Donald Trump's Strategic and Policy Forum adds Uber (Private:UBER) CEO Travis Kalanick, Tesla Motors (NASDAQ:TSLA) CEO Elon Musk and PepsiCo (NYSE:PEP) CEO Indra Nooyi to its list of well-known business leaders.
Other members include Mary Barra, Jamies Dimon, Doug McMillon and Bob Iger.
Deutsche Bank warns that the party is over for consumer staples stocks.
The investment firm smacked Dow 30 stocks Procter & Gamble and Coca-Cola with downgrades to Hold on broad macro factors (F/X,USD, stronger economy = flight out of safety) that could apply to a host of multinational consumer staples sellers (KMB, MDLZ, PEP, PMCL, CLX).
PepsiCo (PEP +0.9%) continues to walk the tightrope between hitting its revenue and profit guidance while also rolling out healthy options for consumers.
The company is slowly introducing new sweeteners and reducing sodium levels on many products -- even as it keeps savory snack powerhouse brands such as Lay's, Doritos, Cheetos and Ruffles in their current form to meet the demand for indulgent snacks.
Consumer testing by PepsiCo indicates decisively that taste still matters which is also backed up by the +5% growth rates generated by Lay's, Doritos and Cheetos over the last five years.
Susquehanna analyst Pablo Zuanic warns that Coca-Cola (KO -1.8%), PepsiCo (PEP -1.9%) and Anheuser-Busch InBev (BUD -2.3%) have some peso risk now embedded due to the sharp drop in the currency. Details from his note to investors are posted below.
BUD: "In 2015 Mexico accounted for 12% of BUD EBITDA, but now including SAB it will account for 8-9%."
KO: "LatAm accounted for 19% of KO EBIT in FY15, and we estimate that Mexico accounts for 10-12% of earnings (11% of CSDs and NARTDs, as per Euromonitor)."
PEP: "At PEP Mexico is 6% of CSDS (end unit cases), but 12% of NARTDs (water, others), according to Euromonitor, and it accounts for 8% of Frito. So roughly, we’d say Mexico is 8-9% of PEP’s global earnings."
Researchers from Harvard University estimate that soda consumption could fall as much 20% in select California cities if a soda tax is passed on November 8. The same study predicted a 4% drop in diabetes cases as a result of soda taxation.
California voters in San Francisco, Albany and Oakland are voting on the tax, as well as voters in Boulder, Colorado. The issue is also going in front of the Cook County Commission (Chicagoland) soon for a decision over what's openly being called a political money grab.
The beverage industry had a very strong record of turning back soda tax initiatives, but saw a setback when the Philadelphia City Council approved a $0.015-per-ounce soda tax last June.
PepsiCo (NYSE:PEP) has been sued by the Center for Science in the Public Interest for misleading consumers by marketing its Naked Juice beverages as healthier than they really are.
Its Pomegranate Blueberry juice, for example, advertises that it is a no-sugar-added beverage, but even a single 15.2-ounce container (the smallest option) contains 61 grams of sugar, about 50% more sugar than a 12-ounce can of Pepsi.