RECENT Consumer Staples RESEARCH
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.
Walmart announced it was testing unlimited shipping for $50 per year, presenting significant competition to Amazon’s Prime service.
Monster Beverage’s bottom line was hit by costs of $206 million related to the termination of its distribution agreements with third-party distributors.
Monster Beverage is more of a niche player than other top soda makers. The company derives ~93.4% of its net sales from energy drinks.
Dr Pepper Snapple (DPS) reported results for 1Q15 ending March 31, 2015 on April 23. The company’s 1Q15 adjusted EPS was $0.81—ahead of analysts’ estimates.
PepsiCo’s (PEP) first quarter revenue declined by 3.2% from the same quarter last year, due to the strengthening of the dollar against major foreign currencies.
Revenue for Coca-Cola in 1Q15 increased to $10.7 billion, compared with $10.6 billion in the first quarter of last year.
The impact of currency headwinds was less on Dr Pepper Snapple’s sales than the two beverage giants. It gets 12.4% of net sales from international operations.
Coca-Cola (KO), the world’s largest beverage company, is scheduled to announce its results for the first quarter of 2015 on April 22, 2015.
Pursuant to its 2014 deal, Monster Beverage will transfer its non-energy drinks brand to Coca-Cola in exchange for Coca-Cola’s energy drink brands.
PepsiCo (PEP) is the second largest non-alcoholic beverage maker and the market leader in the snack food space in the US.
The day Coca-Cola announced its 4Q14 results, Coca-Cola stock surged 2.8% to $42.2 since the adjusted EPS of $0.44 exceeded analysts’ expectation of $0.42.
Monster Beverage Corporation (MNST) is based in California. It manufactures alternative beverages. It sold over 10 billion energy drinks in the past 12 years.
In an industry highly dominated by The Coca-Cola Company and PepsiCo Inc., Dr Pepper Snapple has rapidly emerged as the third-largest US soft drink maker.
According to Information Resources, Inc. (or IRI), PepsiCo owns nine of the 40 largest packaged goods trademarks in the United States.
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.
Dunkin’ Brands Group, Inc. is a quick-service restaurant chain and operates in an industry of coffee retailers such as Starbucks (SBUX) and Krispy Kreme Donuts (KKD).
Dunkin’ Brands Group is a franchisor of quick-service restaurants, serving hot and cold coffee and baked goods in addition to ice cream. It’s a strong, growing player in these segments.
Starbucks began in 1971 as a single coffee shop in Seattle. Today, it’s the world largest coffee retailer, with over 19,000 locations in more than 60 countries (as of FY2013 end).
What have been the main drivers of spirits growth in the past, where will future growth come from, and how can you invest in the industry?