HANSEN NATURAL CORP. markets, sells and distributes alternative beverage category sodas, fruit juices, fruit juice Smoothies, ready-to-drink iced teas, lemonades, juice cocktails, functional drinks and still water.

Back in 1930, Hubert Hansen and his three sons started selling fresh, non-pasteurized juices to film studios and the Southern California marketplace, they provided their customers with all natural, high quality 100% juices.
Tim, the grandson of Hubert, developed a variety of pasterurized, shelf stable 100% natural juice products in the 1970s.
From that beginning, Hansen's business has grown and in the process they have developed a full line of bottled iced teas, lemonades and juice cocktails. Fruit Juice Smoothies in 11.5 oz. cans and 13.5 oz. glass bottles were added to Hansen's line up of quality beverage in 1995. The Spring of 1998 saw the introduction of DynaJuice, a delicious, tangy 100% juice blend containing 15 essential vitamins and minerals.

HANSEN'S MISSION: The mission is to satisfy consumers' needs for superior quality and great tasting, healthy natural beverages. Our beverages will be positioned as an upscale brand and will be marketed at a premium to competitive mainstream products.

In looking at a couple of brokers who recommend Hansen, I find both of them have a "Strong Buy" rating on the stock. No doubt this rating came from the 16.67% (over estimate) surprise in the last quarter earnings (June 1999) of $0.14 per share. Consensus estimates in earnings project that Hansen will earn $0.44 for the year ending Dec. 99 and those earnings will increase to $0.53 for next year.

Net Sales for the quarter ended June 30,'99 were $19.1 million, an increase of $5.2 million or 37.2% over the $14.0 million reported in the same quarter of June 30,'98. The increase in sales was primarily attributable to sales of the Company's new Signature Soda line, which was introduced in the first quarter of 1999; sales of two flavors of Smoothies in 64-ounce P.E.T. plastic bottles, which was introduced in the fourth quarter of 1998; increased sales of the Company's energy and other functional drinks in 8.2-ounce slim cans, and increased sales of the Healthy Start (tm) juice line, which was introduced during the second quarter of 1998.

Operating income for the period ended June 30,'99 was $2,410,000, an increase of $841,000 or 53.7% over operating income of $1,569,000 for the period ended June 30,'98.
Net income was $1,440,000 for the quarter ended June 30,'99 compared to $1,016,000 a year ago. The $424,000 increase in net income consists of an increase in operating income of $841,000 and a decrease of $87,000 in net interest and financing expense which was partially offset by a $504,000 increase in provision for income taxes.

Take a look at this company to see if it fits in with your investment portfolio. I wonder if Pepsi and Coca Cola started out this same way? Of course one of Hansen's mission criteria is that they will keep their beverages Natural - "Hansen's products will always be free of preservatives, artificial flavors and colors. They will also have minimal, if any, sodium and, in general, will be without added caffeine. Caffeine may be added to certain functional drinks, where caffeine may be useful, i.e. to help accelerate the metabolism by the body of certain nutrients."

This editor does not have a position at this time (just blew my wallet out by buying a new car) but may acquire shares in the very near future.