Though the per capita consumption of tea in the US is low compared to other countries, the growth in tea consumption in recent years has been impressive.
Manufacturers in the alcoholic beverage industry can’t sell directly to consumers due to a three-tier distribution system. This discourages them from having their own e-commerce channels.
In May, Wine & Spirits Wholesalers announced a strategic alliance with Drizly to offer consumers the option to shop for alcoholic beverages on digital and mobile platforms.
On May 20, PepsiCo (PEP) announced the launch of Pepsi Limon, a new cola with real lime juice. The company launched Pepsi Limon specifically to attract Hispanic.
The US dollar’s appreciation compared to almost every major currency isn’t helping the downward trend in food prices. A stronger dollar will continue to be a drag on US food prices.
What starts as a competitive strategy for Wal-Mart may also affect the general level of grocery price inflation in the United States.
Global agricultural production is outpacing demand, particularly for soybeans, wheat, and rice. This is putting downward pressure on food prices.
US dairy prices have been under pressure in 2015 due to higher production and declining exports. The higher US dollar has had a major impact on export sales.
Trends in protein prices affect the financial results for Tyson Foods, which produces about one in five pounds of chicken, beef, and pork in the United States.
The decline in the CPI for April was fueled by deflation trends in non-core items such as energy and food. Energy prices fell 1.3%, and the food at home index slipped 0.2% month-over-month.
PepsiCo expects its recently launched flavors to boost beverage sales, which accounted for 47.0% of the company’s total revenue in 2014.
On May 18, PepsiCo (PEP) announced the launch of four new energy drink flavors under its AMP Energy brand. PepsiCo hopes the drinks will strengthen its AMP Energy portfolio.
PepsiCo (PEP) and peers like Coca-Cola and Dr Pepper Snapple have been developing several products based on the tastes and preferences of Hispanics.
Walmart repurchased 3.5 million shares worth $280 million in 1Q16. It also paid out $1.6 billion in dividends, 2.1% more than it did in 1Q15. At 38.5%, its dividend payout ratio…
Walmart reported that mobile traffic rose by over 100%, with higher conversion rates. Among Walmart’s several initiatives in e-commerce is a test of the home grocery shopping concept.
Despite positive sales trends and margin expansion in four of its five-largest overseas markets, Walmart’s reported international revenue declined by 6.6% to $30.3 billion.
Walmart results were also affected by food deflation in dairy and produce, and slower uptake in price inflation for meat products.
Same-store sales, or store comps, benefited from lower fuel prices. Walmart’s US segment saw a 1% rise in customer traffic.
Gatorade’s position and volumes have been impacted by rising competition. It has also felt the effect of the popularity of bottled water, ready-to-drink tea, coffee, and energy drinks.
Gatorade is celebrating its 50th anniversary this year. It’s one of PepsiCo’s $22-billion brands, generating more than $1.0 billion in annual retail sales.