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>>> Performance Food Group Company (NYSE:PFGC)
https://finance.yahoo.com/news/11-best-organic-food-farming-085134305.html
Number of Hedge Fund Holders: 34
Performance Food Group Company (NYSE:PFGC) is an American company that sells food and food-related products. The company operates through three divisions; Performance Foodservice, Vistar, and PFG Customized. Performance Food Group Company (NYSE:PFGC)’s Vistar “Good to Go” Program has more than 1800 organic, vegan, non-GMO, and gluten-free products.
For FY 23, Performance Food Group Company (NYSE:PFGC) was able to generate $57.3 billion in revenue, up 12.5% from the previous year. The company’s net income increased over 250% YoY to around $397.2 million.
Performance Food Group Company (NYSE:PFGC) is expected to report its Q1 2024 earnings on November 8. The company management is expecting its net sales to be between $14.7 billion to $15 billion, compared to the market estimates of $15.22 billion. For the full year, Performance Food Group Company (NYSE:PFGC) expects its net sales to be in the range of $59 billion to $60 billion.
General Mills, Inc. (NYSE:GIS), Corteva, Inc. (NYSE:CTVA), and The Kroger Co. (NYSE:KR) are some of the best organic food and farming stocks along with Performance Food Group Company (NYSE:PFGC).
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>>> CELSIUS® to Expand to Australia and New Zealand
PR Newswire
March 26, 2024
https://finance.yahoo.com/news/celsius-expand-australia-zealand-130700344.html
CELSIUS and Suntory Oceania enter into definitive manufacturing, sales and distribution agreement
BOCA RATON, Fla., March 26, 2024 /PRNewswire/ -- Celsius Holdings, Inc. (Nasdaq: CELH), maker of energy drink brand CELSIUS®, today announced plans to expand into new international markets, growing the company's global sales and distribution footprint to include Australia and New Zealand.
"We're pleased to introduce our refreshing, great tasting and functional CELSIUS energy drinks to consumers in Australia and New Zealand," said John Fieldly, Celsius Holdings, Inc. Chairman and CEO. "We expect to continue our international growth at a measured pace, targeting strategically important energy drink markets and employing our proven playbook to build a strong and passionate consumer base."
CELSIUS has selected Suntory Oceania as its exclusive manufacturing, sales and distribution partner in Australia and New Zealand. CELSIUS previously announced a sales and distribution agreement with Suntory Beverage & Food Great Britain and Ireland, and sales in those markets are expected to begin in the second quarter of 2024.
"We are excited to launch our strategic plan in Q4 2024 across the retail landscapes of Australia and New Zealand, and we look forward to accelerating growth in 2025," said Tony Guilfoyle, Celsius Holdings, Inc. Chief Commercial Officer.
"CELSIUS is a brand which is breaking new ground and delivering a totally different consumer experience," said Darren Fullerton, CEO of Suntory Beverage & Food Oceania. "As we build Suntory Oceania, we are delighted to be partnering with CELSIUS to evolve our portfolio and deliver new growth opportunities for all retail partners."
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Nasdaq: CELH) is the maker of energy drink brand CELSIUS®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit https://www.celsius.com.
About Suntory Oceania
Underpinned by quality craftsmanship and a strong sense of purpose, Beam Suntory and Suntory Beverage & Food (TSE: 2587) are partnering to create a new multi-beverage powerhouse – Suntory Oceania. The partnership will be fully operational in Australia in mid-2025 and 2026 in New Zealand.
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>>> Where Will Celsius Holdings Stock Be in 10 Years?
by Anders Bylund
Motley Fool
March 19, 2024
https://finance.yahoo.com/news/where-celsius-holdings-stock-10-183700105.html
Energy drink stocks have been on a hypercaffeinated roll since Red Bull and Monster Beverage (NASDAQ: MNST) started dueling around the turn of the millennium. The latest serious contender is Celsius Holdings (NASDAQ: CELH), a health-focused drink designer with a global distribution deal, skyrocketing sales, and an 8% share of the convenience store and gas station market in North America.
Celsius is participating in a long and heated market battle. Known as Hansen Natural at the time, Monster brewed its first energy drink in April 2002 and has never looked back. The stock has gained a heart-stopping 144,000% since then, turning a hypothetical $350 investment into half a million dollars.
Challengers have come and gone over roughly two decades, but none have had the staying power of Monster and Red Bull. That won't stop even more rivals from entering the ring to capture a respectable slice of that ever-booming energy drink market.
Will Celsius follow in Monster's and Red Bull's red-hot footsteps? From here, Celsius and its stock can go three different ways.
The bull case for Celsius
In a perfect world, the global distribution deal with PepsiCo (NASDAQ: PEP) sets Celsius up for long-term success. Putting the unfamiliar drink brand in front of billions of consumers, the top-notch distribution network raises awareness of the company's healthier energy drinks. The worldwide interest in organic, low-salt, and vegan foods continues for years and years, further boosting Celsius' growth prospects.
In this scenario, the best is yet to come. The $8.9 billion market cap and $1.3 billion of annual sales you see today could become comparable to Monster's 2023 tally of $53 billion and $7.1 billion, respectively.
Of course, Neither Celsius nor Red Bull will sit on their hands while Celsius rises, so the third-place challenger may still have more catching up to do before truly joining the ruckus at the very top of the energy drink market. Still, history suggests that Celsius might be able to grow both its sales and market value fivefold over the next decade.
Not too shabby, right?
The bear case against Celsius
On the other hand, the bull case assumes that Celsius comes up aces in every challenge along the way. Many things could go horribly wrong instead.
Consumer habits are notoriously fickle, and the health craze could very well cool down. That would be terrible news for Celsius, whose entire existence is based on a health-conscious alternative to traditional energy drinks.
Or, the health trend could take a sharp turn in the other direction. Imagine a world where consumers turn up their noses on every kind of energy drink, no matter how health-focused it might be. And governments in key markets like the U.S. and Western Europe might consider halting the sales of caffeinated drinks not named coffee, putting up brick walls in front of every growth rocket in this category.
Monster is notoriously litigious. The company sued up-and-comer Vital Pharmaceuticals in 2018, collecting enough damages to drive the Bang Energy maker out of business. Then, Monster bought what was left at a pennies-on-the-dollar bankruptcy discount. I don't know whether Monster would have a substantial case for doing the same to Celsius -- and PepsiCo should intervene with its deep pockets and access to high-powered law firms -- but you never know.
I'm not saying that any of these extreme downturns are especially likely, but the risks are real enough. At the very least, challenges like these will probably hold Celsius' skyrocketing growth back a bit.
Realistically, the company should land between these extremes
I may share a first name with innovative physicist Anders Celsius, but that doesn't give me any special insights into our energy-drink namesake's business prospects. In my view, the company faces a promising growth market, but also a couple of powerful rivals and dominant market shares. As a result, Celsius looks like a promising growth stock with a couple of significant headwinds.
Is Celsius a buy with these 10-year prospects?
Investor enthusiasm is also running a bit hotter than I'd like, driving Celsius stock to lofty valuation ratios such as 114 times earnings and 168 times free cash flow. Monster Beverage looks like a bargain by comparison, and true value investors should consider taking part in the Celsius story by investing in distribution partner PepsiCo instead.
So Celsius Holdings is most definitely not every investor's dream stock. You may want to consider a small, speculative stake in this interesting growth story, but only as an extra-small part of a diversified portfolio. Companies heading into direct competition with Monster and Red Bull often fall short of their early goals.
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>>> Celsius: Up 64%
https://finance.yahoo.com/news/3-stocks-way-doubling-2024-123000087.html
Shares of Celsius are sparkling this year, and that's fitting since it's a fast-growing player in sparkling functional beverages. This year's initial jump isn't a fluke. The stock has more than tripled over the past year. Celsius is a five-bagger over the past three years and a jaw-dropping 63-bagger over the past five years.
Growth will inevitably slow for its product line of juice-flavored beverages that help burn fat and calories. But for now, Celsius continues to defy gravity. Bears figured the growth would end last year. They were wrong. They thought the same thing the year before. They were really wrong. This is probably a good time to point out that short interest hit at an all-time high this month.
Revenue has more than doubled for three consecutive years. The company is also profitable, with double-digit percentage beats in every single quarter of 2023.
Stateside growth will slow, but it's time for international growth to take over. Celsius announced three new international expansion markets earlier this year, something worth watching since international sales currently account for just 4% of its top-line results.
Let's close with a data point that may blow you away. Set aside the energy drink maker's tendency to blow through profit targets: The beverage stock is a 62-bagger over the past five years, and it's trading for 57 times next year's earnings. You could've bought all of Celsius five years ago for less than what it should earn next year.
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Morgan Stanley upgrades Pepsi - >>> Here's Why PepsiCo Stock Popped Today
by Jon Quast
Motley Fool
March 18, 2024
https://finance.yahoo.com/news/heres-why-pepsico-stock-popped-192623777.html
Shares of beverage and snacking giant PepsiCo (NASDAQ: PEP) popped on Monday after an analyst upgraded his outlook and raised his price target. As of 1:15 p.m. ET, Pepsi stock was up 4%, which is a big move for this usually sleepy stock.
Pepsi's most exciting opportunity
Morgan Stanley analyst Dara Mohsenian is one of the highest-rated and listened-to analysts out there and he's turning heads with his commentary on Pepsi stock today. Mohsenian reportedly is looking to Pepsi's growth in international markets and the valuation of its stock as reasons for bullishness. Accordingly, the analyst raised the price target for Pepsi stock to $190 per share, according to The Fly.
Mohsenian isn't alone in his bullishness for Pepsi in international markets; CEO Roman Laguarta shares his optimism. In the earnings call for the fourth quarter of 2023, Laguarta said, "The international opportunity continues to be probably the most remarkable and exciting opportunity that we have as a company."
Considering Pepsi is a business valued at over $230 billion, that's a big deal and why the market is excited today.
Is Pepsi stock undervalued?
Regarding Pepsi's valuation, it looks pretty average to me, which differs from Mohsenian's belief that the valuation is cheap. Its current price-to-earnings (P/E) ratio is 26, which is right at its 10-year average.
That said, the reason that Laguarta is excited about Pepsi's growth in international markets is because it's now almost a $40 billion business outside of the U.S., gaining enough scale to have better profit margins. Therefore, as business grows in those markets, profits should grow at a faster pace.
In light of this, it's possible that Pepsi's profits could go up faster than what some investors expect in coming years. If that happens, then perhaps Pepsi is undervalued on a forward basis even if its valuation looks average on a trailing basis. In this case, Mohsenian's point is well taken and his price target of $190 would be easily attainable.
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>>> Celsius Holdings, Inc. (CELH) develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.
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>>> Hershey Says ‘Historic’ Cocoa Inflation Could Push Prices Higher
Bloomberg
by Deena Shanker
Feb 8, 2024
https://finance.yahoo.com/news/hershey-says-historic-cocoa-inflation-145226480.html
(Bloomberg) -- Cocoa prices are climbing fast, and Hershey Co. may continue raising prices to keep up.
Prices for the all-important ingredient are reaching “historic” levels, Chief Executive Officer Michele Buck said in the company’s earnings statement Thursday. While the company says its marketing plans, innovation and productivity efforts will help soften the blow, the higher costs are “expected to limit earnings growth this year,” she said.
New York cocoa futures hit a record Thursday morning, after a year that saw prices double as West African growers got hit with extreme weather.
The Reese’s maker said its fourth-quarter confectionery sales in North America increased 2.1%, with prices up but volumes down. It expects net sales to grow 2% to 3% in 2024, mostly driven by higher prices the company has already planned. And prices could go up still more.
Commodities are seeing low-double-digit percentage inflation, Chief Financial Officer Steve Voskuil said on the call with analysts, with cocoa and sugar as the most inflationary. Noncommodity inflation, he said, is much lower, at mid-single digits, putting the average inflation rate for the company at high single digits.
“We can’t talk about future pricing,” Buck said, but added, “given where cocoa prices are, we will be using every tool in our toolbox, including pricing, as a way to manage the business.” If prices do go up, the company will see that benefit in the second half of 2024 and into 2025, she said.
Hershey shares rose as much as 5.5% in New York trading, the most since July 2020. The stock is up 4.2% this year through Wednesday, outpacing the 2.7% gain of the S&P 500 consumer-staples index.
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>>> Is Hershey Warren Buffett's Kind of Business?
Motley Fool
By Brett Schafer
Jun 30, 2021
https://www.fool.com/investing/2021/06/30/is-hershey-warren-buffetts-kind-of-business/
The Oracle of Omaha may be going after the candy giant.
Last week, a report came out that Hershey's (HSY) corporate jet recently flew to Omaha, Nebraska, where Warren Buffett's conglomerate Berkshire Hathaway (BRK.B) is headquartered. It's unknown what the jet was doing in Omaha, but analyst Don Bilson of Gordon Hackett's research team speculated that the Oracle of Omaha may be looking to acquire the chocolate company.
Bilson has been right with these reports in the past, predicting Berkshire's financing of Occidental Petroleum's takeover of Anadarko Petroleum after tracking the company's jet back in 2019. What would a Hershey deal mean for Berkshire Hathaway? Let's take a look.
What Hershey owns
Milton Hershey founded the Hershey Chocolate company more than 125 years ago. In 1900, the first Hershey bar was sold, and the company hasn't looked back since.
Hershey's still sells its famous chocolate bars around the globe but has bought and incubated many other candy and snack brands over the years. Its current portfolio includes popular brands like Hershey bars and kisses, Reese's, Twizzlers, and Ice Breakers. It also has new, health-focused brands like Skinny Pop, which have helped the company grow, as well.
The business is as steady as it comes
Chocolate and candy bars may be considered simple or even "boring" by many investors, but Hershey's stock has put up fantastic returns over the long haul. Since 1972, shares have gone up 14,000%, while the S&P 500 has "only" grown 4,000% over that time span. And those returns don't include the consistent dividend Hershey pays out to shareholders, which currently yields 1.84%.
Why has Hershey's stock done so well over the long term? There are many factors, but the main reason is that it has consistently grown its free cash flow. Before 2000, Hershey generated well below $500 million in free cash flow a year. Over the last 12 months, it generated over $1.6 billion in free cash flow. Couple that with the fact Hershey's share count has gone from 360 million in 1992 down to 206 million today, and you can see why the stock has done so well over the decades.
What it could mean for Berkshire Hathaway
Hershey has all the makings of a Berkshire Hathaway subsidiary. Buffett already owns junk-food companies like Sees Candies and Dairy Queen, while also owning large chunks of Coca-Cola and McDonald's stock. He loves businesses that are incredibly predictable like candy, which is why investors speculate he would love owning Hershey under the Berkshire umbrella. And while many governments are cracking down and regulating sugar consumption around the world, people will likely be consuming chocolate 50 years from now, just as they did 50 years ago.
On top of being a Buffett-style business, Hershey's may only have one suitor -- Berkshire. The Hershey Trust Company has over 80% of the voting rights of Hershey stock and likely doesn't want a buyer that would interfere with the business operations. Berkshire Hathaway famously has a hands-off approach with its subsidiaries, which could help in negotiations with Hershey shareholders.
One thing Buffett may not like is the price he would have to pay to acquire the Hershey company. The stock currently trades at a market cap of $36 billion, giving it a price-to-free-cash-flow (P/FCF) of 22.5. This doesn't look expensive on a trailing basis, but Buffett hates to overpay for a business and would likely need to offer a decent premium to Hershey's current market cap to convince the Hershey Trust to sell.
With over $145 billion in cash on its balance sheet, Berkshire has plenty of ammo to do a Hershey deal. Unless he can get it at a reasonable price, however, Buffett's unlikely to pull the trigger and buy the Hershey company.
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>>> Hershey (HSY) Down More Than 20% in 6 Months: Here's Why
Zacks Equity Research
January 12, 2024
https://finance.yahoo.com/news/hershey-hsy-down-more-20-184700374.html
The Hershey Company HSY appears to be in a tight spot thanks to rising expenses. The leading snacks company’s international presence keeps it exposed to risks of unfavorable currency rates. A soft macroeconomic environment is a threat to the company.
Shares of the Zacks Rank #4 (Sell) company have slumped 20.2% in the past six months compared with the industry’s 17.3% decline. The stock has underperformed the Zacks Consumer Staple sector’s 2.8% drop.
Let’s discuss this in detail.
Cost Concerns Stay
Hershey has been grappling with higher selling, marketing and administrative expenses for a while. In the third quarter of 2023, the company’s SG&A expenses rose 13.1% on increased levels of media and capability investments. Selling, marketing and administrative expenses, excluding advertising and related consumer marketing, increased 9.9% due to wage and benefits inflation, capability and technology investments.
Management had highlighted that it expects advertising spending to grow to double-digits in the fourth quarter as it continues to support the sell-through of seasonal items and starts to reactivate the Salty Snacks brands post-ERP transition. The company expects non-advertising SG&A spending to rise in low-single-digits, reflecting some increase in technology and capability investments.
Currency Headwinds
Owing to Hershey’s solid international presence, the company is exposed to unfavorable currency fluctuations. The weakening of foreign currencies against the U.S. dollar may require the company to either raise prices or contract profit margins in locations outside the country. Indeed, the volatility in exchange rates is a concern for the company.
Soft Macroeconomic Environment
Hershey is dependent on the consumer discretionary spending environment, which is affected by general macroeconomic conditions like consumer confidence and employment levels. Hershey recently highlighted that it is seeing customers cutting back on discretionary purchases, looking for deals, shopping at discount channels and buying more petite sizes. The North American food industry is exposed to shifting consumer preferences, changes in consumer dynamics, demographic shifts and a spending shift toward lower-priced products.
Wrapping Up
The company continues to invest in its brands and capabilities to drive growth. Additionally, buyouts have been adding to its portfolio strength. Effective pricing actions have been working for Hershey. However, let’s see if these upsides can help HSY stay afloat amid such hurdles.
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>>> PepsiCo Is Known for Sodas Such as Pepsi and Mountain Dew. But Almost 50% of Its Profits Comes From Something Else Entirely.
by Jon Quast
The Motley Fool
December 31, 2023
https://finance.yahoo.com/news/pepsico-known-sodas-pepsi-mountain-165723426.html
The granddaddy of the colas is The Coca-Cola Company, with the Coca-Cola brand launching in 1886. The Pepsi-Cola Company, now PepsiCo (NASDAQ: PEP), wasn't far behind with its own Pepsi-Cola drink in 1898. And the two have locked horns for cola supremacy ever since.
Neither Coke nor Pepsi was able to take down its cola competitor. So it wasn't long before these two companies upped the ante by developing comprehensive soda-brand portfolios. Nowadays, PepsiCo sells well-known sodas such as Mountain Dew, Pepsi Wild Cherry, Mug Root Beer, Crush, and Starry in addition to its eponymous Pepsi.
PepsiCo built its portfolio by making several key acquisitions. Its 1964 acquisition of Mountain Dew was especially crucial to its present-day success. In the U.S. carbonated soft-drink market, Mountain Dew had 6.6% market share in 2022, according to Statista. I'd say that buyout worked out quite well.
Pepsi's Mountain Dew acquisition was huge. But a merger the following year was even more significant for the company and its shareholders.
It has nothing to do with carbonated soft drinks. But almost half of Pepsi's profits today are derived from a source that would have shocked the beverage company's founders.
When a beverage company dreamed bigger
In 1965, Pepsi-Cola merged with Frito-Lay -- a snack company with a portfolio that today includes Lay's, Fritos, Doritos, Cheetos, Funyuns, Spitz, Cracker Jack, and more. This was a strong departure for a business formerly focused entirely on carbonated soft drinks. But it was a good move.
Through the first three quarters of 2023, PepsiCo's Frito-Lay North America business segment has generated revenue of $17.4 billion. That's nearly as big as its Beverages North America segment's revenue of $19.7 billion.
In North America, Pepsi's snack revenue nearly matches the revenue from beverages. But these snack foods actually have better profit margins. Frito-Lay's operating income of $4.9 billion is better than operating income of just $2.2 billion for beverages.
Not only is Frito-Lay's operating income higher than beverages, it's also accounted for 48% of PepsiCo's total operating income year to date. In short, if Pepsi hadn't pivoted to snacks nearly 60 years ago, it would be half the company that it is today.
Why it matters for investors
There are so many potential takeaways with an observation like this for PepsiCo. For starters, as one of the largest beverage companies in the world both then and now, Pepsi's growth would have been more limited if it had stayed completely within its core competency. Expanding outside of it into an adjacent market with robust cross-promotion opportunities made a lot of sense.
It's similar to what Hershey is doing now, extending beyond candy and into snack items such as pretzels and popcorn.
More broadly, companies that can expand beyond core competencies often make good investments; this trait is known as optionality. Many companies attempt to branch out and few do it well. But PepsiCo is one of the grand success stories.
PepsiCo's blend of beverage revenue and snack sales has an additional benefit for shareholders: It's a potentially more reliable business because it has greater diversity.
All other things being equal, I would choose PepsiCo stock over a pure-play beverage company because of this stabilizing quality. If headwinds blow in the carbonated soft-drink industry for whatever reason, PepsiCo has another part of the business that can help carry it through the challenges.
That's particularly good news for dividend investors. PepsiCo has raised its dividend for 51 consecutive years, making it a Dividend King. Many investors choose to invest in these companies for their predictable dividend payments. Having a diverse business makes it more likely that PepsiCo won't get knocked off the list by a sudden shock to its business.
And it's all possible because the management team for The Pepsi-Cola Company -- a beverage business -- had the foresight to branch into an entirely different arena when it merged with snacking company Frito-Lay.
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>>> Mondelez International, Inc. (MDLZ)
https://www.insidermonkey.com/blog/5-best-mario-gabelli-stocks-other-billionaires-are-also-piling-into-1235826/
Number of Billionaire Investors In Q3 2023: 14
Mondelez International, Inc. (NASDAQ:MDLZ) is an American confectionery company known for its well known snacks such as Oreo, Cadbury Dairy Milk, and Toblerone. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Strong Buy on average with an average share price target of $80.45.
For their Q3 2023 shareholdings, 51 out of the 910 hedge funds surveyed by Insider Monkey had bought and owned Mondelez International, Inc. (NASDAQ:MDLZ)’s shares. Brandon Haley’s Holocene Advisors was the largest shareholder due to its $278 million investment.
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>>> PepsiCo (PEP) -- In times of market turbulence, I believe it pays to have some mega-cap stalwarts in your portfolio that can weather any economic environment. In this regard, one of my favorite defensive names continues to be PepsiCo (NASDAQ:PEP). The global snacks and beverages leader once again demonstrated its resilience this quarter.
https://finance.yahoo.com/news/7-perfect-stock-picks-moody-204445345.html
PepsiCo delivered 10.4% revenue growth in Q2, surpassing expectations. Operating margins also rebounded to 11.6% from 10.1%. The company saw broad-based growth across its portfolio, with particular strength overseas. PepsiCo has incredible pricing power, managing double-digit price hikes amidst inflationary pressures. Additionally, volumes have remained resilient as customers continue to reach for PepsiCo’s diversified offerings.
Furthermore, PepsiCo anticipates 7.5% organic revenue growth for the full year. While the company does expect volumes to moderate, its scale, distribution reach, and brand equity provide confidence it can power through any economic slowdown. Notably, PepsiCo has an exceptional track record of steadily expanding earnings per share, targeting 7% annual growth.
Between its 2.9% dividend yield and frequent buybacks, PepsiCo also returns ample cash to shareholders. The stock may seem a bit pricey near 23-times forward earnings. But for a high-quality, defensive name like PepsiCo, I believe investors should pay up for the stability. This remains a core long-term holding.
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>>> Better Buy: Coca-Cola vs. PepsiCo
Motley Fool
By Stefon Walters
Sep 28, 2023
https://www.fool.com/investing/2023/09/28/better-buy-coca-cola-vs-pepsico/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
KEY POINTS
Coca-Cola's higher margins are a testament to its efficiency and pricing power.
PepsiCo's broad portfolio helps hedge against declining demand in the beverage market.
Both have increased their dividend annually for decades -- making them Dividend Kings.
Investors can't go wrong with either choice, but one stands out as the better long-term option.
When it comes to non-alcoholic beverage companies, there's Coca-Cola (KO) and PepsiCo (PEP) -- and then there's everyone else. In the U.S., the two account for around 71% of the carbonated soft drink market. The dominance of that duopoly makes them attractive investment opportunities.
For investors looking to invest in one of these companies, there's no "wrong" option to go with here. However, each company has its own unique strengths and focus areas. Let's see which offers a more compelling case for investors looking to choose one to add to their portfolio.
Coca-Cola's financials seem to be stronger
Coca-Cola is the market leader in non-alcoholic beverages, but one thing that may surprise people is just how much more revenue PepsiCo brings in. In Q2 2023, Coca-Cola made around $12 billion in revenue, more than $10 billion less than PepsiCo made.
Despite the gap in revenue, both companies are similar in net incomes, which is a testament to Coca-Cola's profit margins.
Higher profit margins are important because they give companies more financial flexibility. Higher margins generally come with more cash flow, which companies use for things like research and development, acquisitions, and paying dividends.
Coca-Cola can operate at higher margins largely because of its focus on beverages, operational efficiency, and the pricing power it has thanks to its strong brands. PepsiCo's margins aren't shabby by any means, but its broader business means it has more complexities to deal with, which can lower efficiency.
There's a difference in portfolio diversification
PepsiCo's revenue gap over Coca-Cola can be attributed to its larger portfolio that includes beverages, snacks, and nutrition products. Coca-Cola's portfolio only consists of beverages. Both have iconic brands, including, but not limited to, the following:
Coca-Cola: Coca-Cola, Sprite, Powerade, Dasani, and Minute Maid.
PepsiCo: Pepsi, Gatorade, Lay's, Doritos, and Aquafina.
PepsiCo's vast portfolio can help provide a cushion during times when beverage sales may lag or consumer preferences shift. Coca-Cola dominates the beverage segment, but PepsiCo's diverse portfolio allows it to take advantage of consumer trends across multiple categories.
A good example would be PepsiCo's introduction of products tailored to health-conscious consumers, among them Naked Juice for vegetable and fruit-based smoothies, whole grain breakfast options, and sugar-free, zero-calorie alternatives to traditional sodas.
Both companies have admirable dividends
Regarding dividends, Coca-Cola leads PepsiCo slightly. At their current share prices, Coca-Cola has a 3.2% yield compared to PepsiCo's 2.8%.
Coca-Cola has increased its dividend annually for 61 straight years while PepsiCo has a 50-year streak, so both are Dividend Kings. However, PepsiCo has been increasing its dividend by larger percentages in recent years. PepsiCo has boosted its payouts by 36% in the past five years compared to Coca-Cola's 18%.
Dividend yields fluctuate with stock price, so you don't want yield to be a determining factor in your investment thesis, but it's important nonetheless. Maybe more important, though, is the sustainability of the dividend.
Neither Coca-Cola nor PepsiCo is in danger of needing to cut their dividends, but it's worth noting how much lower Coca-Cola's 56% dividend payout ratio is than PepsiCo's 81%. Coca-Cola's lower payout ratio gives it more flexibility to reinvest in the business or potentially accelerate its dividend increases.
Which should investors go with?
For long-term investors, the better choice now seems to be Coca-Cola. The stock is more expensive, with a price-to-sales ratio of 5.6 compared to PepsiCo's 2.7, but it has the foundation to be a stable and high-yielding stock for the long haul.
Between its top-tier brand equity, impressive margins, and lucrative dividend, Coca-Cola seems to be the more appealing choice for investors looking for reliability and a shareholder-friendly company. It also passes the Warren Buffett test as it is one of his top holdings.
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Kellogg embarks on new future, finalizing split into two businesses
https://www.fooddive.com/news/kellogg-embarks-on-new-future-finalizing-split-into-two-businesses/695335/
Sixteen months after the separation was announced, the snacking and North American cereal businesses — Kellanova and WK Kellogg Co — are trading separately on the New York Stock Exchange.
Today, Kellogg’s cereal business began trading on the New York Stock Exchange as WK Kellogg Co. The company’s broad snacks division is now trading under the name Kellanova. The split was first announced sixteen months ago.
WK Kellogg Co, began trading under the ticker symbol “KLG” while Kellanova trades under “K.” Stocks for both companies dropped today upon the announcement of the completed split, MarketWatch reported.
In a statement, Kellanova CEO Steve Cahillane said the new company name signifies a new era of ambition for the company.
“We are starting from a position of strength that is rooted in a century-old legacy as we embark on a journey to achieve our vision of becoming the world’s best performing snacks-led powerhouse,” Cahillane said.
Kellanova, which now houses snacks like Cheez-It, Rice Krispies Treats and Pringles, projects its net sales to reach between $13.4-$13.6 billion in its 2024 fiscal year. In an interview with Food Dive last year, Cahillane said the decision to focus solely on snacks will help it to grow its presence worldwide, allowing the company to better compete with giants of the category like Mondelez International and Hershey. M&A opportunities will also be a key focus, the CEO said in March.
Despite the name change, snacking and cereal products from both Kellanova and WK Kellogg Co will continue to emblazon the well-known “Kellogg’s” logo.
The split was first announced in June 2022, with Kellogg originally intending to create three separate businesses. Plans for a designated plant-based foods company were nixed earlier this year because of declining sales in the sector. Plant-based brands like MorningStar Farms now remain under Kellanova.
WK Kellogg Co is adopting the North American cereal portfolio of iconic brands — such as Froot Loops, Corn Flakes and Rice Krispies — at a time of stagnation for the staple breakfast item, while international cereal sales will continue to be handled by Kellanova.
>>> The Hershey Company -- Halloween is just around the corner, and kids will be eager to fill their bags with candy, including some from one of the world's largest chocolate manufacturers, The Hershey Company (HSY). Despite experiencing a nearly 7% decline in 2023, Hershey's stock has delivered an impressive total return of 122% over the past five years, far outpacing the S&P 500's 68% total return.
https://www.fool.com/investing/2023/09/17/3-top-dividend-stocks-to-buy-now/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Management recently raised its quarterly dividend by 15% to $1.192 per share, resulting in an impressive yield of 2.3%. And Hershey has raised its quarterly dividend every year since 1972, except for 2009, during the Great Recession.
In recent years, Hershey has expanded its portfolio into snacks by acquiring SkinnyPop and Dot's Homestyle Pretzels. As a result, the company's revenue and net income are hitting record highs. Management recently reaffirmed its guidance for 8% revenue growth for 2023 versus 2022, resulting in net sales of roughly $11.2 billion, compared to $10.4 billion in 2022.
Despite Hershey's strong projected revenue growth, the stock might be experiencing a sell-off because the source of this growth is primarily price increases rather than increased sales volume. The company's second-quarter results show an average price increase of 7.7% for its products, coupled with a 2.7% decrease in sales volume from a year ago.
These price hikes are a result of the historically high costs of essential ingredients such as cocoa and sugar. However, Hershey boosted its gross margins by an impressive 3.4% year over year, reaching 45.5%.
This margin expansion could indicate that Hershey is becoming more efficient in managing its cost of goods sold. If cocoa and sugar prices return to normal levels, this efficiency could lead to further margin expansion, resulting in increased profitability for the company.
In summary, Hershey faces notable inflationary pressures and a potential decrease in consumption. Nevertheless, the stock currently looks undervalued when considering its historical P/E, which has averaged 26.3 over the past five years. With a forward P/E of 22.2, Hershey presents a potential investment opportunity at an attractive valuation.
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I just pure guessing that a service is being pain by somebody to keep the price around this current level, just a guess. I
For example, if the stock went to 50 cents and a buyout at $1.25 the buyer would look bad under the circumstances. But, $1.25 buyout and the stock in 97 cents, it would not look bad to a buyers shareholders?
wow, Looks like a bounce for RIBT today, and also in the aftermarket it's up even more, so hopefully some good news ahead :o)
Concerning JBSS, since you are partial to the food related sectors, that was one on my radar, although I plan to do some 'sector digging' and try to unearth a few good ones in the 'food innovation' area, though those seem a lot riskier.
One traditional (junk food) stock I followed loosely for years is J+J Snack Foods (JJSF), but it's been in a sideways pattern for several years now. One I own that seems pretty solid is Flowers Foods (FLO).
Some others -- Lancaster Colony (LANC) is a fairly decent one on my watch list, and Hostess Brands (TWNK) has been looking good lately.
Otherwise mostly larger caps (Pepsico, Coke, etc).
One small cap that had been doing great for years was Calavo Growers (CVGW) in the avocado area, but they really fell apart in recent years. Cal-Maine (CALM) has had a recent resurgence (eggs), but not sure how durable the improvement will be. Hain Celestial (HAIN) bombed out a number of years ago.
I used to follow Reeds Beverages (REED) pretty closely, but looks like they may be done. Back in the day I listened to every conf call, kept track of all the numbers, but it unraveled anyway. After that I decided to institute a $500 position limit for individual stocks :o)
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" a possible replacement idea for RIBT", RIBT is irreplaceable, hope I never see a comparison ever, LOL.
wow, I wanted to mention a food related stock - John B. Sanfilippo & Son (JBSS), as a possible replacement idea for after the RIBT saga reaches its conclusion (acquisition, merger, etc). It's a fairly small cap (1.3 bil) in the tree nut / peanut area, and they are diversifying into additional areas. I had them on my microcap watch list for years, but after several years of sideways movement it appears the stock is resuming its long term uptrend. Anyway, something to consider, and should be fairly conservative for a small cap. I was finally going to buy some yesterday (the usual $500 position), but unfortunately forgot, and now it's up 10% today, lol. They just announced a special dividend of $1.50 per share, so a mini bonanza for current shareholders, and the recent earnings report looked good also -
>>> John B. Sanfilippo & Son, Inc. (JBSS) Reports Fiscal 2023 Second Quarter Results <<<
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171772087
>>> John B. Sanfilippo & Son, Inc. (JBSS), through its subsidiary, JBSS Ventures, LLC, processes and distributes tree nuts and peanuts in the United States. The company offers raw and processed nuts, including almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts, and filberts in various styles and seasonings. It also offers peanut butter in various sizes and varieties; snack and trail mixes, salad toppings, snacks, snack bites, dried fruit, and chocolate and yogurt coated products; baking ingredients; bulk food products; sunflower kernels, pepitas, almond and cashew butter, candy and confections, corn snacks, chickpea snacks, sesame sticks, and other sesame snack products; and various toppings for ice cream and yogurt. In addition, the company operates a retail store. The company provides its products under the Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts brands, as well as under various private brands. It serves retailers and wholesalers, and commercial ingredient and contract packaging customers through a network of independent brokers, distributors, and suppliers. John B. Sanfilippo & Son, Inc. was founded in 1922 and is headquartered in Elgin, Illinois. <<<
https://finance.yahoo.com/quote/JBSS/profile?p=JBSS
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>>> John B. Sanfilippo & Son, Inc. Declares $1.50 Per Share Special Dividend
BusinessWire
May 2, 2023
https://finance.yahoo.com/news/john-b-sanfilippo-son-inc-202000595.html
ELGIN, Ill., May 02, 2023--(BUSINESS WIRE)--John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the "Company") today announced that its Board of Directors (the "Board") declared a special cash dividend (the "Special Dividend") of $1.50 per share on all issued and outstanding shares of Common Stock of the Company and $1.50 per share on all issued and outstanding shares of Class A Common Stock of the Company. The Special Dividend will return approximately $17.4 million to JBSS stockholders.
The Special Dividend will be paid on June 22, 2023, to stockholders of record as of the close of business on June 1, 2023.
"We are pleased to announce the $1.50 per share Special Dividend," stated Jeffrey T. Sanfilippo, Chairman and Chief Executive Officer. "Our financial performance over the last several quarters has provided us the opportunity to declare the Special Dividend to be paid in the fourth quarter for fiscal 2023. These dividends, like our previous dividends, further reinforce our goal of creating long-term stockholder value through the responsible use of cash. Furthermore, these dividends would not be possible without the hard work and dedication of all our employees," Mr. Sanfilippo concluded.
ABOUT THE COMPANY
Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit-based products that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ®, and Just the Cheese ® brand names and under a variety of private brands.
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>>> John B. Sanfilippo & Son, Inc. (JBSS) Reports Fiscal 2023 Second Quarter Results
Business Wire
February 1, 2023
https://finance.yahoo.com/news/john-b-sanfilippo-son-inc-211000161.html
Second Quarter Diluted EPS Increased 27.2% to $1.45 per Share
ELGIN, Ill., February 01, 2023--(BUSINESS WIRE)--John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the "Company") today announced financial results for its fiscal 2023 second quarter ended December 29, 2022.
Second Quarter Summary
Net sales increased 8.3% to $274.3 million
Sales volume decreased 3.8% to 80.4 million pounds
Gross profit increased 8.2% to $56.5 million
Diluted EPS increased 27.2% to $1.45 per share
CEO Commentary
"During the second quarter net sales increased over $21 million, or 8.3%, compared to last year’s second quarter, and we delivered strong bottom line growth as our diluted EPS increased 27.2% to $1.45 per share. Our strong quarterly performance resulted from numerous continuous improvement initiatives, a focus on reducing our operating costs, and selling price alignment efforts initiated last fiscal year as a response to inflationary cost increases. We continue to see strong demand for our products, especially from our private brand customers in our consumer channel. Our private brand sales volume grew over 3% in the consumer channel, excluding the one-time loss of a private brand grocery customer, compared to an overall decline in the snack nut category," stated Jeffrey T. Sanfilippo, Chief Executive Officer.
"During the quarter we continued to execute against our Long-Range Plan. First, we paid a $1.00 per share special dividend, reinforcing our goal of creating long-term shareholder value by returning capital to our shareholders. We also completed the acquisition of the Just the Cheese brand, which is part of our strategic initiative to further diversify our product offerings. We are excited to add Just the Cheese to our branded portfolio and the acquired production capabilities will help accelerate growth with our private brand and foodservice customers. I am also proud to announce that during the third quarter, we began to ship our new product line of private brand nutrition bars, which our team members across the organization have worked tirelessly over the last several years to develop and bring to market. I will share additional details of our new product line in future earnings releases," Mr. Sanfilippo stated.
"We start the second half of fiscal 2023 with excitement and optimism as we begin to see stabilization in the supply chain, modest downward pressure in the acquisition costs of tree nuts and the continuation of our journey to diversify our product offerings. As always, we will continue to respond to challenges, including the current economic and operating environment and the recent category contraction. I believe we have the right team, initiatives and strategies to continuously overcome these challenges and deliver long-term shareholder value," Mr. Sanfilippo concluded.
Second Quarter Results
Net Sales
Net sales for the second quarter of fiscal 2023 increased 8.3% to $274.3 million due to a 12.7% increase in the weighted average sales price per pound. This increase was partially offset by a 3.8% decrease in sales volume, which is defined as pounds sold to customers. Sales volume for peanuts and all major tree nuts (except pecans) declined in the second quarter. The increase in the weighted average selling price primarily resulted from higher commodity acquisition costs for pecans, cashews, peanuts and dried fruit.
Consumer Distribution Channel (2.0)%
Private Brand + 0.7%
This sales volume increase was mostly driven by new private brand peanut butter business at a mass merchandising retailer and increased seasonal distribution at another mass merchandising retailer. This increase was substantially offset by lost distribution with a private brand grocery customer that occurred in the fourth quarter of fiscal 2022.
Branded* (5.0)%
This sales volume decrease was mainly attributable to a 24.1% decrease in the sales volume of Fisher snack nuts due to competitive pricing pressure at two grocery store retailers and lost distribution at another grocery store retailer. Additionally, sales volume for Orchard Valley Harvest decreased 14.5% due to the timing of sales to a major customer in the non-food sector who delayed their orders into the third quarter of fiscal 2023. The above decreases were partially offset by a 2.8% increase in sales volume of Fisher recipe nuts related to increased distribution at a mass merchandising retailer and at a grocery store customer.
Commercial Ingredients Distribution Channel (7.7)%
This sales volume decrease was primarily due to a 38.9% decrease in sales volume of bulk products to other food manufacturers as a result of reduced consumption from softened consumer spending. This was partially offset by a 2.9% increase in sales volume to foodservice customers due to new distribution at existing customers.
Contract Packaging Distribution Channel (11.4)%
This sales volume decrease was due to earlier timing for holiday shipments at a major customer in this channel.
Gross Profit
Gross profit margin of 20.6% of net sales was consistent with the prior comparable quarter primarily due to lower acquisition costs for almonds and walnuts, which were offset by inflationary cost increases, including for labor and manufacturing supplies, increased depreciation expense and a decrease in sales volume. Gross profit increased $4.3 million mainly due to a higher net sales base.
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* Includes Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest and Southern Style Nuts.
Operating Expenses
Total operating expenses decreased $1.9 million in the quarterly comparison mainly due to decreases in advertising spend, incentive compensation, loss on asset disposals and freight expense, which were partially offset by an increase in base and equity compensation expense. Total operating expenses, as a percentage of net sales, decreased to 11.7% from 13.4% in the prior comparable quarter due to the reasons noted above and a higher net sales base.
Inventory
The value of total inventories on hand at the end of the current second quarter decreased $5.7 million, or 3.2%, year over year. The decrease in the value of total inventories was primarily due to lower commodity acquisition costs for all major tree nuts and lower quantities of finished goods and pecans. This was offset by higher quantities of cashews, raw materials, work-in-process and farmer stock peanuts. The weighted average cost per pound of raw nut and dried fruit input stock on hand decreased 24.2% year over year mainly due to lower acquisition costs for all major tree nuts.
Six Month Results
Net sales increased 9.9% to $526.9 million. The increase in net sales was primarily attributable to an 11.1% increase in weighted average selling price per pound, which was partially offset by a 1.1% decline in sales volume.
Sales volume decreased 1.1%. The sales volume increase in the contract packaging channel was offset by sales volume declines in the consumer and commercial ingredients channels.
Gross profit margin decreased 1.4% to 20.3% of net sales. The decrease was mainly attributable to higher commodity acquisition costs for all major tree nuts (except walnuts) and peanuts, other inflationary cost increases cited above and increased depreciation expense.
Operating expenses increased $1.8 million to $60.3 million. The increase in total operating expenses was mainly due to a non-recurring gain of approximately $2.3 million from the sale of the Garysburg, North Carolina facility, which occurred in the first quarter of fiscal 2022. In addition, increases in base and equity compensation expense and sales broker commission expenses contributed to the overall increase but were partially offset by decreases in advertising spend and freight expense.
Diluted EPS decreased 0.7%, or $0.02 per diluted share, to $2.79.
Conference Call
The Company will host an investor conference call and webcast on Thursday, February 2, 2023, at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss these results. To participate in the call via telephone, please register using the following Participant Registration link https://register.vevent.com/register/BI571a5926fed84be7a7e26c1c8530822f. Once registered, attendees will receive a dial-in number and their own unique PIN number. This call is also being webcast by Notified and can be accessed at the Company’s website at www.jbssinc.com.
About John B. Sanfilippo & Son, Inc.
Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit-based products that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ® and Just the Cheese ® brand names and under a variety of private brands.
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>>> Domino's Pizza, Inc. (NYSE:DPZ) - Number of Hedge Fund Holders: 44
https://finance.yahoo.com/news/14-stocks-pop-according-jim-150048076.html
6-Month Performance as of March 30 (Relative to SPY): -6.58%
Cramer said that Domino's Pizza, Inc. (NYSE:DPZ) is a "well-run" company that is "coping with food inflation and wage pressure". He named the company among one of his top restaurant stock picks that were "about to pop". As of March 30, Domino's Pizza, Inc. (NYSE:DPZ) has underperformed the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) by 6.58%, over the past 6 months.
At the close of Q4 2022, Domino's Pizza, Inc. (NYSE:DPZ) was a part of 44 investors' portfolios that disclosed collective positions worth $1.46 billion in the company. Of those, Holocene Advisors was the top shareholder in the company and held a position worth $252 million.
LRT Capital Management made the following comment about Domino’s Pizza, Inc. (NYSE:DPZ) in its October investor letter:
“Domino’s Pizza, Inc. (NYSE:DPZ) is the world’s largest franchisor of pizza restaurants with over 13,800 locations in 85 countries. As for any restaurant operator, the key metric to consider for Domino’s Pizza is same-store-sales (SSS) growth. Growing same-store-sales are ultimately how a restaurant business increases earnings from its existing assets. The company continues to impress in this criterion with SSS having grown in the U.S. for 40 consecutive quarters, and an astounding 109 straight quarters internationally.
Two-thirds of the company’s stores are currently abroad, and the international segment remains the company’s largest growth opportunity, as the penetration of convenient fast food remains lower abroad than in the United States. Pizza is a product with exceptionally high gross margins, one that “translates” well across different cultures, and one that literally “travels well”, not losing much of its appeal when delivered in a cardboard box. The rise of 3rd party delivery platforms such as Uber Eats, Doordash and Grubhub is challenging the pizza category as it has expanded the number of choices consumers have for convenient takeout. However, the economics of food delivery remain challenging for most restaurants and platforms alike, while pizza delivery continues to be highly profitable. Regardless of how the “delivery wars” currently playing out end, Domino’s financial results show little impact of this increased competition, and the company continues to deliver exceptional financial performance”
Domino’s Pizza stock is not optically cheap based on forward earnings, however, the company has routinely reported earnings growth of over 20% in almost all quarters since 2009. Given the company’s high growth rate, international growth opportunities, and capital light business model, which allows for returns on invested capital of over 40%, we are happy to continue to hold the shares.
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Fertilizer Shortages will cause global famine by Peter Zeihan
https://www.youtube.com/watch?v=i29wG43_6Z0&t=440s&ab_channel=CatalinaBioTech
PepsiCo is still a growth stock - >>> PepsiCo has been around for decades and already has a huge business in the consumer-packaged foods and beverage industries. But even a small investment today can pay big dividends down the road.
Organic sales in 2022 were up a blazing 14% on top of the prior year's 10% spike. Pepsi had no trouble passing along higher prices, either, which is partly a reflection of the brand strength within its portfolio. It helps that the company runs like a well-oiled machine so that PepsiCo avoided the type of supply chain issues that hurt consumer staple brand peers like McCormick.
PepsiCo's valuation is down lately as Wall Street frets about the likelihood of slower growth over the next few years as compared to 2021 and 2022. But, as PepsiCo wins more market share, boosts margins, and raises its dividend payment, investors should see great returns from holding this Blue-Chip stock over many years.
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https://www.fool.com/investing/2023/02/17/1000-invested-in-stocks-could-make-you-fortune/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
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Domino's Pizza - >>> In much the same way Sherwin-Williams thrived amid the lockdown, Domino's Pizza would also be considered a pandemic darling of sorts. While not thriving to the same extent as Zoom, for example, Domino's reported double-digit sales growth for five straight quarters at the end of 2020 and into 2021.
Thanks to its robust carryout operations and ability to implement a contact-free pickup option during the pandemic, Domino's succeeded despite the challenging environment. This success sent its stock skyward, only to tumble over 36% since its all-time highs.
Facing tough comparables from the previous year, Domino's growth stalled as pandemic restrictions eased and its customers were hungry for more authentic dining experiences. Further held back by inflation spurring higher ingredient costs and issues finding labor for its stores, the company recorded three straight quarters of declining earnings per share (EPS) to start 2022.
So what on Earth makes Domino's Pizza an all-weather stock to buy right now?
First, if we move out on the timeline regarding this declining EPS, we can see that it looks like nothing more than a dip in the larger scope of things.
Similarly, its incredible ROIC remains among the highest in the S&P 500 index, despite lowering recently.
On top of this, despite its customers being price conscious, Domino's didn't experience a sales drop despite raising prices by roughly 5% year over year in the third quarter. In fact, carryout sales grew 20% in Q3, and the company is now the largest carryout pizza brand in the U.S.
Additionally, the company lowered its share count by 37% over the last decade, while its dividend payments jumped 450% over the same time frame. Despite this tremendous increase, its 1.2% dividend only uses 34% of the company's net income, leaving a solid dividend growth runway.
Domino's trades at 29 times earnings, slightly below its 10-year average of 34. Recording three consecutive quarters of sales growth despite implementing gradual price increases, Domino's makes for an excellent shareholder returns-focused company to add at a discount.
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Animal and plant-based meat sales fall as consumer concerns about inflation mount
Snippet:
20-Feb-2023 By Elizabeth Crawford
Consumers pulled back on animal-based meat purchases in January after a slight uptick in sales and volume in December, likely related to holiday celebrations at home which for many Americans center around fresh meat, according to data from IRI crunched by 210 Analytics and Hillphoenix.
https://www.foodnavigator-usa.com/Article/2023/02/20/Animal-and-plant-based-meat-sales-fall-as-consumer-concerns-about-inflation-mount
>>> G. Willi-Food International Ltd. (WILC) develops, imports, exports, markets, and distributes food products worldwide. It offers mushrooms, artichoke, beans, asparagus, capers, corn kernels, baby corn, palm hearts, vine leaves, sour pickles, mixed pickled vegetables, pickled peppers, olives, garlic, roasted eggplant sun, and dried tomatoes; and canned fish comprising tuna, sardine, anchovies, smoked and pressed cod liver, herring, fish paste, and salmon products. The company also provides pineapples, peaches, apricots, pears, mangos, cherries, litchis, and fruit cocktail; olive, sunflower, soybean, corn, and rapeseed oils; dairy and dairy substitutes consisting of cheese, feta, Bulgarian cubes, goat cheese, fetina, butter, butter spread, margarine, melted cheese, cheese alternative, condensed milk, whipped cream, yogurt, frozen pizza, and other products; and dried fruits, nuts, and beans, such as figs, apricots, organic chestnuts, sunflower seeds, walnuts, pine nuts, cashews, banana chips, pistachios, and peanuts. In addition, it offers instant noodle soup, frozen edamame soybean, freeze dried instant coffee, bagel, breadstick, coffee creamer, lemon juice, halva, Turkish delight, cookies, vinegar, sweet pastry and crackers, sauce, corn flour, rice, rice sticks, pasta, organic pasta, spaghetti and noodles, breakfast cereals, corn flakes, rusks, tortilla, dried apples snacks, desert, ice cream, and light and alcoholic beverages. It markets its products under the Willi-Food, Donna Rozza, Manchow, Gold Frost, Tifeeret, the Chef Dish, Art Coffe, Mr Chang, Muchi, Euro Butter, Euro Spread, Euro Cheese, Euro Cream, Euro Dessert, Euro Veg, Ha-Bulgaria, Gelato, Pinukim, Emma, and TenBo brand names. The company was formerly known as G. Willi-Food Ltd. and changed its name to G. Willi-Food International Ltd. in June 1996. The company was incorporated in 1994 and is headquartered in Yavne, Israel. G. Willi-Food International Ltd. is a subsidiary of Willi-Food Investments Ltd.
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>>> UN eyes revival of millets as global grain uncertainty grows
By FARAI MUTSAKA and JAMEY KEATEN
Associated Press
https://www.msn.com/en-us/news/world/un-eyes-revival-of-millets-as-global-grain-uncertainty-grows/ar-AA17h8d0?OCID=ansmsnnews11
RUSHINGA, Zimbabwe (AP) — While others in her Zimbabwean village agonize over a maize crop seemingly headed for failure, Jestina Nyamukunguvengu picks up a hoe and slices through the soil of her fields that are lush green with a pearl millet crop in the African country's arid Rushinga district.
“These crops don’t get affected by drought, they are quick to flower, and that’s the only way we can beat the drought,” the 59-year old said, smiling broadly. Millets, including sorghum, now take up over two hectares of her land — a patch where maize was once the crop of choice.
Farmers like Nyamukunguvengu in the developing world are on the front lines of a project proposed by India that has led the U.N.’s Food and Agricultural Organization to christen 2023 as “The Year of Millets”, an effort to revive a hardy and healthy crop that has been cultivated for millennia — but was largely elbowed aside by European colonists who favored corn, wheat and other grains.
The designation is timely: Last year, drought swept across much of eastern Africa; war between Russia and Ukraine upended supplies and raised the prices of foodstuffs and fertilizer from Europe's breadbasket; worries surged about environmental fallout of cross-globe shipments of farm products; many chefs and consumers are looking to diversify diets at a time of excessively standardized fare.
All that has given a new impetus to locally-grown and alternative grains and other staples like millets.
Millets come in multiple varieties, such as finger millet, fonio, sorghum, and teff, which is used in the spongy injera bread familiar to fans of Ethiopian cuisine. Proponents tout millets for their healthiness — they can be rich in proteins, potassium, and vitamin B — and most varieties are gluten-free. And they're versatile: useful in everything from bread, cereal and couscous to pudding and even beer.
Over centuries, millets have been cultivated around the world — in places like Japan, Europe, the Americas and Australia — but their epicenters have traditionally been India, China, and sub-Saharan Africa, said Fen Beed, team leader at FAO for rural and urban crop and mechanization systems.
Many countries realized they "should go back and look at what’s indigenous to their agricultural heritage and what could be revisited as a potential substitute for what would otherwise be imported — which is at risk when we had the likes of pandemic, or when we have the likes of conflict,” said Beed.
Millets are more tolerant of poor soils, drought and harsh growing conditions, and can easily adapt to different environments without high levels of fertilizer and pesticide. They don't need nearly as much water as other grains, making them ideal for places like Africa's arid Sahel region, and their deep roots of varieties like fonio can help mitigate desertification, the process that transforms fertile soil into desert, often because of drought or deforestation.
“Fonio is nicknamed the Lazy Farmers crop. That’s how easy it is to grow," says Pierre Thiam, executive chef and co-founder of New York-based fine-casual food chain Teranga, which features West African cuisine. “When the first rain comes, the farmers only have to go out and just like throw the seeds of fonio ... They barely till the soil."
“And it’s a fast growing crop, too: It can mature in two months,” he said, acknowledging it's not all easy: "Processing fonio is very difficult. You have to remove the skin before it becomes edible.”
Millets account for less than 3% of the global grain trade, according to FAO. But cultivation is growing in some arid zones. In Rushinga district, land under millets almost tripled over the past decade. The U.N.'s World Food Programme deployed dozens of threshing machines and gave seed packs and training to 63,000 small-scale farmers in drought-prone areas in the previous season.
Low rainfall and high temperatures in recent years in part due to climate change, coupled with poor soils, have doused interest in water-guzzling maize.
“You'll find the ones who grew maize are the ones who are seeking food assistance, those who have grown sorghum or pearl millet are still eating their small grains,” said Melody Tsoriyo, the district’s agronomist, alluding to small grains like millets, whose seeds can be as fine as sand. “We anticipate that in five years to come, small grains will overtake maize.”
Government teams in Zimbabwe have fanned out to remote rural regions, inspecting crops and providing expert assistance such as through WhatsApp groups to spread technical knowledge to farmers.
WFP spokesman Tatenda Macheka said millets “are helping us reduce food insecurity” in Zimbabwe, where about a quarter of people in the country of 15 million — long a breadbasket of southern Africa — are now food insecure, meaning that they're not sure where their next meal will come from.
In urban areas of Zimbabwe and well beyond, restaurants and hotels are riding the newfound impression that a millet meal offers a tinge of class, and have made it pricier fare on their menus.
Thiam, the U.S.-based chef, recalled eating fonio as a kid in Senegal's southern Casamance region, but fretted that it wasn't often available in his hometown — the capital — let alone New York. He admitted once “naively" having dreams making what's known in rural Senegal as “the grain of royalty” — served to honor visiting guests — into a “world class crop.”
He's pared back those ambitions a bit, but still sees a future for the small grains.
“It’s really amazing that you can have a grain like this that’s been ignored for so long," Thiam said in an interview from his home in El Cerrito, Calif., where he moved to be close to his wife and her family. "It’s about time that we integrate it into our diet.”
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>>> Post Holdings, Inc. (POST) operates as a consumer packaged goods holding company in the United States and internationally. It operates through four segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. The Post Consumer Brands segment manufactures, markets, and sells branded and private label ready-to-eat (RTE) cereal, hot cereal, and peanut and nut butter. It serves grocery stores, mass merchandise customers, supercenters, club stores, natural/specialty stores, and drug store customers, as well as sells its products in the military, ecommerce, and foodservice channels. The Weetabix segment primarily markets and distributes branded and private label RTE cereal, hot cereals and other cereal-based food products, breakfast drinks, and muesli. This segment sells its products to grocery stores, discounters, wholesalers, and convenience stores, as well as through ecommerce. The Foodservice segment produces and distributes egg and potato products in the foodservice and food ingredient channels. It serves foodservice distributors and national restaurant chains. The Refrigerated Retail segment produces and distributes side dishes, eggs and egg products, sausages, cheese, and other dairy and refrigerated products for grocery stores and mass merchandise customers. Post Holdings, Inc. was founded in 1895 and is headquartered in Saint Louis, Missouri.
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https://finance.yahoo.com/quote/POST/profile?p=POST
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>>> 'Act of God': The price of eggs is soaring due to an 'unprecedented' crisis, trade strategist says — here's 2 surging food stocks to help buck the slumping market
MoneyWise
by Jing Pan
January 16, 2023
https://finance.yahoo.com/news/act-god-type-stuff-trade-163000136.html
While it’s no secret that inflation has been running hot, the drastic increase in egg prices recently still took many people by surprise.
Data from the Bureau of Labor Statistics shows that the average price of a dozen large Grade A eggs in a U.S. city reached $4.25 in December 2022, more than doubling the $1.79 consumers were paying a year earlier.
Bird flu could be a main driver behind the price increase. According to the Centers for Disease Control and Prevention, a highly pathogenic avian influenza first detected in January 2022 has resulted in the death of nearly 58 million chickens and turkeys.
Brian Moscogiuri, a global trade strategist at egg supplier Eggs Unlimited, called the situation “unprecedented.”
“It’s a supply disruption, ‘act of God’ type stuff,” Moscogiuri said.
Others see a multitude of factors behind the rising cost of eggs.
“When you're looking at fuel costs go up, and you're looking at feed costs go up as much as 60%, labor costs, packaging costs — all of that ... those are much much bigger factors than bird flu for sure,” said Emily Metz, president and CEO of trade group American Egg Board.
Food prices in general have been trending up. While that’s putting a dent in household budgets, it could present an opportunity for savvy investors.
In fact, some food stocks are already helping investors buck the downtrend in the market. Here’s a look at two of them.
Cal-Maine Foods
Cal-Maine Foods (NASDAQ:CALM) is the largest producer and distributor of shell eggs in the U.S. The company has been around since 1957 and sells most of its shell eggs in the southwestern, southeastern, mid-western and mid-Atlantic regions of the U.S.
The ongoing market downturn has hurt numerous stocks, but Cal-Maine Foods investors aren’t complaining. Shares surged 35% in the last 12 months, in stark contrast to the S&P 500’s double-digit decline over the same period.
As you’d expect, higher egg prices benefit the egg producer. In the fiscal quarter that ended Nov. 28, 2022, Cal-Maine Foods generated record net sales of $801.7 million, marking a 110% increase year over year.
The company also earned a record quarterly net income of $198.6 million, or $4.07 per diluted common share.
“The significantly higher selling prices, our enduring focus on cost control, and our ability to adapt to inflationary market pressures led to improved profitability overall with a gross profit margin of 39.6% for the second quarter of fiscal 2023, another record for Cal-Maine Foods,” said the company’s chief financial officer Max Bowman in a press release.
If egg prices remain elevated, this entrenched egg producer will likely continue to prosper.
Post Holdings
Post Holdings (NYSE:POST) is a consumer packaged goods holding company. While the current company came into existence through a spin-off from Ralcorp Holdings in 2012, its history can be traced all the way back to 1895, when C.W. Post created a breakfast cereal named “Post Toasties.”
Today, the company has a portfolio of businesses, including Post Consumer Brands, Weetabix, Michael Foods and Bob Evans Farms.
Business has been booming. In Post Holdings’ fiscal 2022, which ended Sept. 30, net sales totaled $5.85 billion, marking a 17.5% increase from fiscal 2021.
The biggest growth driver was the company’s Foodservice segment, which includes primarily egg and potato products. Net sales from the segment rose $29.7%, or $479.4 million for the fiscal year.
The bottom line, though, turned out to be even more impressive. The company’s net earnings from continuing operations came in at $735.0 million for fiscal 2022 — a whopping 600.7% increase from the $104.9 million generated in the prior year.
Just like Cal-Maine Foods, Post Holdings is defying the stock market sell-off: shares have climbed 25% over the past 12 months.
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>>> The Hershey Company (HSY), together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars. The company provides its products primarily under the Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breath Savers, Bubble Yum, Lily's, SkinnyPop, Pirates Booty, Paqui, Dot's Homestyle Pretzels, and ONE Bar brands, as well as under the Pelon Pelo Rico, IO-IO, and Sofit brands. It markets and sells its products to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, and department stores. The company was founded in 1894 and is headquartered in Hershey, Pennsylvania.
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11 AMAZING FARMS YOU HAVEN'T SEEN BEFORE
https://www.youtube.com/watch?v=r_YGlKihHtk&t=755s&ab_channel=TechZone
Mushroom-based meat substitutes seem like a great idea. Health guru Dr. Steve Gundry ranks mushrooms as one of the healthiest of all foods -
>>> Start-up uses mushrooms to make plant-based meat that mimics the texture of steaks, chicken breast and jerky
Bloomberg
Aug 25, 2022
https://www.scmp.com/lifestyle/health-wellness/article/3146263/start-uses-mushrooms-make-plant-based-meat-mimics-texture
Mycelium, the vegetative part of fungi, can be processed to mimic cuts of meat, and is packed with healthy protein, zinc, fibre, vitamins and minerals
US start-up Meati says its product requires fewer chemicals and less processing than other alternative meats
While plenty of plant-based meat companies claim to replicate the taste of the real thing, industry leaders like Beyond Meat and Impossible Foods mostly sell products that mimic ground beef or sausages, rather than the texture of a cut of meat.
Now, a new start-up focused on mushrooms wants to change that. Meati Foods, backed by American restaurateurs including Grant Achatz and David Barber, is using mycelium – the vegetative part of fungi – to make jerky, chicken breast, steaks, and deli meat.
“We’ve been eating mycelium ever since we’ve been eating mushrooms,” said Meati chief executive officer and co-founder Tyler Huggins. “The advantage of mycelium is it’s very adaptable.”
The fungi has been used as a replacement for plastic, shipping material, housing insulation, and fake leather, as seen in the vegan Adidas Stan Smith shoe.
Using it for a meat alternative is a relatively new practice, but it shows promise, said Caroline Bushnell of Good Food Institute, an organisation that advocates for plant-based and cell-based foods.
Properly replicating the texture of animal tissue is the biggest obstacle for fake-meat companies, Bushnell said.
Eating two mushrooms a day nearly halves cancer risk, study finds
Meati harvests a fast-growing strain of mycelium from grasslands around the world. It is put into big metal tanks with sugar and left for 18 hours. The result is easily mouldable chunks that mimic the texture of real meat.
As the company claims on its website: “Meati Foods is focused on using proprietary, clean technologies to provide nutritious, fungi-based protein that everyone can enjoy and feel good about eating every day. The company strongly believes that finding the right protein should be easy and consumers should never have to choose between health, taste or the environment.”
The alternative-meat market is projected to grow from US$4.2 billion in 2020 to US$74 billion in the next 10 years, according to a recent Bloomberg Intelligence report, which is less than one per cent of the US$1.3 trillion conventional meat market. Analysts, food companies, and investors foresee growth opportunities akin to Beyond Meat’s 2019 public listing and Impossible Foods’ entry into mainstream US stores like Walmart.
But upstarts like Meati – and mycelium-based bacon competitor Atlast – have to fight for shelf space alongside Beyond, Impossible and other established vegan brands. And they have to woo consumers who may be put off by higher prices: USDA ground beef costs US$4.38 per pound, compared to US$8.39 a pound of Beyond Meat and US$6.49 of Impossible Foods ground meat product.
Meati hasn’t set its prices yet, but aims to charge something in line with standard animal protein products. The company has conducted preliminary market testing in local restaurants.
Meati emerged from a US Department of Energy entrepreneurship programme in 2019. Huggins, a field biologist and environmental engineer, and co-founder Justin Whiteley, a trained material scientist, started Meati, then called Emergy Foods, looking for an environmentally friendly meat substitute that required fewer chemicals and less processing.
The pair secured US$5 million in funding to build an initial plant in Boulder, Colorado. The company, which doesn’t have any revenue yet, closed a US$50 million round of financing in July.
Huggins said his company aims to go beyond vegans and environmentally conscious eaters. He wants people to choose his product because they prefer it over traditional animal meat.
“I know we’re successful when our Meati steaks are served at a diner in rural Kansas,” he said.
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Yelp 2023 trends include mocktails and oxtail
https://www.foodbusinessnews.net/articles/22710-yelp-2023-trends-include-mocktails-and-oxtail
SAN FRANCISCO — Frozen drinks are taking center stage among Yelp’s top food and beverage trends for 2023. The restaurant review hub utilized search data on its platform from 2021 and 2022, primarily popular keywords and phrases, to determine its top 10 picks for next year.
With “slushie” searches up 77% in the last year, both non-alcohol and inebriating frozen drinks are expected to dominate consumers’ orders when dining out. Common staples include margaritas, fruit-flavored slushies and pina coladas.
Dry beverages occupy multiple spots in Yelp’s top 10, including mocktails and michelagua. Non-alcoholic cocktails saw a 59% increase in searches, and celebrities have begun to capitalize on the growing interest by launching their own mocktail brands. Actress Blake Lively opened Betty Buzz, a low calorie, sparkling mocktail line, in September 2021 followed by supermodel Bella Hadid’s Kin Euphoric mocktails line that launched in June 2022.
An alternative to cerveza-based micheladas, “michelaguas” have seen a 62% increase in searches. Primarily served with flavor options such as mango, pineapple or cucumber with lime, michelaguas are made using beer substitutes and agua fresca.
Other popular beverages in Yelp’s predictions include dirty sodas, a combination of soda, cream and flavored syrups, and teas made from hojicha, a plant used to a create sweet, lightly roasted variety of Japanese green tea. Searches for both beverages increased 40% and 38%, respectively.
Pickle flavors are expected to see several new applications on shelves and in restaurants, including pickle martinis and pickle ice cream, with pickled food searches up 55%.
Interest in nostalgic tastes is also on the rise, particularly with fast food. The revival of classic fast food meals such as the McRib has led fast food searches across Yelp to increase 90%.
Dishes featuring oxtail have seen an unexpected spike in popularity, jumping 45% between 2021 and 2022. As the name suggests, oxtail is made using meat from the tail of cattle and is a common ingredient in many dishes across South America, Asia and Western Africa. It has become increasingly featured on menus at festivals and food trucks.
Closing out its top trends, Yelp expects a rise in consumers looking for entertainment as part of their dining experience, with terms like “underwater restaurants” and “dinner theaters” seeing an uptick in searches of 263% and 109%, respectively.
English link for the "Asian Pacific Food Industry"
It's loaded with current food trends.
An internet/email friend, Henk Hoogankamp has an article in it too, “Soy Protein Too Big to Fail”
https://www.apfoodonline.com/ebook/NovDec22/html5/index.html?locale=ENG&pn=0
>>> Welcome for US FDA granting green light for cultivated meat
F+D Technology
Nov 18, 2022
https://www.foodanddrinktechnology.com/news/45163/welcome-for-us-fda-granting-green-light-for-cultivated-meat/
Global food awareness NGO, ProVeg International, welcomed the news that Upside Foods has received a “no questions” letter from the US Food and Drug Administration (FDA) for cultivated meat, poultry or seafood.
“This is fantastic news and means that the cultivated meat revolution is changing gear,” Mathilde Alexandre, senior project manager for cellular agriculture at ProVeg, said.
Upside Foods is the first company in the world to receive a “no questions” letter from the FDA, indicating that the company’s cultivated meat is safe to eat.
“This paves the way for cultivated meat to enter the US, a major market, bringing a method of meat production to America that emits less greenhouse gas and does not involve the suffering of animals”, Alexandre said. “It really is a ground-breaking development.”
Research from the UK Food Standards Agency has shown that assurance around the food safety of cultivated meat is one of the top factors for consumers to eat the product. Upside Foods receiving the blessing from the FDA on its production method is a milestone in showing consumers that cultivated meat is safe to eat.
Only Singapore has given regulatory approval for cultivated meat so far, allowing cultivated chicken pieces to be sold there. Approval in a major market has been absent, including the EU, where it is not expected until 2025/2026.
ProVeg supports companies that develop cultivated products through its ProVeg Incubator scheme. the world’s leading incubator for plant-based and cultivated foods. The Incubator offers startups a 12-week accelerator programme with an intensive, tailor-made curriculum, expert mentoring, funding and exclusive networking opportunities to help get products to market.
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F&D Technology
Great site for new food topics>>>>>
https://www.foodanddrinktechnology.com/news/
>>> Keurig Dr Pepper Inc. (KDP) operates as a beverage company in the United States and internationally. It operates through Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages segments. The Coffee Systems segment manufactures and distributes various finished goods related to its coffee systems, K-Cup pods, and brewers, as well as specialty coffee. This segment sells its brewers through third-party distributors and retail partners, as well as through its website at keurig.com. The Packaged Beverages segment engages in the manufacture and distribution of packaged beverages of its brands; contract manufacturing of various private label and emerging brand beverages; and distribution of packaged beverages for its partner brands. The Beverage Concentrates segment manufactures and sells beverage concentrates primarily under the Dr Pepper, Canada Dry, A&W, 7UP, Sunkist, Squirt, Big Red, RC Cola, Vernors, Snapple, Mott's, Bai, Hawaiian Punch, Clamato, Yoo-Hoo, Core, ReaLemon, evian, Vita Coco, and Mr and Mrs T mixers brands. This segment also manufactures beverage concentrates into syrup. The Latin America Beverages segment manufactures and distributes carbonated mineral water, flavored carbonated soft drinks, bottled water, and vegetable juice products under the Peñafiel, Clamato, Squirt, Dr Pepper, Crush, and Aguafiel brands. The company serves retailers, bottlers and distributors, restaurants, hotel chains, office coffee distributors, and end-use consumers. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.
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Junk food? Mercola agrees>>>>>
Elitists’ Goal: Wipe Out Good Food
STORY AT-A-GLANCE
The Friedman School of Nutrition Science and Policy’s Food Compass, unveiled in late 2021, is another Great Reset tool designed to discourage consumption of animal foods by falsely rating them as unhealthy, and encouraging consumption of ultraprocessed foods by giving them high nutritional ratings
Food Compass rates Frosted Mini Wheats as three times healthier than ground beef, with a score of 87 out of 100, compared to 26 for ground beef
Food Compass also gives high scores to fries, Lucky Charms, Honey Nut Cheerios, chocolate covered almonds and almond M&Ms, while rating whole egg fried in butter, cheddar cheese and ground beef as foods that should be avoided. Based on this tool, you’ll be healthier if you replace whole egg, cheddar cheese and ground beef with candy
Studies have repeatedly shown that diets high in processed foods lead to poor health and depression, and the more processed your diet is, the greater your risk of obesity and chronic diseases that shave years, if not decades, off your life span
Health, food security, independence and freedom are what the global elitists, led by the World Economic Forum, intend to destroy so that they can then roll out a new food system based entirely on patented, processed imitation foods, including lab-grown and plant- or fungi-based “meats” and “clean, green” protein alternatives such as cricket meal and mealworms
https://articles.mercola.com/sites/articles/archive/2022/07/27/food-compass.aspx?ui=cb65499db52abec6a9a590992872244905bf545afdb5f24bd660a43f2e592f19&sd=20150424&cid_source=dnl&cid_medium=email&cid_content=art1ReadMore&cid=20220727_HL2&mid=DM1223867&rid=1559877609
I figure plant-based is inevitable in the long run, if not via the marketplace then via globalist dictates. For better or worse, highly processed 'soylent green' is the inevitable future, just like electric cars, the smart grid, CBDCs, etc.
That said, investing in the sector looks risky, and public acceptance of the new franken-foods is uncertain. For food sector investments, I decided to stick mainly with the purveyors of junk food, like Pepsico, Coco Cola, McDonalds. I won't eat the stuff, but figure it's a safe investment :o)
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Plant based meat replacement might get a political boost, as government shuts down meat farmers over greenhouse gasses.>>>>>
Plant-Based Meat Now Cheaper Than Animal Meat in Netherlands
https://vegconomist.com/market-and-trends/plant-based-meat-cheaper-netherlands/
Snippet:
Plant-based meat alternatives have suddenly become cheaper than their conventional counterparts, according to new figures. Compiled by supermarket researcher Questionmark on behalf of the Dutch branch of food awareness organization ProVeg International, the data shows how inflation and high raw material prices have caused animal meat prices to skyrocket in comparison with plant-based alt meats.
>>> China buys America’s largest pork processor
07-06-2013
https://www.pigprogress.net/pigs/china-buys-americas-largest-pork-processor/
China buys America's largest pork processor
Last month China’s largest meat processor, Shuanghui International Holdings Ltd., agreed to pay USD $4.7 billion to acquire Smithfield Foods, Inc., the world’s largest hog farmer and processor. The deal is the biggest Chinese takeover of an American company in history.
The mega-pork deal immediately caused hand-wringing and outrage among Americans who fear growing Chinese dominance in the global economy. However, many analysts grudgingly agree the deal will be good for Smithfield, good for the US pork sector… and potentially great for the US beef industry if political leaders manage to leverage the deal to force changes in China’s trade policies.
Smithfield has twice as much revenue as its Chinese suitor, but sports a much smaller market value. China’s consumers are becoming wealthier and are adding more pork to their diet, while the market for pork in the US is stagnant.
The US pork industry is already highly concentrated, with Smithfield and four other companies controlling nearly three-quarters of America’s pork processing industry. Any US company that had coveted Smithfield would have had to face government antitrust hurdles. Shuanghui will face regulatory scrutiny through the Committee on Foreign Investments in the US, which looks closely at these acquisitions.
China owns USD $1.2 trillion of US federal debt, the most by far of any foreign nation. But this has nothing to do with America’s national debt. It has everything to do with building a better supply chain that moves American pig meat into the mouths of prosperous, happy Chinese customers. The US pork industry has struggled under the weight of high corn prices, which amount to around two-thirds the cost of raising a pig.
Scaling up
The deal was announced even as the Chinese government publicly committed to scaling up its own domestic pork production. Xiaoping Zhang, country director for the American Soybean Association in Beijing, says China’s backyard farms account for 40% of the country’s pork production. Small-scale inefficiencies make it expensive to grow a hog in China. Herd health has become a problem, so many small-scale farmers left the business.
“When these backyard farmers quit, it caused higher prices, and that was incentive for outside investment from both industry and the Chinese government,” says Zhang.
China’s government hopes that, by 2015, 80% of China’s pork will come from so-called ‘scaled-up’ domestic farms that will produce 500 pigs per year, compared to today’s average small-scale output of 50 pigs per farm per year.
Trade opportunities
Smithfield now produces half its hogs without the feed additive ractopamine, a lean muscle promoting drug that has been banned in China and Russia. This deal, combined with the racto-free pig production, should allow Smithfield to ship even more pork to China.
The acquisition provides a unique opportunity for American political leaders to pressure China into trade reforms. They want China to relax its ban on ractopamine, clearing the way for even more pig meat imports; and lift its 10-year-old ban on US beef imports.
“If you can’t leverage pressure on China now, when can you?” asks Steve Kay, editor and publisher of Cattle Buyers Weekly. “It’s a good opportunity.”
China’s ban on US beef was the result of a BSE case 10 years ago. The Smithfield deal coincides with the World Organization for Animal Health (OIE) decision to grant the U.S. its “lowest risk” status for BSE. (ie - Mad Cow Disease)
“China is not alone in using the decade-old BSE case against the U.S.,” says Kay. “Twenty-two countries still have full or partial bans on U.S. beef as a result of a single 10-year-old case of BSE. These are trade barriers because they are not taking into account science, especially since OIE has recognized U.S. beef as negligible for BSE risk.”
Unlikely bedfellows
While China and the US don’t always see eye to eye politically, the Smithfield deal further nudges the world’s two superpowers to get along. It means China has a vested interest in the well-being of the American economy.
The Smithfield deal will help China get what it desperately needs: respect, through the Smithfield brand. Chinese officials have been stung over and over by food safety scandals and were utterly embarrassed earlier this year when dead pigs were found floating in rivers near Shanghai.
Smithfield’s superior technology, phytosanitary measures and efficiencies will help China move its dubious food safety policies more in line with the western world. America’s pork production has been refined over decades into a system of mass production similar to making cars or televisions. Last year, 62% of the hogs in the US were raised on farms with at least 5,000 head, according to USDA. They’re often housed in vast, climate-controlled buildings, fed specialised diets of corn and soybean meal, and processed into bacon and ham in highly mechanized factories designed to ensure the meat is free of disease and contamination.
Smithfield plants have capacity to slaughter as many as 110,000 hogs a day. Its control of each stage of production helps the company trace back and address any problems with pathogens. “Their traceability is superb,” says John Mabry, an Iowa State University professor who specializes in swine genetics.
China, according to the US Meat Export Federation, has some 14,720 pig slaughterhouses compared with about 600 in the US
Last year the US sent 431,145 metric tons of pork worth $886 million to China. The deal could strengthen US pork prices as pork exports increase. That, in turn, will take more pork off the US domestic market and potentially raise the price of live hogs.
It’s positive for Smithfield and the US pork industry. American grillers may not be as thrilled.
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J&J Snack Foods - >>> It's An $222M Ice Cream Treat For ICEE Parent J&J Snack Foods
Benzinga
by Shivani Kumaresan
May 19, 2022
https://finance.yahoo.com/news/222m-ice-cream-treat-icee-184119364.html
J&J Snack Foods Corp (NASDAQ: JJSF) has agreed to acquire Dippin' Dots L.L.C, a producer of flash-frozen beaded ice cream treats, for $222 million.
JJSF noted Dippin' Dots brand complements its frozen novelty and frozen beverage businesses. JJSF's brands include ICEE, SuperPretzel, Luigis, and others.
JJSF expects to further leverage its combined strength in entertainment and amusement locations, theaters, convenience, and supermarkets.
Dippin' Dots is headquartered in Paducah, KY, along with a main production facility, warehousing, distribution, and administrative offices. It also leases four additional frozen warehouses strategically located in California, Canada, Australia, and China.
J&J Snack Foods expects this transaction to be $0.30 - $0.40 accretive to its EPS in the first 12 months after closing. The deal is expected to close by the end of June 2022.
JJSF plans to fund the transaction through a combination of cash and senior debt financing. It held $225.5 million in cash and equivalents as of March 26, 2022.
Price Action: JJSF shares are trading higher by 2.93% at $122.34 on the last check Thursday.
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>>> Why Farmers Are Turning Away From Organic Milk Despite Popularity
MSN.com
by Michelle Welsch
June 2022
https://www.msn.com/en-us/health/nutrition/why-farmers-are-turning-away-from-organic-milk-despite-popularity/ar-AAYRCJa?cvid=0efedb85094b44b7963cf2c05c909ed4
The pandemic ushered in demand for organic milk among American consumers and provided an incentive to dairy farmers worldwide, per VTDigger. In 2021, organic dairy production reached a record $22 billion in global market value, according to Statista, and this figure is only expected to grow. Yet the challenges farmers face in running successful businesses are many, and some entrepreneurs are calling it quits, reports William Reed's Food Navigator.
After analyzing more than a decade of data collected from Vermont dairies, agricultural researchers pinpointed several major contributors to whether a farm would become profitable: farm size, feeding and farm management, milk price, and input costs. According to a paper published on Sustainable Farming, organic dairy farms have the potential to do better financially than conventional dairy producers. So what's the problem?
Maine Organic Farmers and Gardeners record that in 2003, more than 90% of farms transitioned out of the organic category for economic reasons. And many organic dairy farmers resorted to non-dairy farming activities to support themselves -- 43% reported off-farm income streams. As documented by Time, small farms are struggling to stay afloat.
A Risky Endeavor
"Farmers are facing steeply rising input costs due to global politics and economic conditions, climate variation and weather events, and farm improvement investments that are required, necessary, or both," writes NOFA-VT Director Jen Miller on NODPA. The Australian Farm Business Management Journal echoes similar challenges for farmers throughout the European Union.
NODPA, the Massachusetts-based nonprofit, lists feed as farmers' biggest expense. For an organic dairy farm to succeed, explains eOrganic, the cows must be fed quality foods. These could be organic-certified fields set aside for grazing or quality forage that provide the nutrition cattle need to stay healthy and meet supply demands. The cowscan't be fed anything genetically modified for one year before a farm is organically certified, and it's not only the feed — the land on which livestock live must also qualify, per Darigold. No chemicals, pesticides, or herbicides can be used for three years before and after land certification.
American dairy farmer Cornell Kasbergen told LiveKindly, "You're better off putting your money into trees... almonds, pistachios, grapes. There are a lot of alternatives that provide a higher return than milking cows."
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Kellogg Plans to Split Into 3 Companies.
https://www.foxbusiness.com/markets/kellogg-split-three-companies
Kellogg Company announced Tuesday that it will separate its North American cereal and plant-based foods businesses into three independent public companies.
The three companies, which are being separated via tax-free spin-offs – include "Global Snacking Co.," "North America Cereal Co." and "Plant Co." The names of the companies will be determined at a later date.
Global Snacking Co. will be a "leading company in global snacking, international cereal and noodles and North America frozen breakfast," with estimated 2021 net sales of $11.4 billion.
Nearly 60% of its net sales come from global snacks, less than a quarter come from cereal in international markets, approximately 10% come from noodles in Africa and less than 10% from frozen breakfast and the Eggo brand.
Kellogg said the business would expand profit margins and is expected to be a higher-growth company than the current company, still under the leadership of CEO Steve Cahillane.
"Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value. This has included re-shaping our portfolio, and today's announcement is the next step in that transformation," Cahillane said in a statement. "These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth."
It will be focused on the restoration of inventory, profit margins and share position following 2021 supply disruptions.
Kellogg said it would generate stable net sales over time and is comprised of brands like Kellogg's, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked.
Plant Co. recorded $340 million in sales in 2021, and Kellogg said it would explore strategic alternatives with the company, including a possible sale.
hotos)
The independent business is expected to accelerate net sales growth over time and is anchored by the MoringStar Farms brand.
North America Cereal Co. and Plant Co. will both remain headquartered in Battle Creek, Michigan. Global Snacking Co. will maintain dual campuses in Battle Creek and Chicago, Illinois, with its corporate headquarters located in Chicago.
Kellogg said it believes now is the right time to split the businesses in order for them to pursue particular strategic priorities.
Independently, it said the three companies would be better positioned to execute with "increased agility and operation flexibility," "realize improved outlooks for profitable growth" and "shape distinctive corporate cultures."
>>> Antipodean dairy firms eye baby food supply to U.S. after Bubs Australia nod
Reuters
by Harish Sridharan and Rushil Dutta
May 30, 2022
https://finance.yahoo.com/news/nzs-a2-milk-seeks-supply-053231981.html
(Reuters) - Dairy companies in Australia and New Zealand are queueing to restock empty shelves in the United States with baby food, after the country recently relaxed its import policy to mitigate one of the biggest infant formula shortages in recent history.
New Zealand's dairy giants Fonterra and a2 Milk, and privately-run Australian firm Bellamy's Organic confirmed on Monday they had submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby food to the country.
This followed fellow Antipodean firm Bubs Australia inking a deal with the FDA to ship at least 1.25 million cans of its formula. Shares in a2 Milk closed more than 10% higher, while Bubs Australia shot up 40%.
"I've got more good news: 27.5 million bottles of safe infant formula manufactured by Bubs Australia are coming to the United States," President Joe Biden said in a Tweet
"We're doing everything in our power to get more formula on shelves as soon as possible."
The U.S. baby food shortage was triggered when Abbott Laboratories, the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants.
Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks, although FDA Commissioner Robert Califf told lawmakers a week later it would take until July before store shelves across the country were filled.
"In light of the current situation and revised FDA guidance, we have submitted an application to the FDA for approval to supply finished infant formula to parents in the U.S.," Fonterra, the world's biggest dairy producer, said in an emailed statement.
Emergency supplies from Europe arrived earlier last week after the Biden administration decided to urgently meet nationwide shortages by relaxing import rules.
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>>> 77%: That’s how much a baby formula maker’s shares surged after Biden tweeted about the company
BY JACKIE EDWARDS
BLOOMBERG
May 30, 2022
https://fortune.com/2022/05/30/biden-baby-formula-tweet-helps-bubs-australia-stock-to-77-gain/
Shares of infant formula maker Bubs Australia Ltd. soared the most in more than five years after the Sydney-based company struck a deal to ship its product to the U.S. to ease a severe shortage.
The stock surged as much as 77% in Sydney on Monday after the Food and Drug Administration said the company would provide the U.S. with at least 1.25 million cans of formula. President Joe Biden had earlier tweeted the news over the weekend, citing the equivalent volume in bottles.
The president’s tweet “should be helpful for the company’s marketing efforts, help position the brand as a safe and reliable foreign IMF manufacturer, and should be indirectly positive for sales of toddler formula,” Citigroup Inc. analysts said in a note Monday.
New Zealand formula maker A2 Milk Co. also benefited from the news, jumping as much as 13% in Wellington.
U.S. regulators have been taking steps to increase formula supplies as a shortage leaves shelves empty across the country. Bubs Australia, which has a market value of about A$420 million ($301 million), said it was working closely with the U.S. to determine how to deliver the products as quickly as possible, according to a statement.
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$RIBT Famine Is Coming. Are City Dwellers Prepared?
Messy paste, rad from the link>>>>
https://www.naturalblaze.com/2022/05/famine-is-coming-are-city-dwellers-prepared.html
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FMC Corp | FMC | 3.11% |
Zoetis Inc Class A | ZTS | 2.82% |
Deere & Co | DE | 2.71% |
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