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.
Thu, Sep. 8, 9:31 AM
- Mary Barra and Indra Nooyi were named the two most powerful women in business by Fortune in a repeat of last year's ranking.
- Nooyi has held the top spot at PepsiCo (NYSE:PEP) for ten years, while Barra took over the CEO position at GM in 2013.
- Both execs have received high marks from Wall Street, although GM's stock price has been a disappointment.
- "We do believe that General Motors stock is undervalued. We think the most important thing we can do is just keep putting results on the board, quarter after quarter, year after year, while demonstrating that we have a strong future with the technologies that everyone understands are transforming this industry," says Barra.
- Though PepsiCo has outperformed Coca-Cola on a YTD, one-year, and five-year basis - some investors continue to clamor for a separation of the food and beverage businesses.
Wed, Sep. 7, 2:12 PM
- PepsiCo (PEP -0.8%) reaffirmed FY16 guidance ahead of a presentation at the Back to School conference.
- The company expects organic revenue growth of 4% and sets FY16 EPS guidance at $4.71 vs. $4.76 consensus.
- Susquehanna analyst Pablo Zuanic lowered his price target on PepsiCo to $108 from $114 in part as an adjustment to the thinner food and beverage sector multiple.
- "Downside risks would come from deterioration in revenue growth in a challenging macroeconomic environment, as well as if the company failed to deliver on 2016 guidance and long-term profit margin targets," writes Zuanic in a fresh note to investors.
- "Upside risks would come from any outside actions such as the role of activists and private equity as the FMCG industry further consolidates," he adds.
Tue, Aug. 30, 3:26 PM
- PepsiCo (PEP -0.8%) introduces a new organic version of Gatorade without any artificial ingredients.
- G Organic is already being sold in a few Kroger stores, with a broader roll-out across more retail chains planned for the next few weeks.
- The suggested retail price for the 16.9-ounce drink is $1.60 per bottle, compared to $1.19 for regular gatorade.
- Gatorade already claims about 70% of the sports drink market to easily outdistance Coca-Cola's Powerade line.
Tue, Aug. 30, 8:01 AM
- Mondelez International (NASDAQ:MDLZ) is higher after the company announced it pulled out of discussions with Hershey.
- Susquehanna analyst Pablo Zuanic thinks if the company wants to expand its confectionary and snacks footprint a merger with a European name (Lotte, Ferrero, or Perfetti Van Melle) or a smaller natural/organic player might make senses.
- Zuanic calls a merger with PepsiCo (NYSE:PEP) more of a long shot and in the end thinks a takeover by Kraft Heinz (NASDAQ:KHC) might be the end result.
- MDLZ +3.21% premarket to $44.42.
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.