Food Industry

PepsiCo is getting ready to launch Kola House, its first hospitality venture, at its flagship location in New York City’s Meatpacking District. The first Kola House, which will operate as a kola bar, restaurant, lounge, and event space, is expected to open this spring.

Coca-Cola’s (KO) overall unit case volume rose 1% in 3Q16. The company’s soda or sparkling beverage unit case volumes were flat in 3Q16 on a YoY basis.

Monster Beverage’s (MNST) net sales in 1Q16 ended March 31, 2016, were $680.2 million, ahead of the consensus analyst sales estimate of $656.9 million.

Along with introducing new products like those we discussed in the previous part of this series, Tim Hortons (THI) is also testing different revenue channels and payment methods.

On December 13, PepsiCo (PEP) stock rose 1.2%. UBS initiated coverage with a “neutral” rating and a target price of $123.

Analysts are expecting revenue to be $10.1 billion for fiscal 1Q16. This represents a fall of 6% compared to 1Q15 revenue of $10.8 billion.

The domestic non-sparkling bottled water category is the largest segment of bottled water in the US.

Europe-tracking ETFs gained significantly from February 19 to February 24, when the bailout extension to Greece was approved.

Coffee lovers in the United States are boosting ready-to-drink coffee volumes.

Kraft Heinz is focusing on core business practices, including ZBB (zero-based budgeting), revenue management, and MBO (management by objectives).

Stock selection, a cornerstone of the moat investment philosophy, has driven much of the recent success of the Morningstar® Wide Moat Focus Index.

Panera Bread is a limited-service fast-casual restaurant company. In July 2017, JAB acquired Panera in a $7.5 billion deal and took it private.

Most analysts lowered their target prices on General Mills stock following the release of its results for the second quarter of fiscal 2019.

For six months ending June 2014, China’s division reported revenue of $3 billion, or 52% of Yum! revenues. China only represents 15% of the more than 40,000 Yum! restaurant units.

On August 6, PepsiCo (PEP) announced its CEO succession plan. Long-term CEO Indra Nooyi will step down effective October 3.

The Hershey Company (HSY) has a market cap of $24.2 billion. Its stock rose by 16.8% to close at $113.49 per share on June 30, 2016.

McDonald’s (MCD) revenues declined 4.5% YoY. Revenues in the restaurant industry are mainly driven by same-store sales and unit growth. The global same-stores sales were down to -3.3% YoY.

Beyond Meat (BYND) stock fell 11.5% yesterday, seemingly on no major news. While BYND’s prospects look promising, its stock still experiences wild swings.

Pershing Square increased its position in Air Products and Chemicals, Inc. from 21.31% in 3Q 2013 to 27.91% in 4Q 2013.

Another plant-based beverage acquisition made by Coca-Cola was that of Xiamen Culiangwang Beverage Technology Company in 2015.

Carbonated soft drink volumes dropped to 8.8 billion 192-ounce cases in 2014. This is the tenth straight year of decline.

Cannabis 2.0 legalization will take place in Canada next month. Cannabis players are gearing up to expand in the edibles market.

Dr Pepper Snapple is creating more visibility for its products by associating with popular movies. It expects its marketing spend to be ~7.6% of net sales in 2015.

Management anticipates the effective tax rate to be in the range of 37% to 38% for the “foreseeable future.” Corporate tax rates in the U.S. are high, and force some companies to move their headquarters to countries offering lower tax rates.

McDonald’s November same-store sales indicate a continued slide in all segments. Tensions between Russia and Ukraine are partially to blame.

Business intelligence firm eMarketer estimates that CPG brands spent more than $7.0 billion on digital advertising in 2017, compared with $6.0 billion in 2016.

Burger King (BKW) introduced premium products internationally that should complement its menu. It launched a Hashbrown Whopper in Korea, a Barbecue Bacon Whopper in the U.S., and a Mexican Whopper in Spain.

Dr Pepper Snapple (DPS) saw higher volume growth in non-carbonated beverages in all the quarters of fiscal 2015 compared to CSDs.

JAB’s share in the global coffee market is estimated to reach approximately 20% with the addition of Keurig’s brands and products to its portfolio.

Flowers Foods (FLO) has a market cap of $3.1 billion. It fell by 0.67% to close at $14.85 per share on August 12, 2016.

The Hershey Company (HSY) has a market cap of $23.8 billion. It rose by 0.71% to close at $111.67 per share on August 29, 2016.

In 2016, PepsiCo and Starbucks will distribute Starbucks’s ready-to-drink, or RTD, coffee and energy beverages in select Latin American markets.

Campbell Soup Company (CPB) has a market cap of $20.9 billion. Its stock rose by 1.7% to close at $67.19 per share on July 5, 2016.

Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.

Coca-Cola has a dominant presence in the sparkling beverages market, but it’s the still beverage space that has huge growth prospects.

So far this year, food stocks have largely disappointed investors, and the outlook for the rest of the year appears no better. Stock prices for food manufacturers have been on a downtrend, underperforming the S&P 500 Index (SPX-INDEX) on a YTD (year-to-date) basis, as the graph below shows. As of July 3, Campbell Soup (CPB), General Mills (GIS), Conagra Brands (CAG), J. M. Smucker (SJM), Kellogg (K), and Kraft Heinz (KHC) have fallen 13.7%, 10.7%, 10.2%, 7.7%, 6.7%, and 3.3%, respectively, YTD. The S&P 500 Index has returned 8.5% during the same period.

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.

On May 5, 2017, Monster Beverage (MNST) was trading at a 12-month forward PE (price-to-earnings multiple) of 31.1x, up 3.7% in reaction to its 1Q17 results.

According to the Tea Association of the USA, the specialty tea segment wholesale value increased to an estimated $1.9 billion in 2014, up 9.8% from 2013.

Dr Pepper Snapple adopted a strong strategy by acquiring an 11.7% stake in BodyArmor. But it could grow more in other non-carbonated beverage categories.