Mon, Jun. 1, 12:49 PM
- Iconic food and beverage brands continue to grow out of favor with U.S. consumers, according to a new report from Rabobank.
- Many Q1 earnings reports tipped off weakness at well-known F&B brands.
- The bank notes that the increasing purchase power of the millennial generation is a major factor in the shift as e-commerce accounts for a higher mix of purchasing.
- A willingness of major retail chains such as Target (NYSE:TGT), Kroger (NYSE:KR), and Costco (NASDAQ:COST) to attempt to differentiate themselves with new concepts and products has also contributed to well-known brands slipping.
- Rabobank thinks major food and beverage players can still show strong growth rates if they are nimble with their strategy and use M&A wisely to catch fresh brands on the upswing.
- Related stocks: K, GIS, CPB, MDLZ, PEP, KO, HSY, SJM, DPS, KRFT, OTCPK:NSRGY, OTCPK:NSRGF.
Mon, May 18, 7:10 AM
- Target (NYSE:TGT) has told several major suppliers it will devote less optimal shelf space to packaged foods in favor or promoting healthier food items.
- Companies that could be impacted by the change include Kellogg (NYSE:K), General Mills (NYSE:GIS), and Campbell Soup (NYSE:CPB).
- Previously: Battle for fresh food sales to take new direction (Mar. 24 2015)
- Previously: Retail heavyweights to show their hands (May. 16 2015)
Tue, May 5, 8:19 AM
- Kellogg (NYSE:K) reports sales in the U.S. Morning Foods segment fell 2.9% Y/Y to $776M in Q1, despite what it calls "improving trends" with cereal.
- U.S. Snacks revenue was -1.2% to $854M.
- U.S. Specialty sales -3% to $361M.
- Operating profit in North America was off 9.9% due to lower sales volume.
- The company struck a currency-neutral sales gain of 1% in Europe with Pringles demand high.
- Latin America sales were up 6.3% before F/X factored in.
- K +1.36% premarket to $65.00.
- Previously: Kellogg beats by $0.06, beats on revenue
Tue, May 5, 8:02 AM
Mon, May 4, 5:30 PM
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Fri, Apr. 24, 11:09 AM| Fri, Apr. 24, 11:09 AM | 3 Comments
Tue, Apr. 21, 3:11 PM
- S&P Ratings revises its outlook on Kellogg (K -1%) to Negative from Stable.
- The company's corporate credit rating stays at BBB+.
- S&P has a cautious view on Kellogg due to the risk that slow cereal sales growth will continue to chip away at operating performance.
- The Project K initiative from the food company could also pile on extra costs.
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
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)
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%).
Mon, Mar. 2, 7:54 AM
- RBC Capital Markets thinks Mondelez International (NASDAQ:MDLZ), Kellogg (NYSE:K), or Kraft Foods (NASDAQ:KRFT) would make a logical acquisition for Berkshire Hathaway after reading Warren Buffett's annual shareholder letter.
- Buffett was very active in the food sector previously as a backer of 3G in the acquisitions of Heinz and in the Tim Hortons-Burger King combination.
- Previously: Buffett, Munger talk succession and more in annual letters (Feb. 28 2015)
- Previously: Buffett talks to CNBC after annual letter
Fri, Feb. 20, 1:36 PM
Thu, Feb. 12, 9:21 AM
- Kellogg (NYSE:K) is getting punished in early trading for missing Q4 earnings estimates and setting 2015 guidance below expectations.
- Weakness in Q4 was led by the U.S. Morning Foods segment (Special K, Raisin Bran, Rice Krispies, Apple Jacks, Froot Loops) which posted a 7.7% decline in comparable sales.
- The long-term sales target from the company might be of the most concern to investors.
- Kellogg is now calling for revenue growth of 1% to 3% vs. a prior target of 3% to 4%.
- Operating profit is still expected to grow at a mid-single-digit rate over the long-term.
- K -5.16% premarket to $62.88.
Thu, Feb. 12, 8:39 AM
Wed, Feb. 11, 5:30 PM
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