western Europe."
