Why Dan Loeb Is Hopeful about Nestlé and United Technologies
Third Point first took a position in Nestle (NSRGY) during the second quarter of 2017.
Nestlé to Pay $7.2 Billion for Starbucks Coffee Rights
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.
Abbott Witnesses Stability in Its International Pediatric Nutrition Sales in 4Q17
In 4Q17, Abbott Laboratories (ABT) reported low-single-digit sales in its Nutrition segment, according to the company’s expectations.
Abbott’s Nutrition Segment: Chinese Headwinds Continue
Abbott Laboratories (ABT) reported about $1.6 billion of revenues from its Nutrition segment, representing a YoY (year-over-year) fall of ~1.0%.
Emerging Markets Drive Abbott’s Nutritional Business Growth
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 1Q17 Earnings
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.
How European Equities Compare to US Equities in 2016–2017
European stocks are expected to rise in 2017, but you need to be cautious of unexpected political outcomes in 2017.
Looking at the Portfolio of the T. Rowe Price European Stock Fund
Consumer discretionary is the most-invested sector by the PRESX, followed by financials. These two sectors combine to form 31% of the portfolio.
Analyzing Johnson & Johnson’s Consumer Segment
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%.
Did Oreo Cookies, Trident Gum Sales Boost Mondelez’s 2Q Earnings?
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.
Portfolio Moves of the USAA International Fund in YTD 2016
The USAA International Fund (USIFX) invests at least 80% of its assets in foreign equities.
Sector Composition Changes in PRESX until 1Q16
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.
An Overview of the US Nonalcoholic Beverage Industry
The US nonalcoholic beverage market comprises categories like carbonated soft drinks, ready-to-drink tea and coffee, bottled water, sports drinks, and energy drinks.
How Are the USAA International Fund’s Metrics?
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.
What Investors Should Know about the USAA International Fund
The USAA International Fund (USIFX) invests at least 80% of its assets in foreign equities.
Kirkland Signature: Costco’s Key Differentiator in Fiscal 2Q16?
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: No Standout Performer
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.
PRITX’s Recent Performance: What Does This Mean for Investors?
The T. Rowe Price International Stock Fund (PRITX) has been in existence since May 1980.
The Eurozone Economy in 2016 and Beyond: World Bank Projections
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.
Mead Johnson’s Path forward in China—amid Challenges
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.
Hurdles for Mead Johnson’s Growth: Weaknesses and Threats
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.
Weighing Mead Johnson’s Strengths and Opportunities in 2016
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.
Assessing Mead Johnson’s Market Valuation in 2016
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.
Analyzing Mead Johnson’s Stock Performance in 2015
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.
How Mead Johnson Rewards Its Shareholders
Between fiscal 2010 and 2014, Mead Johnson returned $1.5 billion to its shareholders in the form of dividends and share repurchases.
Evaluating Mead Johnson’s Financials Compared with Competitors
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 Plans to implement Zero-based Budgeting to Reduce Cost
Mead Johnson also plans to implement zero-based-budgeting for simplification and standardization.
Mead Johnson Has Big Opportunities for Growth in China
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.
Mead Johnson’s Capacity Expansion Initiatives Aim to Support Global Growth
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 Plans to Focus on R&D to Support Innovations
Mead Johnson follows a strategy of investments in innovation, having expanded its liquids portfolio and rolled out its key specialty formulas across Asia.
Running down Mead Johnson’s Product Categories and Offerings
Mead Johnson’s product portfolio addresses a broad range of nutritional needs for infants, children, and expecting and nursing mothers.
Infant Nutrition May Be the Fastest-Growing Packaged Food Market
Zenith International estimates that infant nutrition will be the fastest-growing packaged foods market in five years, with an annual growth rate of 7%.
Analyzing the Financials of Mead Johnson, a Heavy Hitter in Pediatric Nutrition
Mead Johnson Nutrition Company is a global leader in pediatric nutrition. The company has a portfolio of 70 products in more than 50 countries.
Breaking down Kraft Heinz: A Segmental and Geographical Overview
The US accounted for 67% of Kraft Heinz’s fiscal 2014 pro forma sales, with Canada and Europe each contributing 10% of total sales.
What’s on the Table with Kraft Heinz? Getting to Know the Company’s Product Offerings
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.
Keurig Eyes Opportunity to Expand into Europe with JAB Deal
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 Aims to Rule the Global Coffee Market
JAB is trying to build a powerhouse in the global coffee market to compete with the world’s leading coffee company, Nestle (NSRGY).
How Synergies from the Keurig-JAB Deal Will Benefit Both Players
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 to Challenge Nestle, Global Leader of Portioned Coffee 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.
Why Coca-Cola Is Expanding Its Portfolio with Smartwater Sparkling
Coca-Cola is initially introducing Smartwater Sparkling in one-liter bottles in New York City, Los Angeles, and Miami.
How the T. Rowe Price European Stock Fund’s Portfolio Looked
The weight of financial and utilities stocks in The T. Rowe Price European Stock Fund’s portfolio has increased over the past 12 months.
A Snapshot of the T. Rowe Price International Stock Fund (PRITX)
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 (PRESX): Historical Overview
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.”
Hershey’s Competitive Strategies for North America in 2015
Along with advertising, Hershey is focusing on cross-merchandising complimentary products like beverages and snacks, which should help expand consumption.
Assessing Hershey’s High Market Valuation Relative to the S&P 500
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.
Analyzing Hershey’s Stock Price Performance in 2015
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’s Capital Allocations for Capacity Expansion and Innovations
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.
Evaluating Hershey’s Financials Against Its Competitors
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.
Evaluating Hershey’s Rising Margins in 2015
Since fiscal 2007, Hershey’s gross margin, EBITDA margin, operating margin, and net income margin have all increased—with only a few exceptions.
Hershey’s Acquisition of Shanghai Golden Monkey: Disappointment?
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.
Why China Is Such an Important Market for Hershey in 2015
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 New Focus on International Growth Opportunities in 2015
Hershey’s international segment contributes only ~30% of total revenues. Its goal is to increase international revenues to ~50% of total revenues by 2018.
Analyzing Hershey’s Emphasis on Product Innovation
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.
Evaluating Hershey’s Marketing Strategies and Initiatives
Hershey applies a micro-marketing concept to its businesses, which means that it markets certain products to small target audiences.
Analyzing Hershey’s Segments and Product Offerings
In its international business, Hershey is mainly focusing in emerging markets of Mexico, Brazil, India, and China.
A Glance at Hershey’s Leadership in the US Confectionery Industry
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.
An Overview of Hershey, America’s Largest Chocolatier
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 Business: A Performance Analysis
Mondelēz’s cheese and grocery category is the smallest consumer segment for the company. It earned 8.8% of total company sales in 2014.
Is Mondelēz Looking to Divest Its Cheese and Grocery Business?
On October 1, 2015, Reuters reported that Mondelēz was looking to divest its cheese and grocery business in its Europe segment.
Vanguard European Stock Index Fund Investor Shares (VEURX)
As of August 2015, the Vanguard European Stock Index Fund was managing assets worth a mammoth $20.8 billion.
Mondelēz’s Looks for Cost Savings through Plant Modernization
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 Remains Stable at 0.2% in August
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.
What Are the Roadblocks for the US Bottled Water Industry?
In May 2015, several bottled water manufacturers were heavily criticized for using California’s municipal water, as the state is facing severe drought.
Nestle Continues to Dominate the US Bottled Water Industry
Nestle Waters North America is the market leader of the US bottled water industry.
Non-Sparkling Water Is the Largest Bottled Water Segment in the US
The domestic non-sparkling bottled water category is the largest segment of bottled water in the US.
Will Coffee Peers Step Up Their Game with Jacobs Douwe Egberts?
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: Its Impact on Coffee Industry Rivals
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.
Jacobs Douwe Egberts: What It Took to Seal the Deal
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 Blend Coffee Businesses
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.
Why Yields in Europe Turned Negative
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 aimed at lowering operating costs
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.