Coca-Cola Will Buy Hansen Natural (HANS) This Year! Maybe
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Comments from Coca-Cola (NYSE: KO) on its conference call indicated to us that they will likely buyout energy drink maker Hansen Natural (Nasdaq: HANS) before too long.
The two are already working together, signing a deal in October to distribute category-leading Monster Energy drinks line in six Western European countries, Canada and selected territories in the U.S.
Coke currently handles half the volume of the Monster trademark in North America. We think that sooner, rather than later they may control all of it - by acquiring Hansen Natural.
Here are the key takeaways from the conference call that leads us to believe that something could happen soon:
"The Coca-Cola Company owned 5 of the top ten fastest growing trademarks in incremental retail sales in North America for 2008 with Coca-Cola Zero, Glaceau, Simply, NOS, and Fuze and our system also handles half the volume of the Monster trademark, giving us access to a sixth brand.
"As the economic environment strengthens, we believe our continued investment in our brands, customer and franchise relationships will enable us to return our sparkling brands to growth and accelerate continued growth in our still brands."
"Our fundamentally sound balance sheet allows us to pursue growth"
"we will not be content to just ride out the storm. We will leverage this as an opportunity to drive our business for the long term and build on our track record of success."
"As you know, our long-term currency neutral growth targets are 6 to 8% operating income growth and high single digit ongoing earnings per share growth. Our picture of success for 2009 is to achieve those targets as well as enhancing brand health and gaining share, despite the difficult operating environment. Additionally, we will track share gains across all of the key markets and categories."
The two are already working together, signing a deal in October to distribute category-leading Monster Energy drinks line in six Western European countries, Canada and selected territories in the U.S.
Coke currently handles half the volume of the Monster trademark in North America. We think that sooner, rather than later they may control all of it - by acquiring Hansen Natural.
Here are the key takeaways from the conference call that leads us to believe that something could happen soon:
"The Coca-Cola Company owned 5 of the top ten fastest growing trademarks in incremental retail sales in North America for 2008 with Coca-Cola Zero, Glaceau, Simply, NOS, and Fuze and our system also handles half the volume of the Monster trademark, giving us access to a sixth brand.
"As the economic environment strengthens, we believe our continued investment in our brands, customer and franchise relationships will enable us to return our sparkling brands to growth and accelerate continued growth in our still brands."
"Our fundamentally sound balance sheet allows us to pursue growth"
"we will not be content to just ride out the storm. We will leverage this as an opportunity to drive our business for the long term and build on our track record of success."
"As you know, our long-term currency neutral growth targets are 6 to 8% operating income growth and high single digit ongoing earnings per share growth. Our picture of success for 2009 is to achieve those targets as well as enhancing brand health and gaining share, despite the difficult operating environment. Additionally, we will track share gains across all of the key markets and categories."
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