Hansen ended its agreement with the Plano, Texas-based company to distribute Hansen’s Monster Energy drinks in the US, because it began a similar arrangement with The Coca-Cola Company.
Its agreement began in mid-November 2008 in the US, and in Canada and western Europe on 1 January 2009. It has been reported that Hansen Beverage Company paid $48m to DPS in settlement of the termination.
Dr Pepper Snapple will record a $45m gain in its fiscal first quarter related to the settlement and write-off of intangible assets. Proceeds are expected to be used to reduce debt.
In 2008, DPS generated $197m in revenue and $38m in operating profit distributing Hansen products in the US.
Source: MarketWatch.com
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