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Hansen settles trademark dispute with brewer

Fri. October 23, 2009; Posted: 04:53 PM
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Oct 23, 2009 (The Press-Enterprise - McClatchy-Tribune Information Services via COMTEX) -- HANS | Quote | Chart | News | PowerRating -- Hansen Natural Corp. has settled its trademark dispute with a small Vermont brewing company after stores in four Eastern states pulled Hansen's products off the shelves.

An attorney for Corona-based Hansen, which makes the Monster line of energy drinks, sent a cease-and-desist letter last month to Rock Art Brewery, a small brewer in Morrisville, Vt., that was seeking a federal trademark for a beer they call "The Vermonster."

Hansen sought to block Rock Art's use of "Vermonster" because Hansen several years ago registered trademarks for two beer products. Hansen abandoned the trademarks in July and has never made beer. Hansen also asked the small rural Vermont company to pay its legal fees.

The settlement, owner Matt Nadeau said, came after an amicable discussion he had with Rodney Sacks, Hansen's chairman and chief executive. The settlement allows Rock Art to sell Vermonster, a barley wine, Nadeau said. He agreed not to sell energy drinks, which he said he never intended to do.

The Vermont brewery, which has nine employees including Nadeau and his wife, Renee, puts out a relatively small 3,200 barrels a year. Hansen is publicly traded on the Nasdaq stock exchange and pulled in more than $57 million in profits in its most recent quarter. It ranks second in sales of energy drinks, behind Red Bull.

"It was pretty scary," Nadeau said. "We were staring into the eyes of a billion-dollar corporation and being told we were not only breaking the law but had to pay attorney fees."

Hansen's attorney did not return a call seeking comment.

Nadeau e-mailed Rock Art's fans Oct. 4, after the initial discussions with Hansen's lawyer. Within a day, Nadeau said he was hearing from major beverage and health food stores in Vermont, New York, Maine and Connecticut who said they were pulling Hansen's products from their shelves.

The story attracted attention in the mainstream media, and some of the comments on blogs and social media sites were heated. But the conversation that led to this settlement helped heal some of that, and Nadeau said he applauds Sacks for making peace.

"I never wanted to publicly humiliate Hansen," Nadeau said. "If a company has a problem, someone should just pick up the phone and call."

Reach Jack Katzanek at 851 368-9553 or jkatzanek@PE.com

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For full details on Hansen Natural Corp (HANS) click here. Hansen Natural Corp (HANS) has Short Term PowerRatings of 5. Details on Hansen Natural Corp (HANS) Short Term PowerRatings is available at This Link.

    


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