Mon, Apr. 13, 1:06 PM
- Wal-Mart's (WMT) strategy to increasing pricing pressure on suppliers is likely to be felt by some consumer products giants.
- Though larger suppliers have more leverage with Wal-Mart than smaller companies, an impact on margins could still be felt.
- Listed below are the estimated annual revenue and percentage of total revenue derived from the Bentonville retail giant for some CPG firms.
- Procter & Gamble (NYSE:PG): $12B to mark 14% of total revenue.
- PepsiCo (NYSE:PEP): $8B, 12% of total revenue.
- Kraft Foods (NASDAQ:KRFT): $4.7B, 26% of total revenue.
- Kellogg (NYSE:K): $3.1B, 21% of total revenue.
- Campbell Soup (NYSE:CPB): $1.6B, 19% of total revenue.
- J.M. Smucker (NYSE:SJM): $2.35B, 30% of total revenue.
- Clorox (NYSE:CLX): $1.5B, 26% of total revenue.
- Hillshire Brands (NYSE:TSN): $1.1B, 27% of total revenue.
- Keurig Green Mountain (NASDAQ:GMCR): $799M, 17% of total revenue.
- Energizer (NYSE:ENR): $748M, 17.2% of total revenue.
- Tootsie Roll (NYSE:TR): $129M. 23.7% of total revenue.
- Data compiled by the Cincinnati Enquirer
Mon, Mar. 30, 8:29 AM| 3 Comments
Thu, Mar. 26, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Wed, Mar. 25, 5:57 PM
Wed, Mar. 25, 7:07 AM
- Food stocks could see a lift today after a high-profile merger between Kraft and Heinz was announced.
- The sector has been identified by analysts as a likely hotbed for consolidation.
- Early premarket gainers include Mondelez International (NASDAQ:MDLZ) +2.1%, General Mills (NYSE:GIS) +1.0%, and Campbell Soup (NYSE:CPB) +0.4%.
- Previously: Kraft, Heinz announce merger
Mon, Mar. 9, 7:37 AM
- Wheat prices took a sharp turn lower last week as traders weighed the large amount of global supply versus a tightening of demand in the U.S.
- Prices have recovered a bit today in front of a Department of Agriculture report, but are expected to see more downward pressure.
- The development should bring some relief for food companies as supplying contracts are reworked.
- Related stocks: SJM, FLO, CAG, POST, CPB, GIS, K, PEP, BUD.
- Related ETF: WEAT.
- Wheat daily price wheat chart.
Tue, Mar. 3, 10:33 AM
- Target (TGT -1.2%) plans to increase the focus on key grocery categories to bring in younger urban shoppers, reports the WSJ.
- Sources say organic food, craft beer, yogurt, and coffee will all see an increase in prominence.
- The shift could mean less shelf space for well-known brands from packaged food giants such as Kellogg (K -0.7%), Post Holdings (POST -1.7%), Campbell Soup (CPB -0.1%), and General Mills (GIS -0.5%).
Wed, Feb. 25, 7:27 AM
- Campbell Soup (NYSE:CPB) reports organic sales were flat in FQ2 as improved volume and mix were offset by higher promotional spending.
- Segment operating earnings: U.S. Simple Meals $170M, Globla Baking and Snacking $107M, International Simple Meals and Beverages $26M, U.S. BEverages $20M.
- The company's gross margin rate fell 310 bps to 32.6%, due in part to cost inflation and the elevated promotional spending.
- Marketing and selling expenses -10% to $242M.
- Guidance: FY15 sales growth of -1% to +1% expected and EPS of $2.32-$2.38 vs. $2.39 consensus.
- Previously: Campbell Soup EPS and revenue in-line
Wed, Feb. 25, 7:17 AM
Tue, Feb. 24, 5:30 PM
Wed, Feb. 18, 10:55 AM
- Campbell Soup (CPB +0.7%) announced new cost-cutting initiatives during its presentation at the CAGNY conference.
- The company thinks management reorganization and expense tightening can lead to cost savings of 2% to 3% of annual revenue.
- Execs reiterated that divisions will be separated by products instead of geography.
- Expanding into fast-growing space will still be a priority at Campbell.
- Watch for a new line of premium cold pressed juices to be unveiled in a few months.
- Campbell Soup CAGNY webcast
Fri, Feb. 13, 8:40 AM
- Bank of America weighs in on the guidance cut by Campbell Soup (NYSE:CPB).
- Analysts weren't caught off-guard by the warning from Campbell after digesting the cadence in the sector, but see "limited upside" for shares due to the persistent headwinds.
- BofA cuts its 2015 EPS outlook on CPB to $2.36 from $2.44 and 2016 EPS to $2.53 from $2.60.
- Previously: Campbell Soup cuts guidance, shares -4.5% after-hours (Feb. 12 2015)
Thu, Feb. 12, 5:28 PM
- Campbell Soup (NYSE:CPB) -4.5% AH after lowering guidance for its FQ2 and the full year ending in August, partly due to foreign currency translation.
- CPB now sees FQ2 EPS of $0.65-$0.66 vs. $0.68 analyst consensus, revenues falling 2% to ~$2.24B and in line with consensus, and adjusted EBIT declining by ~17%.
- For FY 2015, CPB lowers EPS to $2.32-$2.38 from earlier guidance of $2.42-$2.50 and below $2.45 consensus, while seeing revenues rising or falling by ~1% to $8.19B-$8.35B vs. $8.2B consensus, reflecting the negative impact of currency translation; excluding the forex impact, sales guidance is unchanged.
- CPB had already lowered its outlook in November, pointing to currency volatility.
Thu, Feb. 5, 9:08 AM
- Kraft Foods (NASDAQ:KRFT) has found a vibrant channel for its Velveeta brand in dollar stores.
- The company was very close to pulling the plug on the product last year amid soft grocery store sales.
- General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) are also exploring selling more brands in dollar stores due to the potential for higher profit margins in certain categories.
- The development could aid the dollar store group (DLTR, DG, FDO) which has lost some quick-stop grocery market share to convenience stores.
Thu, Jan. 29, 9:42 AM
- Campbell Soup (CPB -0.5%) announces it will reorganize its business across lines of products instead of geographic segments.
- The three segments will be Americas simple meals and beverages, global biscuits and snacks, and packaged fresh.
- The company also reset its management team for each new division.
- Though M&A speculation persists on Campbell Soup, the new business split also sets its up for a spinoff in the future.
Mon, Jan. 12, 10:45 AM
- Citigroup downgrades a number of food stocks on its view higher consumer spending in the sector may already by priced into share prices.
- Exposure to global markets also poses a risk due to currency swings and uneven demand, say analysts.
- The investment firm takes the rating on ConAgra (CAG -1%), Mondelez International (MDLZ -0.8%), and Kellogg (K -0.9%) to Neutral from Buy.
- McCormick & Company (MKC -0.8%), Kraft Foods Group (KRFT), and Campbell Soup (CPB) are all moved to Sell from Neutral.
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