Fri, Jan. 9, 6:41 PM
- The Peltz proxy fight for DuPont (NYSE:DD) - the third largest proxy fight ever - could be an uphill battle, given how well DuPont stock has performed; during Ellen Kullman’s time as CEO starting in 2009, shares are up 190% vs. 126% for the S&P 500.
- Trian argues it's not enough and does not fix what the activist fund says are DuPont’s more fundamental problems of corporate overhead that burdens the company’s business lines, which would be more competitive if they were split - a strategy Peltz has successfully pushed at other targets including Ingersoll Rand, Cadbury Schweppes and Kraft.
- Critics say the move sends an ominous signal to companies already working to improve operations and set shareholder-friendly courses; they say if activists start targeting strong stocks, it could delay or imperil otherwise sound strategies to improve profits or trim weaker operations.
- But picking a fight might be as much about Peltz as it is about DuPont, sending a signal to his other investments, such as Pepsi (NYSE:PEP), that his patience has limits.
- DuPont says it will review Trian’s board nominees but warns that a proxy battle has “the potential to disrupt our company at a key stage of execution against our plan."
Fri, Jan. 9, 6:34 AM
Wed, Jan. 7, 10:59 AM
- Most investment firms weighing in think PepsiCo (PEP +2.3%) is too big of a target for 3G to land as they dissect the WSJ report on interest in the multinational.
- Campbell Soup (CPB +4.3%) is trading like it's viable 3G target, while Kellogg K, and Kraft Food Group (KRFT +2.1%) have also been bandied around by retail analysts as possibilities.
- Outside of the food sector, Bloomberg's Tara Lachappelle notes Colgate-Palmolive (CL +0.2%) makes sense for 3G.
Wed, Jan. 7, 7:12 AM
- Shares of Campbell Soup (NYSE:CPB) and PepsiCo (NYSE:PEP) are on watch after the WSJ reports 3G is discussing trying to acquire a major food company.
- Sources indicate the massive size of PepsiCo deal could prompt a partial buyout or a bid in tandem with Aneuser-Busch InBev (NYSE:BUD).
- PEP +0.8% premarket, CPB inactive.
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.
Dec. 17, 2014, 12:35 PM
- Estimates on PepsiCo (PEP +0.2%) are at risk of being lowered due to currency swings in the key markets of Russia, Mexico, and Canada.
- The three regions account for over 18% of the company's total sales.
- PepsiCo's last update on guidance came with its Q3 report and during the subsequent earnings conference call.
Dec. 17, 2014, 9:29 AM
- General Mills (NYSE:GIS) reported cereal demand fell off once again in FQ2.
- The decline is in spite of efforts to introduce more on-trend brands (protein, gluten-free, low-calorie).
- The company offset the cereal slump to a degree with gains in yogurt.
- Yogurt sales grew in both the U.S. Retail and Convenience Store channels.
- The shift by consumers from cereal to yogurt has also negatively impacted Kellogg (NYSE:K) and Post Holdings (NYSE:POST) - while benefiting Danone (OTCQX:DANOY) and Mueller-PepsiCo (NYSE:PEP).
- Previously: General Mills earnings, highlights
Dec. 12, 2014, 10:59 AM
Dec. 8, 2014, 2:20 PM
- Boulder Brands (NASDAQ:BDBD) says it's looking to invest in brands in the $1M to $10M range.
- EVP Duane Primozich sees a dynamic shift in beverage as new brands scale rapidly to fill niche categories with unexpectedly strong demand.
- "Crazy plays," says Primozich.
- Looking for the next break-through beverage fad? Primozoch mentions drinkable vinegar as a category that could grow.
- Large-cap companies (COT, DPS, KO, PEP) seem to have their head in the sand over innovation, bemoans Primozich.
- The comments were made during the company's presentation at the Beverage Entrepreneur & Innovation Conference (live stream).
Dec. 8, 2014, 10:07 AM
- PepsiCo (PEP +0.1%) CEO Indra Nooyi is on the mike at the Beverage-Digest.com conference in NYC.
- The executive has reportedly warned on more weak soda sales in the U.S., although she likes the large opportunity presented in the craft soda category.
- She notes automation might lead to efficiency gains at PepsiCo.
- Nooyi keeps up the mantra that a combined beverage and snacks business is better than two stand-alones.
Dec. 1, 2014, 2:27 PM
- PepsiCo (PEP -0.3%) names Enderson Guimaraes to be its Global Categories and Operations chief.
- Ramon Laguarta will replace Guimaraes as the PepsiCo Europe CEO.
- What to watch: The company's failure to give Guimaraes the title of president could indicate the exec is not a shoo-in as the eventual replacement to CEO Indra Nooyi.
Nov. 22, 2014, 8:25 AM
- Harvard Business School's Bill George is troubled by the trend of activist investors shifting their wrath to some of America’s best companies, which he says may net nice profits in the short term but places the competitiveness of America’s great global companies at risk.
- An example is Amgen (NASDAQ:AMGN), whose stock has gained 185% in the past five years, but Dan Loeb still wants to split the company; George says this would destroy a productive innovator by taking away the cash it needs to develop new drugs and fuel growth.
- PepsiCo’s (NYSE:PEP) 52% increase in three years is double that of Coca-Cola, yet Nelson Peltz is agitating to split the company in two, as he did with Kraft - which has struggled, as has its Mondelez spinout.
- Peltz also is trying to break up DuPont (NYSE:DD) even though the stock has climbed 250% since Ellen Kullman became CEO in 2009; a disjointed conglomerate without a clear strategy, DuPont's stock had slipped 62% since 2000.
- Bill Ackman successfully partnered to put Allergan (NYSE:AGN) in play, which resulted in a sale, but George says the deal was unnecessary for a stock that had gained 2,400% since David E.I. Pyott became CEO in 1998.
- In each case, George says leaders were forced to focus on saving their companies instead of winning global competitive battles, creating great products and building new businesses.
Nov. 21, 2014, 3:16 PM
- The PepsiCo (PEP +0.8%) launch of Pepsi True on Amazon.com went poorly after over 3.6K negative reviews flooded the product's page on the site and delivered a lowly 1-star rating for the mid-calorie soft drink which isn't available in stores yet.
- The company drew the wrath of environmentalists over its policies with palm oil sourcing and the use of a "green" can for the soda product.
- The Pepsi True page was taken off of Amazon's website mid-week before being reinstated yesterday.
Nov. 21, 2014, 7:38 AM
Nov. 7, 2014, 3:15 AM
- PepsiCo (NYSE:PEP) President Zein Abdalla, widely viewed as a potential successor to Chairman and CEO Indra Nooyi, is leaving the company Dec. 31.
- The move follows the departure of two other top PepsiCo executives, Brian Cornell who left this summer to take over Target, and Debra Crew who was hired by R.J. Reynolds in September.
- The loss of the well-seasoned execs thins the management bench at PepsiCo, creating a very short list of potential internal CEO successors.
Nov. 5, 2014, 7:56 AM| 7 Comments
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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