Tue, Nov. 22, 7:33 AM
Thu, Nov. 17, 4:55 PM
Wed, Nov. 9, 11:58 AM
- 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."
Wed, Nov. 9, 5:56 AM
- Three Bay Area cities have voted to levy a tax on sodas and other sugary drinks in an effort to curb obesity and diabetes.
- The measure passed by wide margins in San Francisco, Oakland and Albany (a separate vote in Boulder, Colorado is on track to pass as well).
- In 2014, Berkeley became the first city in the country to levy a soda tax and Philadelphia became the second in June.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Fri, Oct. 28, 10:33 AM
- 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.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, COT.
Tue, Oct. 18, 12:31 PM
- Beverage stocks are active after the latest data dump from Nielsen on sales trends.
- Wells Fargo notes that most beverage categories showed growth for the period ending October 8, including nearly a 5% gain for energy drink volume and sales.
- Coca-Cola's (KO +0.7%) carbonated soft drink sales were up +1.7%, while PepsiCo's (PEP +0.4%) CSDs fell off 0.8%. CSD sales were up 0.4% for Dr Pepper Snapple (DPS +0.5%).
- Gainers off the Nielsen numbers include Cott (COT +1.9%), Monster Beverage (MNST +2.6%), Primo Water (PRMW +1.9%) and National Beverage Corp. (FIZZ +1.2%).
- Source: Bloomberg
Mon, Oct. 17, 6:04 AM
- PepsiCo (NYSE:PEP) plans to announce today that it will reduce the calorie count in its drinks to below 100 in at least two thirds of its beverage lineup by 2025.
- Currently, 40% of PepsiCo drinks are below the 100-calorie level.
- The company also aims to reduce greenhouse gas emissions across its value chain by 20% before 2030.
Fri, Oct. 14, 3:36 AM
- PepsiCo (NYSE:PEP) is nearing a deal to acquire sparkling probiotic U.S. drinks company KeVita, in the latest push by the carbonated beverage giant to diversify its soft drinks business.
- The acquisition could be finalized as early as this month, according to Reuters, and will likely value the privately held company at less than $500M.
Wed, Oct. 5, 3:50 AM
- 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.
Thu, Sep. 29, 7:16 AM
- PepsiCo (NYSE:PEP) reports organic revenue increased 4.2% in FQ3. All of the company's segments showed positive organic revenue growth except Quaker Frito-Lay North America (-2%).
- Core gross margin rose 50 bps and core operating margin expanded 30 bps off of productivity improvements and lower raw materials costs.
- The core effective tax rate fell to 23.3% during the quarter, from 24.6% a year ago.
- PepsiCo expects EPS of $4.78 for the full year vs. $4.76 consensus and $4.71 prior. The food and beverage giant sees $3B in capital spending.
- Previously: PepsiCo beats by $0.08, beats on revenue (Sept. 29)
- PEP +2.53% premarket to $110.10.
Thu, Sep. 29, 6:32 AM
Wed, Sep. 28, 5:30 PM
Mon, Sep. 26, 11:20 AM
- PepsiCo (PEP -0.1%) says it's bringing probiotics to the juice aisle with a Tropicana Essentials Probiotics line of new drinks.
- The company says each serving of the drink will include one billion of the live and active cultures commonly found in yogurt products. Varieties of the new product will include strawberry banana, pineapple mango, and peach passion fruit.
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
Wed, Sep. 14, 9:39 AM
- In a fresh note to investors, Susquehanna analyst Pablo Zunaic tackles the huge question of if PepsiCo (NYSE:PEP) or Coca-Cola (NYSE:KO) will be the next major target for Anheuser-Busch InBev (NYSE:BUD) down the road.
- Though it's highly speculative at this point, PepsiCo appears as the more logical choice if the pros and cons are lined up. Snippets from Zuanic's note are posted below.
- On accretion value: "An acquisition of PEP drinks would be over 20% EPS accretive (one quarter stock funded), while a bid for KO would not (all cash a KO bid would push gearing to 8x)."
- On global markets: "True, overseas KO is much larger than PEP, but that may be a moot point as the KO overseas business is mainly in the hands of independent bottlers (so is PEP’s except for Russia). But we think PEP bottlers in markets like Mexico, China, India, and Canada, could be more reasonable acquisition targets for BUD down the road (than KO bottlers) and would actually provide relevant scale up benefits."
- On distribution: "In terms of bringing scale to its beer distributors we note KO and PEP are similar in size in the US (in terms of end unit cases of NARTDs), but more importantly the PEP drinks business is 75% PEP owned while by end of 2017 KO’s US operating business (bottling and distribution) will all be in the hands of independent bottlers."
- On the Buffett factor: "Those expecting a bid for KO say so in part because of the Warren Buffet presence (holder of a 9.3% stake in KO), but would he really want that to be his legacy (i.e., the man that sold the Coke?)."
- Current market caps: BUD $194B, KO $178B, PEP $149B.
- Name check: Financing the deal is one matter, but negotiating a new corporate name for the mega-beverage entity could be just as engaging.