Hansen Natural Corp’s (HANS) Monster Energy drink has bullied its way to the leading energy drink in the United States. It’s now focusing on Europe and trying to take some market share from Red Bull’s 75 to 80 percent stake. Red Bull was introduced in 1987, giving it almost a 15 year head start in the US where it still holds a 25 percent market share. Monster has a lot of room for growth and has teamed up with Coca-Cola Enterprises (CCE) to get the drink to more stores faster than otherwise possible. Past performance does not guarantee future results but Monster seems destined to succeed in the European market. Hansen’s stock has increased 75 percent since October.
Another player getting into the Energy Drink business is Vitamin Water. Under the Vitamin Energy name they’ve released an array of flavors that provide a similar energy boost for those days you feel like passing out around noon.
There’s a reason for all these players getting into the energy drink business. Rapper 50 Cent has made more from his investment in Glaceau than he will ever make from rapping. When Coke bought Glaceau for $4.2 Billion in 2007 he netted a reported $400 million. 50 Cent doesn’t drink alcoholic beverages so it was obviously a fitting investment.
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