Consumer Staples Select Sector SPDR® ETF

Less capex has been required since P&G reduced the number of brands as well as the research and development, marketing, and innovation costs associated with them.

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.

In the six months ending December 31, 2014, P&G’s net sales stood at $40.3 billion. Of this, 9.6% came from the Grooming segment.

In 2001, P&G established an innovation strategy program called “Connect and Develop.” The program has allowed the company to better understand consumer behaviour.

P&G is one of the world’s biggest advertisers. The company has defined many of the marketing strategies used globally.

P&G’s Fabric Care and Home Care segment’s annual revenue was reported to be $26.1 billion in fiscal 2014. It contributed 31.7% of the company’s total net sales.

Millennials are the key consumers of energy drinks and shots. Monster Beverage specifically targets this tech-savvy demographic in its advertisements.

Two-thirds of energy drink consumers are concerned about the negative effects of energy drinks and shots, but this doesn’t stop them from consuming the drinks.

On June 12, Coca-Cola and Monster Beverage completed a strategic partnership. Coca-Cola purchased 16.7% in Monster for $2.2 billion. That day, Monster Beverage shares rose 1.0%, and Coca-Cola’s fell 0.3%.

Though the per capita consumption of tea in the US is low compared to other countries, the growth in tea consumption in recent years has been impressive.

PepsiCo (PEP) and peers like Coca-Cola and Dr Pepper Snapple have been developing several products based on the tastes and preferences of Hispanics.

Gatorade is celebrating its 50th anniversary this year. It’s one of PepsiCo’s $22-billion brands, generating more than $1.0 billion in annual retail sales.

Kraft’s (KRFT) and Heinz’s portfolio of brands are highly complementary, which is a big reason for the Kraft–Heinz merger.

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.

The Kraft–Heinz merger entity will maintain Kraft’s current dividend, and management anticipates it will grow.

The first place arbitrageurs look to get a handle on antitrust risk is the 10-K, where companies often disclose the names of competitors.

Other important merger spreads include the deal between Time Warner Cable and Comcast as well as the merger between Pharmacyclics and AbbVie.

Kraft has a non-solicitation agreement with a fiduciary out. This means that Kraft could discuss another merger if approached by another suitor.

The Archer Daniels Midland Company is a processor of oilseeds, corn, wheat, cocoa, and other agricultural commodities.

The beer market share in terms of supplier revenues has fallen from 56.0% in 1999 to 47.8% in 2014. The decline is more evident in the light beer category.

Bud Light is the leader among major beer brands, with 18% share of the beer market based on the 2013 total beer industry shipments of 211.7 million barrels.

Based on the US beer industry shipments of 211.7 million barrels, Anheuser-Busch InBev led the beer industry in 2013 with a 45.6% market share.

Beer is the dominant category in the alcoholic beverage industry with a 47.8% market share of the gross supplier revenue figures for 2014.

Citadel Advisors’ 4Q14 portfolio increased by 3.63% to $82.66 billion from $76.77 billion in 3Q14.

The three-tier distribution system ensures collection of taxes and prevents control of production, distribution, and selling by a single entity.

In an economic study, the American Beverage Licensees estimated the economic impact of the alcoholic beverage industry in 2014 to be more than $245 billion.

Labor productivity growth has slumped to a negative. The 30-year average is 2%. However, this average has been quite volatile.

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.

Despite its sales growth, the gross profit rate declined for Walmart’s US operations, consisting of the Walmart US and Sam’s Club segments.

Keeping in view declining soda volumes, Dr Pepper Snapple is focusing on expanding its non-carbonated beverage line.

Stock price movement affected Walmart’s stock performance. Walmart’s stock is only up by 8.8% since the start of 2014.

Walmart embarked to aggressively minimize the capital cost per square foot of retail space with the aim of faster payback on investment.

PepsiCo’s snack and beverage businesses are complementary in nature and derive a lot of synergies.

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.

In 2013, Walmart closed 29 underperforming stores in China. It also announced a revamp. It planned to open 110 new stores in focused geographies.

Walmart’s largest merchandising category is groceries. According to the USDA, Walmart was the largest seller of grocery items in the US in 2013.

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.

Walmart’s Sam’s Club segment consists of membership-only club warehouse retail operations. Members include both business owners and individual consumers.

Job creation and GDP growth go hand-in-hand. The job markets and the economy tend to move in a similar pattern.

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 advertising and marketing efforts are associated with adventure sports and sports personalities. It sponsors extreme sporting events—like Motocross.

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 Corporation (MNST) is based in California. It manufactures alternative beverages. It sold over 10 billion energy drinks in the past 12 years.

J.B. Hunt Transport Services, Inc. (JBHT) is one of the leading transport and logistics companies in North America. The company operates a huge fleet of semi-trailer trucks.

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 faces major risks like significant reliance on carbonated soft drinks, limited international growth, and excessive reliance on third-party distribution.

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.

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 is continually strengthening its position as a major beverage company by acquiring regional bottling companies and distribution rights.

Dr Pepper Snapple’ beverages reach consumers through the company’s own distribution network, third-party distributors, and direct delivery to customers’ warehouses.