Fri, Sep. 16, 10:21 AM
- Credit Suisse names its favorite stocks in the beverage sector and cautions on others with a wave of initiations.
- The investment firm starts off coverage on Monster Beverage (MNST -0.4%), Dr. Pepper Snapple (DPS), and PepsiCo (PEP -0.4%) with Outperform ratings.
- Neutral ratings filter down on Coca-Cola (KO -0.6%) and Constellation Brands (STZ -1.4%).
- CS hangs an Underperform rating on Boston Beer (SAM -1.2%).
- Forward PE ratios on the group: Monster 30.8, Dr. Pepper 20.6, PepsiCo 20.5, Coca-Cola 21.1, Constellations Brands 23.4, Boston Beer 23.2.
Thu, Sep. 15, 5:01 AM
- The American Beverage Association is suing to block Philadelphia's soft drinks tax, marking the latest clash between the soda industry and public officials seeking to boost revenue and combat health risks.
- In June, Philly became the largest U.S. city to approve a volume-based tax of 1.5%-per-ounce on sugar sweetened beverages.
- Voters in San Francisco and at least three other places will vote in November on whether to impose similar levies.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Mon, Aug. 29, 7:59 AM
- Soda tax proposals will be on the ballot in three cities in the San Francisco Bay area this November and likely in Boulder, Colorado as well.
- The soda manufacturing industry is spending heavily in San Francisco, Oakland, Albany, and Boulder in an effort to defeat the measures. Unlike some votes in the past in the U.S. that weren't approved, only a simple majority is needed at the November election.
- Related stocks: KO, PEP, DPS, MNST, FIZZ.
Thu, Aug. 11, 5:21 PM
Wed, Jul. 27, 8:42 AM
- Dr Pepper Snapple (NYSE:DPS) topped the estimate of analysts with its Q2 report.
- Volume was higher during the quarter, led by a 2% gain in non-carbonated beverages. Carbonated soft drinks volume was 1% higher. Volume in the U.S. and Canada was flat.
- Sales rose 4% for beverage concentrates and 3% for packaged beverages.
- The company expects full-year EPS of $4.27 to $4.35 vs. $4.35 consensus. Dr Pepper says it expects capital spending to stay at 3% of sales.
- Previously: Dr Pepper Snapple beats by $0.05, beats on revenue (July 27)
Wed, Jul. 27, 7:07 AM
Tue, Jul. 26, 5:30 PM
- ANGI, ANTM, ARMH, AUO, AVX, BA, BAH, BOKF, CFR, CG, CMCSA, CRCM, CRI, DCIX, DHX, DPS, DX, DXYN, ENTG, ETM, EVR, FCAU, FCF, FDML, FLIR, FSV, GCI, GD, GIB, GIL, GLW, GRMN, GT, HES, HLT, HUN, I, IMS, IR, KO, LH, LL, LVLT, MDCO, MDLZ, MHO, MMYT, MO, NDAQ, NEE, NOC, NSC, NYCB, OC, PB, POL, Q, R, RES, ROK, ROL, RTIX, SALT, SEIC, SIX, SLAB, SLGN, SNAK, SO, SONS, SPG, STM, STRA, STT, SUP, SVU, TMUS, TPH, TYPE, UCBI, UFS, UMC, VLY, WCIC, WEC, WEX, WIX, WM, WOOF, WYN
Mon, Jun. 27, 5:24 PM
- Kroger (NYSE:KR) is suing Visa (NYSE:V) over debit card transactions, WSJ reports, following a suit by Wal-Mart last month over similar debit card issues.
- KR says Visa has levied fines against it and threatened to raise fees and cut off its acceptance of debit cards if it does not allow customers to verify purchases with a signature instead of a personal identification number.
- KR is one of a handful of U.S. food stocks that posted solid gains in today's trade after Brexit fears helped make the companies look like a safer haven; with less European exposure, companies such as Dr Pepper Snapple (NYSE:DPS) are seen as more attractive, according to Bernstein analyst Ali Dibadj.
Thu, Jun. 23, 2:48 AM
- San Francisco will have a second chance to vote on whether to tax sugar-sweetened beverages after city officials added the measure to a November ballot that could expand the hotly-debated levy deeper into the Bay Area.
- The penny-per-ounce tax proposal follows the city's legal victory last month against the soda industry, which tried to halt its effort to introduce warnings on advertisements for drinks with added sugar.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Fri, Jun. 17, 3:07 PM
- Susquehanna issued a detailed report on IRI scanner data trends in the food and beverage industry.
- The investment firm noted that soda drink volume fell 2.8% Y/Y for the 12-week period ending on June 5. PepsiCo (NYSE:PEP) volume was down 5%, compared to 1.3% decline for Coca-Cola KO and 1.9% fall-off for Dr. Pepper Snapple (NYSE:DPS).
- K-cup revenue was up 8% for the 12 weeks as J.M. Smucker (NYSE:SJM). Starbucks (NASDAQ:SBUX), and Dunkin' Brands (NASDAQ:DNKN) all showed strong volume amid ongoing pricing pressure. K-cup sales decelerated for Kraft Heinz (NASDAQ:KHC) and could turn negative if pricing pressure sustains.
- In the yogurt category, scanner data over four weeks confirmed that General Mills (NYSE:GIS) is losing market share to Chobani and Danone (OTCQX:DANOY). Susquehanna tips that Chobani may be prepping for a sale.
- General Mills beat out Kellogg (NYSE:K) in the cereal category as its 12-week sales growth of +2.3% easily topped Kellogg's 2.2% decline.
- Pricing with beer is helping to make up for continued volume pressure. Across the sector, pricing was recorded as 2.5% higher for the 12 weeks of data.
- Beer volume: Anheuser-Busch InBev (NYSE:BUD) -1.8%, MillerCoors (OTCPK:SBMRY, TAP) -2.7%, Boston Beer (NYSE:SAM) -2.1%.
- Susquehann'a Pablo Zuniac put together the deep dive into the scanned data.
- Within the F&B sector, he has BUD, THS, WWAV, TAP, and KHC rated at Positive.
Thu, Jun. 16, 3:16 AM
- Philadelphia is set to become the first major American city with a soda tax despite a multimillion-dollar campaign by the beverage industry to block it.
- The City Council is expected to give final approval today to a 1.5 cent-per-ounce tax on diet and regular soda, iced tea, energy drinks, juice drinks with less than 50% juice, and other sugary beverages.
- That would add $1.01 to the cost of a 2-liter soda, $0.21 to a 13.7-ounce Starbucks Frappuccino bottle and $2.16 to a 12-pack of soda.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL
Fri, Jun. 3, 9:56 AM
- Susquehanna sizes up the Ready-to-Drink tea market after Starbucks (NASDAQ:SBUX) partners up with Anheuser-Busch InBev (NYSE:BUD) to grow the Teavana and Tazo brands.
- On a broad scale, the U.S. RTD market was $5.1B last year and showed 3% growth.
- The main players are Unilever (UN, UL) via Lipton, Arizona Beverage (private), Coca-Cola (NYSE:KO) via Gold Peak, and Dr. Pepper Snapple (NYSE:DPS) via Snapple which as a group account for 70% of sales. Teavana and Tazo have almost no market share with most sales currently coming from Starbucks stores.
- The SBUX-BUD partnership will see Anheuser-Busch InBev produce the tea products at its U.S. breweries and distribute them to about 300K convenience stores and grocery chains in the U.S.
- Analyst Pablo Zuanic provided Seeking Alpha the data.
- Previously: Starbucks finds a tea partner in Anheuser-Busch InBev (June 2)
Mon, May 23, 9:39 AM
- Athlos Research forecasts food input costs will rise 1.9% over the next six months which will increase the pressure on companies to use pricing to offset the inflation.
- Strong price gains are expected in the fruits/vegetables, softs/sweetners, and oils categories - while proteins, dairy, and grainscosts are expected to fall back.
- The impact on profit varies across the sector. A negative EBIT impact from cost inflation is forecast for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), Cott (NYSE:COT), Dr. Pepper Snapple (NYSE:DPS), Campbell Soup (NYSE:CPB), Pinnacle Foods (NYSE:PF), and Hormel (NYSE:HRL). Foods cost inflation will have a positive impact on EBIT for Post Holdings (NYSE:POST), Dean Foods (NYSE:DF), Hershey (NYSE:HSY), and Fresh Del Monte Products (NYSE:FDP), according to the Athlos estimate.
Fri, May 20, 7:31 AM
- Philadelphia has the soda industry in its sights with a sugary drink tax on the agenda for the city council to vote on in June.
- Mayor Jim Kenney is in favor of the tax and is using the angle that it could be used to help fund prekindergarten programs, libraries, and public parks.
- The proposed tax is on the hefty side ($0.03/oz) and could increase prices by over 50% on some products. An alternative container tax has also been bandied around. although it wouldn't bring in the same amount of tax dollars.
- It's unclear which direction the city council will go with lobbying efforts on both sides picking up.
- Related: KO, PEP, DPS, MNST, COT.
Fri, May 20, 2:21 AM
- The U.S. soda industry faces its next threat in Philadelphia, which is weighing a tax that could raise soft drink prices by 55% to 60% on average.
- Mayor Jim Kenney is pitching the measure to pay for prekindergarten and other popular services.
- Philadelphia's city council plans to vote on the proposed tax next month, which would cover regular soda and other sugar-added beverages including energy drinks and ice tea.
- Related stocks: KO, PEP, DPS, MNST, FIZZ
Wed, May 18, 5:44 PM