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): January 10, 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:
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
o |
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
On January 10, 2006, the Chairman of the Company will deliver a presentation at the Citigroup Healthy Lifestyles Seminar in New York, New York. A copy of the slides that will be used in the presentation 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: January 10, 2006 |
/s/Hilton H. Schlosberg |
-------------------------------
Hilton H. Schlosberg
Vice Chairman of the Board of Directors,
President and Chief Financial Officer
January 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
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.
Since 2000, Hansen’s has enjoyed an
annual growth rate of 27.5%
compounded through 2004.
Introduction, cont’d.
In 2005, Hansen’s has continued its upward growth trend.
A comparison of the first nine-months ended September 30, 2005 to the nine-
months ended September 30, 2004 shows:
The business grew 85.9% from $162.3 million to $301.8 million in gross
sales (net of discounts
and returns).
Gross Annual Sales (millions)
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
2000
2001
2002
2003
2004
Financial Performance
Hansen’s continues to enjoy excellent operating performance, with continuing growth.
The Company’s operating results are summarized below:
2002
2003
2004
2004
2005
Gross Sales net of
discounts/returns (Millions
except per share data)
112.9
$
135.7
$
224.1
$
162.3
$
301.8
$
Net Sales
92.0
110.4
180.3
130.0
250.9
Cost of Sales
58.8
66.6
96.9
71.5
120.3
Gross Profit
33.2
43.8
83.5
58.5
130.6
Operating Income
5.3
$
9.8
$
33.9
$
22.0
$
73.7
$
Net Income after Taxes
3.0
$
5.9
$
20.4
$
13.1
$
44.3
$
Diluted Net Income Per Common
Share, as adjusted for 2:1 stock
split in August 2005
0.15
$
0.28
$
0.87
$
0.56
$
1.84
$
Sales Growth (Net)
15.4%
20.0%
63.3%
93.0%
Gross Margin (of Net Sales)
36.1%
39.7%
46.3%
45.0%
52.1%
Cases
(Millions, 192 oz. equiv.)
17.6
20.4
29.8
21.9
35.7
Nine-months Ending
September 30,
Year Ending December 31,
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.
Product Line Overview
A Brief Snapshot of the Major Product Portfolios
DSD
Includes Monster, Lost, Hansen’s
Energy and Energade
Represents 72% of total YTD gross
sales through September 30, 2005
Packaged in 8 oz., 16 oz., and 23.5
oz. size cans
Hansen’s Natural Soda
Blue Sky Brand
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 at mainstream grocery, club,
health food, and specialty. Eastern distribution presently limited to
health food, health food sections of grocery chains, and
specialty.
Brand has unlimited potential due to its premium natural positioning
to secure large share of the otherwise flat CSD market through
national expansion.
Hansen’s 100% Juice & Juice Blends
Hansen’s Smoothies
Hansen’s Tetra Pack Juice Drinks
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
Northern California, respectively.* Hansen’s apple strawberry juice
is now #6 in Southern California and #25 in Northern California.
Apple and blended juice WIC contracts provide expansive
distribution in California and promotional opportunities, particularly to
Hispanic demographics
Substantial opportunities for distribution expansion
*Source: Information Resources Inc., Northern and Southern California, $2 million+ Food [chain grocery] category, 12 week dollar sales period ending October 2, 2005
Energy Drinks
Monster Energy Drinks
Energy Drinks
Hansen’s Energade
Controlled Label Energy Drinks
Rumba Energy Juice
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
Hansen’s Energy Portfolio
Energy drink market is the fastest growing segment of U.S. beverage industry.
$1 billion at wholesale in 2004. 1 2005, 3Q sales-convenience suggest growth 50%+
(per Nielsen).2
Monster is one of the fastest growing major energy drinks in U.S. (per Nielsen).2
Monster has highest sales per point in convenience channel in most major U.S.
markets, excluding Red Bull (per Nielsen).2
We believe that convenience channel represents 50%+ of total energy drink market.
Lost is a key brand appealing to teenage / college consumer.
Energade has broad demographic appeal due to unique energy/ sports drink
combination.
1 Source: Beverage Marketing Corporation
2 Source: AC Nielsen 12 Wks Ending 10/1/05 Total US - Convenience Trade Major Market
16oz Category Leaders
Hansen’s: #1 Player Overall!.
39%
20%
18%
14%
Source: AC Nielsen 12 Wks Ending 10/1/05 Total US – Convenience Trade Major Market
Category Share by Brand
Source: Total US – AC Nielsen 12 Wks Ending 10/1/05
Market Share - Energy Drinks
$ Share
Share
Change
Red Bull
39.7%
(8.7)
Monster
17.3%
+7.7
Rockstar
9.9%
+0.9
No Fear
7.3%
+0.4
Full Throttle
5.9%
+5.9
Adrenaline
4.6%
(1.8)
Amp
4.3%
(1.7)
. . . Lost
1.1%
(0.0)
Hansens
0.6%
(0.9)
All Other
9.5%
(1.7)
Total
100%
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 demographic without
compromising integrity of Hansen’s brand. 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.
Nearly one million spectators attended the 2005 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
30-minute Fox Sports Net TV Program (Summer ‘05)
Billabong Hosted Web Cast
MONSTER ENERGY PRO 2005
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 2005.
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 channel types:
Channel Mix Three Months Ended
September 30, 2004
Channel Mix Three Months Ended
September 30, 2005
Product Mix Summary
Hansen’s has continued to diversify its product lines:
Product Mix Three Months Ended
September 30, 2004
Product Mix Three Months Ended
September 30, 2005
Geographic Mix Summary - Warehouse
Geographic Mix Three Months Ended
September 30, 2004
Geographic Mix Three Months Ended
September 30, 2005
Geographic Mix Summary - DSD
Geographic Mix Three Months Ended
September 30, 2004
Geographic Mix Three Months Ended
September 30, 2005
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
Convenience
B.J.’s
Costco
Sam’s Club
Warehouse
Safeway
Albertson’s
Kroger
Ralph’s
Vons
Grocery
Selected
Customers
Channel
Customers
The table to the right demonstrates the diversity of
Hansen’s customer base.
Value Chain / Logistics
Hansen’s contracts with a number of co-packers for
manufacture.
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 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, 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.