As of the year ended 2013, Pilgrim’s cash balance increased to $505 million, up from $68 million in 2012 and $42 billion in 2011.
The primary reason why Pilgrim’s Pride filed for Chapter 11 bankruptcy was the burden of total debts in the amount of $1.9 billion.
Pilgrim’s customer base is spread across 100 countries, including the US and Mexico, which together contributed ~92% of the company’s revenues as of 2013 year-end.
Apart from the USDA, several other agencies also conduct inspection to ensure the company is in compliance.
The USDA takes the lead in regulating the poultry business in the US. The agency inspects and conducts on-site examination.
Outbreaks of diseases like avian flu can have a severe impact on Pilgrim’s Pride. In 2013, the Mexico market experienced an outbreak.
Corn feed and soybean feed are the primary input costs in chicken production for Pilgrim’s Pride (PPC).
As of 2013 year end, the company’s cost of sales decreased about 1.6% to $7.5 billion, compared to $7.6 billion in 2012.
In 2013, Pilgrim’s Pride had a capacity to process 34.7 million birds per week, resulting in an annual processing capacity of 10.2 billion pounds.
Pilgrim’s Pride Corporation’s (PPC) poultry production process is vertically integrated, meaning all stages of chicken production are in full control of the company.
About 60% of Pilgrim’s sales in 2013 were from fresh chicken products, 30% from prepared chicken products, and 10% from exports and value-added chicken products.
As of year-end 2013, Pilgrim’s Pride Corporation’s (PPC) chicken production was 7.2 billion pounds, driving total revenue of $8.4 billion.
Pilgrim’s Pride has a market cap of $7.2 billion and is a subsidiary of JBS USA Holdings, which owns 75.5% of the company.
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In 2014, The Coca-Cola Company (KO) announced a long-term partnership with Keurig Green Mountain, Inc. (GMCR). The deal will allow people to enjoy ice-cold Coca‑Cola beverages at home with the soon-to-be-released Keurig Cold machine.
Growing populations and better standards of living in emerging markets will drive demand for beverages. The long-term prospects for growth in emerging economies are promising.
The non-alcoholic, ready-to-drink market is projected to grow at a compounded annual growth rate of 5% between 2014 and 2017. A large proportion of this growth will come from emerging economies.
PepsiCo, Inc. (PEP) is on track to achieve $1 billion in savings globally in 2014. It’s cutting costs across procurement, research and development, and other functions
The World Health Organization suggests that sugar should account for only 5% of total energy intake per day. A single soda can contains around 40 grams of sugar.
Coca-Cola and PepsiCo spend enormous amounts of money on innovation, advertising and marketing, and on strengthening their distribution network. It would be difficult for a new entity to make the substantial capital investments required to compete with these firms.