Thu, Feb. 18, 4:31 AM
- Nestle (OTCPK:NSRGY) saw global sales growth decelerate in 2015 as a pick-up in the U.S. failed to offset weakness across Asia, especially in India where its Maggi noodles were hit by a health scare.
- The company reported organic sales growth of 4.2% - the bottom end of the "about 4.5%" range it forecast in October - marking the third successive year the group has failed to achieve its target of 5-6% annual growth.
- Nestle Chief Executive Paul Bulcke described 2015 as a "challenging environment," a situation he expected to continue this year.
Thu, Feb. 4, 5:06 AM
- Nestle (OTCPK:NSRGY) has agreed to buy out Osem Investments (OTC:OSEMF), Israel’s largest publicly-traded foodmaker, for about 3.3B shekels ($840M), returning to acquisitions in the industry after a series of divestments.
- Nestle will pay Osem investors 82.50 shekels a share to buy the 36.3% stake it doesn't already own, the Swiss company said in a statement.
- According to Bloomberg, the purchase is Nestle's biggest food acquisition since 2012.
Thu, Jan. 14, 7:50 AM
- Chocolate producers are working together to improve low cocoa crop yields in an effort to meet rising global demand.
- Older trees and poor crop management have held down yields in both Ivory Coast and Ghana.
- A higher level of production could have a ripple effect across the broader cocoa market.
- Related stocks: MDLZ, HSY, OTCPK:NSRGY, OTC:BYCBF, ADM.
- ETFs: NIB, CHOC
Dec. 29, 2015, 5:28 PM
- Coffee prices continue to fall as strong El Nino rains in Brazil help to boost crop yields. The next harvest in the nation is forecast to be up 20% Y/Y at 58M bags.
- Even with Arabica prices down 28% this year, analysts see another swing lower for coffee in 2016 due to the oversupply situation.
- Weak currencies in South America are also providing a strong incentive to local producers to sell as much as they can.
- The trend toward low coffee prices is helping to lift margins for many coffee sellers with U.S. retail prices only down 4% to 5% this year. Companies light on hedging positions are seeing the biggest benefit.
- Most execs play coy over the bottom line benefit of lower coffee commodity prices, but even Starbucks CFO Scott Maw had to concede that pricing looked a "little bit favorable" during the firm's last earnings call (transcript).
- Coffee futures chart
- Related stocks and ETFs: KHC, GMCR, DNKN, OTCPK:RBGLY, OTCPK:RBGPF, SBUX, OTCQB:JAMN, SJM, MCD, JO, CAFE, THS, KKD, OTCPK:NSRGY, OTCPK:NSRGF.
Nov. 23, 2015, 10:47 AM| Nov. 23, 2015, 10:47 AM
Nov. 9, 2015, 2:12 AM
- Nestle (OTCPK:NSRGY) India has resumed selling its Maggi noodles in the country, five months after the popular snack was banned over the presence of unsafe lead levels.
- Since the discovery in May, Nestle had to destroy 400M packets and stop production of Maggi noodles, biting into its profit margins with a $67M recall.
- However, fresh tests mandated by the Bombay High Court last month found that lead content in the products was at a safe level.
- Previously: Nestle India to restart sales of Maggi noodles (Oct. 16 2015)
- Previously: Nestle cuts guidance as sales dip (Oct. 16 2015)
Oct. 29, 2015, 9:08 AM
- China will end a long-time policy of limiting families to one child, according to Xinhua News. No specific timetable was set.
- The government has been slowly relaxing some of the rules around the restrictive policy.
- Companies seen potentially getting a marginal benefit from the development over time if families become larger include Hasbro (NASDAQ:HAS), Mattel (NASDAQ:MAT), Danone (OTCQX:DANOY), Nestle (OTCPK:NSRGY, OTCPK:NSRGF), Procter & Gamble (NYSE:PG), and Mead Johnson Nutrition (NYSE:MJN). Add your own ideas in the comments stream.
Oct. 20, 2015, 9:45 AM
- Weight Watchers (NYSE:WTW) is up another 16.7% today to follow up on yesterday's Oprah-inspired moonshot.
- The renewed confidence in the Weight Watchers brand should lead to some strategy sessions over the direction of Healthy Choice (NYSE:CAG), Nutrisystem (NASDAQ:NTRI), Lean Cuisine (OTCPK:NSRGY), and Jenny Craig (PE-owned) which have seen a slowdown in growth.
- The weight loss brands have typically relied on star power to market their programs, although the Oprah investment in WTW has set the bar much higher.
- Previously: Oprah Winfrey and Weight Watchers to partner (Oct. 19 2015)
- Previously: Weight Watchers +46% with Oprah star power on board (Oct. 19 2015)
- Previously: Details on Oprah's Weight Watchers deal (Oct. 19 2015)
Oct. 16, 2015, 7:04 AM
- Nestle India rallied in Bombay trading after the company announced it would restart sales of Maggi noodles.
- The noodles are expected to be back on the shelf after laboratory tests indicated the product tested below the allowable level of lead.
- Nestle India is a subsidiary of Nestle (OTCPK:NSRGY, OTCPK:NSRGF).
Oct. 16, 2015, 3:24 AM
- Plagued by a Maggi noodle recall and a strong Swiss franc, Nestle (OTCPK:NSRGY) reported weak sales growth during the nine months to September that missed analyst forecasts.
- Underlying growth slowed to 4.2% vs. estimates of 4.7%, sliding further behind the 5-6% organic growth target the company refers to as the "Nestle Model."
- The food maker now expects organic sales growth of 4.5% in 2015.
Oct. 5, 2015, 7:35 AM
Sep. 23, 2015, 9:12 AM| Sep. 23, 2015, 9:12 AM | 2 Comments
Aug. 28, 2015, 2:27 AM
- According to forecasts from Beverage Marketing, bottled water sales volume grew at a rate of 7% in the U.S. last year to put it on pace to outsell soda by 2017.
- That's not necessarily all bad news for Coca-Cola (NYSE:KO), Pepsi (NYSE:PEP) and Nestle (OTCPK:NSRGY), which offer several bottled water brands, though it's not an ideal trend.
- The wholesale gallon price of water fell 25% over the past decade compared to a 33% rise in soda prices, and more companies continue to pour into the market.
- Previously: Beverage companies shift focus to water (Jan. 15 2014)
Aug. 20, 2015, 3:20 PM
- 3G Capital continues to be a major influence in the food industry as recent job cuts at Kraft and Heinz send a strong message.
- Management at Nestle (OTCPK:NSRGY), Mondelez International (NASDAQ:MDLZ), Kellogg (NYSE:K), and Campbell Soup (NYSE:CPB) are utilizing a "zero-base budgeting" philosophy similar to the efficiency model pushed by 3G, according to Bloomberg.
- Kraft Heinz (NASDAQ:KHC) is expected to cut $1.5B in annual costs before 2018, a disciplined approach likely to be copied by peers.
Aug. 19, 2015, 11:38 AM
- Large food companies need to focus on bold M&A and innovation actions over recharging iconic brands, concludes Rabobank in a new report on the sector.
- A shift in consumer preferences has sparked a need to introduce new brands which are on trend - instead of focusing on "innovation-lite" and product reformulation strategies. Buying promising brands at an earlier stage than normal is seen as a forward-thinking strategy.
- Related stocks: KHC, MDLZ, PEP, KO, OTCPK:NSRGY, OTCPK:NSRGF, WWAV, HAIN, K, GIS, POST, CPB, PF, THS.
Aug. 14, 2015, 1:44 PM
- Nestle (OTCPK:NSRGY, OTCPK:NSRGF) or General Mills (GIS +0.5%) could make a run at Mondelez International (MDLZ +0.9%) with Berkshire Hathaway and 3G effectively taking themselves out of the bidding process for a few years due to the Kraft-Heinz merger, speculates The Deal.
- A buyer of Mondelez will have to be heavy hitter due to the company's estimated enterprise value of +$90B. PepsiCo (PEP +0.3%) fits the bill and has Nelson Peltz backing the play, but has a board and CEO seemingly uninterested.
Nestle S.A. is a holding company which is based in Switzerland. Nestle has the ambition to be the leading Nutrition, Health and Wellness company by offering tastier and healthier products to consumers. Nestle has a unrivalled portfolio of brands and products that are present in the day-to-day... More
Sector: Consumer Goods
Industry: Food - Major Diversified
Other News & PR