Like many of the best stocks you've never heard of, Hansen Natural
Last night's fourth-quarter report from Hansen clarified once again exactly how popular Monster is. Net sales increased 14.4% year over year, to $291 million. A 12.2% revenue jump for the core Monster product was complemented by the introduction of a new iced tea product line with the moniker of Peach Tea. The double-digit sales increase was a welcome relief, given that three of the previous four quarters had seen single-digit sales growth. Net income totaled $53.4 million, or $0.57 per share, compared to a year-ago loss of $0.25 per share.
The distribution arrangements that Hansen started up with Anheuser-Busch and Coca-Cola Enterprises
The fact that Coca-Cola
The ubiquity of Monster in American grocery and convenience stores might obscure the fact that the drink isn't widely available in many major markets. We're talking about huge industrialized nations like Brazil and Germany here, and Monster is brand-new to territories like Australia and Ireland. Hansen is going after international opportunities with zest and flair, and that should pay off in renewed growth.
In short, there's plenty of untapped opportunity still ahead of this proven and successful brand. Multinational monsters like Coke and Pepsi have tried and largely failed to break Red Bull's back, but Hansen is doing a fine job of it. Will the next 10 years see Hansen's stock matching the 6,500% returns of the last 10 years? Probably not, since the former small-cap toddler is a mid-cap monster now, but Hansen is still small and successful enough to keep beating the market.
Fool contributor Anders Bylund owns shares in Coca-Cola and Hansen, but he holds no other position in any of the companies discussed here. He's a big dude with a big thirst, OK? Hansen Natural is a Motley Fool Rule Breakers recommendation. Coca-Cola is an Inside Value selection. Coca-Cola and PepsiCo are Income Investor selections. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.