Caso Monster Energy

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RODNEY SACKS, CHAIRMAN AND chief executive officer of Hansen Natural Corp., Corona, Calif., in conjunction with his executive team comprised of Hilton Schlosberg, vice chairman and president of Hansen Natural, and Mark Hall, president of Monster Beverage Co., lead the company once known solely for its namesake natural beverages to international growth as the producer of oneof the top-selling energy drinks on the market.
Its line of Monster Energy drinks continues to drive performance for the company, which reported a 36 percent increase in Hansen Natural’s gross sales to $935.1 million in the first six months of 2011 from $685.9 million in the comparable time period last year. Sacks, who is Beverage Industry’s 2011 Executive of the Year, says energy is “not a fad.”“Energy drinks have become premium soft drinks with the added benefit of function,” Sacks says. “That’s why we see the ability to continue growing the brand and the category in America.” In the United States, the company recently expanded its Monster Energy line with low- and no-calorie options, a re-branded Extra Strength platform and the debut of its non-carbonated Rehab line. “Monster’scontinuing to grow,” Sacks says. “We’re very optimistic about its growth in America, where we continue to see category growth and we continue to grow ahead of the category, and overseas as well, which is where we see unlimited growth opportunities. At the same time, we’re a

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Clockwise from top: Monsterskateboarder Pierre-Luc Gagnon, Hansen Natural Corp. Chairman and Chief Executive Officer Rodney Sacks with Monster’s new Rehab beverage and Monster skateboarder Jake Brown.

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BY JENNIFER ZEGLER

beverage company, so we need to look at other beverage products because you never know what will be the next big hit in five or 10 years’ time.”

GO-TO-MARKET STRATEGY
Hansen Beveragepartnered with Anheuser-Busch in 2006 for distribution of Monster Energy and additional beverage brands in a large portion of the United States. Two years later, the company complemented the Anheuser-Busch agreement with a partnership with The Coca-Cola Co. and Coca-Cola Enterprises Inc. to distribute Monster Energy in the remaining portion of the United States not covered by Anheuser-Buschdistributors, Canada and six Western European countries. “I think that each of the different partnerships brought different strengths to the table,” Sacks says. “While the number of accounts covered by Coke bottlers may be broader than, for example, Anheuser-Busch distributors, on the other hand, Coke bottlers are generally more focused on traditional grocery chain accounts and mass merchandisers,whereas Anheuser-Busch distributors are really focused on the convenience and gas channel, which is our sweet spot.” As can be expected with all new relationships, the partnerships initially experienced some minor bumps in the road. Sacks says in the early stages certain distribution partners underestimated the brand’s velocity and initially it took time for certain partners to fully realize the valueof Monster’s signature marketing strategy. Although the partnerships have greatly expanded both the brand’s presence and quality of distribution across the United States, Sacks says there are still opportunities for growth. “We think that we still have a lot of distribution gains that we can make,” he says. “We have an extensive range and after the first few SKUs, the distribution levels begin todrop off. We have a lot of potential growth left if we could get our full range onto the shelves of every store.”

to $66.6 million during the same time period in the previous year. Monster Energy has been successful in Canada, Mexico, the United Kingdom, France, Europe, Australia, South Africa, Central America and Brazil. The company also has targeted the remainder of Central and Eastern...