Sat, Feb. 14, 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.
Mon, Feb. 2, 10:57 AM
- A consumer group in Germany calls on the German Federal Ministry of Food, Agriculture and Consumer Protection to reclassify energy shots and ban energy drinks sales altogether to anyone under the age of 18.
- Red Bull and Monster Beverage (MNST -0.5%) are both active sellers in the region.
- Energy drinks have been a focus of health organizations across Europe over the last year.
Wed, Jan. 14, 11:25 AM
- Cowen Research upgrades Monster Beverage (MNST +3.2%) to an Outperform rating.
- The investment firm sets a price target of $140, up from a prior level of $106.
- Monster Beverage held an investor meeting yesterday.
- Execs spent some time during their talk discussing grocery store positioning and the company's relationship with bottlers.
- New partner Coca-Cola will bring Monster the scale it needs in many new markets, say execs.
- China is a strategic market for Monster even with Red Bull already firmly entrenched.
- Investor meeting webcast
Tue, Jan. 6, 4:16 PM
- GasBuddy.com projects gas prices will average $2.64 per gallon in 2015.
- Most economists see a boost in U.S. retail spending from the gas savings with the exception of regions highly dependent upon the energy industry.
- While some Q4 reports from restaurant chains and retailers may show a marginal lift in sales due to the drop in gas prices, insiders think quantifying the impact will be more art than science.
- The following sub-sectors have been tapped by analysts as potential under-the-radar beneficiaries of the gas price effect.
- C-stores:KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA.
- Theme parks: SIX, FUN, DIS, CMCSA, PLAY.
- Beverages: KO, PEP, COT, DPS, BUD, SAM, BREW, TAP, MNST.
Tue, Jan. 6, 2:51 PM
- Beverage sales in convenience stores rose 3.6% Y/Y for a 4-week period ending on December 28, according to data culled by Wells Fargo.
- Sales for Coca-Cola (KO +1.2%) products were up 4.8%, while PepsiCo soda items saw a 2.4% bump.
- On the energy drink front, Monster Beverage (MNST +3.4%) sales were up 12.4% and Red Bull gained 8.3%.
- A drop in gas prices in the U.S. and some successful pricing initiatives in the sector helped stoke the gain, says WF's Bonnie Herzog.
Tue, Jan. 6, 1:57 PM| 2 Comments
Dec. 23, 2014, 7:25 PM
- It’s pretty clear why many energy stocks are hurting amid falling crude oil prices, but Morgan Stanley has researched across industries to determine some less clear-cut winners and losers.
- Airlines consume huge amounts of fuel, but the firm says American Airlines (NASDAQ:AAL) and Allegiant Travel (NASDAQ:ALGT) should benefit more than most from lower oil prices since they do not hedge the price of fuel to reduce price volatility.
- Among autos, Tesla (NASDAQ:TSLA) draws concern because "lower-for-longer oil certainly hurts the case for mass-market adoption of electric vehicles.”
- Since lower gas prices should reduce shipping costs, Stanley sees the benefit trickling into Q1 per-unit shipping costs at Amazon (NASDAQ:AMZN).
- The firm likes Monster Beverage (NASDAQ:MNST) on the idea that Americans getting cheaper gas might be more ready to splurge on energy drinks, and gas stations and convenience stores account for 75% of MNST’s sales.
- Among apparel companies and retailers, Stanley likes brands that are most popular with lower-income consumers, who they believe are most likely to put the money they save into new purchases: PLCE, FL, FINL, BWS, SKUL, ARO, BURL, ROST.
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Sep. 11, 2014, 3:05 PM
- The convenience store channel performed well for soda drink and energy drink sellers in August, according to data from Wells Fargo.
- Packaged beverage sales rose 4% Y/Y during the period, a pace which has extended into Q4 and beats the overall volume growth seen in the U.S. market this year for the beverage industry.
- Related stocks: PepsiCo (NYSE:PEP), Coca-Cola (NYSE:KO), Monster Beverage (NASDAQ:MNST), Dr. Pepper Snapple (NYSE:DPS).
Sep. 8, 2014, 11:05 AM| 1 Comment
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