Fri, Aug. 28, 2:27 AM
- According to forecasts from Beverage Marketing, bottled water sales volume grew at a rate of 7% in the U.S. last year to put it on pace to outsell soda by 2017.
- That's not necessarily all bad news for Coca-Cola (NYSE:KO), Pepsi (NYSE:PEP) and Nestle (OTCPK:NSRGY), which offer several bottled water brands, though it's not an ideal trend.
- The wholesale gallon price of water fell 25% over the past decade compared to a 33% rise in soda prices, and more companies continue to pour into the market.
- Previously: Beverage companies shift focus to water (Jan. 15 2014)
Wed, Aug. 19, 11:38 AM
- Large food companies need to focus on bold M&A and innovation actions over recharging iconic brands, concludes Rabobank in a new report on the sector.
- A shift in consumer preferences has sparked a need to introduce new brands which are on trend - instead of focusing on "innovation-lite" and product reformulation strategies. Buying promising brands at an earlier stage than normal is seen as a forward-thinking strategy.
- Related stocks: KHC, MDLZ, PEP, KO, OTCPK:NSRGY, OTCPK:NSRGF, WWAV, HAIN, K, GIS, POST, CPB, PF, THS.
Fri, Aug. 14, 1:44 PM
- Nestle (OTCPK:NSRGY, OTCPK:NSRGF) or General Mills (GIS +0.5%) could make a run at Mondelez International (MDLZ +0.9%) with Berkshire Hathaway and 3G effectively taking themselves out of the bidding process for a few years due to the Kraft-Heinz merger, speculates The Deal.
- A buyer of Mondelez will have to be heavy hitter due to the company's estimated enterprise value of +$90B. PepsiCo (PEP +0.3%) fits the bill and has Nelson Peltz backing the play, but has a board and CEO seemingly uninterested.
Wed, Aug. 12, 12:47 PM
- Corn prices have swung sharply lower after the USDA raised a forecast for corn production off of improved yields.
- The corn crop is seen coming in at 13.686B bushels vs. 13.53B prior forecast and 13.332B consensus estimate.
- Food sellers could see some back-half cost and feed relief if the trend holds.
- Related stocks: GIS, K, POST, KO, PEP, PPC, CPB, TSN, SEB, SJM.
- Related ETF: CORN
- USDA Crop Production report.
Fri, Aug. 7, 9:33 AM| 13 Comments
Thu, Aug. 6, 11:18 AM
- Shares of PepsiCo (NYSE:PEP) are up 1% to reclaim the $100 level for the first time since February.
- The food and beverage giant is now less than a dollar from reaching a 52-week high.
- The investment by Pershing Square in Mondelez International could be a contributing factor as the tantalizing prospect of a snack tie-up with Mondelez stays in the conversation.
- PepsiCo is up 6% since reporting Q2 numbers.
Wed, Aug. 5, 9:55 PM
- Bill Ackman has built a $5.5B stake in Mondelez (NASDAQ:MDLZ), WSJ reports, betting that the snack maker will become the biggest target in a wave of consolidation reshaping the food industry.
- Ackman, who reportedly believes MDLZ must grow revenues faster and cut costs significantly or sell itself to a rival such as Kraft Heinz (NASDAQ:KHC) or PepsiCo (NYSE:PEP), is expected to reveal his firm’s ~7.5% stake as soon as tomorrow.
- Ackman’s arrival in MDLZ squeezes the food company between two of the heaviest hitters in the field, his Pershing Square and Trian Fund, co-founded by Nelson Peltz, who became a MDLZ director in January 2014 as part of a truce following another activist campaign.
Thu, Jul. 30, 2:00 PM| 3 Comments
Mon, Jul. 27, 6:57 PM
- Some of the biggest and best known U.S. businesses join the Obama administration in trying to build momentum for a deal at the climate change summit in Paris later this year.
- A dozen publicly traded companies - AA, AAPL, MSFT, BAC, BRK.B, KO, GM, GS, GOOG, PEP, UPS and WMT - committed to support a “strong" outcome in Paris, and made new pledges to take a variety of steps to tackle climate change.
- For example, Alcoa says it will reduce absolute greenhouse gas emissions in the U.S. by 50% by 2025, and BRK plans to retire 75% of its coal-fueled generating capacity in Nevada by 2019.
- In addition to company-specific goals, the White House says today's announcements total at least $140B in new low-carbon investment and more than 1,600 MW of new renewable energy.
Mon, Jul. 27, 3:45 PM
- The American Beverage Association filed a lawsuit against the city of San Francisco over soda drink warning label requirements.
- The legal filing alleges San Francisco is violating first amendment rights in carrying on a one-sided dialogue.
- The ABA is also prepping to do battle in Alabama where a proposed soda tax is being considered by lawmakers.
- Advocates of a soda tax point to Mexico where consumption dropped significantly following the passing of legislation.
- Related stocks: KO, PEP, DPS.
Thu, Jul. 23, 4:08 PM
Thu, Jul. 16, 4:23 PM
Thu, Jul. 9, 6:56 AM
- PepsiCo (NYSE:PEP) reports organic revenue rose 5.1% in FQ2.
- Developing and emerging market organic revenue increased 11%.
- Foreign exchange translation negatively impacted revenue by 10%.
- Revenue by segment: Frito-Lay North America: $3.45B (+2%); Quaker Foods North America: $546M (-3%); Latin America Foods: $2B (-6%); PepsiCo Americas: $5.34B (+1%); Europe: $2.79B (-24%); AMEA: $1.8B (-4%).
- Frito-Lay North America operating profit increased 7% to $1.01B.
- Total core gross margin grew 115 bps.
- Total core operating margin +60 bps.
- FY2015 Guidance: Organic revenue: mid-single-digit growth; Core tax rate: ~25%; Core EPS: +8%; Net capital expenditure: ~$3B; Productivity savings: ~$1B.
Thu, Jul. 9, 6:32 AM
Wed, Jul. 8, 5:58 PM
- A few months after naming chief scientific officer Mehmood Khan a vice chairman, PepsiCo (NYSE:PEP) has done the same for CFO Hugh Johnston. In addition to his CFO duties, Johnston will now be responsible for the company's IT systems and solutions. Indra Nooyi remains chairman/CEO.
- PepsiCo is merging its Latin American food and beverage ops into a single reporting unit. Latin America Foods chief Laxman Narasimhan will be the unit's CEO.
- Also: 1) PepsiCo Lipton president Eugene Willemsen is now EVP of Global Categories & Franchise Management. He'll be "responsible for overseeing the company's global beverages, global snacks and global nutrition groups, as well as its global franchise organization." 2) E-commerce GM Brian Newman has been named EVP of Global Operations. He'll be "responsible for global operations and supply chain, global procurement, productivity, global security, risk management and corporate strategy."
- Enderson Guimares, previously in charge of many of the fields Willemsen and Newman will now have responsibility for, is leaving the company.
- The announcements come ahead of tomorrow morning's Q2 report.
Wed, Jul. 8, 5:30 PM
PEP vs. ETF Alternatives
PepsiCo Inc is a food, snack and beverage company. It manufactures, markets, distributes and sells convenient and enjoyable beverages, foods and snacks, serving customers and consumers in more than 200 countries and territories.
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