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article 4 - Energy to participating vendors Hansen said...

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Tyler Evans Heather Stone ECO231 15 February 2007 Pepsi to distribute Hansen energy drinks in Canada PepsiCo Inc.’s Canadian unit will be giving exclusive “master” distribution rights of Hansen’s energy drinks throughout Canada. This is the word from Hansen Natural Corporation, makers of such drinks as Monster Energy, on Monday February 12. Shares in Hansen were reported to have risen by 5% as a result of this announcement. The terms for this deal have not been disclosed as of yet but the deal is sure to give Hansen greater exposure and Pepsi’s Canadian unit should definitely get a boost in the energy drink business. This agreement also comes in the aftermath of a deal made by Hansen with Anheuser-Busch, which will give Busch the opportunity to sell Monster
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Unformatted text preview: Energy to participating vendors. Hansen said PepsiCo would use its already existing Pepsi bottling system to market and distribute the Hansen products. They also said that the deal should promote its products in areas such as Ontario and the deal should reach other locations and consumers in Canada previously un-exposed to their products. Dave Burwick, president of the CPQTG (Canadian Pepsi-Quaker-Tropicana-Gatorade business) said PepesiCo Canada expects the deal to “leapfrog” its Canadian energy drink business overnight. Analysts believe target share prices will raise and recommend buying shares in Hansen. They also believe fourth-quarter earnings should be higher than third....
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