Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-5-Hour Energy CEO wants to sell int'l rights

Published 12/13/2010, 12:16 PM
Updated 12/13/2010, 12:20 PM

* 5-Hour Energy CEO says to focus on US, Canada

* Wants to sell rights for international expansion

* Would be open to selling brand outright

NEW YORK, Dec 13 (Reuters) - The makers of 5-Hour Energy, a caffeinated drink sold in small bottles, often in U.S. convenience stores, is looking for a partner to take it abroad, its chief executive said on Monday.

Manoj Bhargava, the company's chief executive, said he wants to focus on growing in the United States and Canada, where sales already exceed $1 billion at retail. He said he wants to sell the rights to international sales to a company with experience in other countries.

Energy drinks are an attractive category for beverage companies as they are growing faster than traditional carbonated sodas.

Spokesmen for Coca-Cola Co and PepsiCo Inc declined to comment on any potential interest in 5-Hour Energy.

Bhargava's target customers include older adults -- "the AARP crowd" -- in contrast to the younger consumers that are the focus of energy drinks such as Red Bull or Hansen Natural's Monster. He forecast sales to quadruple over the next three to four years, as the brand expands its distribution.

He also said he'd be willing to sell the brand outright.

"I'd love to sell, but nobody's going to believe me that we can quadruple in a couple years," Bhargava said at a conference hosted by Beverage Digest. (Reporting by Martinne Geller; editing by Gunna Dickson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.