Hansen Feels Sting of Downgrades

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Less than a week after signing distribution deals with PepsiCo Inc. and Anheuser-Busch Cos. Inc., shares in Hansen Natural Corp. plummeted more than 10 percent Tuesday on a downgrade by two analysts.


Goldman Sachs and JPMorgan downgraded the Corona-based drink manufacturer to “neutral” citing increased marketing efforts by Red Bull, the leading energy drink in the U.S. Also cited were rising prices for artificial sweetners and aluminium.


Shares in the Corona-based drink maker have doubled over the past year on the strong sales of its Monster energy drink and gained nearly 25 percent so far this year.


Sales are expected to get a further boost after PepsiCo Canada begins distributing Hansen products in Canada, and Anheuser-Busch distributes its Monster energy drink at restaurants, bars and nightclubs in the U.S.


Shares in Hansen closed down $4.21 to $37.71 Tuesday.

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