Beverages

Hansen Pays Dr Pepper $48 Million

Related to termination of Monster Energy drink distribution agreement in U.S.
PLANO, Texas -- Dr Pepper Snapple Group Inc. (DPS) said yesterday that Hansen Beverage Co. has paid $48 million to DPS in settlement of the termination last November of its agreement with Hansen to distribute Monster Energy drinks in the United States. DPS will record a $45 million one-time gain in its first-quarter 2009 related to the settlement and the writeoff of related intangibles. Proceeds from the settlement are expected to be used to reduce debt.

In 2008, DPS generated $197 million in revenue and $38 million in operating profit distributing Hansen products in the [image-nocss] United States, it said.

Hansen Natural Corp. completed agreements last fall with The Coca-Cola Co. and Coca-Cola Enterprises Inc. for distribution of its Monster Energy drinks line in six Western European countries, Canada and selected territories in the United States. (Click here for previous CSP Daily News coverage.)

Plano, Texas-based DPS is an integrated refreshment beverage business marketing more than 50 beverage brands to consumers throughout North America. In addition to its flagship Dr Pepper and Snapple brands, the company's portfolio includes 7UP, Mott's, A&W, Sunkist Soda, Hawaiian Punch, Canada Dry, Schweppes, Squirt, RC Cola, Diet Rite, Penafiel, Rose's, Yoo-hoo, Clamato, Mr & Mrs T and more. It operates 24 bottling and manufacturing facilities and more than 200 distribution centers across the United States, Canada, Mexico and the Caribbean.

Based in Corona, Calif., Hansen markets and distributes Hansen's natural sodas, sparkling beverages, apple juice and juice blends, fruit juice smoothies, multi-vitamin juice drinks in aseptic packaging, iced teas, energy drinks, Junior Juice juices and water beverages Energade energy sports drinks, Blue Sky brand beverages, Monster Energy brand energy drinks, Monster Hitman energy shooters, Java Monster brand non-carbonated dairy based coffee drinks, Lost Energy brand energy drinks, Joker Mad Energy, Unbound Energy and Ace Energy brand energy drinks and Rumba, Samba and Tango brand energy juices.

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