Keurig Kold can leverage Keurig’s established brand name. Globally, Keurig Kold has about 50 issued patents and 100 patent-pending applications related to the Kold platform.
By refranchising its bottling operations to independent bottlers, Coca-Cola can take advantage of these bottlers’ local expertise—including local consumer preferences, demand, and marketing programs.
Under a new agreement, Coca-Cola will grant expanded territories in ten states and the District of Columbia to Coca-Cola Bottling Co. Consolidated.
Walmart’s earnings outlook should be affected by internal and external factors. Walmart announced investments in e-commerce, higher wages for ~500,000 hourly workers, and international growth investments.
Walmart’s stock has been lagging peers lately. Compared with levels in the beginning of 2014, the stock price has essentially flattened at ~$78.
Walmart plans to take over 13 Target stores in Canada. These expansion plans come as Target prepares for its Canadian exit, two years after starting business in the country.
In the last two quarters, same-store sales have risen for Walmart US, a first since 4Q13. Walmart projects positive store comps from 1.0%–2.0% in the US in 1Q16.
Walmart announced it was testing unlimited shipping for $50 per year, presenting significant competition to Amazon’s Prime service.
Retail inventories rose the sharpest for motor vehicle and parts dealers, food and beverage (XLP) stores, and clothing and clothing accessories retailers.
The slump in energy prices affected spending. Gasoline has posted consecutive monthly declines since last June.
The pace of wage gains for the retail sector has been slower than growth rates experienced in pre-recession times.
Food and beverage retailers (XRT) (XLP) added 3,600 jobs in April, the largest payroll increase in the retail sector.
As of noon Eastern Time on May 8, Monster Beverage stock was trading at $131.50, down 8.4% compared with May 7. As discussed in the previous part of this series, the…
Unlike Monster Beverage’s operating margin, the company’s 1Q15 gross margin improved to 58.9% in 1Q15 from 53.5% in 1Q14.
Monster Beverage expects its Monster Unleaded, Ultra Sunrise, and Ultra Citron lines, as well as Rehab Peach Tea + Energy, to perform well in 2015.
Monster Beverage’s bottom line was hit by costs of $206 million related to the termination of its distribution agreements with third-party distributors.
An interesting development in the energy drinks industry is Monster Beverage’s strategic deal with Coca-Cola. The deal will expand Monster Beverage’s product line-up.
Ready-to-drink tea is anticipated to grow at a compound annual growth rate of 5%. Beverage giants are aggressively diversifying into this and other growth categories.
Carbonated soft drink volumes dropped to 8.8 billion 192-ounce cases in 2014. This is the tenth straight year of decline.
Investors need to be cautious, as Monster Beverage valuations might be affected in the long-term by growing concerns among consumers about the ill effects of energy drinks.