Mon, Sep. 14, 11:15 AM
- With market eyes on a Fed rate-hike decision considered to be a bit of a toss-up amid differing opinions, Goldman Sachs is banking on the (slightly) more dovish position that the agency will wait until December. The bank is still laying out how to play the hike when it invariably comes.
- Strength in balance sheets is what you need, it says, noting that those companies outperform (by an average 5%) in the three months after a rate-boosting cycle begins. In Goldman's "High Quality Stock" basket: CMG, DLTR, PEP, KMI, BLK, GOOG, AAPL, PCLN, ORCL, WFC.
- Meanwhile, it suggests avoiding companies with high floating-rate debt as they bear the brunt of a move away from near-zero interest rate policy. "When the tightening cycle finally starts, the immediate impact will be felt by firms with high proportions of variable rate borrowing."
- Included in that "avoid" list: CL, COL, JNJ, AAPL, EBAY, MET, KO, GIS, F, MCD, GM, TWX, CVX, AGN, MON.
- (Yes, cash-rich Apple made both lists, having a strong balance sheet along with floating debt.)
Fri, Sep. 11, 9:28 AM
Thu, Sep. 10, 2:56 PM
- Though the National Football League has been battered around a bit in the headlines over the last year with player and team scandals, the league is still an advertising and sponsorship juggernaut.
- Sponsorship deals are estimated to be up 15% this year and new media deals with Twitter, YouTube, and Yahoo are also on the lucrative side.
- Consumer-facing NFL mainstays Verizon, PepsiCo (NYSE:PEP), Anheuser-Busch InBev (NYSE:BUD), and Microsoft are in again for prime exposure, while Under Armour (NYSE:UA), Danone (OTCQX:DANOY), and Adidas (OTCQX:ADDYY, OTCPK:ADDDF) will have a larger presence this season. Hyundai (OTC:HYMLF) replaces GM as the main automotive sponsor of the league as it tries to revitalize the brand in the U.S.
- The Pittsburgh Steelers play the New England Patriots tonight in the league's first regular season game.
Thu, Sep. 10, 10:33 AM
- PepsiCo (PEP -0.2%) CEO Indra Nooyi was ranked by Fortune Magazine as the second-most powerful woman in business behind only Mary Barra at GM.
- It's another feather in the cap of Nooyi who has outlived criticism over some of her strategies and the determination she has shown to keep PepsiCo united as a beverage and snacks company. Nooyi has managed to keep organic growth percolating at PepsiCo, while it adapts to modern consumer preferences.
- The scorecard is working in Nooyi's favor with PepsiCo outperforming both the S&P 500 and Coca-Cola over the last year.
- Fortune Magazine's Most Powerful Women ranking
Wed, Sep. 2, 1:11 PM
- New legislation in New York aims to ban the sale of soda drinks in servings of over 16 ounces to children under the age of 18.
- The bill from New York City assemblyman Matthew Titone is narrower in scope than ex-NYC Mayor Michael Bloomberg's efforts to ban large-sized soda drinks.
- Related stocks: MNST, KO, PEP, DPS.
Fri, Aug. 28, 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)
Wed, Aug. 19, 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.
Fri, Aug. 14, 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.
Wed, Aug. 12, 12:47 PM
- Corn prices have swung sharply lower after the USDA raised a forecast for corn production off of improved yields.
- The corn crop is seen coming in at 13.686B bushels vs. 13.53B prior forecast and 13.332B consensus estimate.
- Food sellers could see some back-half cost and feed relief if the trend holds.
- Related stocks: GIS, K, POST, KO, PEP, PPC, CPB, TSN, SEB, SJM.
- Related ETF: CORN
- USDA Crop Production report.
Fri, Aug. 7, 9:33 AM| Fri, Aug. 7, 9:33 AM | 13 Comments
Thu, Aug. 6, 11:18 AM
- Shares of PepsiCo (NYSE:PEP) are up 1% to reclaim the $100 level for the first time since February.
- The food and beverage giant is now less than a dollar from reaching a 52-week high.
- The investment by Pershing Square in Mondelez International could be a contributing factor as the tantalizing prospect of a snack tie-up with Mondelez stays in the conversation.
- PepsiCo is up 6% since reporting Q2 numbers.
Wed, Aug. 5, 9:55 PM
- Bill Ackman has built a $5.5B stake in Mondelez (NASDAQ:MDLZ), WSJ reports, betting that the snack maker will become the biggest target in a wave of consolidation reshaping the food industry.
- Ackman, who reportedly believes MDLZ must grow revenues faster and cut costs significantly or sell itself to a rival such as Kraft Heinz (NASDAQ:KHC) or PepsiCo (NYSE:PEP), is expected to reveal his firm’s ~7.5% stake as soon as tomorrow.
- Ackman’s arrival in MDLZ squeezes the food company between two of the heaviest hitters in the field, his Pershing Square and Trian Fund, co-founded by Nelson Peltz, who became a MDLZ director in January 2014 as part of a truce following another activist campaign.
Thu, Jul. 30, 2:00 PM| Thu, Jul. 30, 2:00 PM | 3 Comments
Mon, Jul. 27, 6:57 PM
- Some of the biggest and best known U.S. businesses join the Obama administration in trying to build momentum for a deal at the climate change summit in Paris later this year.
- A dozen publicly traded companies - AA, AAPL, MSFT, BAC, BRK.B, KO, GM, GS, GOOG, PEP, UPS and WMT - committed to support a “strong" outcome in Paris, and made new pledges to take a variety of steps to tackle climate change.
- For example, Alcoa says it will reduce absolute greenhouse gas emissions in the U.S. by 50% by 2025, and BRK plans to retire 75% of its coal-fueled generating capacity in Nevada by 2019.
- In addition to company-specific goals, the White House says today's announcements total at least $140B in new low-carbon investment and more than 1,600 MW of new renewable energy.
Mon, Jul. 27, 3:45 PM
- The American Beverage Association filed a lawsuit against the city of San Francisco over soda drink warning label requirements.
- The legal filing alleges San Francisco is violating first amendment rights in carrying on a one-sided dialogue.
- The ABA is also prepping to do battle in Alabama where a proposed soda tax is being considered by lawmakers.
- Advocates of a soda tax point to Mexico where consumption dropped significantly following the passing of legislation.
- Related stocks: KO, PEP, DPS.
Thu, Jul. 23, 4:08 PM
PepsiCo Inc is a food, snack and beverage company. It manufactures, markets, distributes and sells convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.
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