Aug. 14, 2014, 4:51 PM
- Coca-Cola (NYSE:KO) is acquiring a 16.7% stake in Monster Beverage (NASDAQ:MNST) as part of a strategic alliance. Coke will make a $2.15B net cash payment to Monster at the time of the deal's closing, which is expected in late 2014 or early 2015.
- As part of the deal, Monster will transfer its non-energy businesses to Coke, and "enter into expanded distribution agreements." Monster will transfer its Hansens Natural Sodas, Peace Tea, Huberts Lemonade and Hansens Juice Products brands, among others.
- At the same time, Coke will "transfer ownership of its worldwide energy business, including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless," to Monster.
- Coke will have two directors on Monster's board. The partnership follows Coke's February deal with Keurig Green Mountain. Coke: "Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category."
- Monster: "Our agreement enables us to focus on our core energy business, while leveraging the strength of The Coca-Cola Companys powerful distribution and bottling system on a worldwide scale."
- MNST +25.6% AH.
Aug. 14, 2014, 3:38 PM
- Tiger Global Management was active in buying and exiting positions in consumers stocks over the last quarter, according to th hedge fund's most recent filing.
- New positions: Netflix (NASDAQ:NFLX), Vera Bradley (OTC:VERA), Coca-Cola (NYSE:KO).
- Increased: 21st Century Fox (NASDAQ:FOXA) to 19.26M shares; Restoration Hardware (NYSE:RH) to 3.193M shares.
- Maintained: Burger King (NYSE:BKW) at 7.2M shares, MasterCard (NYSE:MC) at 3.44M shares, Dollar General (NYSE:DG) at 7.893M shares.
- Exits: SodaStream (NASDAQ:SODA), Kate Spade (NYSE:KATE), Carter (NYSE:CRI).
- SEC Form 13F
Aug. 8, 2014, 12:36 PM
- Research from Moody's indicates diet soda sales are in a protracted slump that could continue.
- Diet and low-calorie soda sales fell 5% Y/Y in 2013 and the trend has persisted in 2014.
- Bottled water and energy drinks will provide some of the lost volume as beverage companies adjust, according to Moody's.
- Related stocks: PEP, KO, DPS, MNST.
Aug. 6, 2014, 1:54 PM
- A number of consumer staples stocks are in favor with investors as they shift their focus to a defensive posture and dividend yields.
- Some of the names showing outsized gains include PepsiCo (PEP +1.5%), Clorox (CLX +1.6%), Revlon (REV +1.6%), Colgate-Palmolive (CL +1.5%), Coca-Cola (KO +1.6%), Kraft Foods Group (KRFT +2%), and Procter & Gamble (PG +1.7%).
- It's no coincidence that the Consumer Staples ETF (NYSEARCA:XLP) is up 0.8% for the day to best market averages.
Aug. 5, 2014, 4:02 PM
- Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP) plan to offer more mini-can products as a way to stoke volume growth.
- The category has done well as some consumers replace drinking diet versions of their favorite soda with a smaller-sized bottle or can.
- A higher mix of mini-can sales is a margin-booster for the companies with the per-ounce revenue almost double for mini cans than regular cans.
Aug. 5, 2014, 12:08 PM
Aug. 4, 2014, 12:22 PM| Comment!
Jul. 28, 2014, 3:31 PM
- A number of consumer goods companies that sell widely to retail chains are under-performing market indexes today after Dollar Tree announced it will buy out Family Dollar.
- Consolidation in the retail sector could give some leverage to the store chains as their scale broadens, according to Belus Capital Advisors' Brian Sozzi.
- On watch: PepsiCo (PEP -0.7%), Coca-Cola (KO -0.7%), Kraft Foods (KRFT -0.1%), Procter & Gamble (PG -0.4%), Colgate-Palmolive (CL -0.3%), Energizer Holdings (ENR -0.8%), Kimberly-Clark (KMB -0.3%).
- Related ETFs: XLP, VDC, FXG, IYK, RHS, FSTA, UGE, SZK
Jul. 23, 2014, 4:11 PM
- Wintergreen Advisors CEO David Winters shared his 11-point plan with Coca-Cola's (NYSE:KO) largest owners earlier this month, and makes it available to the public today on FixBigSoda.com.
- Among the items are improving margins ("stuck at 26% for the past three years"), a laser-like focus on costs, an increased pace of bottler refranchising, no more attempts to buy growth, and - of course - suggestions on improving corporate governance.
Jul. 23, 2014, 8:29 AM
- PepsiCo (NYSE:PEP) +2.2% premarket after beating expectations for Q2 earnings and revenues and raising its full-year earnings outlook.
- PEP now sees FY 2014 EPS of ~$4.53, up 8% Y/Y vs. a prior forecast of 7% growth, and reaffirms revenue guidance of growth in the mid-single digits vs. 2013, based on the strength of YTD results and its outlook for the rest of the year; currency translation effects are expected to have a negative impact of ~4% on 2014 EPS growth.
- For Q2, volumes in the beverage and snack categories rose 1% and carbonated soft drink volume in the North American market fell 2%, a day after rival Coca-Cola (NYSE:KO) said its North American soda volumes were flat in the quarter.
- The Americas foods business posted $6.07B in revenue, up less than 1%, as Frito-Lay North America sales rose 1.7%; Latin America foods sales were relatively flat at $2.12B, and Quaker Foods North America sales fell 2.3%.
- Gross margin rose to 54% from 53%; input costs fell 1.5% to $7.78B.
Jul. 22, 2014, 9:58 AM
- Coca-Cola (KO -2.6%) opens sharply lower after Q2 revenues fell Y/Y and finished below expectations as North America sales declined for the second straight quarter.
- Q2 global unit case volume grew 3% Y/Y but was flat in North America, despite increased marketing around the World Cup and the launch of the "Share a Coke" campaign; J.P. Morgan analysts had expected volumes to gain 1%-2% in North America, which accounted for 45% of total Q2 revenue.
- On the bright side, gross margin widened to 61.7% as input costs declined 3.4% from a year earlier.
- KO also says adjusted earnings would be hurt by $0.02 in H2 due to the restructuring of its juice operations in Russia and the separation of its Brazilian bottling operations last year.
Jul. 22, 2014, 7:36 AM
Jul. 21, 2014, 5:30 PM
Jul. 17, 2014, 3:06 AM
- The Coca Cola Company (NYSE:KO) has announced that it will continue to invest approximately $1B a year into its Mexican operations.
- "For the last 10 years the Coca Cola System has invested an average of $1B a year and we are reaffirming that promise until 2020," says President of Coca Cola Mexico Francisco Crespo.
- Mexico is the company's largest market outside the U.S.
Jul. 15, 2014, 3:40 PM
Jul. 8, 2014, 3:11 PM
- The soda tax movement could meet its Waterloo in the San Francisco Bay area if tax initiatives in the cities of San Francisco and Berkeley fail to gain enough votes to pass.
- Beverage industry analysts think a loss in the two cities in November would take the fizz out of the push for a per-ounce tax on soda.
- The $0.02-per-ounce tax proposal in San Fran would take a two-thirds vote to pass.
- Beverage giants Coca-Cola (KO), PepsiCo (PEP), and Dr. Pepper Snapple (DPS) haven't take the issue lightly, backing groups which lobby for their side.
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