Source: Wikimedia Commons.
Fresh from calving off its coffee business, global snack-foods giant Mondelez International (NASDAQ: MDLZ ) appears ready to slice up its operations once again. The Oreo cookies maker is separating its cheese and grocery units in Europe, allegedly preparing to ready them for a sale or spinoff as a freestanding company,�obviously a result of the influence being exerted by billionaire shareholder Nelson Peltz.�
The activist investor has maintained steadfast conviction that snack foods are the�growth industry of the future. Last year he took a�sizable�position in PepsiCo�to advocate for a major shakeup of the soda company. He wanted the beverage giant to spin off or sell its soda division and use the proceeds from it to acquire Mondelez, which would then be melded with Pepsi's Frito-Lay. Management and the board resisted his overtures, though, and he�subsequently�gave up the acquisition aspects of his plan after he gained a seat on Mondelez's board of directors.
5 Best Beverage Stocks To Watch Right Now: Beam Inc (BEAM)
Beam Inc. (Beam), incorporated on October 1, 1985, is a premium spirits company that makes and sells branded distilled spirits products in markets worldwide. The Company's principal products include bourbon whiskey, tequila, Scotch whisky, Canadian whisky, vodka, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The Company's portfolio consists of brands the Company identifies as Power Brands, Rising Stars, Local Jewels and values Creators. The Power Brands are the Company's core brand equities, with global reach in premium categories. Rising Stars are smaller premium brands. Brands identified as Local Jewels act as Power Brands in local markets. Value Creators include a variety of brands. The Company's three reportable segments are the geographic regions, which consists of North America, Europe/Middle East/Africa (EMEA), and Asia-Pacific/South America (APSA). Each segment is engaged in the manufacture and sale of distilled spirits products. In May 2012, the Company acquired the Pinnacle vodka and Calico Jack rum brands and certain related assets (Pinnacle assets) from White Rock Distilleries, Inc. In January 2012, Beam acquired Cooley Distillery plc (Cooley), an Irish whiskey producer.
The Company�� Power Brands include Jim Beam Bourbon, Maker's Mark Bourbon, Sauza Tequila, Courvoisier Cognac, Canadian Club Whisky, Teacher's Scotch and Pinnacle Vodka. Beam�� Rising Stars brand includes Laphroaig Scotch, Knob Creek Bourbon, Basil Hayden's Bourbon, Kilbeggan Irish Whiskey, Cruzan Rum, Hornitos Tequila, Skinnygirl Cocktails and Sourz Liqueurs. The principal markets for the Company's spirits products are the United States, Australia, Germany, Spain, the United Kingdom, and Canada, and the Company continues to invest in emerging markets such as India, Brazil, Mexico, Russia, Central Europe, Asia, and other geographies.
During the year ended December 31, 2012, Power Brands, Rising Stars, and combined Local Jewels/Value Creators (including non-branded sales) repre! sent approximately 60%, 15%, and 25%, respectively, of the Company's net sales. Approximately 55% of its consolidated net sales were generated in the United States (based on country of destination) during 2012. In the United States, the Company sells its products either to wholesale distributors for resale to retail outlets or, in those states that control alcohol sales, to state governments who then sell them to retail customers and consumers. In the Company's other global markets, the Company uses a variety of route-to-market models, including third party distributors, global or regional duty free customers, other spirits producers and its joint ventures with The Edrington Group Ltd.
The Company competes with Bacardi Limited, Brown-Forman Corporation, Constellation Brands, Inc., Davide Campari Milano-S.p.A., Diageo PLC, Pernod Ricard S.A. and Remy Cointreau S.A.
Advisors' Opinion:- [By Lisa Levin]
Beam (NYSE: BEAM) shares moved up 24.18% to $83.16. The volume of Beam shares traded was 9117% higher than normal. Beam agreed to be acquired by Suntory Holdings for $83.50 per share in cash.
- [By Jonas Elmerraji]
Bourbon giant Beam (BEAM) is enjoying strong tailwinds thanks to increased consumption of its namesake spirits. The firm is the name behind Jim Beam and Maker's Mark bourbon as well as Sauza tequila, Pinnacle vodka and Cruzan rum. Since spinning off from what was then Fortune Brands in 2011, this stock hasn't done much in the way of price, but it has made leaps and bounds fundamentally. That financial improvement paves the way for a dividend boost.
Beam is well-positioned in the spirit business. Liquor consumers are sticky. Because BEAM owns some of the most attractive brands in the business, it's less likely to see brand attrition than others. And more recently, the embrace of drinkers' demand for "craft" alcoholic beverages has provided a fast-growing opportunity for the firm: a line of small-batch bourbons. That same small-batch approach could spill over to the firm's other liquor brands in a very positive way; Beam already has a winning model to copy, after all.
In the last few years, Beam has essentially halved its debt, and it's kept balance sheet liquidity very healthy. As a result, income trends look very strong -- and more of that income is available for shareholder payouts rather than bank obligations. While the firm's 1.5% dividend payout it far from high-yield, investors should expect a raise in the coming quarters.
- [By John Udovich]
Suntory Beverage & Food Limited.�A soft drinks company with an integrated platform in four key regions (Japan, Europe, Oceania and Asia), Japan based Suntory Beverage & Food acquired�Beam Inc (NYSE: BEAM)�for $16 billion (a 25% premium) earlier this year (the sixth-largest ever in the beverage industry) to form the world's third largest premium spirits company. Beam Suntory�� brands or products include�the flagship Jim Beam bourbon and Yamazaki Japanese whisky, as well as world renown premium brands including Maker's Mark and Knob Creek bourbons, Hakushu and Hibiki Japanese whiskies, Teacher's, Laphroaig, and Bowmore Scotch whiskies, Canadian Club whisky, Courvoisier cognac, Sauza tequila, Pinnacle vodka and Midori liqueur. Beam Suntory generates annual worldwide sales of approximately $4.6 billion (excluding excise taxes). The deal was made in part because of Japan�� aging population means Japanese companies need to look overseas for growth while a strong Yen last year has helped to fuel acquisitions. It should be noted though that while Suntory Beverage & Food Limited�� stock does trade on the OTC in the USA, volume over the past two months has ranged from a low of 9,740 shares to a high of 761,630 shares. On Tuesday, Suntory Beverage & Food Limited rose 1.42% to $19.33 (STBFY has a 52 week trading range of $15.25�to $19.43 a share) for a market cap of $11.78 billion plus the stock is 18.9% since the start of the year and up 13.7% since October 2013.
- [By Jake L'Ecuyer]
Beam (NYSE: BEAM) shot up 24.06 percent to $83.08 after the company agreed to be acquired by Suntory Holdings for $83.50 per share in cash.
Clovis Oncology (NASDAQ: CLVS) was also up, gaining 7.26 percent to $79.35 after the company announced 2014 objectives and financial outlook. The company projected to initiate three global registration studies for CO-1686.
5 Best Beverage Stocks To Watch Right Now: CirTran Corp (CIRC)
CirTran Corporation, incorporated on March 23, 1987, manufactures, markets, and distributes internationally an energy drink under a license with Playboy Enterprises, Inc. (Playboy) through its subsidiary, CirTran Beverage Corporation. It operates in Beverage Distribution and Contract Manufacturing segments. In the United States, it provides a mix of high- and medium-volume turnkey manufacturing services and products using various high-tech applications for electronics original equipment manufacturers (OEMs) in the communications, networking, peripherals, gaming, law enforcement, consumer products, telecommunications, automotive, medical, and semiconductor industries. The Company�� services include pre-manufacturing, manufacturing, and post-manufacturing services.
Beverage Distribution
CirTran Beverage Corporation (CirTran Beverage) manufactures, markets, and distributes Playboy-licensed energy drinks, flavored water beverages, and related merchandise through various distribution channels. As of December 31, 2012, the Company had 65 countries throughout Europe, Africa, Australia, the Pacific, and the Middle East.
Contract Marketing
CirTran Products Corp. pursues contract-manufacturing relationships in the domestic consumer products markets, including products in areas, such as home/garden, kitchen, health/beauty, toys, licensed merchandise, and apparel for film, television, sports, and other entertainment properties. The Company concentrates its product development efforts into three areas: home and kitchen appliances, beauty products, and licensed merchandise. Through CirTran - Asia, Inc., the Company designs, manufactures, and supplies products in the international electronics, consumer products, and general merchandise industries for various marketers, distributors, and retailers selling overseas. This subsidiary provides manufacturing services to the direct-response and retail consumer markets.
The Company competes with Hansen�! � Energy, Diet Red, Monster Energy, Lost Energy, Joker Mad Energy, Ace Energy, Unbound Energy, Rumba energy juice, Red Bull, Rockstar, Full Throttle, No Fear, Amp, Adrenaline Rush, 180, Extreme Energy Shot, Red Devil, Rip It, NOS, Boo Koo, and Vitaminenergy.
Advisors' Opinion:- [By CRWE]
Last Friday, CIRC remained (0.00%) +0.000 at $.0005 at the close (ref. google finance August 30, 2013 ��Close).
CirTran Corporation has recently filed its Quarterly Report on Form 10-Q for the period ended June 30, 2013, showing continued growth in sales and a dramatic improvement in profits. CirTran�� sales were again driven by its Playboy Energy Drink line, which has grown to represent nearly 98% of revenues.
For the quarter, CirTran previously reported sales of $1,096,691, a 247% increase over the $315,755 reported for the same period a year ago. For the six months ended June 30, 2013, CirTran reported sales of 1,964,843, a 110% improvement over the $934,455 reported for the first half of 2012.
Hot Performing Companies To Buy Right Now: Dr Pepper Snapple Group Inc (DPS)
Dr Pepper Snapple Group, Inc. (DPS), incorporated on October 24, 2007, is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers. The Company operates in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company primarily serves two groups of customers: bottlers and distributors and retailers. As of December 31, 2011, it operated 20 manufacturing facilities across the United States and Mexico, excluding its manufacturing facility for its joint venture with Acqua Minerale San Benedetto. Effective March 1, 2013, it acquired Dr. Pepper/7-UP Bottling Co of the West, a producer and wholesaler of bottled soft drinks.
Beverage Concentrates
The Company�� Beverage Concentrates segment is principally a brand ownership business. In this segment the Company manufactures and sells beverage concentrates in the United States and Canada. Most of the brands in this segment are CSD brands. Its brand portfolio includes CSD brands, such as Dr Pepper, Sunkist soda, 7UP, A&W, Canada Dry, Crush, Squirt, Penafiel and Schweppes. Beverage concentrates are shipped to third party bottlers, as well as to its own manufacturing systems, who combine them with carbonation, water, sweeteners and other ingredients, package it in PET containers, glass bottles and aluminum cans, and sell it as a finished beverage to retailers. Beverage concentrates are also manufactured into syrup, which is shipped to fountain customers, such as fast food restaurants, who mix the syrup with water and carbonation to create a finished beverage at the point of sale to consumers. Its Beverage Concentrates brands are sold by its bottlers, including its own Packaged Beverages segment, through all retail channels, including supermarkets, fountains, mas! s merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains and dollar stores.
Packaged Beverages
The Company�� Packaged Beverages segment is principally a brand ownership, manufacturing and distribution business. In this segment, it primarily manufacture and distribute packaged beverages and other products, including its brands, third party owned brands and certain private label beverages, in the United States and Canada. Key NCB brands in this segment include Hawaiian Punch, Snapple, Mott's, Yoo-Hoo, Clamato, Deja Blue, AriZona, FIJI, Mistic, Nantucket Nectars, ReaLemon, Mr and Mrs T, Rose's and Country Time. Key CSD brands in this segment include 7UP, Dr Pepper, A&W, Sunkist soda, Canada Dry, Squirt, RC Cola, Big Red, Sun Drop, Diet Rite, IBC and Vernors. Approximately 87% of its 2011 Packaged Beverages net sales of branded products come from its own brands, with the remaining from the distribution of third party brands, such as Big Red, AriZona tea, FIJI mineral water, Neuro beverages, Vita Coco coconut water and Hydrive energy drinks. A portion of its sales also comes from bottling beverages and other products for private label owners or others, which is also referred to as contract manufacturing. Its Packaged Beverages��products are manufactured in multiple facilities across the United States and are sold or distributed to retailers and their warehouses by itsown distribution network or by third party distributors. The Company sells its Packaged Beverages��products both through its Direct Store Delivery system (DSD), supported by a fleet of approximately 6,000 vehicles and 12,000 employees, including sales representatives, merchandisers, drivers and warehouse workers, as well as through its Warehouse Direct delivery system (WD), both of which include the sales to retail channels, including supermarkets, fountain channel, mass merchandisers, club stores, vending machines, convenience stores, gas stations, small groce! ries, dru! g chains and dollar stores.
Latin America Beverages
The Company�� Latin America Beverages segment is a brand ownership, manufacturing and distribution business. This segment participates mainly in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories, with particular strength in carbonated mineral water, vegetable juice categories and grapefruit flavored CSDs. Its brands include Squirt, Penafiel, Aguafiel, Crush and Clamato.
In Mexico, it manufactures and distributes its products through its bottling operations and third party bottlers and distributors. In the Caribbean, it distributes its products through third party bottlers and distributors. In Mexico, it also participate in a joint venture to manufacture Aguafiel brand water with Acqua Minerale San Benedetto. The Company sells its finished beverages through Mexican retail channels, including mom and pop stores, supermarkets, hypermarkets, and on premise channels.
The Company competes with The Coca-Cola Company (Coca-Cola), PepsiCo, Inc. (PepsiCo), Nestle, S.A. (Nestle), Kraft Foods Inc. (Kraft) and The Cott Corporation (Cott).
Advisors' Opinion:- [By Markus Aarnio]
PepsiCo's competitors include The Coca-Cola Company (KO), Dr Pepper Snapple Group (DPS) and Mondelez International (MDLZ). Here is a table comparing these companies.
- [By Hank Coleman] It's not easy to find a great stock. In almost every case, investors have already priced good and bad news about the company into the stock's share price. But every once in a while, the market misprices a stock. So how do you find these hidden gems? A company's price-to-earnings ratio, or P/E, is one of the fundamental metrics that every stock picker should know. It's is a great place for every investor to start when trying to find undervalued stocks to purchase. How to Calculate a P/E Ratio To calculate a company's P/E ratio, simply divide the share price of a company's stock with its earnings per share. (For an apples-to-apples comparison, be sure to calculate the ratio on a per-share basis.) For example, if a company has a share price of $40 and earns a profit of $2 a share, its P/E ratio is 20. If the company's price per share were to increase to $60 and its profits remained the same, it would see its P/E ratio jump to 30. P/E Ratio Shows You If a Company's Stock Is Undervalued A company's P/E ratio is a leading indicator of an undervalued stock. A lower P/E ratio shows investors that a lower-priced stock is earning a larger profit. A higher P/E ratio indicates that a stock is more expensive or might not be earning a lot of profit when compared to the price of a share of its stock. P/E ratios are relative, and should only be compared to those of other companies within the same industry or sector. So, it isn't fair or even accurate most times to, for example, compare the P/E of a technology company with that of a consumer products company, as these industries typically have different P/E ratio levels. Technology companies frequently command a higher price for their stock, despite the lack of big profits. It isn't unusual to see some technology companies with a P/E of 40 or more. Conversely, consumer staples and blue chip companies often have a lower P/E. It's important to compare companies within their own industry to identify buying opportuniti
5 Best Beverage Stocks To Watch Right Now: Cott Corp (COT)
Cott Corporation (Cott), incorporated on December 31, 2006, is a producers of beverages on behalf of retailers, brand owners and distributors. The Company�� product lines include carbonated soft drinks (CSDs), 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy products, sports products, new age beverages, and ready-to-drink teas, as well as alcoholic beverages for brand owners. The Company operates in five segments: North America (which includes the United States operating segment and Canada operating segment), the United Kingdom (which includes its United Kingdom reporting unit and its Continental European reporting unit), Mexico, Royal Crown International (RCI) and All Other. The Company markets or supplies over 500 retailer, licensed and Company-owned brands in its four core geographic segments. In March of 2012, its U.K. reporting segment acquired a beverage and wholesale business based in Scotland.
Advisors' Opinion:- [By Nicole Seghetti]
Private-label pressures
Regardless, private labels are becoming a bigger problem for companies such as Kraft and, to a lesser extent, Mondelez. According to an industry profile compiled by First Research, these brands typically cost 20% to 40% less than name-brand products. Couple that with the fact that more consumers are ditching big brands, and we can easily see why ConAgra (NYSE: CAG ) , Cott (NYSE: COT ) , and others are continually strengthening their private-label positions. - [By Dan Moskowitz]
Cott (NYSE: COT ) produces and sells over 200 different types of beverages in over 50 countries, and it implements a highly effective strategy. Cott is what is known as a Fast Follower, which makes it unique to other beverage companies.�
- [By Rick Munarriz]
It's been a year of brand-widening initiatives for SodaStream, and not just because it cranked out its first Super Bowl ad back in February.
In February it teamed up with Ocean Spray to co-develop cranberry juice blends exclusively for the SodaStream system. This follows deals last year with Crystal Light, Kool-Aid, and V8 for non-conventional carbonated beverages. My 2012 wish for SodaStream to strike a deal with Monster Beverage (NASDAQ: MNST ) to make a bigger splash in the energy-drinks market hasn't materialized, but a deal with EBOOST did happen earlier this year. The initial natural energy drink flavors of orange and acai pomegranate will hit the market as SodaStream syrups during the latter half of this year, packing an all-natural energy boost and vitamins in every serving. EBOOST doesn't have the same allure as Monster or Red Bull, but the move was still a strong one since there's a real value proposition for home-crafted energy drinks. If SodaStream is successful, the big boys will be on notice. In March, SodaStream, which is based in Israel, teamed up with private-label bottler Cott (NYSE: COT ) to produce SodaStream's existing flavors at its facility in Georgia, making it easier to get SodaStream products into the country with the world's largest soda consumption per capita.The next chapter in what has been a successful year will naturally write itself on Wednesday. There is plenty to prove, even after SodaStream proves quarter after quarter that it's not just a company behind a faddish novelty.
- [By Dan Caplinger]
But SodaStream is continuing to pull out all stops in order to improve its results. SodaStream's recent partnership with Samsung to incorporate carbonation technology into high-end refrigerators could help drive growth for consumers who don't want to deal with a separate appliance in their kitchens. Moreover, SodaStream's deal in March with bottler Cott (NYSE: COT ) to produce soda syrup within the U.S. should help it boost its efficiency in getting flavors to domestic customers.
5 Best Beverage Stocks To Watch Right Now: C&C Group PLC (CCGGY)
C&C Group plc, incorporated on March 19, 2004, is engaged the production, marketing and selling of cider and beer. The Company operates in five segments: Republic of Ireland (ROI), Cider United Kingdom (Cider UK), Tennent�� United Kingdom (Tennent�� UK), International, and Third Party Brands United Kingdom (Third Party Brands UK). The Company�� cider brands include Bulmers, Magners, Gaymers Cider, Blackthorn Cider, Olde English, Addlestones, Woodchuck Hard Cider, Wyder�� Cider and Hornsby��. Its other cider brands include Bulmers Berry, Bulmers Pear, Magners Pear, Magners Specials, Special Vat, K, Natch and Diamond White.
ROI includes the results from sale of all products in the Republic of Ireland (ROI), including Bulmers, Tennent��, Caledonia Smooth and third party brands. Cider UK segment includes the results from sale of the Company�� cider products in the United Kingdom, with Magners, Gaymers and Blackthorn the principal brands. Tennent�� UK segment includes the results from sale of the Company�� owned beer brand Tennent�� in the United Kingdom and sales of Caledonia Best in the United Kingdom. International segment includes the results from sale of the Company�� cider and beer products, principally Magners, Blackthorn, Hornsby��, Woodchuck and Tennent�� in all territories outside of the ROI and the United Kingdom. Third Party Brands UK segment relates to the distribution of third party brands and the production and distribution of private label products in the United Kingdom.
Advisors' Opinion:- [By Rich Duprey]
While�Anheuser-Busch InBev (NYSE: BUD ) introduced some fruit-flavored margarita drinks and even Beam offered flavored bourbons to water down the market more,�the bigger threat may be coming from the explosive growth being witnessed in�hard cider.�Brewer Boston Beer (NYSE: SAM ) rolled out its Angry Orchard cider brand just last year and has already catapulted to the top of the market, surpassing C&C Group's (NASDAQOTH: CCGGY ) Vermont Hard Cider, the previous market leader.
- [By Rich Duprey]
At C&C Group's (NASDAQOTH: CCGGY ) annual meeting earlier this month, it was revealed that when it bought the Hornsby brand two years ago, it paid $25 million and got a 20% share of the market for its efforts. It paid more than 10 times that amount, or about $300 million, for Vermont Hard Cider and its top Woodchuck brand, and got another 42% share of the market. So C&C had almost two-thirds of the cider market all to itself.
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