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.
Feb. 14, 2015, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Jan. 7, 2015, 10:59 AM
- Most investment firms weighing in think PepsiCo (PEP +2.3%) is too big of a target for 3G to land as they dissect the WSJ report on interest in the multinational.
- Campbell Soup (CPB +4.3%) is trading like it's viable 3G target, while Kellogg K, and Kraft Food Group (KRFT +2.1%) have also been bandied around by retail analysts as possibilities.
- Outside of the food sector, Bloomberg's Tara Lachappelle notes Colgate-Palmolive (CL +0.2%) makes sense for 3G.
Jan. 7, 2015, 7:12 AM
- Shares of Campbell Soup (NYSE:CPB) and PepsiCo (NYSE:PEP) are on watch after the WSJ reports 3G is discussing trying to acquire a major food company.
- Sources indicate the massive size of PepsiCo deal could prompt a partial buyout or a bid in tandem with Aneuser-Busch InBev (NYSE:BUD).
- PEP +0.8% premarket, CPB inactive.
Oct. 13, 2014, 12:34 PM
- Anheuser-Busch InBev (BUD +0.7%) has considered the benefits of a merger with PepsiCo (PEP +0.6%), sources tell Bloomnberg.
- Though no talks between the consumer product giants are in the works, the culture of sector-rattling mergers at A-B keeps PepsiCo on a short list of takeover candidates.
- The most obvious synergy a BUD-PEP combination would create is a shared global distribution network which some analysts think would add more to the bottom line than a SABMiller buyout for the brewer.
Aug. 13, 2014, 9:59 AM
- Shares of Chiquita Brands (CQB +1.1%) are now 4.3% higher than the offer price the company received from Cutrale Group and Safra Group as investors bet on a bigger banana buyer showing up down the road.
- MKM Partners thinks it will take an offer of $16 per share to get Chiquita to bite.
- PepsiCo (PEP +0.1%) and Fresh Del Monte Produce (FDP) have been thrown out as potential bidders.
May 14, 2014, 7:55 AM
- SodaStream (SODA) is in focus after a stumble in the U.S. drives home that the company is having some trouble penetrating the region to the same degree as other markets.
- Guidance from SodaStream is for a FY14 revenue to increase by 15% to $647.11M vs. $639.3M consensus.
- The company sees FY14 net income improving by 3% Y/Y to $42M.
- What to watch: Weakness by SodaStream in the U.S. is almost sure to drive out more speculation on a major beverage player buying out the Western Europe juggernaut. Pepsico (PEP) and Starbucks (SBUX) top the list.
- SodaStream earning call webcast 7:30 EST.
- SODA -3.3% premarket
Jul. 17, 2013, 3:19 PM
Jul. 17, 2013, 7:27 AM
A timeframe that Nelson Peltz has given to PepsiCo (PEP) to consider the activist shareholder's suggestions has reportedly ended. Proposals include acquiring Mondelez (MDLZ), strategic options for PepsiCo's North American drinks business and more cost-cutting. Some believe that if the company hasn't adequately address Peltz's concerns, he could go public. A CNBC interview this afternoon could prove interesting.| Jul. 17, 2013, 7:27 AM | 2 Comments
Jun. 6, 2013, 6:53 AM
Pepsico (PEP) CEO Indra Nooyi pours some cold water on rumors the company is putting together a bid to buy SodaStream (SODA). The exec says it was the "first time" she has heard of the notion. In the past, Nooyi has been a strong proponent that organic growth opportunities still exist at the multinational. SODA +13.9% premarket.| Jun. 6, 2013, 6:53 AM | 6 Comments
Jun. 6, 2013, 6:38 AMSodaStream (SODA +26% to $87.01) shares froth effervescently following a report that PepsiCo (PEP) is in negotiations to acquire the Israeli company for $2B or more and is willing to pay up to $95/share. Barclays says that a deal would be "earlier cycle than we would have thought." | Jun. 6, 2013, 6:38 AM
Jun. 6, 2013, 3:52 AMThe hot rumor on Tuesday was that Coca-Cola in interested in buying SodaStream (SODA); today's hot speculation is that PepsiCo (PEP) is in negotiations to acquire the Israeli company for $2B or more, well above its market cap of $1.43B. PepsiCo could even be willing to pay as much as $95 a share, or 37% more than SodaStream's close of $69.35 yesterday. However, the latter also wants to check its options with Coca Cola. | Jun. 6, 2013, 3:52 AM | 6 Comments
Apr. 29, 2013, 1:07 PMSpeculation that PepsiCo (PEP +0.3%) will either snap up Mondelez International (MDLZ +0.2%) and spin off a new snack company or explore combination opportunities with Anheuser-Busch InBev (BUD +1.5%) continues to swirl around to affect the conversation on the stock. Though the company hasn't tipped off anything big in nature, PepsiCo CEO Indra Nooyi did tease about exploring "structural options" for the North American beverage business during the firm's recent earnings call. (transcript) | Apr. 29, 2013, 1:07 PM | 1 Comment
Apr. 26, 2013, 6:51 PM
Pepsi (PEP) is unlikely to buy Mondelez (MDLZ), according to reports in dealReporter, as PEP appears likely to stick with "healthy" food options, and expressed concern about antitrust issues. Rumors about a deal surfaced last week when investor Nelson Peltz disclosed he had taken a stake in both companies.| Apr. 26, 2013, 6:51 PM | 5 Comments
Apr. 19, 2013, 8:29 AM
Nelson Peltz discloses stakes in Mondelez (MDLZ) and PepsiCo (PEP), following earlier reports the billionaire could be pushing for a merger of the food giants, and PEP says it has held meetings with Peltz's Trian Fund Management in recent weeks to consider its "ideas and initiatives" for long-term growth. Trian says it owned 3.9M PEP shares and 19.4M shares in MDLZ as of Dec. 31. MDLZ +2.3%, PEP +0.8% premarket.| Apr. 19, 2013, 8:29 AM | 5 Comments
Apr. 17, 2013, 10:11 AM
More analysis on the rumored PepsiCo (PEP) - Mondelez International (MDLZ -0.8%) combination (previous): JPMorgan's John Faucher is a major skeptic that PepsiCo will be willing to merge Frito-Lay with Mondelez even with activist investors on the scene. The analyst notes a tax-advantaged Reverse Morris Trust transaction is unlikely due to the size of the potential deal while an outright buy of MDLZ would be too pricey.| Apr. 17, 2013, 10:11 AM | 11 Comments