UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 11, 2006
Hansen Natural Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
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| 0-18761 |
39-1679918 |
| (Commission File Number) |
(IRS Employer Identification No.) |
1010 Railroad Street
Corona, California 92882
(Address of principal executive offices and zip code)
(951) 739 - 6200
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c) |
Item 7.01. Regulation FD Disclosure
The Chairman of the Company will deliver presentations on December 11, 2006 at the Beverage Digest Conference at the Grand Hyatt Hotel in New York City, New York and on December 14, 2006 at the Citigroup Conference Center in New York City, New York. A copy of the slides that will be used in the presentations is furnished as Exhibit 99.1 hereto.
Item 9.01 Financial Statements and Exhibits
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(c) |
Exhibits. |
The following exhibit is furnished herewith:
Exhibit 99.1 Presentation
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Hansen Natural Corporation
|
Date: December 11, 2006 |
/s/Hilton H. Schlosberg |
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Hilton H. Schlosberg
Vice Chairman of the Board of Directors,
President and Chief Financial Officer
HANSEN NATURAL CORPORATION
DECEMBER 2006
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
readers/listeners
are cautioned not to place undue reliance on any
forward-looking comments. For a review of specific risk factors, please
refer to our statements filed at the Securities and Exchange
Commission. Hansen Natural Corporation undertakes
no obligation to
update or alter its forward-looking statements, whether as a result of
new information, future events or otherwise.
INTRODUCTION
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 natural soda and energy categories.
In 2005, Hansen’s continued its upward growth trend.
Gross sales (net of discounts and returns) grew 85.4% from $224.1 million in 2004 to $415.4
million in 2005.
Net income grew 207.9% from $20.4 million in 2004 to $62.8 million in 2005
In the first nine months of 2006
Gross sales (net of discounts and returns) grew 73.7% from $301.8 million in the first nine
months of 2005 to $524.4 million in the first nine months of 2006.
Gross sales of Monster Energy drinks from January 1, 2006 hit $500 million milestone in November.
INTRODUCTION, CONT’D.
Since 2001, Hansen’s has enjoyed an
annual growth rate of 43.6%
compounded through 2005.
Gross Annual Sales (millions)
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2001
2002
2003
2004
2005
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 to net sales, which is
determined in accordance with
GAAP, and should not be used alone as an indicator of operating performance in place of net sales
55.3
48.2
29.8
20.4
17.6
(Millions, 192 oz. equiv.)
Cases
52.0%
52.3%
46.3%
39.7%
36.1%
Gross Margin (of Net Sales)
vs. YTD
9/30/05
81.1%
93.5%
63.3%
20.0%
15.4%
Sales Growth (Net)
$ 0.65
$ 0.22
$ 0.07
$ 0.04
Diluted Net Income Per
Common Share, as adjusted for
2:1 stock split in 2005 and 4:1
stock split in 2006
$ 62.8
$ 20.4
$ 5.9
$ 3.0
Net Income after Taxes
$ 103.4
$ 33.9
$ 9.8
$ 5.3
Operating Income
236.0
182.5
83.5
43.8
33.2
Gross Profit
218.3
166.3
96.9
66.6
58.8
Cost of Sales
454.3
348.9
180.3
110.4
92.0
Net Sales
$524.4
$ 415.4
$ 224.1
$ 135.7
$ 112.9
Gross Sales, net of
discounts/returns*
YTD
9/30/06
2005
2004
2003
2002
(Millions, except per share data)
Years Ending December 31,
WAREHOUSE DIVISION
Hansen’s is one of the leaders in the natural soda category in the U.S.
Blue Sky is the leading natural soda in the health food category
Sodas are all natural, no preservatives, caffeine free, and in the case of
Hansen’s, sodium free, with no artificial colors or flavors
Hansen’s soda brand has unlimited potential due to its premium natural
positioning to secure large share of the otherwise flat CSD market through
national expansion.
Juices are enhanced with vitamins and/or calcium
Hansen’s 64 oz. apple juice is the #1 shelf-stable bottled juice in both Southern
and Northern California.
1
Apple and blended juice WIC contracts provide expansive distribution in
California and promotional opportunities, particularly to Hispanic demographics
Hansen’s Energy is now marketed through this division.
1Source: IRI–Dollar Sales– 12 weeks ending November 15, 2006-Southern and Northern California Grocery Over $2 million annually
CARBONATED
HANSEN’S JUICES
Children’s Multi-Vitamin Juices
DSD DIVISION
Energy drink market is the fastest growing segment of U.S. beverage industry.
$1.6 billion at wholesale in 2005. 1 In 2005, category grew more than 60%
over
2004.1 In first 10 months of 2006 category
growth 48% (per Nielsen). 2
Monster is the fastest growing major energy brand in U.S. (per Nielsen).3
Monster has highest sales per point in convenience channel in most major U.S.
markets, excluding Red Bull (per Nielsen).3
We believe that convenience channel represents 50%+ of total energy drink
market.
Lost is a key brand appealing to teenage/college consumer.
Controlled label strategy.
1 Source: Beverage Marketing Corporation
2 Source: AC Nielsen-Total US – All Outlets Combined (excluding Wal-Mart)
3 Source: AC Nielsen-Convenience Track Major Market 13 Weeks Ending 10/28/06
MONSTER ENERGY DRINKS
ENERGY DRINKS
CONTROLLED LABEL ENERGY DRINKS
RUMBA ENERGY JUICE
36.8%
17.8%
11.5%
13.2%
Source: AC Nielsen Total US - Convenience Track Major Market Expansion 13 Weeks Ending 10/28/06
16 OUNCE ENERGY DRINKS
U.S. ENERGY DRINK MARKET SHARES
Source: AC Nielsen Total US - Convenience Track Major Market Expansion 13 Weeks Ending 10/28/06
Brand
$ Share
Share Point
Change vs YA
Red Bull
33.8
(6.4)
Monster
23.4
6.4
Rockstar
11.5
1.3
Full Throttle
6.5
0.5
No Fear
5.8
(1.4)
Amp
5.5
1.1
Adrenaline Rush
3
(1.7)
Lost
1
(0.1)
Von Dutch
0.4
0.4
All Other
9.1
FOCUS ON MONSTER ENERGY
Proven products with potential for even greater sales
velocity and distribution through effective distribution
system. System significantly boosted by Anheuser-
Busch distribution arrangements. Such
arrangements
are in the process of being implemented.
Significant convenience chain distribution gains.
Aggressive, extreme marketing to youth-culture
demographic. Examples include Pro-Circuit
sponsorship, Monster team athletes, and Vans
Warped Tour. Visit www.monsterenergy.com.
Exclusive energy beverage vending rights on Las
Vegas Monorail
Fastest Growing Energy Brand in the U.S.
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.
Approximately one million spectators attended the 2006 MX/SX racing season.
TV coverage - approximately 5 million plus viewers.
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
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 Year Award
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.
Van’s Warped Tour
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 due course.
The Monster Train is the first corporate-sponsored train of the Las Vegas Monorail.
Monster Energy Drink and Hansen’s Natural Soda exclusive vending rights at all monorail
stations.
CHANNEL MIX SUMMARY
Hansen’s beverages can be found in all major channels:
Channel Mix Nine Months Ended
September 30, 2005
Channel Mix Nine Months Ended
September 30, 2006
Percentages of Gross Sales by Market Channel
PRODUCT MIX SUMMARY
Product Mix Nine Months Ended
September 30, 2005
Product Mix Nine Months Ended
September 30, 2006
Percentages of Gross Sales by Product Category
GEOGRAPHIC MIX SUMMARY - WAREHOUSE
Geographic Mix Nine Months Ended
September 30, 2005
Geographic Mix Nine Months Ended
September 30, 2006
Percentages of Warehouse Gross Sales by Region
GEOGRAPHIC MIX SUMMARY - DSD
Geographic Mix Nine Months Ended
September 30, 2005
Geographic Mix Nine Months Ended
September 30, 2006
Percentages of DSD Gross Sales by Region
GROWTH STRATEGY
Grow existing brands
Develop and launch new products / brands including:
Monster 24 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
Unbound
Ace
Others
Expand distribution
Upgrade quality and penetration of existing distribution
Four-Pronged Approach
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 the CSD
market, through national distribution.
Monster, Lost, Joker, Unbound, Ace, Hansen’s Energy, Energade and Rumba
provide an unparalleled platform to lead the energy category (together with
Red Bull). In fact, as this category
continues to grow, we believe that
Hansen’s portfolio is better positioned to address the broader, emerging
consumer base than Red Bull or any of the competition.