NeuStar Inc

Third Point first took a position in Nestle (NSRGY) during the second quarter of 2017.

On May 7, Nestlé and Starbucks announced that Nestlé has agreed to pay Starbucks $7.2 billion for exclusive rights to sell its packaged coffees and teas.

In 4Q17, Abbott Laboratories (ABT) reported low-single-digit sales in its Nutrition segment, according to the company’s expectations.

Abbott Laboratories (ABT) reported about $1.6 billion of revenues from its Nutrition segment, representing a YoY (year-over-year) fall of ~1.0%.

In 1Q17, Abbott Laboratories’ (ABT) Nutritional segment reported revenue of nearly $1.6 billion, a year-over-year (or YoY) fall of ~1%.

Johnson & Johnson’s Consumer segment’s revenue rose 1.0% year-over-year to $3.2 billion in 1Q17. This rise included an operational rise of 0.8% and the positive impact of foreign exchange.

European stocks are expected to rise in 2017, but you need to be cautious of unexpected political outcomes in 2017.

Consumer discretionary is the most-invested sector by the PRESX, followed by financials. These two sectors combine to form 31% of the portfolio.

Johnson & Johnson’s (JNJ) Consumer segment’s revenues fell by 1.8% to $3.4 billion for 2Q16—compared to 2Q15. This includes operational growth of 1.5%.

Mondelez International (MDLZ), maker of Cadbury chocolates and Oreo cookies, is all set to report its fiscal 2Q16 earnings results on July 27 before the market opens.

The USAA International Fund (USIFX) invests at least 80% of its assets in foreign equities.

The T. Rowe Price European Stock Fund’s (PRESX) assets were spread across 62 holdings as of March 2016, three less than a quarter ago. It was managing assets worth $1.5 billion.

The US nonalcoholic beverage market comprises categories like carbonated soft drinks, ready-to-drink tea and coffee, bottled water, sports drinks, and energy drinks.

From a purely NAV (net asset value) return standpoint, the USIFX did not have a notable showing in either the one-year period until February 29, 2016, or in 2015.

The USAA International Fund (USIFX) invests at least 80% of its assets in foreign equities.

Costco has seen traffic growth averaging 4.3% per year in the period between fiscal 2009 and fiscal 2015. In fiscal 1Q16, club traffic rose by 3.5% YoY.

The T. Rowe Price European Stock Fund (PRESX) is one of the larger funds in this review. It was managing assets worth $1.6 billion as of January 2016.

The T. Rowe Price International Stock Fund (PRITX) has been in existence since May 1980.

Inflation remains a concern for the Eurozone. The World Bank said that though deflation concerns have reduced in 2015, they have not gone away completely.

Because price discounting is common in China, Mead Johnson has so far not witnessed an increase in the consumption of its infant formula products there.

Mead Johnson invests very little in R&D—only 2.5% of its sales. By contrast, Nestlé and Abbott Laboratories spent 1.7% and 6.6%, respectively, on R&D.

Mead Johnson is known for its higher quality and responsible sourcing and has witnessed a high degree of brand loyalty and higher margins for its offerings.

As of January 12, Mead Johnson was trading at a higher multiple than Abbott Laboratories, XLP, and SPY but lower than Nestlé and Kraft Heinz.

As of January 6, Mead Johnson had a market cap of $15.4 billion. In 2015, MJN’s stock price dropped by 26.6% to $78.95.

Between fiscal 2010 and 2014, Mead Johnson returned $1.5 billion to its shareholders in the form of dividends and share repurchases.

At the end of fiscal 2014, Mead Johnson Nutrition had a total debt of $1.5 billion. Almost all of the company’s debt is a long-term debt.

Mead Johnson also plans to implement zero-based-budgeting for simplification and standardization.

In November, China ended its one-child policy. Euromonitor expects baby formula sales there to increase from $19.9 billion now to $40.6 billion in 2020.

At the end of fiscal 2014, Mead Johnson had nine in-house manufacturing plants around the world, with supply in more than 50 countries.

Mead Johnson follows a strategy of investments in innovation, having expanded its liquids portfolio and rolled out its key specialty formulas across Asia.

Mead Johnson’s product portfolio addresses a broad range of nutritional needs for infants, children, and expecting and nursing mothers.

Zenith International estimates that infant nutrition will be the fastest-growing packaged foods market in five years, with an annual growth rate of 7%.

Mead Johnson Nutrition Company is a global leader in pediatric nutrition. The company has a portfolio of 70 products in more than 50 countries.

The US accounted for 67% of Kraft Heinz’s fiscal 2014 pro forma sales, with Canada and Europe each contributing 10% of total sales.

Kraft Heinz operates more than 200 brands in nearly 200 countries. Its eight iconic brands contribute more than $1 billion in sales apiece to total revenue.

After the deal is complete, Keurig may extend its business into Europe. JAB may distribute its premium brands and products in the US market.

JAB is trying to build a powerhouse in the global coffee market to compete with the world’s leading coffee company, Nestle (NSRGY).

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.

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.

Coca-Cola is initially introducing Smartwater Sparkling in one-liter bottles in New York City, Los Angeles, and Miami.

The weight of financial and utilities stocks in The T. Rowe Price European Stock Fund’s portfolio has increased over the past 12 months.

The T. Rowe Price International Stock Fund (PRITX) requires a minimum initial investment of $2,500. PRITX is a no-load fund.

The T. Rowe Price European Stock Fund aims to invest “in common stocks of both large and small European companies. Current income is a secondary objective.”

Along with advertising, Hershey is focusing on cross-merchandising complimentary products like beverages and snacks, which should help expand consumption.

As of October 16, 2015, Hershey was trading at a PE multiple of 21.5x forward earnings, and its competitor Mondelez was trading at 23.6x forward earnings.

As of October 20, 2015, Hershey’s stock increased by 1.1% YoY to $94.21, compared to $93.22 on October 20, 2014.

Hershey reported revenues of $7.4 billion in fiscal 2014, compared to Nestle’s revenue of 91.9 billion. But Hershey is mainly into confectionery.

Hershey had a total debt of $2.4 billion on its balance sheet in 2014. It had a total debt-to-equity ratio of 195% during the same period.

Since fiscal 2007, Hershey’s gross margin, EBITDA margin, operating margin, and net income margin have all increased—with only a few exceptions.

Hershey believes it made a smart decision in acquiring SGM. In 4Q15, it expects to complete the acquisition by acquiring the remaining 20% of the business.

Hershey is the fastest-growing confectionery company in China, and Hershey expects China to become its second-largest market behind the US by 2017.

Hershey’s international segment contributes only ~30% of total revenues. Its goal is to increase international revenues to ~50% of total revenues by 2018.

Hershey plans to position dark chocolate as a lifestyle choice in the US. It has thus begun promoting its dark chocolate brands for specific consumption.

Hershey applies a micro-marketing concept to its businesses, which means that it markets certain products to small target audiences.

In its international business, Hershey is mainly focusing in emerging markets of Mexico, Brazil, India, and China.

Hershey is a leading player in the confectionery industry, which grew globally at a CAGR of 4.9% from 2009–2014, reaching $198.4 billion in 2014.

Hershey is the largest producer of chocolate in North America. It is a global leader in chocolate, sugar confectionery, and chocolate-related products.

Mondelēz’s cheese and grocery category is the smallest consumer segment for the company. It earned 8.8% of total company sales in 2014.

On October 1, 2015, Reuters reported that Mondelēz was looking to divest its cheese and grocery business in its Europe segment.

As of August 2015, the Vanguard European Stock Index Fund was managing assets worth a mammoth $20.8 billion.

A big part of Mondelēz’s cost transformation plan hinges on improving manufacturing facilities and practices. It has closed, sold, or upgraded 78 plants since 2012.

Germany’s inflation data is on the radar of financial investors. As one of the largest economies in Europe, Germany serves as a growth engine for the continent.

In May 2015, several bottled water manufacturers were heavily criticized for using California’s municipal water, as the state is facing severe drought.

Nestle Waters North America is the market leader of the US bottled water industry.

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

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.

The last year saw a proliferation of bonds trading with a negative yield, mainly in Europe. In effect, creditors are having to pay in order to lend money.

Mondelēz’ restructuring program will cost $3.5 billion, with $2.5 billion in cash. The program is expected to deliver cost savings of $1.5 billion by 2018.