Hansen Natural Corp.’s Monster needs a bigger cage.
The beverage company, best known for its Monster energy drinks, just signed a $20 million deal for a big expansion and corporate relocation just over the county line in Corona.
The company, based nearby in Corona, plans to move its main warehouse to a 346,495-square-foot building on Pomona Rincon Road in Corona early next year.
Hansen is leasing the space for 10 years in a deal valued at $20 million.
Also on tap: a 25,000-square-foot office building to be built alongside the warehouse, according to Jeff Chiate, senior director for the Irvine office of Cushman & Wakefield Inc.
It’s the latest sign of growth for Hansen, the 75-year-old company led by two Orange County residents, Rodney Sacks and Hilton Schlosberg.
The two men bought Hansen for about $20 million in 1992, after moving to OC from South Africa. They moved the company from Anaheim to Corona in 1998.
They introduced their line of Monster drinks in 2002 and saw sales rocket.
The company, which also sells soda, vitamin water and juice drinks, counts a market capitalization of about $3 billion, after the highflying stock pulled back in August. Hansen is on pace to do about $550 million in sales this year.
Hansen has gotten a lot of national attention. This month, Forbes cited Hansen as one of the top 10 small U.S. companies.
The magazine likes Hansen’s emphasis on outsourcing a good part of its manufacturing and distribution. This keeps Hansen nimble enough to react to changes in the $19 billion yearly “alternative beverage” industry, which includes energy drink leader Red Bull GMBH and offerings from the likes of Coca-Cola Co.
Hansen moved to its current Corona headquarters on Railroad Street in 2000. That building, which has offices and a warehouse, is 141,000 square feet, with a lease through 2010, according to filings with the Securities and Exchange Commission.
In early 2004, Hansen grabbed another 80,000 square feet of warehouse space in Corona, in a lease that ran through 2008.
The company expects to pay about $1.3 million in rent this year for its facilities.
The new warehouse is set to replace the two older ones. Office workers will remain in the current headquarters until the new office is built, broker Chiate said.
Hansen employs about 500 people.
The building Hansen is moving into had been leased by Los Angeles-based Certified Grocers of California, but was being subleased to a logistics firm, Chiate said.
Chiate and Cushman & Wakefield’s Rick Ellison represented Hansen in the lease. The landlord, Carson-based Watson Land Co., represented itself.
Corona has become a virtual extension of northern Orange County and is one of the closest remaining spots for local companies looking for larger chunks of industrial space.
Rental rates and land prices have reflected that demand, and now run closer to OC prices than industrial spots further inland.
Hansen had considered cheaper land options in the Inland Empire, including Chino and Ontario, before deciding to stay in Corona, Chiate said.
