US stocks declined as investors awaited Nvidia's earnings report. The Consumer Analysts Group's annual conference is currently taking place in New York, featuring presentations from major packaged food brands such as PepsiCo, Coca-Cola, Hershey's, Conagra Brands, and Molson Coors [7612c9c4]. Executives from General Mills and ConAgra expressed caution about whether fiscal 2025 would bring a return to growth in line with long-term goals. Hershey and Mondelēz are exploring different package sizes and price points as a growth strategy, while also focusing on innovation, marketing, and new partnerships to re-engage consumers. M&A discussions are also prevalent, with companies open to deals but waiting for the right opportunities. Some industry insiders speculate that staple food companies may acquire technology companies to gain a better understanding of consumer behavior. In unrelated news, the article briefly mentions Wendy Williams and INEOS' minority stake in Manchester United [7612c9c4].
Meanwhile, PepsiCo has raised its earnings per share (EPS) guidance for the year, citing price increases and strong demand for its snacks and beverages [7b4deb53]. Molson Coors is also experiencing sales growth and positive momentum in key brands like Coors Light and Miller Lite [4841b259]. Despite concerns about the state of the U.S. consumer, who is facing higher interest rates and inflationary pressures, experts believe that the consumer is still in good shape and has the potential for continued growth [7b4deb53] [4841b259].
PepsiCo, Inc. (NASDAQ:PEP) has announced its sustainability initiatives, including the elimination of plastic rings on beverage multi-packs and the use of recyclable paper-based designs. The company aims to reduce virgin plastic by 50% by 2030. PepsiCo's SodaStream subsidiary has also signed an agreement to run its production sites in Israel on renewable energy. As of the second quarter, 68 hedge fund portfolios held PepsiCo [1a2d7f1a].
According to a report by Republic World, the top 5 most valuable beverage brands in the world are Coca-Cola, Pepsi, Nongfu Spring, Nestle, and Red Bull. Coca-Cola has a brand value of $59.2 billion and revenue of $38.7 billion in 2021. Pepsi has a brand value of $53.3 billion and revenue of $79.5 billion in 2021. Nongfu Spring, China's largest bottled water company, has a brand value of $16.1 billion and revenue of $4.1 billion in 2021. Nestle, the world's largest food and beverage company, has a brand value of $16.1 billion and revenue of $89 billion in 2021. Red Bull, known for its energy drinks, has a brand value of $15.4 billion and revenue of $8.4 billion in 2021 [b36f3fc8].
The Consumer Brands Association has announced that Diageo and WK Kellogg Co have joined the trade group's ranks. This follows the recent addition of five other members: The Kraft Heinz Company, Kimberly-Clark Corporation, J&J Snack Foods, Lakeside Foods, and Traditional Medicinals. With the inclusion of these two companies, the association now represents 69 members across the food, beverage, household, and personal care sectors. The Consumer Brands Association plays a crucial role in the US economy, contributing $2 trillion to US GDP and supporting over 20 million American jobs [3ad0a3eb] [d1cbf200].
Fmr LLC increased its stake in Conagra Brands, Inc. (NYSE:CAG) by 7.3% in the 3rd quarter, owning 1,663,917 shares worth $45,625,000. Other large investors also added to their stakes in the stock. Conagra Brands stock is down 1.1% and has a market cap of $13.27 billion. The company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.68. Conagra Brands paid a quarterly dividend of $0.35 per share. Several research reports have been released on Conagra Brands, with a consensus rating of 'Hold' and an average target price of $32.87 [b26fcb68].
Bell Asset Management Ltd increased its stake in PepsiCo, Inc. (NASDAQ:PEP) by 53.5% during the 4th quarter, according to its Form 13F filing with the Securities and Exchange Commission. The firm now owns 90,228 shares of PepsiCo, making it the 5th largest holding in its portfolio. Other institutional investors and hedge funds have also made changes to their positions in the company. In other news, CEO Ramkumar Krishnan sold 5,620 shares of PepsiCo stock on May 9th. PepsiCo's stock is currently trading at $173.89, with a 52-week low of $155.83 and a 52-week high of $192.38. The company reported earnings per share of $1.61 for the last quarter, beating analysts' estimates of $1.52. PepsiCo also announced an increased quarterly dividend of $1.355 per share, up from $1.27 per share. Several analysts have given PepsiCo a 'Moderate Buy' rating and an average target price of $187.58 [13f147cb].
Borealis Foods, a Canadian healthy foods company, has seen a 12% rise in its stock price since its SPAC listing in February. The company's Chef Woo brand offers protein-packed ramen noodles, addressing the low nutrition criticism of instant noodles. The global ramen market is valued at $55 billion, with Borealis Foods estimating its addressable market to be worth over $7 billion. The company's growth has been notable, with a CAGR for revenues at ~70%. However, its balance sheet is not strong enough, and market multiples are high compared to more established competitors. The stock is not recommended for investment at this time. [27def978] [f554d8f9]