Hansen Natural Corporation (Hans) operates through subsidiaries and engages in the development, marketing, distribution, and sale of distribution of beverages both nationally and internationally. Its major products are many kinds of beverage. Hubert Hansen and his sons began selling juice under the Hansen’s name in the 1930’s. In the 1970’s, Tim Hansen, Hubert’s grandson, developed and marketed a variety of beverages under the label of Hansen. Hans now has 833 employees. The headquarters is located at 550 Monica Circle, Ste. 201 Corona 92880 United States. The company has an important Subsidiary: Hansen Beverage Company which located at 1010 Railroad Street Corona, CA 92882 UNITED STATES. PondelWilkinson Inc.  Roger Pondel / Judy Lin Sfetcu are Hans’ investor. Hans’ registrar and transfer agent is American Stock Transfer & Trust Company. Independent auditor is Deloitte & Touche LLP. General Counsel is Schulte Roth & Zabel LLP. Hans’ gross sales keep increasing in a stable speed which leads to gross profit higher than last year. Hans’ future plan is enlarge its scale and sale its beverage all over the word. The mission of Hansen is to satisfy consumer’s needs for superior quality and great tasting, healthy, natural and functional beverages.

We compared with the stock price of Hansen’s and its competitors for last 8 weeks; Hansen is the most active stock. According to analysis, Hansen is situated in a similar position as DPS with regards to potential takeover candidates, which include KO and PEP. So, Hansen Natural Corporation can be a wise investment and working for Hansen is a good job. Investors can choose Hansen stock because it is stable and potential.

2. Company Overview:

Investors can choose Hansen stock because it is stable and potential.

Do you like fresh drinking? Do you like think of natural sodas when hot summer comes? Let me talk about a famous company-Hansen Natural Corporation. No matter the weather, Hansen Natural always has the energy to reach higher than the blue sky. In the 1930’s, there is a very clever man called Hubert Hansen. He established his own business and brought a lot of delicious drinks. When Hubert Hansen and his three sons began starting their business, they sold fresh, non-pasteurized juices to film studios and retailers in Southern California which is under the Hansen’s® name. Forty years later, Tim Hansen, the grandson of Hubert, developed and marketed a variety of Natural sodas and pasteurized shelf stable, 100% juices , and they are using the Hansen’s® label. For over 70 years Hansen’s has satisfied a lot of consumers and achieved good reputations from customers. Their products include: Hansen’s® Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade® energy sports drinks, E²0 Energy Water®, functional drinks, Sparkling Lemonades and Orangeades and so on.

(Web: Hansen Natural http://www.hansens.com/about_hansens/2011.4.21)

With its headquarters located at 550 Monica Circle, Ste. 201 Corona 92880 United States, the company is becoming stronger and stronger. Meanwhile, it has a principal Subsidiary: Hansen Beverage Company which is located in 1010 Railroad Street Corona, CA 92882 UNITED STATES. (Web: Yahoo Finance http://finance.yahoo.com/q/pr?s=HANS+Profile 2011.4.21)

There are 833 people working there actively. To our proudness, the company is the top one at Forbes ranking from 10 small companies in the US. The sales of their product have been increasing in the recent years, and the net income has also been good news for every leader according to the table blow.

Period Ending

Dec 31, 2010

Dec 31, 2009

Dec 31, 2008

Total Revenue

16,634  

22,203  

30,233  

Cost of Revenue

14,736  

16,147  

21,528  

Gross Profit

1,898  

6,056  

8,705  

Operating Expenses

Research Development

18,170  

19,828  

25,582  

Selling General and Administrative

28,736  

37,524  

37,112  

Non Recurring

–  

–  

–  

Others

–  

–  

–  

Total Operating Expenses

–  

–  

–  

Operating Income or Loss

(35,005)

(51,296)

(53,989)

Income from Continuing Operations

Total Other Income/Expenses Net

7,818  

(72)

1,175  

Earnings Before Interest And Taxes

(27,187)

(51,368)

(52,814)

Interest Expense

705  

1,081  

630  

Income Before Tax

(27,892)

(52,449)

(53,444)

Income Tax Expense

–  

–  

–  

Minority Interest

–  

–  

–  

Net Income From Continuing Ops

(27,892)

(52,449)

(53,444)

Non-recurring Events

Discontinued Operations

–  

–  

–  

Extraordinary Items

–  

–  

–  

Effect Of Accounting Changes

–  

–  

–  

Other Items

–  

–  

–  

Net Income

(37,895)

(52,449)

(53,444)

Preferred Stock And Other Adjustments

–  

–  

–  

Net Income Applicable To Common Shares

(37,895)

(52,449)

(53,444)

Currency in USD.

(Web: http://finance.yahoo.com/q/is?s=HNSN+Income+Statement&annual)

The back of successful company stands lots of hard working people: Sacks Rodney is the chairman of the board, chief executive officer. Schlosberg Hilton is the vice chairman of the board, president, chief financial officer, chief operating officer, and secretary. Hall Mark is the president – monster beverage division. Kelly Thomas is the vice president -finance, controller and secretary of HBC. Polk Benjamin, Epstein Normanis and Taber Harold is the Directors. Rodney C. Sacks is Chief Executive Officer, Chairman of the Board. Hilton H. Schlosberg is Chief Operating Officer and Chief Financial Officer.

(Web: http://finance.yahoo.com/q/pr?s=HANS+Profile)

The Hansen Natural Corporation is in the business because of its customers and it is committed to establishing and maintaining profitable partnership with customers by providing high quality products, superior service and effective promotional support for Hansen’s brands. The mission of Hansen Beverage Company is to satisfy consumer’s needs for superior quality and great tasting, healthy, natural and functional beverages.

(Web: http://in.reuters.com/finance/stocks/companyProfile?symbol=HANS.O)

The mission of Hansen Beverage Company is to satisfy consumers’ needs for superior quality and great tasting, healthy natural beverages. Our beverages will be positioned as an upscale brand and will be marketed at a premium to competitive mainstream products. In fulfilling this mission, Hansen’s will be guided by the following values: Superior Quality.  Consumers should always be able to trust the superior quality and taste of our products, and have their families consume them with full confidence. Hansen’s products will always be free of preservatives, artificial flavors and colors. They will also have minimal, if any, sodium and, in general, will be without added caffeine. Caffeine may be added to certain functional drinks, where caffeine may be useful, i.e. to help accelerate the metabolism by the body of certain nutrients. They are in business because of their customers. They are committed to establishing and maintaining a profitable partnership with our customers by providing high quality products, superior service, and effective promotional support for our brands.  Hansen Natural Corporation are determined to be the best, both as a company and as individuals. They will never be satisfied with their current performance–no matter how good it is–and will continually strive to seek improvement, unparalleled excellence in their products and new opportunities for business growth.

(Web: http://finance.yahoo.com/q/pr?s=HNSN+Profile)

3. Management Summary:

Hansen Natural Cooperation produces all kinds of beverages; their main products are energy drinks. Their products include, children juices, Java Monsterâ„¢ Coffee and Energy Drinks, X-Presso Monsterâ„¢ Coffee Energy Drinks, Peace Tea and so on. The main series is the Monster TM and Java TM series. Hansen also produces some food called “functional” food and some snack foods but that’s not their main income. Hansen achieve gross sales of $1488.5 million by the end of 2010 their sales grow year by year. Their gross sales kept growing in the economy crisis.

Their sales and marketing strategy is to focus on developing brand awareness. They use image enhancing programs and product samples to make it. The company use brand vehicles to show their products to consumers at some events. The company’s main customers are full service distributors such as CCR, New CEE, CCRC, Consolidated, AB Distributors etc. Only 6% customers are outside the U.S so that expanding international market is one of their market strategies. Cooperation is important and Hansen make some agreements with other companies, their co-packing companies include Cold Spring Brewing Company, Carolina Beer & Beverage Safeway, In., Dairy Farmers of America, American Bottling Co., Giumarra & Associates Beverage Company, Pri-Pak, Inc., O-AT-KA Milk Products Cooperative, Coca Cola Bottling Company-Canada, DIS Contract filling BV, Whit Packaging.

Though the company has many kinds of products, the Monster TM product is very important for Hansen. A large part of their sales are made from their Monster Energy drink and Java Monster TM drinks. A decrease in sales of the two products may cause a serious effect on their future income. Therefore, they continue to expand their existing product lines during 2010 especially the Monster TM drinks, as Sacks ,chairman and chief executive officer, said, they continued to invest in Monster Energy® brand, both domestically and overseas. This method makes sure the production of Monster TM drinks and keeps the stability of company. The company believes one of the keys to success in this industry is “to be different”, they are trying to make their products “alternative”, such as on packaging, to make their product be different from others. This method makes their product unique and may attract more consumers.

The company offers more than 1400 jobs, include all their directors, officers and employees. Now that many people and Federal government care about health much more, especially children. Beverages are important for people’s health. Most of Hansen’s products are soft drinks without caffeine and sweet. They claim that their raw materials are from natural and are harmless to people’s body. Though the Monster TM drinks contain lots of caffeine and sweet and many professionals critic it, most products are healthy, as the name of the company.

http://biz.yahoo.com/e/110301/hans10-k.html

http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=HANS.O

http://www.hansens.com/products/

4. Product and Marketing Analysis:

Hansen’s goods include almost all kinds of drinks. The company offers natural sodas, fruit juices and juice drinks, energy drinks and energy sports drinks, fruit juice smoothies and functional drinks, non-carbonated ready-to-drink iced teas, children’s multi-vitamin juice drinks, and flavored sparkling beverages under the Hansen’s brand name.

Beverage industry produces any liquid suitable for drinking except pure water, such as wines, juices, sodas, teas, coffees and functional drinks. These several types of beverages meet different consumers’ commands.

Products marketed by Hansen’s include: Hansen’s Natural Sodas, Signature Sodas, fruit juice Smoothies, Energy drinks, Energade energy sports drinks, E²0 Energy Water, functional drinks, Sparkling Lemonades and Orangeades, multi-vitamin juice drinks in aseptic packaging, Junior Juice, iced teas, lemonades and juice cocktails, apple juice, cider and juice blends, Blue Sky brand carbonated beverages, Monster Energy brand energy drinks, Lost Energy brand energy drinks and Rumba* brand energy drinks, and Joker Energy brand energy drinks.

During all these goods, Monster Energy Drink is Innovative. It has larger sizes than competition with comparable pricing and it has wide product range with focus on flavor and product experience: Regular and Lo Crab Monster, Java Monster, Energy Shooters, Nitrous, X-PRESS.

Hansen market their products and services by prize promotions, price promotions, competitions, endorsements from selected public and extreme sports figures, personality endorsements, including from television and other well-known sports personalities, coupons, sampling and sponsorship of selected causes, events, athletes and teams. In-store posters, outdoor posters, print, radio and television advertising, together with price promotions and coupons, can also be used to promote their brands.

Because of its markets strategy, Hansen has received many benefits, they believe that one of the keys to success in the beverage industry is differentiation; they are trying to make their brands and products visually distinctive from other beverages on the shelves of retailers. They review their products and packaging on an ongoing basis and, where practical, endeavor to make their product different, better and unique. The labels and graphics for many of their products are redesigned from time to time to maximize products’ visibility and identification, wherever their products may be placed in stores, and they will continue to reevaluate the same from time to time.

Hansen’s direct competitor is Pepsi. According to different websites’ marketing analysis, this is true.

Hansen’s marketing cap is 4.88B$ and Pepsi is 99.97B$, Pepsi’s marketing cap is almost 25 times higher than Hansen’s. At the same time, Hansen’s employees are 833, but Pepsi has 294,000 person works for .We can find that Pepsi’s scale is larger than Hansen. Hansen is an American local company which scale is not very large. Its advantages are goods which have special feature. Although Hansen’s competition abilities is lower than Pepsi in the whole world marketing, it can pay more attention to local customers to make them take notice to it’s goods and trust your brand by new goods or the brand new sales services. There are many ways to compete with Pepsi; the most important key is customers’ trust.

Now we analysis their development present condition. Hansen’s Qtrly Rev Growth (yoy) is 9.50% and Pepsi is 36.50%.Hansens’ revenue (ttm) is 1.30B$ and Pepsi is 57.84B$.Hansens’ operating margin (ttm) is 26.67%, in the other hand, Pepsi’s 16.42%.All these data reflect that Pepsi’s development is steady and Hansen’s is rebound upward. Because of Pepsi’s development history, its development speed has received a saturation statue; it’s very difficult for Pepsi to develop at a fast speed. Oppositely, because of Hansen’s middle scale and history, it will have more developed spaces in goods development and local marketing expand. All of these are Hansen’s develop advantage.

5. Financial Information and performance analysis:

We can get some basic financial information from Hansen Natural Corporation’s three most recent annual income statements and balance sheets.

In 2007, 2008, and 2009, the Han’s Total revenue is 904.47, 1033.78 and 1143.30.Compared to these three years; Han’s added its revenue a lot the last year. However, the expense is also increasing from 434.27 to 611.93 the last four years which is associated with the change of asserts, liabilities and equity. Assets have been three times than the four years ago due to it’s enhancing increasingly. Also, the equity is increasing with the same speed from 422.17 to 828.40.Only liabilities is a little different .From 2007 to 2008,it’s increasing with a normal speed. To our surprise, there is a big drop in 2009 and went again in2010 rather than decrease increasingly.

All amounts in millions except per share amounts.

12/2010

(TTM)

12/2009

(TTM)

12/2008

(TTM)

12/2007

(TTM)

Total Revenue

1,303.94

1,143.30

1,033.78

904.47

expense

611.93

525.08

491.51

434.27

Total Current Assets

898.15

585.50

561.32

270.15

Total Current Liabilities

128.83

83.73

187.33

82.88

Total Equity

828.40

584.95

436.32

422.17

(Web: HANS Annual Balance Sheet-Hansen Natural Corp Annual Financials, http://www.marketwatch.com/investing/stock/HANS/financials/balance-sheet)

We compared with the stock price of Hansen’s and its competitors for last 8 weeks.

(Web: Hansen Natural Corp, HANS Stock Quote – (NASDAQ) HANS, Hansen Natural Corp Stock Price, http: //www.marketwatch.com/investing/stock/HANS 20 march 2011)

From this chart, we concluded that Hansen Natural Corporation is the most active stock of the three, which is amazing because Hans isn’t the strongest business of three.

In fact, it’s due to Hansen’s special structure. Adding to its Blue Sky energy drink, the company has expanded its stable of “alternative” sodas, juices, and teas to include a variety of energy beverages, such as the popular Monster brand (the #2 energy drink behind Red Bull).So, it’s stronger.

Hansen Natural Corporation is a holding company that, through its subsidiaries, develops markets, sells and distributes products in the alternative beverage category which includes: natural sodas, fruit juices, juice drinks, energy drinks and energy sports drinks. HANS has a market cap of $4.93B, operating cash flows of $229M, and trades at a 24.28 P/E multiple. HANS is particularly lucrative target, as it has $599M in cash on its balance sheet with only $274k in debt. HANS is situated in a similar position as DPS with regards to potential takeover candidates, which include KO and PEP.

(Web: HANS HANSEN NAT CORP Profile, http://www.dailyfinance.com/company/hansen-natural-corporation/hans/nas/overview 1 April 2011)

(Web: 8 Likely Buyout Targets to Consider Today – Seeking Alpha, http://seekingalpha.com/article/259237-8-likely-buyout-targets-to-consider-today?source=TheMotleyFool 1 April 2011)

A famous financial advisor named Jeremy Phillips talked a lot about our company’s stock as an investment. He thought if you decide to sell a stock you’ve researched and followed for months or years is always difficult. Suppose you fall in love with your stock holdings, you risk becoming vulnerable to confirmation bias — listening only to information that supports your theories, and rejecting any contradictions. That will be better.

In 2004, longtime Fool Bill Mann called confirmation bias one of the most dangerous components of investing. This warning has helped Jeremy Phillips’s own personal investing throughout the Great Recession. Now, he’d like to help you identify potential sell signs on popular stocks within our 4 million-strong Fool.com community.

“So, please don’t sell on price”, he said.

“Over the past 12 months, Hansen Natural has risen 31% versus an S&P 500 return of 13.7%.”,he continued, “Investors in Hansen Natural have every reason to be proud of their returns, but is it time to take some off the top? Not necessarily. Short-term out performance alone is not a sell sign. The market may be just beginning to realize the true, intrinsic value of Hansen Natural. For historical context, let’s compare Hansen Natural’s recent price to its 52-week and five-year highs. I’ve also included a few other businesses in the same or related industries”.

(Web: Fool COM Stock Investing Advice Stock Research http://www.fool.com/investing/high-growth/2011/01/27/is-hansen-natural-a-sell.aspx 1 April 2011)