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No. of Recommendations: 3
Hi all,

Today my friend and I found the new Java Monsters in our local convenience store. Being the jumpy, anxious, addicted teens that we are, we bought most of the new flavors: Russian, Irish Blend, Nut Up, and Chai Hai. For the record, we are big fans of the original three.

My first impression of the Russian was that it really tasted like coffee and eggnog. I think this is a great drink with tremendous flavor and will appeal to a lot of people. And the red can is a real eye-catcher and should draw in some curious customers.

In my view Nut Up is the darkest Java Monster that Hansen has released yet. It is still sweet like the others but it seems like it has a more intense coffee flavor. Definitely a great addition to the line of products.

Irish Blend was very interesting and I would say not quite as unique as the other new ones. But it certainly has its unique taste but isn't straying too far from the "original recipe", so to speak. An interesting addition and I will be curious to see how it does.

Chai Hai actually tastes strikingly close to original chai (that I've had, anyway). This will certainly appeal to people who like that certain flavor. Given that the tea market is growing in the U.S., this is a great product to have on the market and I think will appeal to people who don't want quite as much of a coffee taste. Having it under the Java Monster name could be misleading, though, but given its originality and such I think it's a good product to have.

All in all, I was very impressed with these new releases. I honestly had no idea Hansen was releasing all these new drinks so soon, but given the quality of the products and the unique flavors of each one I find it all the more impressive. The can designs are excellent (especially the Russian) and should draw people in. Given how much of a market Starbucks has created for bottled coffee, Java Monsters quality and affordability compared to Starbucks should attract a good deal of new customers over time.

This quick development of these new, unique products is very impressive (as if I haven't said the word "impressive" enough). And I think we're only at the beginning of new product development and distribution. At this particular convenience store, Java Monster took up a whole row right at eye level, and the original Monster drinks take up most of the shelf below. With Anheuser-Busch in charge of product distribution, these new product releases will be all the more timely and more efficient. Hansen has a very strong balance sheet and you can bet that a lot of money will be going into R&D. I believe this smart expansion of Monster and Java Monster will soon bring Hansen to the top of the energy drink market. And if they keep it up with these quality products, the future is all the more bright. As long as management remains focused on product quality and doesn't get caught up in releasing as many new products as possible, I remain extremely confident in Hansen's long-term prospects. I'm tempted to invest more at current levels below $40. Hansen is simply in a great position and has already been raking in the cash.

Anyway, just wanted to give a quick overview of what I thought about the new products. I didn't get a chance to taste the Lo-Ball, but as far as I know it is essentially a low-carb version of the original three. It will be interesting to see what new products are released and how soon this year; remember that the original Java Monsters haven't even been on the market for a year. It will certainly be something to watch closely going forward in all departments of Hansen.

Best,

David K
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No. of Recommendations: 1
David:

I have to admit I really don’t know but what is the distribution area? Does it include Canada? My thinking is if it does then they’re confident they can open up a ‘foreign’ market.

Hope you have a good time in Mexico and that it’s sunny and warm. Tan, don’t burn.

And thanks for your Dad’s URL. I have passed that on to those I know would be interested.

MichaelR
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Hi Michael,

Hansen actually signed a distribution deal with PepsiCo Canada just a few days after signing the U.S. Anheuser-Busch deal. I'm not sure how things have progressed in Canada (I think management's priority was the U.S.) but it should start picking up this year. Let us know if you see more/any Hansen or Monster products!

And thanks for your Dad’s URL. I have passed that on to those I know would be interested.

Absolutely! Definitely appreciated by him.

Hope you have a good time in Mexico and that it’s sunny and warm. Tan, don’t burn.

That's the plan. ;-)

Best,

David K
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Hope you have a good time in Mexico and that it’s sunny and warm. Tan, don’t burn.

MichaelR


Mexico is too far north and the Sun is too far south at this time of the year to have to worry about it much.

David, thanks for the update on the products. I bought my first lot of HANS at 44.54 but hedged it by selling covered calls and that has turned out to be a great move as the calls have been falling as fast as the stock.

Denny Schlesinger
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No. of Recommendations: 1
Hi All

I recently received this note about Hansen from Marlin Global Investments.
This company invests in small companies throughout the world after making in depth analysis and discussions with management

Hansen Natural Corporation

Have been selling natural juice drinks in a can for decades. In 2001 they launched the Monster Energy drink which is the #2 brand in the US (behind Red Bull) with a 25% market share and growing. Recently announced plans to launch the product globally, with the initial market being England.

I had not heard about this expansion to UK and thought it was interesting. Perhaps we may hear more with the 4th quarter conference call.


EID
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No. of Recommendations: 1
Hansen actually signed a distribution deal with PepsiCo Canada just a few days after signing the U.S. Anheuser-Busch deal. I'm not sure how things have progressed in Canada (I think management's priority was the U.S.) but it should start picking up this year. Let us know if you see more/any Hansen or Monster products!

David K


I checked several outlets and found the power drinks from Hansen. Several varieties and I don’t remember all of them but the range looked good. My guess is they did a product rollout and that has reached BC.

So the company’s distribution does include Canada.

MichaelR
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Hi Michael,

I checked several outlets and found the power drinks from Hansen. Several varieties and I don’t remember all of them but the range looked good. My guess is they did a product rollout and that has reached BC.

Glad to hear it! You should be seeing more of their products over the course of this year as the partnership with Pepsi reaches its full potential, so to speak.

Do let the board know if you see something that catches your eye! Curious to see how the distribution in Canada goes given that its in a new market with a new partner doing the distribution.

Best,

David K
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No. of Recommendations: 0
Hi Michael,

I checked several outlets and found the power drinks from Hansen. Several varieties and I don’t remember all of them but the range looked good. My guess is they did a product rollout and that has reached BC.

Glad to hear it! You should be seeing more of their products over the course of this year as the partnership with Pepsi reaches its full potential, so to speak.

Do let the board know if you see something that catches your eye! Curious to see how the distribution in Canada goes given that it's in a new market with a new partner doing the distribution.

Best,

David K
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No. of Recommendations: 2
Do let the board know if you see something that catches your eye! Curious to see how the distribution in Canada goes given that it’s in a new market with a new partner doing the distribution.

Best,

David K


Can’t give a complete country-wide answer but the distribution looks province-wide sharing shelf space with PepsiCo in supermarkets, convenience stores, etc.

What I got from one convenience store owner was the product was moving ‘fairly well’ and they would reorder. Can’t get the answer yet I would like to see the sales in sports areas such as Whistler (where the skiers are).

I’m sure you had a good time in Mexico yet what struck your eye most?

MichaelR
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Have you noticed too many energy drinks around where you're at? I wonder if this is still a relatively new item that people in Canada are "adapting" to. It will be interesting to see.

I’m sure you had a good time in Mexico yet what struck your eye most?

Gosh, that's a hard one. ;-) On a business/consumer level, probably the monopolies. Pemex is the only (as far as I could see) gas distributor and seller, and sometimes there would be two less than a half-mile apart on the same street. Oxxo is another one, they're basically the only convenience store in Mexico. I haven't researched Mexico too much business-wise so it was interesting seeing some of it firsthand. Let's just say that I prefer the beaches there rather than the bumpy freeways. ;-)

Best,

David K
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