The Kraft–Heinz Merger: What If the Deal Breaks?
The Kraft–Heinz merger isn’t a typical risk arbitrage deal because you can’t arbitrage a spread. Before the deal, Kraft was trading at $62.40 a share.
Food Industry
Everything you need to know about developments in the food insdustry, including stock analysis.
The Kraft–Heinz Merger: Transaction Rationale
The Kraft–Heinz merger entity will maintain Kraft’s current dividend, and management anticipates it will grow.
Is Antitrust an Issue in the Kraft–Heinz Merger?
The first place arbitrageurs look to get a handle on antitrust risk is the 10-K, where companies often disclose the names of competitors.
The Kraft–Heinz Merger and Material Adverse Change, Part 3
Other important merger spreads include the deal between Time Warner Cable and Comcast as well as the merger between Pharmacyclics and AbbVie.
The Kraft–Heinz Merger: Transaction Benefits for Kraft Investors
Kraft has a non-solicitation agreement with a fiduciary out. This means that Kraft could discuss another merger if approached by another suitor.
Stocks Beat Bonds over the Long Run By a Big Margin
The majority of investors believe bonds are safer than stocks. The main reason is that bonds pay regular interest.
Citadel Advisors Reduces Position in Archer Daniels Midland
The Archer Daniels Midland Company is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities.
Monster Beverage’s stock outperforms peers
After transferring its non-energy drink brands to Coca-Cola, Monster Beverage can focus on its core energy business and expand its international presence.
Monster Beverage and Coca-Cola: A landmark partnership
Under their strategic partnership, Coca-Cola will acquire 16.7% of Monster Beverage for $2.15 billion and transfer its energy business to Monster Beverage.
Dr Pepper Snapple pursues non-carbonated beverage growth
Keeping in view declining soda volumes, Dr Pepper Snapple is focusing on expanding its non-carbonated beverage line.
How PepsiCo is benefitting from complementary businesses
PepsiCo’s snack and beverage businesses are complementary in nature and derive a lot of synergies.
How PepsiCo’s focus on innovation is reaping rewards
PepsiCo’s focus on innovation includes Pepsi Spire 5.0 equipment, which allows consumers to create about 1,000 beverage combinations using a 32-inch touchscreen.
PepsiCo is a leader in the food and beverage spaces
PepsiCo (PEP) is the second largest non-alcoholic beverage maker and the market leader in the snack food space in the US.
Coca-Cola’s joint ventures set the stage for future growth
The company is focused on expanding its product portfolio through strategic deals. Coca-Cola’s joint ventures will set the stage for future growth.
Coca-Cola’s still beverages brands meet growing demand
In 2014, Coca-Cola added three still beverage brands. Coca-Cola’s still beverages now include Gold Peak Tea, FUZE Tea, and I LOHAS mineral water.
Why Monster Beverage extends its product line
Energy drinks witnessed impressive growth over the past five years. Monster Beverage and its peers—like Red Bull GmbH—are expanding their product lines to capture this growing demand.
Why Monster Beverage’s international business is growing
Monster Beverage’s revenues from international regions increased over the years. Its international operations accounted for 21% of its 2013 revenues—up from 18% in 2011.
Analyzing Monster Beverage’s segments
Monster Beverage Corporation (MNST) conducts its business through two business segments—Direct Store Delivery, or DSD, and Warehouse. The DSD segment mainly sells energy drinks.
Monster Beverage’s bold marketing approach
Monster Beverage’s advertising and marketing efforts are associated with adventure sports and sports personalities. It sponsors extreme sporting events—like Motocross.
Monster Beverage’s distribution network
Coca-Cola purchased a 16.7% stake in Monster Beverage. Monster Beverage will be able to leverage Coca-Cola’s strong distribution network.
Monster Beverage’s extensive line of energy drinks
Monster Beverage Corporation (MNST) emerged as a leader in energy drinks. It has a 14% market share in the world’s energy drink market.
An overview of Monster Beverage Corporation
Monster Beverage Corporation (MNST) is based in California. It manufactures alternative beverages. It sold over 10 billion energy drinks in the past 12 years.
Starbucks Gets Help From Its Rewards Program
One of the ways a customer can become a My Starbucks Rewards member is by using the My Starbucks Rewards card. The card is available at the checkout counter.
Starbucks’ Coffee Has Three Revenue Sources
Consumer packaged goods, or CPG, include the sale of SBUX’s coffee and tea-related products—like single-serve tea and coffee products. It also includes several beverages at retail stores.
What are Dr Pepper Snapple’s growth strategies?
Dr Pepper Snapple plans to grow into new categories by leveraging its distribution agreements for third-party brands such as Vita Coco coconut water.
Dr Pepper Snapple makes efforts to improve profitability
Dr Pepper Snapple implemented its rapid continuous improvement (or RCI) in 2011 to simplify processes and address distribution and the availability gap.
What are Dr Pepper Snapple’s major risks?
Dr Pepper Snapple faces major risks like significant reliance on carbonated soft drinks, limited international growth, and excessive reliance on third-party distribution.
Why international expansion is vital for Dr Pepper Snapple
The carbonated soft drink volumes in North America have been continually declining. This makes it important for Dr Pepper Snapple to grow beyond its US operations.
Dr Pepper Snapple is pitted against the soda behemoths
In 2013, Coca-Cola had 42.4% of the market share in the US carbonated soft drink category. PepsiCo had 27.7% and Dr Pepper Snapple 16.9% of the market share.
Understanding Dr Pepper Snapple’s revenue streams
Dr Pepper Snapple derives its revenues from the sale of carbonated soft drinks and noncarbonated beverages like ready-to-drink tea, juices, and mixers.
Dr Pepper Snapple strengthens its distribution network
Dr Pepper Snapple is continually strengthening its position as a major beverage company by acquiring regional bottling companies and distribution rights.
Understanding Dr Pepper Snapple’s route to market
Dr Pepper Snapple’ beverages reach consumers through the company’s own distribution network, third-party distributors, and direct delivery to customers’ warehouses.
Dr Pepper Snapple targets key demographics in advertising campaigns
Dr Pepper Snapple is targeting Hispanics and Millennials in its advertising. By 2020, Hispanics will make up 19% of the US population. Millenials represents 24%.
An overview of Dr Pepper Snapple’s key brands
Canada Dry, 7UP, A&W, and Sunkist are Dr Pepper Snapple’s Core 4 brands. Noncarbonated beverages include ready-to-drink tea, juice, juice drinks, and mixers.
Dr Pepper Snapple’s recent performance and the road ahead
Dr Pepper Snapple expects its fiscal 2014 revenues to increase by 1%. Investors should be cautious since the company expects an impact from higher transportation and marketing costs.
McDonald’s List Of Initiatives That Will Bring A Turnaround
McDonald’s list of initiatives includes simplifying its menu and possibly offering locally relevant menu items. This could be quite a gamble.
The Vast Expanse Of The Tyson Foods Product Portfolio
The Tyson Foods product portfolio includes a variety of products such as value-added chicken, beef, and pork, pepperoni, pizza crusts, and much more.
Tyson Foods Pork Biz In The Top Three
The Tyson Foods Pork segment processes live hogs into primal, sub-primal cuts, case-ready pork ready to be sold at retail stores, and fully cooked products.
Vertical Integration Keeps Tyson Foods On Top Of Chicken Market
Vertical integration involves a single company owning and controlling all the various stages in the production chain.
Tyson Foods Revenue Segments
Tyson Foods revenue is reported in five segments: Beef, Chicken, Pork, Processed Foods, and International. The Beef segment accounted for 43% of revenues.
Tyson Foods Commands 24% Of The Beef Market
According to Cattle Buyers Weekly, in 2014, four producers controlled 75% of the market share. Tyson Foods controls 24% of the beef market.
The Coca-Cola Company versus PepsiCo: A battle of giants
The Coca-Cola Company (KO) and Pepsico, Inc. (PEP), are dominant players in the soft drinks market. Both companies own a strong portfolio of liquid refreshments and several brands.
Coca-Cola fights declining margins with productivity measures
The Coca-Cola Company (KO) has been implementing several efficiency initiatives to offset the impact of adverse market conditions and declining demand for carbonated soft drinks.Company & Industry Overviews Why Pilgrim’s Pride filed for bankruptcy
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.Company & Industry Overviews Pilgrim’s Pride Corporation’s three customer categories
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.
Advertising is a key strategy for Coca-Cola’s growth
In 2013, Coca-Cola spent $3.37 billion, or 7.0% of it’s 2013 revenues, on advertising—including in-store activations, loyalty points programs, and point-of-sale marketing.Company & Industry Overviews The importance of Coca-Cola’s iconic brand name
Coca-Cola enjoys huge popularity across the world. The company ranked third in Interbrand’s 2014 world’s most valuable brands list, with an estimated brand value of $81.6 billion.
Investing in Coca-Cola: The world’s largest soft drink company
The Coca-Cola Company (KO), founded in 1892, is the world’s largest soft drink maker. It sells more than 3,500 products worldwide.Company & Industry Overviews What is a limited-service restaurant?
Limited-service restaurants can be classified into fast food or quick service, fast-casual restaurants, pizza restaurants, and cafés.Company & Industry Overviews International growth opportunities for the soft drink industry
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.
