Mar. 18, 2014, 8:53 AM
- The price of milk rose to an all-time high yesterday on the back of strong demand from global buyers.
- A tough winter in the U.S. has also curtailed production tallies.
- Most of the additional milk costs are being passed on to consumers, according to data from the USDA. Milk prices rose 27% Y/Y in February.
- Analysts are split on how much wiggle room companies have to boost prices higher with consumers before hitting stiff resistance.
- Milk futures charts
- Stocks with a tie-in to milk: SJM, DF, NSRGY, WWAV, LWAY, DNKN, MCD, SBUX, KO, GIS, SYUT, ADY.
Mar. 13, 2014, 1:20 PM
- Fresh food purchases at grocery stores continue to show higher growth rates than canned, packaged, and frozen food sales, and now account for 30% of all supermarket revenue..
- Organic sellers like Whole Foods Market (WFM -2.8%) account for some of the extra sales, but retail giants such as Wal-Mart (WMT -0.6%), Kroger (KR -0.7%), and Target (TGT -1.6%) are also broadening out their fresh food sections.
- Food companies on watch: SENEA, SENEB, THS, NCRA, CPB, DOLE, MDLZ, GIS, NSRGY, KRFT, TSN, FLO, CAG, DF, PPC, HRL, SJM.
Mar. 6, 2014, 6:59 PM
Feb. 12, 2014, 7:24 AM
Feb. 11, 2014, 9:10 AM
Feb. 11, 2014, 8:27 AM
- Dean Foods (DF) says it faced "significant" commodity inflation challenges in Q4 as it came in a penny short of estimates for the period.
- Total volume across all products fell 8% from a year ago due in part to the loss (previously disclosed) of the business of a major retailer.
- The company says its share of the U.S. fluid milk market improved 80 bps to 35.7% during Q4.
- Guidance from Dean Foods is below expectations, while a plan to close 10% to 15% of its manufacturing facilities shows sales growth might be lagging expenses.
- DF -9.5% premarket
Feb. 11, 2014, 8:04 AM
Feb. 11, 2014, 12:05 AM
Feb. 10, 2014, 5:30 PM
Jan. 21, 2014, 10:08 AM
- Dean Foods (DF +3.8%) moves higher after a positive mention in Barron's over the weekend.
- Shares of the food company could rise more than 30% in a buyout scenario, writes David Englander.
- He thinks management has positioned the company in a manner that will make it easier for an acquirer to launch an attractive bid.
- Dean Foods trades at a soft multiple of 5.7X 2014 earnings due in part to concerns over raw milk prices.
Jan. 8, 2014, 7:04 AM
Jan. 7, 2014, 6:38 AM
- Despite lagging the S&P 500, food stocks had a strong year in 2013. We believe investors should remain selective in their allocation of capital by placing a greater emphasis on stock picking.
- Overall, in terms of themes for our packaged food/beverage coverage universe in 2014, we expect sluggish but gradually improving food volume trends, increased promotional intensity (funded by easing commodity costs and retailers fighting for traffic share) and a relatively active M&A environment.
- Accordingly, we prefer companies with solid organic growth prospects [Green Mountain Coffee Roasters (GMCR); Amira Nature Foods (ANFI); J & J Snack Foods Corp. (JJSF)], exposure to declining commodity costs [GMCR; Hormel Foods (HRL); The J.M. Smucker Company (SJM); Flowers Foods, Inc. (FLO)], exposure to company specific margin enhancing opportunities [FLO; GMCR, ConAgra Foods (CAG)] and ability to benefit from accretive M&A (SJM, JJSF and CAG).
- On the non-branded part of our coverage universe, Ingredion (INGR) is our top pick followed by Tyson Foods (TSN) and Dean Foods (DF).
Dec. 9, 2013, 7:03 AM
Dec. 4, 2013, 2:29 PM
- If Congress doesn't get around to passing a new farm bill before the end of the year the USDA will be forced to support higher prices for dairy farmers which would create a disruption up and down the food industry.
- Milk producers could benefit from the changes mandated by the 1949 farm bill - while food sellers could see profits pinched with consumers unlikely to absorb the full amount of price hikes.
- Most analysts think Congress will get its act together in time, but the risk of a stalemate exists.
- Related stocks: SJM, DF, NSRGY, WWAV, LWAY, DNKN, MCD, SBUX, KO, GIS.
Nov. 12, 2013, 9:59 AM
- Margin worries at Dean Foods (DF -7.6%) is affecting sentiment over a number of other packaged foods companies in early trading.
- Though the company warned specifically on the dairy commodity environment, its drop in guidance on Q4 "challenges" looks a bit broader.
- Underperformers: KRFT -0.7%, SJM -1.0%, HAIN -1.0%, CAG -0.5%, CPB -1.0%, TSN -0.6%.
Nov. 12, 2013, 9:26 AM| Nov. 12, 2013, 9:26 AM | Comment!
Dean Foods Co process and distribute fluid milk and other dairy products, including ice cream, ice cream mix and cultured products. It also produces and distributes TruMoo, a reformulated flavored milk, as well as juices, teas, and bottled water.
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