In this series, we’ll explore the price movements of five soft commodities—coffee, sugar, cocoa, orange juice, and cotton. Arabica coffee, which is considered superior in flavor and quality to Robusta coffee, has seen its futures price falling during the past six months.
FDGRX’s assets were invested across 394 holdings as of March 2016, two more than a quarter ago. It was managing assets worth $37.8 billion as of March’s end.
Hain Celestial’s HPPC segment reported net sales of $141.7 million, and the Rest of World segment reported net sales of $74.4 million. Both these segments showed impressive sales growth of 64% and 34%, respectively.
During the third quarter, Ingredion announced that it plans to reduce its cost structure in South America by consolidating several plants in Brazil in 2016.
The two drivers of Kraft Heinz best-in-class margins have been its ZBB (zero-based budgeting) and its efficient manufacturing and distribution footprint.
The Fidelity Blue Chip Growth Fund (FBGRX) rose 0.8% in November 2015 from October’s reading. FBGRX has generally been a below-average performer for all periods under review.
With the completion of the Keurig-JAB deal, JAB will get an opportunity to control the North American single-serve coffee market and may introduce its premium brands in the US market.
Keurig Green Mountain (GMCR) has been facing struggles in the coffee market (XLP), as Keurig’s patent for K-Cup pods, the single-serve coffee containers, expired in September 2012.
Keurig Green Mountain (GMCR) jumped 71.9% on Monday, December 7, as the coffee machine maker announced that it will be acquired by private investor group JAB Holding Companies.
On November 18, 2015, Keurig Green Mountain (GMCR) reported its fiscal 4Q15 and full year 2015 earnings ended September 26, 2015. The stock rose 19.4% to $48.37 in after-hours trading that day.
Keurig Green Mountain has around 575 different beverage products and over 80 brands in its product portfolio. It launched several new ones in fiscal 2015.
Kraft Heinz (KHC) operates in four segments—the US, Canada, Europe, and the Rest of World. The US segment’s net sales were $4.5 billion—a fall of 3.7%.
After the merger, Kraft Heinz became the third-largest food and beverage company in North America. It’s the fifth-largest food and beverage company in the world.
The SPDR S&P 500 ETF (SPY) rose 0.29% on Tuesday, November 3, 2015. The equity rally in the US stock market continued for the second consecutive day in the wake of investor confidence in the US domestic economy.
The Kellogg Company’s acquisitions this year include Mass Food Group and BiscoMisr, and it is planning a deal with Diamond Foods that is expected to reach over $1.5 billion.
In the third quarter of fiscal 2015, the Hain Celestial Group acquired the remaining ~80% of EK Holdings and its wholly owned subsidiary, Empire Kosher Poultry.
The price of Kellogg’s acquisition of Diamond Foods is expected to reach over $1.5 billion, and Kellogg could offer the company between $35 and $40 per share.
Archer Daniels planned its acquisition of Eatem Foods with the intention of accelerating its evolution from an ingredient supplier to a solutions provider.
Dr Pepper Snapple’s (DPS) stock price has risen 15.6% since the beginning of 2015 to $82.80 as of October 14. The stock has outperformed beverage peers Coca-Cola (KO) and PepsiCo (PEP).
Keurig’s sales in the third quarter of fiscal 2015 ended June 27, 2015, declined by 5.2% to $969.6 million, due to declines in brewer sales and pod sales.
After a test run in October 2014, PepsiCo (PEP) has now extended its partnership with SodaStream (SODA) to expand in the home carbonation business. The share prices of SodaStream and PepsiCo rose by 6.4% and 0.6%, respectively, following the announcement on September 11.
With the emergence of Jacobs Douwe Egberts, Keurig and other coffee producers will focus more on expanding their product portfolios. They’ll also focus on an international presence to capture the growing global demand for coffee.
Jacobs Douwe Egberts will be a leading player in the coffee industry with powerful brands like Jacobs, Maxwell House, and Pilão. It will have a strong presence in emerging countries like China.
According to Jacobs Douwe Egberts’s website, the company holds either the number-one or number-two position in coffee markets for more than 18 countries in Europe, Latin America, and Australia.
D.E Master Blenders and Mondelez have created a larger coffee player that will put up a tough fight with market leader Nestlé. The joint venture brings some powerful coffee brands under one roof.
PepsiCo’s innovations include healthier product variations such as Quaker Quick 3-Minute Steel Cut Oats, Cracker Jack’D protein snacks, and the nuts-based milks under the Naked Juice brand.
Organic coffee is the largest category of US organic imports in terms of dollar value. After declining for many years, organic coffee imports increased by 31.3% to $332.5 billion in 2014.
In fiscal 2014, Keurig Green Mountain purchased 43.4 million pounds of coffee from Fair Trade Certified sources. This represents ~19% of the company’s total coffee purchases that year.
Beverage companies believe that one of the ways to counter the negative image of soda and sweetened beverages is to reduce their portion sizes. Consumers prefer smaller packaging such as mini soda cans for their lower calorie content.
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.
Keurig Kold can leverage Keurig’s established brand name. Globally, Keurig Kold has about 50 issued patents and 100 patent-pending applications related to the Kold platform.
The Evening Star candlestick pattern is also a reversal pattern. The pattern has three candles. It forms at the top of an uptrend. The first candle is any long and bullish candle.
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.
The Federal Reserve Bank could end its bond buying program by the end of this year, so it’s important for investors to know how this development could impact their portfolio.
