Seeking Alpha
 

Nestle S.A. ADR (NSRGY)

- OTCPK - Current
  • Thu, Jan. 29, 11:03 AM
    • The powerful rally in the Swiss Franc has given more M&A firepower to multinationals based in the nation, notes Bloomberg.
    • The food industry could see one of the first deals if an emboldened Nestle (OTCPK:NSRGY) decides to make a run at General Mills (GIS -1.9%).
    • A combination of Nestle and General Mills has been floated around by analysts before due to the powerful synergies that could be struck between the food giants.
    | 3 Comments
  • Sat, Jan. 17, 12:45 PM
    • Milk prices are in a downward trend with an excess of supply on the international market.
    • The supply is so far beyond expectations that some U.S. cooperatives have directed farms to pour out part of their inventory.
    • A reduced level of milk imports from China and Russia has been a factor in the market.
    • Food companies are seeing a quicker benefit from the milk price decline than consumers, although analysts anticipate lower prices at grocery and C-stores stores in 2015.
    • Milk price data (consumers) vs. milk futures chart
    • Related stocks: DF, WWAV, SJM, DF, OTCPK:NSRGY, LWAY, DNKN, MCD, SBUX, GIS, HSY, MJN,  QSR, KO, GIS,
    • Related ETFs: MOO.
    | 115 Comments
  • Dec. 18, 2014, 1:31 PM
    • Nestle (OTCPK:NSRGY) says its Nescafe Dolce Gusto unit will open a new factory in Montes Clares, Brazil next year.
    • The facility will be the first Dolce Gusto capsule producer outside of Europe.
    • Nestle expects the coffee capsule market wukk continue to see strong demand.
    | Comment!
  • Dec. 18, 2014, 7:02 AM
    • Olam's $1.3B deal to buy rival Archer Daniels Midland's cocoa processing business may reduce liquidity in the cocoa bean trade, raising concerns about volatile prices and a potential shake-up of customer relationships.
    • Olam buys around 500K tonnes of cocoa annually, and it said it will increase its processing capacity to more than 700K tonnes, or 16% of world supply, with this deal.
    • This could force users supplied by Olam to look elsewhere for many of their beans, putting a strain on prices.
    • Related stocks: MDLZ, HSY, OTCPK:NSRGY, OTC:BYCBF
    • ETFs: NIB, CHOC
    • Previously: ADM to sell global cocoa business to Olam International for $1.3B (Dec. 15 2014)
    | Comment!
  • Dec. 15, 2014, 3:53 PM
    • The EU is set to probe the plan of D.E. Master Blenders to combine with the coffee unit of Mondelez International (NASDAQ:MDLZ), according to Bloomberg.
    • The deal is slated to bring the Jacobs, Senseo, Tassimo, Carte Noir, and Douwe Egberts brand into the same company and put it in a strong market position in some key European nations.
    • The regulator is likely to seek remedies, instead of outright blocking the merger.
    • Even if the deal was struck in its current form, Nestle (OTCPK:NSRGY) would remain the world's largest coffee seller.
    | Comment!
  • Dec. 5, 2014, 4:15 PM
    • A damaging frost in Turkey has pushed up the price of hazelnuts dramatically with stockpiles low.
    • The hazelnut crisis comes on top of elevated cocoa costs for chocolate bar makers over the last two years.
    • Though chocolate prices have been lifted by producers, analysts don't see all the cost inflation being passed on to consumers.
    • Chocolate bar makers: Fererro, Mondelez International (NASDAQ:MDLZ), Hershey (NYSE:HSY), Nestle (OTCPK:NSRGY), Rocky Mountain Chocolate Factory (NASDAQ:RMCF).
    | 1 Comment
  • Nov. 14, 2014, 9:26 AM
    • Nestle (OTCPK:NSRGY, OTCPK:NSRGF) indicates it will explore strategic options for its Davigel frozen food business.
    • Analysts think a sale could bring in close to €300 ($372.4M).
    • Nestle has been going through a review process similar to that of Procter & Gamble in weening itself of lagging subsidiaries.
    | Comment!
  • Oct. 29, 2014, 6:56 AM
    • Nestle (OTCPK:NSRGY, OTCPK:NSRGF) opens a milk plant in Mexico that doesn't need water from an external source.
    • Technology created by Nestle helps pull water out of the milk pulverization as a byproduct.
    • The company says the initiative will help it cut costs across Mexico by reducing water usage by 15% and could be rolled out in other regions.
    | 1 Comment
  • Oct. 16, 2014, 6:47 AM
    • Nestle (OTCPK:NSRGY, OTCPK:NSRGF) says it's on "high alert" over the potential impact of the Ebola disease in West Africa.
    • The company sources a good portion of its cocoa from Ivory Coast which is on a World Health Organization Ebola watch list.
    • Cocoa future are up 16.6% over the last month.
    • Shares of Nestle fell in Zurich trading after the company reported a drop in 2014 9-month sales.
    • Related ETF: NIB, CHOC.
    | 1 Comment
  • Sep. 19, 2014, 8:59 AM
    | Comment!
  • Sep. 17, 2014, 3:44 PM
    • Nestle (OTCPK:NSRGY, OTCPK:NSRGF) plan to increase its investment in South Africa.
    • The company has $200M earmarked for increasing capacity at a coffee facility and other consumer goods factories in the nation.
    • Africa accounts for 4% of Nestle's sales, a mark that the multinational's top exec in the region thinks could grow to 10%.
    | Comment!
  • Sep. 4, 2014, 7:42 AM
    • Nestle (OTCPK:NSRGY, OTCPK:NSRGF) strikes a deal with French regulators over competing capsules for its Nespresso machines.
    • The Swiss company will give four months notice to Nespresso capsule sellers of any technical changes to its machines and make new prototypes available for research.
    • New entrants such as Mondelez International and Ethical Coffee have cut into Nestle's dominant share of the capsules for its Nespresso machines.
    | 3 Comments
  • Aug. 7, 2014, 9:31 AM
    | Comment!
  • Aug. 7, 2014, 6:54 AM
    • Nestle (OTCPK:NSRGY, OTCPK:NSRGF) plans to initiate a $8.8B share buyback that will be subject to market conditions and strategic opportunities.
    • It will be the company's first buyback program in three years.
    • The program will begin this year and run into next year.
    • Analysts note that the size of the buyback doesn't take M&A off the table for Nestle.
    | Comment!
  • Jul. 11, 2014, 9:54 AM
    • Unilever's (UL -0.2%) sale of Slim Fast confirms the sluggish growth trends being seen by diet food brands.
    • Healthy Choice (CAG), Lean Cuisine (NSRGY), Weight Watchers (WTW), and Jenny Craig have all struggled to keep up with expectations.
    • What to watch: The push by consumers into healthier foods such as Greek yogurt has marginalized the concept of a "hard diet" based on self-denial. Analysts think the diet category could continue to suffer as a consequence.
    | 5 Comments
  • Jul. 2, 2014, 3:50 AM
    • In another move trimming its food product line, Nestle (NSRGY, NSRGF) has sold Juicy Juice to buyout firm Brynwood Partners for up to $200M. The Swiss giant has been facing heavy competition in its food products sector, and has been selling off businesses having a rough time retaining market share.
    • The $7.3B juice market Nestle competes in has been shrinking by about 3% a year since 2011, and annual sales of Juicy Juice have fallen to approximately $275M, from more than $500M seven years ago.
    • Nestle is now trying to focus on faster-growing parts of its beverage business, like Nesquik and Coffee-mate.
    | Comment!
NSRGY vs. ETF Alternatives
Company Description
Nestle S.A. is a holding company which is based in Switzerland. Nestle has the ambition to be the leading Nutrition, Health and Wellness company by offering tastier and healthier products to consumers. Nestle has a unrivalled portfolio of brands and products that are present in the day-to-day... More