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Church & Dwight -- >>> The 6 Key Metrics of Church & Dwight
By Adam Levy
May 15, 2013
http://beta.fool.com/adamlevy/2013/05/15/the-6-key-metrics-of-church-dwight/34421/?source=eogyholnk0000001
Last year, Church & Dwight (NYSE: CHD) CEO Jim Craigie focused on six key metrics he wanted to improve throughout the year. He called the initiative “fix the six.” After a successful 2012 saw the company’s stock climb 20%, shares have nearly added another 20%.
Most of this success can be attributed to Craigie’s initiative last year to fix the six. The company has kept it up so far in 2013. Here’s how the six stack up in the company’s most recent earnings report.
Organic revenue growth
Organic sales improved 2% in the most recent quarter. This comes on top of a record high 8.4% sales growth in the same period last year. The driving force behind the organic sales expansion was all volume, which increased 2.4%. 40 basis points were lost to negative product mix and pricing.
Once again, the company is growing much faster internationally than domestically. Organic sales improved 5.2% outside the U.S., with great success in Mexico, the U.K, and Australia.
The international market has huge potential for Church & Dwight as it currently derives just 20.7% of its revenue from outside the United States. Comparatively, Procter & Gamble (NYSE: PG) derives more than 60% of its revenue from abroad.
P&G has been rapidly expanding into emerging markets in the last decade, and now Church & Dwight is working to catch up. Its strong revenue growth abroad is a great sign that the company can compete with the market leader as it continues its international expansion.
Margins
Church & Dwight continued to improve its margins in the first quarter of 2013. For the first quarter the company reported gross margin of 44.9%, a 110 basis point expansion from the first quarter of 2012. That number, however, still remains well below its competitors, Procter & Gamble and Colgate-Palmolive, which both sport gross margins over 50%.
Still, the company is on a path to reach those levels. The company recently completed a new laundry detergent production plant that increased productivity, and has had a positive effect on gross margin.
The company also gained gross margin advantages from better than expected sales of its high-margin personal care brands as well as faster than expected cost savings on its Avid Health acquisition.
As a result, the company expects gross margin to continue to expand in 2013 by 25 to 50 basis points as opposed to its previous guidance of flat.
Operating margin, the third metric of the six, increased 100 basis points year-over-year to 20.7% - a company record. That significantly outperformed P&G’s operating margin of 16.5% last quarter, and is better than every single one of P&G’s previous four quarters.
So, where Church & Dwight still lags the competition in gross margins, the company makes up for it with lower operating expenses. Which brings me to the next metric …
Overhead costs
Church & Dwight currently has the highest revenue per employee of any company in the consumer packaged goods space. SG&A costs contracted 20 basis points last quarter compared to the year prior to 13.1% of sales. The Avid acquisition helped keep that number low, as it added sales with minimal overhead.
Comparatively, Procter & Gamble’s SG&A costs expanded 40 basis points last quarter as a percentage of net sales. P&G’s high overhead costs are typically about one-third of its sales.
The ability of Church & Dwight to operate efficiently is one of its greatest strengths, and it looks like that trend will continue for some time.
Market share
The company’s eight “power brands” performed very well in the first quarter with 7 out of 8 expanding market share.
Three factors contributed to the success. First, the company reinvested some of its increased profits from its value brands into increased marketing support. Marketing support expanded by 30 basis points last quarter, and is typical of the kind of marketing force Craigie has used recently to expand market share.
Second, the company has introduced several new products, mostly capitalizing on underserved niche markets. These products not only serve a market with practically no competition, they also have the added benefit of high margins. Examples include single dose cold sore treatments, toothbrushes that play One Direction songs, super high concentrated laundry detergent, and adult toys from its Trojan brand.
And the last factor is the company’s ability to increase distribution. The company has worked closely with key retailers to expand shelf space for its products, which helps increase visibility, and minimize out of stocks.
As the company continues to support its most profitable brands with expanded marketing efforts, generate new products, and improve distribution, market share ought to continue growing.
Earnings
Earnings, while not exactly an afterthought, is simply a result of the company’s focus on the first five metrics. With the growth in sales, margins, market share, and reduction in overhead costs, earnings improved more than analysts expected.
In fact, this seems to be the trend, as Church & Dwight has beaten analysts estimates for 9 straight quarters. Last quarter, the company reported earnings of $0.76 per share, $0.04 better than analysts’ expectations.
For the year, the company expects to grow earnings 14% to $2.79 per share, but I wouldn’t be surprised if the company eeks out a few cents more. The first quarter was fantastic, and analysts currently expect a penny more.
The company has plenty of opportunities to continue its fantastic growth of the past few years, and with Jim Craigie’s focus on these six metrics I expect that to continue.
Strong international sales will fuel revenue expansion as the company improves margins and reduces overhead. Meanwhile, the company will continue expanding market share of its power brands in the States through increased marketing spend and the introduction of new products. All this ought to lead to further earnings growth, which means a good return for investors.
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Craft Brew Alliance -- >>> 3 Stocks To Take Advantage Of Craft Beer's Popularity
May 12 2013
by: Kapitall
includes: BREW, SAM, TAP
http://seekingalpha.com/article/1428071-3-stocks-to-take-advantage-of-craft-beer-s-popularity?source=yahoo
Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Emily Smykal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.
This list provides a closer look at some of the biggest names in the American craft beer industry - companies selling popular brands such as Redhook Ale, Samuel Adams and Blue Moon
According to the Brewers Association, the entire US beer market as of 2012 was worth roughly $99 billion and grew by 1% over the previous year. This amounted to 200,028,520 barrels of beer (where 1 barrel = 31 US gallons).
As reported on Kapitall Wire, craft brewers made strong gains within the beer industry, growing 17 by dollars and 15% by volume, versus 15% by dollars and 13% by volume in 2011.
And the craft brewing market experiences healthy rates of openings and low rates of closures. According to the Brewers Association, 409 breweries opened and just 43 closed as of March 18, 2013. Overall in 2012 there were 2,347 craft breweries, microbreweries and brewpubs in operation.
Craft brewers are also expanding into foreign markets. 2012 saw an increase in export volume of craft beer of 72% over 2011, with an approximate value of $49.1 million.
The List
Technically, a craft brewer is any brewery producing 6 million barrels of beer or less per year, where an alcoholic beverage industry member (who is not a craft brewer) owns or controls less than 25% of the craft brewery.
The somewhat loose definition of a craft brewer means beers produced by certain well known and publicly traded names fall into the category, allowing the average investor to make a play in the craft beer market even if the stock they are buying is not a craft brew company itself.
The list below includes more detailed financial data for three big players in the craft brewery industry.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
The demand for craft brews is on the rise - are these names poised to lead the trend? Use this list as a starting point for your own analysis.
1. Craft Brew Alliance, Inc. (BREW): Produces craft-brewed beers. Brands include Redhook Ale Brewery, Widmer Brothers Brewing, Kona Brewing Co, Omission Beer.
Market cap at $140.50M, most recent closing price at $7.43.
P/E: 61.54, Forward P/E: 29.63
PEG: 3.08
Total Debt/Equity: 0.12
52-Week High: -15.47%
BREW has produced great gains over the last month, but dropped about 50 cents on Thursday after reporting first quarter losses on slumping beer shipment. Chief executive Terry Michaelson reconfirmed expectations that revenues and earnings in 2013 would exceed 2012 levels. "The company said growth would be driven by stronger sales of Kona, Redhook and Omission brands, along with a new Redhook label called Game Changer and a new Square Mile cider. New packaging also is planned."
BREW has a higher than average projected earnings growth rate over the next 5 years (20.0%). This is higher than competitors such as ABV (projected EPS growth over next 5 years at 7.74%) and TAP (projected EPS growth over next 5 years at 4.80%).
Based on conventional valuation ratios, BREW looks cheap relative to industry peers. The stock's PEG ratio stands at 3.08, while its Price/Cash ratio stands at 30.2. Even on a Price to Free Cash Flow basis the stock looks cheap, with a ratio of 38.11, compared to FMX (P/FCF ratio at 47.86) and ABV (P/FCF ratio at 63).
At the end of 2012, BREW reported its brands would become available in European and Asian markets thanks to an exclusive distribution agreement with CraftCanTravel, the US market's first full service exporting company focusing on American craft beer. Distribution is currently taking place in countries including China, Hong Kong, Japan, Holland, Ireland and the United Kingdom.
2. Boston Beer Co. Inc. (SAM): Produces and sells alcohol beverages primarily in the United States, Canada, Europe, Israel, the Caribbean, the Pacific Rim, and Mexico. Craft brands include Samuel Adams, with 50+ seasonal and small batch varieties.
Market cap at $1.87B, most recent closing price at $145.22.
P/E: 34.11, Forward P/E: 26.71
PEG: 3.41
Total Debt/Equity: 0
52-Week High: -15.18%
When comparing valuation ratios to industry averages, SAM looks expensive. The stock's Price / Free Cash Flow ratio stands at 270.94, much higher than BREW (P/FCF ratio at 38.11), BUD (P/FCF ratio at 24.66) and TAP (P/FCF ratio at 17.13).
Short sellers think there's more downside to the stock, especially when comparing short float to industry averages. SAM short float stands at 18.78%, which is equivalent to 16.52 days of average trading volume. As an example, this is much higher than FMX (short float at 0.12%, representing 0.67 days of trading volume) and BUD (short float at 0.33%, representing 1.14 days of trading volume). Competitor BREW, while still lower, comes closer with a short float at 3.03%, equivalent to 10.35 days of average trading volume.
SAM has placed a large emphasis on seasonal brews, and The Motley Fool explains how their most recent earnings report demonstrated that this strategy is not always foolproof. Sales of the company's spring varieties fell below expectations, yet SAM has already moved on to summer ale, spending an additional $7.2M on advertising and selling.
Despite a downgrade from Credit Agricole on Thursday May 9, their target price of $170 (up from their previous target of $165) represents a 17% upside from current levels. Williams Capital also downgraded shares to market perform but increased targets from $130 to $150 (3.29% potential upside from most recent closing price). Meanwhile, USB did Boston Beer no favors when it increased their target price from $117 to $143, a -1.5% potential downside from recent closing price.
Looking beyond the traditional craft brewer:
Molson Coors Brewing Company (TAP) is one of the world's largest brewers by volume, and does not fit the traditional model of a craft brewer. However, TAP clearly recognizes the great potential in controlling craft beer names, as reported by Bloomberg. TAP currently produces Blue Moon, a popular Belgian-style beer that has been expanded to include over a dozen different varieties. And the company created a division to help develop and acquire more craft brands, called Tenth & Blake Beer Co., which has recently had discussions with at least 20 craft brewers. As the company's well known Miller Lite label continues to lose market share, more craft beers may help give the stock a much needed boost.
3. Molson Coors Brewing Company: Distributes beer brands. Craft brands include Blue Moon and its varieties, Batch 19, Third Shift Amber Lager, Colorado Native.
Market cap at $9.03B, most recent closing price at $49.49.
P/E: 20.45, Forward P/E: 11.61
PEG: 4.26
Total Debt/Equity: 0.59
52-Week High: -6.65%
TAP has recorded a weak performance over the last month, returning -1.23% since 4/8/13. The stock is falling behind companies like Compania Cervecerias Unidas S.A. and Anheuser-Busch InBev , which returned 1.82% and 0.78% respectively, during the same time period.
The company has reported disappointing earnings growth over the last year, with EPS falling by -32.84%, lower than industry peers such as SAM (EPS growth over the last year at -7.93%) and ABV (EPS growth over the last year at -13.49%). Yet VCO, BREW and FMX reported even lower rates, at -40.53%, -73.83% and -81.54% respectively.
And TAP has a lower than average projected earnings growth rate over the next 5 years (4.80%). This is significantly below analyst projections for FMX (projected EPS growth over next 5 years at 12.59%) and CCU (projected EPS growth over next 5 years at 10.90%).
On Wednesday, Zacks analysts wrote "Overall, we are encouraged with the company's strong brand portfolio, continuous innovation and cost-saving initiatives... However, the slow recovery of U.S. economy and uncertainties in Europe undermine Molson Coors' growth prospects and profitability." It gave the brewer a $53 target price and restated its neutral rating on the stock. Analysts at Nomura are more optimistic. They raised their target price from $55.00 to $61.00 in a research note to investors on Tuesday, April 9th. Goldman also increased target price to $63.00 per share from $47.00. This respectively represents 7.09%, 11.13% and 27.29% upside from the current prices.
*All accounting data sourced from Google Finance, EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.
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McDonalds, Church & Dwight -- >>> Don’t Make Investing Too Complicated
By Matthew Luke
May 10, 2013
Tickers: ABT, ABBV, BEAM, CHD, MCD
http://beta.fool.com/whichstockswork/2013/05/10/dont-make-investing-too-complicated/33940/?source=eogyholnk0000001
If I could send a message back in time to my younger self, I would only need to use four words, “Keep it simple, Stupid!” This is great advice for life in general, but especially good advice when investing one’s own money. How much better would my stock portfolio would look today if I had realized this when I first began investing!
Sometimes we as investors can fall into the trap of associating complexity with a good investment. The more complicated an investment however, the more things can go wrong. Often it is simplicity that can be most consistently associated with good long-term investing. If I could have taught my younger self this lesson, I may have looked for investments that resembled these four:
Simple Liquor
Before October 2011, the simple company now known as Beam (NYSE: BEAM) was part of the overly-complex golf equipment, home products, security products and liquor conglomerate, Fortune Brands. Fortune Brands was a company with such a diversity of product-types that it actually hurt the company as a possible investment. Current and potential investors were unable to properly value a company that sold everything from golf shoes and sink faucets to pad locks and bottles of bourbon. Fortune Brands was a great example of needless complexity getting in the way of investors making a lot of money.
Since selling and spinning-off its various unrelated divisions, the renamed Beam has become a much simpler company and a much better investment opportunity. Previously a very bourbon-centric company, Beam has made many small accretive acquisitions in the past few years to give it greater exposure to the fast-growing liquor categories such as flavored vodka and Irish whiskey, as well its Skinnygirl brand, which has become one of the fastest-growing liquor brands in the United States. Times have been so good for Beam lately that they are currently facing supply problems with their Maker’s Mark brand due to a surge in overseas demand. While supply problems are never good, being supply constrained because your product is so incredibly popular is high-quality problem to have. If only more complicated companies saw the benefits that simplicity brings to a business.
Simple Consumer Goods
Consumer goods have always been a pillar of safe long-term investing. Toothpaste, deodorant, soap, laundry detergent; these are the types of relatively simple products that are some of life’s necessities, bought in good economic conditions and bad. And Church & Dwight (NYSE: CHD) has been one of the consumer goods industry’s best preforms over the past 10 years.
The management team has done an excellent job over the past decade of transforming Church & Dwight from a mostly single-brand company (Arm & Hammer) into a company with 7 ‘Power Brands’ that now occupy the No. 1 position in their respective product categories (and an 8th Power Brand that is also doing very well for itself). Current and a century of past management teams also have an impressive record of returning money to shareholders. This month, company management declared their 449th regular quarterly dividend, or just over 112 years of uninterrupted dividend payments.
Simple Healthcare
Abbott Laboratories (NYSE: ABT) is another good example of a company that simplified its complicated investment thesis by breaking itself up into two separate companies. In January, Abbott Laboratories completed the separation of AbbVie (NYSE: ABBV), which comprises Abbott’s old drug discovery pharmaceuticals division. Abbott Laboratories itself was left with the company’s medical device, diagnostics and nutritionals divisions.
Although the newly-separated AbbVie’s share price has outperformed Abbott Laboratories thus far post-split, Abbott Laboratories’ business should be the more consistent and faster-growing of the two going forward. Trying to discover the next multi-billion dollar blockbuster drug is a tall order for any pharmaceuticals company. And AbbVie currently has very little in the development pipeline to fuel future growth (as well as the patent expiration of Humira coming in 2016). For Abbott Laboratories though, long-term growth prospects are clearly visible with its exposure to emerging market countries such as China and India. This is particularly true for Abbott’s nutritionals division, which now makes up about 30% of Abbott’s sales and includes high-growth emerging market product categories such as baby formula.
Simple Fast Food
McDonald’s (NYSE: MCD) is a much simpler company than some give it credit for. Although many consider McDonald’s to be a global restaurant operator, an argument can be made that McDonald’s is actually a fairly simple real estate operator.
When we think of McDonald’s, we probably think of the almost 70 million customers served every day, the 119 countries of operations, the nearly 2 million worldwide employees that need to be managed or all of the food that needs to be sourced for each of its 33,000 worldwide restaurant locations. All of that all sounds like a rather complicated business undertaking. That is until you consider that approximately 82% of those 33,000 locations are operated by franchisees. The serving, operating, managing and sourcing are actually being done by the franchisees of McDonald’s.
Under the franchise model, McDonald’s Corporation functions much like a landlord; signing tenants (franchisees) to 20-year lease (franchise) agreements. Each month McDonald’s collects monthly rent payments from their franchisees for the use of the lands and buildings that McDonald’s owns. McDonald’s also collects royalty fees and advertising fees from its franchises (12% and 4% of restaurant sales respectively). While the sales of each individual McDonald’s restaurant can vary from time to time, McDonald’s is able to predictably expect the exact same fixed-amount of rent payments 12 times a year, every year, for the next 20-years. And at the end of the 20-year agreement, McDonald’s is able to renegotiate the contract again for even higher rent payments, starting the whole process over again.
Lessons of Foolish Youth
If there is one thing I wish I had learned earlier in my youth, it is that investing need not be the complicated endeavor some make it out to be. While there is certainly money to be made investing in complicated companies with complex business models, there is also money to be made investing in simple companies with simple business models. A very good lesson to learn, even if it took a little while to learn it.
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B&G Foods -- >>> B&G Foods Acquires TrueNorth Brand
May 13, 2013
By Zacks Equity Research
http://finance.yahoo.com/news/b-g-foods-acquires-truenorth-153002773.html
Packaged food company, B&G Foods, Inc. (BGS) recently acquired the TrueNorth brand from DeMet’s Candy Company. With the growing importance of nutritious snacking, TrueNorth is a healthy addition to B&G Foods’ snacks portfolio.
TrueNorth are bite sized nut clusters made of roasted nuts, with a taste of sea salt and sweetness and thus offer a healthy option for mid meal snacking. TrueNorth comes in three varieties namely Almond Pecan Crunch, Chocolate Nut Crunch and Cashew Crunch.
B&G Foods’ snacks portfolio also includes New York Style, Old London, JJ Flats and Devonsheer brands which were acquired in Oct 2013.
New York Style offers several baked products such as Mini Bagel Crisps, Pita Chips, Original Bagel Crisps, and Panetini Italian Toast. Old London, on the other hand, offers a huge variety of Melba products, such as Melba Toasts and Melba Rounds. In addition, Old London markets snacks under the names Devonsheer and JJ Flats.
B&G Foods focuses on small brands that have strong margins and generate less than $100 million in sales. Most of the time, these are smaller brands from large food companies, which have limited competition. B&G Foods’ investments in these brands help to generate huge free cash flow and ensure profitability in the long run.
B&G Foods carries a Zacks Rank #2 (Buy).
Some other consumer staple stocks that are worth a look include Flower Foods Inc. (FLO) carrying a Zacks Rank #1 (Strong Buy) and H. J. Heinz Company (HNZ) and J&J Snack Foods Corp. (JJSF) holding a Zacks Rank #2 (Buy).
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J&J Snack Foods -- >>> J&J Snack Foods: Boring Company, Great Value
May 13 2013
by: Finance For Yuppies
about: JJSF, includes: CAG, K, LNCE
http://seekingalpha.com/article/1431951-j-j-snack-foods-boring-company-great-value?source=yahoo
BUSINESS DESCRIPTION
J&J Snack Foods Corporation (JJSF) sells a variety of branded and private label baked goods and food items. Soft pretzels made under the Super Pretzel and related brands are the company's flagship product and contributed 18% of the firm's revenues in 2012. Frozen juices are a declining (13% revenue) portion of the firm's business. Churros are an increasingly important part of the company's operations. Handheld "dough enrobed" product sales have almost tripled their sales (6%) over the last year largely due to the successful integration of Conagra Foods (CAG) handheld food division. Baked goods including Mrs. Good Cookie and Country Home brands, in addition to private label brands, are JJ's largest single division with 32% of sales. JJ's frozen beverage sales (16%) are primarily derived from the sale of ICEE and Slush Puppy brand drinks via 87,000 machines that it also sells and maintains (7%). The company recently acquired organic pretzel maker Kim & Scotts gourmet pretzels for $7.9m and churro maker California Churro for $24 million. JJ's products are distributed via supermarkets, restaurants, and food service companies.
INVESTMENT THESIS:
Shifting product distribution mix. Increasingly the company is shifting its product mix toward higher margin churros, pretzels, and Icee sales. In addition, JJ recently to changed its sales mix to favor retail and restaurant distribution over the price sensitive food service channel which currently accounts for 62.7% of sales. The retail distribution outlet yields higher operating margins of 12.2% versus 10.4%. In addition, in its FQ2 conference call, management mentioned a more aggressive shift to restaurant sales which are currently only approximately $20m of the company's sales, but which management has stated it can double to quintuple over the next five years.
Pristine balance sheet leaves room for financial engineering. Management has recently undertaken changes to its balance sheet that should be accretive to shareholders. Currently JJ has $188m in cash and securities on its balance sheet. Management has indicated that it will seek additional income with this cash by investing in mutual funds with an average yield of 4%. In addition, the board authorized a 500k share repurchase. With a .9% dividend yield that only costs approximately $12.6m a year in cash, estimated capital spending of only $30m in 2013, a cost of repurchase of $37m at current price levels, the company will only utilize $79.6m in cash versus an estimated $55 in free cash flow in 2013.
High probability of acquisitions. JJ's management has consistently proven that it has the ability to acquire small firms, integrate them into its distribution network, and then rapidly scale them. After Hostess' bankruptcy, JJ was one of the companies mentioned as a prospective bidder. However, the company is highly methodical about its acquisitions and will only acquire firms that fit its distribution channels and that are complementary to existing goods, thereby driving synergies. Given the company's cash balance and several instances where management has indicated it wants to pursue a substantial acquisition, it should only be a matter of time before a new acquisition is announced.
International avenues for growth. At present, the company primarily operates in the U.S. with only 2.3% of sales and 2.5% of its assets located outside the U.S., primarily in Mexico and Canada. However, international sales have been growing at an annual growth rate of over 10.8% a year (2012). The company already has dedicated sales teams and distribution centers in Canada that it can utilize to further expand its negligible footprint. Churro sales in particular could benefit from international expansion as these markets already accounted for 1/3 of JJ's total churro sales in 2012.
Valuation
The company is extremely undervalued on a DCF basis and fairly valued on a comparable basis. I used an equity risk premium of 10%, a terminal growth rate of 2%, and a WACC of 6.9%. I held 2013 income at consensus earnings of $3.41 a share, increased revenues in 2014-18 by 7% a year (which is half of the firm's 14% compound annual growth rate over the last 5 years), decreased COGS by .5% to 68.5% of sales in 2014-2015 and 67% in 2016-2018, and increased SG&A by 6% a year to reflect some SG&A leverage from greater scale. I then added back the company's $188m in cash. The resulting DCF produces a $104.68 price estimate.
On a comparable basis the company is in-line with its peers on virtually every metric. The firm's closest comp Snyder's-Lance, Inc. (LNCE) has approximately half the net margins but significantly higher income growth. Conversely, the firm's largest comp Kellogg (K) has substantially more debt as a percentage of capitalization, a comparable growth rate and margins, but a lower valuation. Therefore although the company is smaller and faster growing than the majority of its peers, I believe that the company is fairly valued on a conservative interpretation of comparables. Taking an average of the company's value on a comparable basis which is approximately the current stock price of $75.91 and the DCF value of $104.68, results in a target price of $90.29.
Comps
(click to enlarge)
INVESTMENT RISKS:
JJ's customer base is highly concentrated with its top 10 customers accounting for 43% of 2012 sales and one customer account for 8% of sales. A loss or reduction in SKU allocations from a major customer could significantly diminish the firm's revenues. Increases in the price of commodities, namely fuel and flour, can have an extremely negative impact on the company's profitability. Although the company engages in some hedging activity, a prolonged rise in prices coupled with a weak retail pricing environment could result in lower earnings. The company's founder and CEO is 70 years old. The remainder of the management team also has significant experience, but the founder's death could materially impact the firm's operations.
RECOMMENDATION & PRICE TARGET: Buy as the firm is undervalued on a DCF basis. Blended Price Target: $90.59, Current Price: $75.91, Potential Upside: 18.90%
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Whole Foods - PE is 36 -- >>> Whole Foods Crafts New High
By Zacks Equity Research
May 9, 2013
http://finance.yahoo.com/news/whole-foods-crafts-high-140002602.html
Buoyed by strong second-quarter fiscal 2013 earnings, shares of Whole Foods Market, Inc. (WFM) recorded a new 52-week high of $103.72 yesterday, before closing at $102.19, and rising approximately 11.6% year to date. Based on the current price, Whole Foods is 3.6% below the Zacks Consensus average analyst price target of $106.
Moreover, it currently trades at a forward P/E of 35.6x, a 68.1% premium to the peer group average of 21.2x. Additionally, the company’s long-term estimated EPS growth rate is 17.9%, higher than the peer group average of 11.9%.
Whole Foods’ second-quarter fiscal 2013 earnings of 76 cents a share beat the Zacks Consensus Estimate of 73 cents, and surged 19% from 64 cents earned in the prior-year quarter as shoppers flocked to the grocery chain. The Austin, Texas-based company, which will undergo a two-for-one stock split later this month, also raised its earnings-per-share projection.
Management now envisions earnings between $2.86 and $2.89 per share, portraying a year-over-year jump of 13% – 15%, up from a range of $2.83 – $2.87 forecasted earlier.
Whole Foods continues to project an escalation of 10% – 11% in total sales for fiscal 2013 on the back of an expected 6.7% – 7.5% rise in comparable-store sales and 6.5% – 7.2% growth in identical-store sales.
Moreover, the company stated that for the first 3 weeks of the third quarter, comparable-store sales are witnessing healthy trends and are up 9.4%.
Zacks Rank for Whole Foods
Currently, Whole Foods carries a Zacks Rank #4 (Sell) as the comparable and identical store sales growth trend is softening. Consequently, Whole Foods narrowed the range of comparable and identical store sales growth for the fiscal year.
However, there are certain other stocks that warrant a look, such as Flowers Foods, Inc. (FLO), which holds a Zacks Rank #1 (Strong Buy) and is expected to continue with its upbeat performance. Other stocks that should be merited are J&J Snack Foods Corp. (JJSF) and The Hain Celestial Group, Inc. (HAIN), both of which sport a Zacks Rank #2 (Buy).
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Compania Cervecerias Unidas, Beer Sector -- >>> Another M&A Candidate: Beer
By Federico Zaldua
May 8, 2013
Tickers: BUD, CCU, SAB
http://beta.fool.com/za0696fede/2013/05/08/another-ma-candidate-beer/33453/?source=eogyholnk0000001
The beer industry, as a part of the consumer goods industry, has a tendency towards consolidation. The reason is simple: the more share of the market a company owns, the lower its fixed costs per unit of volume sold are. Hence, your margins soar as your share of the market increases.
AB InBev (NYSE: BUD) and its owners (the Brazilian trio led by Jorge Paulo Leman) know this very well. They have consolidated the industry while making their company's margins increase for over twenty years. AB InBev is the masters of the universe in the art of cutting costs and gaining market share through acquisitions. Still, there are some markets where they do not rule. Some of those markets are dominated by their biggest competitor, SABMiller (LSE: SAB), and others are ruled by independent local companies. This companies are prone to being acquired by giants such as AB InBev or SAB Miller. Let's take a look at a company that will surely be acquired at some point in time.
I think might be the giant's next target
Compania Cervecerias Unidas (NYSE: CCU) is the company that practically owns the beer market in Chile (its market share is above 90%). Besides this, the company also enjoys a 23% market share in Argentina, its second biggest market by volume. The company is efficiently managed and could provide AB InBev or SABMiller with one market that they cannot access on their own (barriers to entry are huge when a player has such a high share of the market). The deal could actually make more sense for SABMiller since the company doesn't have a sizable business in Argentina, where AB InBev rules the beer business with a +75% market share.
CCU (as the company is known in its country) is doing great. During the first quarter, volumes went up 9.7% Year over Year (YoY), and 3.0% YoY excluding the acquisition of Manantial in Chile and Uruguay (soft drinks). Moreover, consolidated revenues increased 8% YoY due to higher volumes, but with 1.5% lower average prices YoY.
Most importantly, trading at 2013 17.5x P/E and 9.2x EV/EBITDA, the company doesn't seem awfully expensive. AB InBev trades at 2013 12.9x EV/EBITDA, while SABMiller trades at an expected 15.4x EV/EBITDA.
I think CCU is a great target for bigger brewers looking to gain new monopolies: it trades at reasonable multiples and it would give those beer giants the possibility of selling parts of the company they might not want (such as the wine division CCU controls). Across Latin America, AB InBev and SABMiller have been distributing different markets between themselves. While Colombia and Peru are almost completely controlled by SABMiller, Argentina, Bolivia, Uruguay and Paraguay belong to AB InBev. Chile is the only market within the region that these two giants cant control. I would make a bet that it will not be long until one of these two cash-rich global brewers make a compelling offer for CCU. After all, interest rates will not stay at zero forever, and cheap long term financing is always key for any multi-billion dollar deal (CCU's current market capitalization is $5.3 billion).
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Church & Dwight, Hormel, Campbell Soup -- >>> 3 Great Consumer Staples Stocks Flying Under The Radar
By Robert Ciura
May 7, 2013|
Tickers: CPB, CHD, HRL
http://beta.fool.com/rciura/2013/05/07/3-great-consumer-staples-stocks-flying-under-the-r/33652/?source=eogyholnk0000001
Most income investors are well-aware of the benefits of dividend investing. Those quarterly checks provide stability and guaranteed returns in an era of high-frequency trading, geopolitical unrest, and volatile markets.
The consumer staples sector in particular is a haven for those who enjoy receiving solid dividend yields. However, while most investors are fully aware of the market’s biggest consumer staples giants, there are a few stocks with much smaller market values, below $15 billion, that might be flying under your radar.
Three great consumer staples companies
Church & Dwight (NYSE: CHD) manufactures and markets a wide range of personal care, household, and specialty products under the Arm & Hammer brand name, as well as others. The company flies under the wings of its mega-cap consumer staples giant peers, but the company’s solid brands and steady operating performance make it worthy of consideration in its own right.
The company has a spectacular track record of distributing profits to shareholders via dividends. The company recently declared its 449th consecutive quarterly dividend payment.
Of course, this long streak of dividend payments can’t be sustained without the underlying operating performance to back it up, which is an area of strength for Church & Dwight that continued during the first quarter. The company reported nearly 13% growth in net sales and 15% earnings per share growth during the first three months of the year versus the same period in 2012.
Hormel Foods (NYSE: HRL) has a market capitalization of $11 billion and a dividend yield of about 1.6%. Hormel was founded in 1891, and has since sold its flagship Spam and Hormel Chili to consumers. However, the company has broadened its product portfolio over the years. The company holds the Jennie-O brand, and earlier this year announced the acquisition of the Skippy peanut butter line.
Hormel has reported steady operating performance, indicative of its solid brands and diversified product portfolio. Recently, the company reported fiscal first-quarter sales of $2.1 billion, representing 4% growth year over year. This was largely attributable to a 2% increase in volumes as opposed to the first quarter of 2012.
Moreover, Hormel has an enviable dividend track record: the company has provided investors an astounding 47 consecutive years of dividend increases.
Campbell Soup (NYSE: CPB) is a $15 billion dollar company with a dividend yield in excess of 2.5%. The company has a long operating history that stretches back more than 140 years. Campbell offers consumers its namesake soup products, as well as a diversified portfolio, including the Pepperidge Farm and V8 brands. Although revenues and earnings were basically flat in 2012 versus 2011, Campbell did come through with a dividend increase.
In February, the company offered investors a solid quarterly report. Sales grew 10% during the second quarter to $2.33 billion. In addition, the company reported that its adjusted earnings per share increased 8% during the first half of the year.
The Foolish bottom line
These stocks provide the best of what the consumer staples sector has to offer: reliable sales and profits, as a result of products that are sold no matter the condition of the broader economy. In turn, investors also receive those quarterly dividend payments that are so valuable to income investors.
It’s worth noting that each of these stocks carries a trailing price-to-earnings ratio that is near or exceeds 20 times, a level that is above the P/E ratio on the broader market. The S&P 500 Index currently trades for roughly 18 times earnings, meaning these stocks are slightly more expensive than the broader market.
However, these companies have smaller market capitalizations than their juggernaut competitors and predictable business models that justify their higher valuations.
In addition, Hormel, Church & Dwight, and Campbell have extremely long histories of paying (and raising) payouts to shareholders. For investors interested in the consumer staples sector who are bored with the usual suspects, these under-the-radar, high-quality companies are worth a closer look.
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Reeds -- >>> Revenue summary by quarter (see below) -
Q1-2013 revs were up approx 3-4% from last quarter, but up 24% YOY. Revs were flat during in the 2nd half of 2012, and in the March 25 conf call Chris explained that private label revenues from a single customer in Q4-2012 were lower than anticipated, plus some Kombucha was returned due to earlier batches having conservative shelf life dating. He also said the Kombucha rollout has involved a high level of promotions.
But Chris projected that by late 2013 the run rate for Kombucha should be approaching $7-8 mil per year (approx 30,000 cases/month). In addition to the original 4 flavors, and the additional 4 flavors announced in February, there are several more flavors in the works and also new brighter labels are now on the Kombuchas. He also said that 3 significant new private labels will contribute in 2013 (one was announced April 23).
Significantly, Chis also said that many stores that have said yes to Kombucha will start carrying it in the April/May period when they do their annual re-configuration of products carried.
Revenue summary by quarter -
Q1-2013 -- 8.0 - 8.1 mil (approx)
____________________________
Q4-2012 -- 7.8 mil
Q3-2012-- 7.888 mil
Q2-2012 -- 7.831 mil
Q1-2012 -- 6.539 mil
_____________________________
Q4-2011 -- 7.282 mil
Q3-2011 -- 6.4 mil
Q2-2011 -- 6.2 mil
Q1-2011 -- 5.1 mil
______________________________
Q4-2010 -- 6.0 mil
Q3-2010 -- 5.5 mil
Q2-2010 -- 4.9 mil
Q1-2010 -- 4.0 mil
___________________________
Revenues by year -
2012 - 30 mil
2011 - 25 mil
2010 - 20.4 mil
2009 - 15.2 mil
___________________________
Reeds -- >>> Reed's Inc. 1st Quarter 2013 Revenues Increase 24%
Press Release: Reed's, Inc.
http://finance.yahoo.com/news/reeds-inc-1st-quarter-2013-123000478.html
LOS ANGELES, CA--(Marketwired - May 7, 2013) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, today announced its revenues for its first quarter ended March 31, 2013, and its earnings release date of May 14, 2013.
Revenues for the first quarter of 2013 increased 24% to over $8 million from $6.5 million in the first quarter of 2012. Chris Reed, Founder and CEO, stated, "This is our fourth year of significant growth. Our revenue goals for this first quarter were exceeded and indicate the strength of our continued growth momentum. This is an exciting year unfolding as we continue to expand revenues with our core brands of Reed's Ginger Brews and Virgil's Natural Sodas. Our new Reed's Culture Club Kombucha line of live probiotic cultured teas continues to roll out and gain acceptance. In addition, we continue to develop significant new private label production opportunities. We anticipate continued strong growth for the rest of 2013."
The Company will conduct a conference call @ 4:15PM EST on May 14th to discuss its 2013 first quarter results and outlook for the future. To participate in the call, please dial the following number 5 to 10 minutes prior to the scheduled call time (866) 240-5139. International callers should dial (713) 481-0091.
A replay will be available within a few days after the conference call in the investor relations section of the Company's website at: http://www.reedsinc.com/investor-relations/.
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
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Tobacco Sector -- >>> 3 High Dividend Paying Stocks Worth Watching
By Madhu Dube
May 6, 2013
Tickers: MO, LO, RAI
http://beta.fool.com/madhudube/2013/05/06/3-high-dividend-paying-stocks-to-own/33109/?source=eogyholnk0000001
One of the major benefits of owning a stock from a maturing industry is that they pay good dividends. There are many companies that provide a good dividend yield, but my preference is companies that have a significant share of the maturing industry and are innovative, either in marketing or in product offerings.
I have picked three such companies from the tobacco industry -- Lorillard (NYSE: LO), Altria (NYSE: MO), and Reynolds American (NYSE: RAI) -- which are known for providing a dividend yield of more than 5%.
Company
5-Year Annual Average Dividend Yield
Lorillard
5.4%
Altria
6.5%
Reynolds American
6.5%
Betting on e-cig
Lorillard recently reported better than expected first-quarter results. It posted net sales of $1.58 billion, a growth of 3.3% year over year. Its operating profit was $438 million against analysts' estimate of $418 million. The company witnessed higher profitability because of a favorable pricing environment. In the traditional cigarette division, its prices increased 2.9%.
Lorillard also saw good response from the e-cigarette market. Its Blu e-cig generated retail sales of around $250 million. Lorillard is continuously expanding its geographic presence. Currently, this product is available in around 80,000 stores in limited stock-keeping units (SKUs). This provides an opportunity for further expansion into new markets in the form of adding more SKUs to the current stores. Considering this, the e-cig business looks on track to become a $1 billion business in 2013.
The company is also planning to launch a new rechargeable e-cig kit, which is expected to cost almost 50% less than traditional e-cig kits. This might dent profitability in the short run as the company will spend much in developing appeal for this product, but in the long run this will result in better sales.
Cashing with the retailers
Altria's first-quarter results gave a clear picture of the cigarette industry, where volumes are declining but profitability is increasing because of the better pricing environment and lower promotional spending. The company experienced a cigarette volume decline of 5.2%; however, this weak volume was offset by better pricing, which resulted in first-quarter profit of $1.38 billion.
It reported an increase of 4.9% per pack in net cigarette pricing. One of the positive catalysts for investors is the increasing market share of Marlboro. It currently has 43.6% market share, up 1% from the fourth quarter.
Additionally, the company is testing its Marlboro Leadership Price Two (MLP 2) program in Michigan and South Carolina. Under this program, retailers will have to increase the price by $0.10 per pack from the standard rate, and they will get $0.15 per pack in promo support from the company. The current MLP program gives retailers promo support of $0.20, but under this new program, retailers will increase prices, making it beneficial for them as well.
This will also improve profitability for the company and will lead to better acceptance of the higher prices by consumers. This will provide a platform for the company to increase prices in future. The company is currently testing this program in select locations to gauge consumer reaction.
Milking the cash cows
Reynolds experienced the highest volume decline of 8.7% in its first quarter among the three companies discussed. However, it reported improved profitability because of a 4% increase in net pricing. Strong quarterly pricing since the fourth quarter of 2011 has resulted in increased profitability despite high promotional spending.
Its top two brands, Camel and Pall Mall, are increasing market share, which is a good sign for the company in the midst of slowing volumes. Its Camel brand's market share is now 8.5%, up 0.1% year over year because its menthol version is gaining traction. Its Pall Mall brand has 9% market share, up 0.5% year over year due to better performance from the newly launched Pall Mall White and Pall Mall Black blends.
In the small but fast-growing e-cigarette market, sales of its Vuse brand will be expanded across many geographic locations this year. This provides a significant opportunity for the company, as it will have the advantage of launching its product in this category sooner than its largest competitor, Altria.
I don't think Reynolds will have any issue in providing dividends to investors in the long run, looking at share gain by top brands and opportunities in the e-cig market. I would recommend buying this stock for dividend seeking investors.
Harsh times, high profit
All these companies experienced declining cigarette volumes in the first quarter, but improved pricing should help these companies generate good profitability in future. Lorillard's should see an upside due to its growing Blu e-cig and its buyback program. Altria's should experience an upside as well from its new MLP program, which will improve its profitability.
Reynolds has faced the largest decline in volume, but its top brands, Camel and Pall Mall, which contribute to more than 50% of sales, are gaining market share. Its Vuse brand is also expected to gain traction once the company starts a complete rollout in the U.S.
There is no obvious issue which would cause the companies to reduce their dividend yield, so, for dividend-seeking investors, all three of these stocks are worth a watch.
Altria has been the best-performing stock of the past 50 years, but as the number of smokers in the U.S. continues to steadily decline, is Altria still a buy today? To find out whether everyone’s love-to-hate dividend stock is a savvy investment choice or a hazard to your portfolio, simply click here now for access to The Motley Fool's premium research report on the company.
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Reeds -- >>> Reed's, Inc. Secures New Foodservice Private Label Partner
Press Release: Reed's, Inc.
Apr 23, 2013
http://finance.yahoo.com/news/reeds-inc-secures-foodservice-private-123000926.html
LOS ANGELES, CA--(Marketwired - Apr 23, 2013) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has secured a new agreement to produce a line of private label branded beverages for one of the largest foodservice distributors in the country.
Chris Reed, Founder and CEO of Reed's, Inc., commented, "Our unique production and flavor-crafting capabilities continue to attract interest from some of the largest supermarkets and foodservice corporations in the US. We are building some very exciting new relationships that we hope to leverage with our branded products. The margin dollars we gain from this new partnership will be reinvested into building more brand recognition for our Reed's, Virgil's and Reed's Culture Club Kombucha line of beverages."
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
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Reeds -- >>> Reed's Inc. Announces Year-End 2012 Results
Press Release: Reed's Inc
http://finance.yahoo.com/news/reeds-inc-announces-end-2012-203534782.html
LOS ANGELES, CA--(Marketwire - Mar 25, 2013) - Reed's, Inc. ( NYSE MKT : REED ), maker of the top-selling sodas in natural food stores nationwide, today announced the financial results for its fiscal year ending December 31, 2012.
Financial Highlights for the Quarter:
•Revenues increased 20% to $30 million in 2012, compared to 2011.
•Gross profit increased 23% to $9.1 million in 2012.
•Earnings before non-cash items and finance costs (modified EBITDA) increased to $1 million during 2012. (See EBITDA table at end of this release for further non-GAAP information).
•Net loss for the 2012 fiscal year was $524,000 compared to a loss of $941,000 a year earlier.
•Working capital at December 31, 2012 was $2.3 million, as compared to $2.7 million at December 31, 2011.
Operational Highlights:
•Introduced our Culture Club Kombucha in July 2012 and increased distribution into a minimum of 800+ new retailers throughout the US and into select Whole Foods.
•Volume of branded Reed's and Virgil's products shipped grew at a rate of 20% over last year
•Expanded network of DSD distribution in numerous key regions increasing sales through this distribution channel by approximately 50%.
•Expanded distributor sales by over 30% by partnering in marketing efforts and focusing on sales support for distributors.
•Secured three new private label brand contracts with some of the largest retailers in the US
"2012 represents another solid year of growth here at Reed's," stated Chris Reed, Founder and CEO at Reed's Inc. "We have introduced an entirely new product line in our Culture Club Kombucha while we also expanded sales and distribution channels for our Reed's Ginger Brew and Virgil's branded products. Our EBITDA positive results have enabled us to fund our product rollouts and increased promotional spend without the requirement of additional equity or debt financing. We expect 2013 to be a great year."
James Linesch, Chief Financial Officer, stated, "Our strong business model is producing continually improving results in key areas. Our branded product revenues continue to increase at strong organic growth rates, while we also improved our gross margins. During 2012, our direct gross margin percentage, before promotional discounts, improved by an average of about 2%. Recurring general & administrative costs, before one-time costs, increased by less than 10% in 2012 while sales and gross profit contribution increased at over twice that rate, indicating improved economies of scale. Sales and marketing costs in 2012 were approximately 10% of net revenues, the same as in 2011. Our organizational structure is healthy and we have excellent brands that we are promoting in effective ways.
Linesch continued, "Our fourth quarter losses were primarily due to continued production challenges on our kombucha, resulting in higher unallocated plant costs, and to lighter than expected private label revenues from one customer. We have addressed the production issues surrounding our kombucha in our current quarter and we anticipate increased margin contribution going forward. Our underlying business is stronger than ever, however, and we feel that we have laid the foundation for improved financial performance in 2013."
The Company will conduct a conference call @ 4:15PM EDT on March 25th to discuss its 2012 fiscal year end results and outlook for the future. To participate in the call, please dial the following number 5 to 10 minutes prior to the scheduled call time (866) 578-1005. International callers should dial (713) 481-0091.
A replay will be available within a few days after the meeting in the investor relations section of the Company's website at: http://www.reedsinc.com/investors/.
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
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Reeds -- >>> 8 Healthy Sodas
Sure, soda is unhealthy, but we all crave it now and again. These healthy sodas will give you a better bang for your buck.
BY EMILY MAIN
http://www.rodale.com/healthy-soda-0?cm_mmc=MSN-_-14%20Foods%20You%20Should%20Never%20Eat-_-Slideshow-_-8%20healthy%20sodas
We've said it before and will probably say it a hundred times more: Soda is toxic stuff. Not only is most of it full of diabetes-inducing high-fructose corn syrup, but drinking too much of the bubbly stuff has also been linked to an increased risk of heart attack and stroke. It contains genetically modified ingredients (GMOs) and phosphates, preservatives that have been linked to kidney disease and accelerated aging. Obviously, not something you want as part of a regular diet. But at some point, we all crave something fizzy, and that's no reason to reach for a toxic can of kidney-killing GMO water.
We looked high and low for healthy soda alternatives, free of the worst offenders in traditional sodas, such as GMOs or artificial caramel coloring that can be contaminated with carcinogens. Nor do any of our healthy sodas come bottled in cans, which are normally lined with hormone-disrupting bisphenol A. Some do contain cane sugar, a less-processed sugar that still should be consumed in moderation, and others are flavored with other sweeteners to avoid, but they're all far better alternatives to what's lurking in most soda cans. Next time a soda craving strikes, try one of these eight healthy sodas.
Steaz Sparkling Green Tea
Put down the Diet Coke! If you need an afternoon caffeine fix, grab a Steaz Green Tea soda instead. In addition to the fact that green tea is loaded with antioxidants, this no-cal soda alternative is sweetened with stevia and erythritol, a natural sugar alcohol. It's also fortified with vitamin B12, which helps improve your mood, your energy levels, and mental fog.
www.steaz.com
Reed's Light Extra Ginger Brew
Ginger ale, or ginger beer depending on who you're talking to, is a fantastic home remedy for nausea, upset stomachs, and even sore muscles, but 99 percent of what the big companies pass off as ginger ale contains tons of sugar and little to no real ginger. Not so with Reed's ginger brews, which contain the most ginger of any brand out there. And the company has just introduced a new "light" variety that, at just 55 calories per bottle, is sweetened with honey and stevia.
Virgil's Root Beer
Also from the purists at Reed's, Virgil's Root Beer is root beer made the way nature intended, by brewing a combination of herbs and spices naturally, rather than concocting a chemistry experiment of artificial flavorings, dyes, and additives. The ingredients list reads like the gatherings of a world traveler —anise from Spain, vanilla from Madagascar, molasses from the U.S., and balsam oil from Peru—and will get you off that artificial canned stuff forever. However, good as it is, this soda won't win you any favors with your waistline. At 160 calories per serving and 42 grams (g) of sugar, make it a weekly indulgence.
Bionade
This German brand may be hard to find, but it's worth it if you can get it. A naturally fermented drink made from malt and water, just like beer, this nonalcoholic soda has just 60 calories and 14 g of sugar per bottle, and it's certified organic. The sodas come in decidedly grown-up flavors like elderberry, lychee, ginger-orange, and herb, all invented by a former beer brewer. The sodas are so popular in Europe the company even rejected a takeover by Coca-Cola.
www.bionade.com
Oogave
Oogave is one of few certified-organic soda brands out there, and the line includes an honest-to-goodness organic cola alternative for people who love Coke or Pepsi. The company also has other cool flavors like strawberry-rhubarb and mandarin-key lime, the best organic alternative to Sprite or 7-Up. All the company's sodas contain half the sugar (24 g) that conventional sodas and other cane-sugar-sweetened sodas do. Plus, none of their products exceeds 100 calories per bottle.
www.thirstmonger.com
GT's Enlightened Organic Raw Kombucha
Not technically a soda, we had to throw in kombucha simply because it's so good and so good for you. Kombucha is tea that's been fermented with a probiotic culture, similar to the way vinegar is made, and the end product is low in sugar and full of healthy bacteria that aid digestion and even ward off infections. Fizzy like a soft drink, kombucha is much less sweet; these products contain just 4 g of sugar per bottle and only 60 calories. Try the slightly tart original kombucha or the fruitier citrus or ginger flavors.
www.synergydrinks.com
Hot Lips Soda
Made to "worship the magnificent fruits and berries" of the Pacific Northwest, this fruit soda is another winner, with the brand's lineup even changing with the seasons based on what's locally available—apples and pears in the fall and raspberries, blackberries, strawberries, and other berries in spring and summer. Some of the fruits are even organic. The company takes fruit, cooks it, adds water and cane sugar then bottles it, with much of the fiber-rich pulp intact, and carbonates it. Unlike a lot of so-called natural sodas, Hot Lips sodas contain organic lemon juice as a preservative, rather than ascorbic or citric acid, both of which can be derived from genetically modified corn and soy. For the healthiest Hot Lips drinks, grab the cranberry or pear sodas, neither of which has any added sugar.
Cranberry: 155 calories; Pear: 122 calories
www.hotlipssoda.com
Fizzy Lizzy
All Fizzy Lizzy sodas are nothing more than carbonated water combined with actual fruit juice, with a little vitamin C added for extra nutrition. The makers don't add sugar of any kind, so all the sugars in their sodas are naturally occurring. For the lowest-calorie options, go with the cranberry soda—just 100 calories per bottle and 22 g of sugars—or the grapefruit—also 100 calories with 25 g of sugar. Or give their award-winning pineapple soda a try, maybe mixed with some coconut water for a faux piña colada.
www.fizzylizzy.com
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Reeds -- >>> Reed's Inc. Announces the Launch of Four New Flavors of Reed's Culture Club Kombucha
Press Release: Reed's, Inc
Feb 28, 2013
http://finance.yahoo.com/news/reeds-inc-announces-launch-four-133000217.html
LOS ANGELES, CA--(Marketwire - Feb 28, 2013) - Reed's, Inc. ( NYSE MKT : REED ), maker of the top-selling sodas in natural food stores nationwide, announced today that they have added four new flavors to their new Reed's Culture Club Kombucha line. The flavors are Pomegranate Ginger, Passion Mango Ginger, Cabernet and Coconut Water Lime.
Chris Reed, Founder, Chairman and CEO of Reed's Inc., stated, "We continue to have a great response to our initial four flavors of Kombucha and many requests are coming in from retailers around the country for more variety of flavors. Our first flavors were very inspired, with nouveau flavor combinations like Hibiscus Grapefruit Ginger Kombucha. In this new round of flavor development, we were compelled to be even more inventive, resulting in our new Coconut Water Lime Kombucha -- the first marriage of the fast growing coconut water and Kombucha beverage categories. Our new Cabernet Kombucha was inspired by our customers telling us they are using our Kombucha as a wine substitute. Since our third quarter 2012 launch, we have emerged as a clear front-runner in the competitive Kombucha category, establishing ourselves as the number two player. Our sights are clearly set to be number one."
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
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Reeds -- >>> Q4 2012 revenue projection
Q4 - Dec 2012 -- at least 7.742 mil
Q3 - Sept 2012 -- 7.888 mil
Q2 - June 2012 -- 7.831 mil
Q1 - Mar 2012 -- 6.539 mil
Q4 - Dec 2011 -- 7.282 mil
Reeds -- >>> Reed's Inc. Announces Record Revenues of $30 Million for 2012
Press Release: Reed's, Inc
Tue, Feb 26, 2013
http://finance.yahoo.com/news/reeds-inc-announces-record-revenues-133000233.html
LOS ANGELES, CA--(Marketwire - Feb 26, 2013) - Reed's, Inc. ( NYSE MKT : REED ), maker of the top-selling sodas in natural food stores nationwide, announced today that annual revenues for 2012 increased 20% to more than $30 million.
Chris Reed, Founder, Chairman and CEO of Reed's Inc., stated, "Our Kombucha launch in 2012 continues to dominate our marketing efforts. It is not unusual for individual store sales of our Kombucha to exceed the sales of all our other products combined. We're working hard to expand these early successes to our full account base. Branded products continue fueling our expansion, growing at 20% for the fourth quarter and the early part of 2013. We expect full year 2013 to be just as strong, if not stronger for our core brands of Reed's Ginger Brews and Virgil's premium sodas.
Our private label business grew 23% for the year 2012. We have recently secured new private label contracts that will continue to fuel growth and drive incremental revenue for 2013. With the launch of new Reed's Culture Club Kombucha we have now diversified our business into three large revenue growth streams; Reed's Culture Club Kombucha, Reed's and Virgil's premium soda and private label. We are confident that our directional strategy will ensure that 2013 growth will outpace our performance in 2012."
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
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>>> Study - All Plastics Are Bad for Your Body
A test of hundreds of plastic products reveals that nearly all, under varying circumstances, contain chemicals that interfere with your body's hormones.
By Emily Main
http://www.rodale.com/chemicals-plastic
Never mind the number...new research shows any kind of plastic can leach chemcials into your food.
It used to be that people who just couldn't break the plastic habit to go plastic-free could at least rely on certain types of plastics, usually those labeled #2, #4, or #5 in the triangle of arrows on the bottom, because those plastics weren't made using bisphenol A or phthalates, the two chemicals in plastic that are known to interfere with the way your body produces and handles estrogen. But a study published in the journal Environmental Health Perspectives concludes that there really are no "safe" plastics, thanks to all the chemicals, additives, and processing aids that go into making plastic products. In a test of nearly 500 chemical containers, the authors discovered that nearly all exhibited some kind of estrogenic activity.
THE DETAILS: The authors purchased 455 plastic products designed to hold food (including plastic bags and baby bottles) that were made from all different types of plastic. Some of the plastics tested, such as high-density polyethylene (#2 in the recycling triangle) and polypropylene (#5 in the recycling triangle), are considered safer plastics because, prior to this study, they hadn't been shown to leach chemicals. Some of the other plastics, such as corn-based plastics and newer so-called "BPA-free" plastic resins, were also tested. All the plastics were filled with substances mimicking food and then subjected to three types of stress—microwave heating, moist heat similar to what they might be exposed to in a dishwasher, and UV light (simulating a water bottle left in a car during the day or a baby bottle being subjected to UV sterilization).
The researchers were able to measure some type of estrogenic chemical leaching from roughly 95 percent of all the plastics tested, including 100 percent of the food wraps and 98 percent of the plastic bags. Even when the plastics were unstressed and just exposed to various solutions, they still leached estrogenic chemicals. And some of the baby and water bottles labeled "BPA free" showed greater estrogenic activity than polycarbonate bottles, which are made from BPA. When they were subjected to stress, the amount of leaching largely depended on what was in the packaging. For instance, some of the highest levels of leaching occurred in plastics containing saline solution when they were put in the microwave; saline is intended to mimic vegetables or other foods with a high water content. But baby bottles containing ethanol, which is intended to mimic milk and other foods with a higher fat content, leached more when exposed to UV light than they did when they contained a saline solution.
WHAT IT MEANS: There really aren't any "safer" plastics, and it's hard to predict which ones will leach estrogenic chemicals into your food. As this study shows, different plastics containing different types of foods will leach chemicals at different levels. That's largely because there are so many steps and additives in the plastic-making process, says George Bittner, PhD, professor of biology at the University of Texas in Austin and lead author of the study. "A plastic item can subsist of anywhere from five to 20 chemicals, some of which are additives, which are incorporated within the plastic polymer but not bound to the structure," he says. Both the materials that make up the plastic resin and the additives can leach out of plastics, says Bittner, who's also the CEO of CertiChem, the lab that tested the plastics in this study, and a consultant for PlastiPure, a company that works with plastic manufacturers to produce estrogenic-chemical-free plastics. You also have mold-release agents and colorants that are used to make or decorate the plastics, adds Mike Usey, CEO of PlastiPure, and those colorants tend to be highly estrogenic.
"We're not testing in a way that the industry has traditionally done this," Usey says. "We're not identifying specific chemicals, finding those, and then substituting another chemical. We're looking at the entire product." And that's where the industry has largely failed at keeping estrogenic chemicals out of products. He uses the example of baby bottles, which were once commonly made with BPA-based polycarbonate plastics. After parents started to demand BPA-free bottles, the industry switched to two primary alternatives, PETG and PES—hard, clear plastics that do not contain BPA. However, "we've done quite a few tests, and the level of estrogenic activity that we have found under certain conditions, especially under UV light, has been higher than with polycarbonate," Usey says. And, he adds, it's hard to pinpoint the source of the estrogenic activity without knowing the exact makeup of the plastic and any processing aids, additives, or colorants used in the final product. "Since the health effects [of estrogenic chemicals] occur at such a low level, it doesn’t take much for something to be highly estrogenic," he adds.
Usey and Bittner don't think people should eliminate plastics from their lives entirely. "I think plastics are great—they just need to be made safer," Usey says. Bittner adds, "Consumers should request from the stores where they buy plastics that those stores start supplying them with plastics that are free of estrogenic activity."
Until that happens, you can purge your home of estrogenic chemicals by adopting a plastic-free life:
• Revamp your food storage. Glass, ceramic, and stainless steel are great food-storage materials that can go from stove to fridge to freezer easily.
• Buy less processed food. Most processed foods in the grocery store come in some form of plastic packaging. Buying fresh vegetables and ingredients in bulk (which you can package in your own plastic-free containers) will help you avoid most of it.
• BYO… You may already carry a reusable mug and reusable shopping bags to eliminate some plastics, but take the next step and start carrying reusable produce bags, too, when you shop. Like other forms of plastic, those flimsy plastic produce bags can leach hormone-disrupting chemicals into your berries and broccoli, and they're hard to recycle once they're contaminated with food. You can find regular and organic cotton produce bags online at Ecobags.com.
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>>> 10 Food Label Lies
Don’t spend extra money buying into marketing hype and misinformation. Look for food claims and labels you can trust.
By Emily Main
http://www.rodale.com/10-food-label-lies
Truth in Labeling?
With the economy still keeping our wallets clamped shut, no one wants to feel duped at the checkout counter. Yet, savvy food marketers have managed to tap into all our concerns over food safety and purity, labeling their products with words in phrases that, at best, are pointless, and at worst, are illegal. Here are 10 of the most deceptive marketing claims out there that make processed foods and factory-farmed meats appear much healthier than they really are.
No added growth hormones
The lie: Usually, you’ll see this claim in ads for chicken, turkey, or even pork, along with milk and beef labels. Why is it misleading? The U.S. Department of Agriculture doesn’t allow farmers to feed hormones to poultry or pork. In fact, if you read the fine print, any poultry or pork product that is advertised as “hormone free” must legally be accompanied by the disclaimer “Federal regulations prohibit the use of hormones.” Producers of those meats use antibiotics instead, which speed growth in the same way as hormones; the USDA calls this “increasing feed efficiency.” Even when you see this label on beef or dairy products—products where hormones are legally allowed—it hasn’t been verified by a third party, so you're really taking the food marketer's word for it.
To get the real thing: Buy certified organic meat and dairy, which are free of both added growth hormones and antibiotics, and organic poultry products. Or, buy from small farmers whom you can ask about how they raise and medicate their animals.
Natural
The lie: The implications of this label can make anyone feel good about their farm-fresh, straight-from-the-dirt…can of powdered lemonade. Unfortunately, there isn’t any official definition of “natural,” except when it comes to meat. The USDA has defined it as any product “containing no artificial ingredient or added color and is only minimally processed (a process which does not fundamentally alter the raw product).” Their definition doesn’t, however, make any statements about how animals were raise or whether the animals were fed hormones or antibiotics. The Food and Drug Administration, which regulates fruits, vegetables, and most processed foods, doesn’t have any official definition for the term. Essentially, a product can be as “natural” as the manufacturer would like you to believe and may contain genetically modified organisms (GMOs) and artificial sweeteners like high-fructose corn syrup.
To get the real thing: Again, buying organic is your best protection. Alternatively, you can simply buy more fruits, vegetables, grains, and nuts; the fewer ingredients involved, the less you have to worry about any of them being artificial.
Grass-fed
The lie: See this label, and bucolic scenes of grassy fields with healthy, happy cows probably come to mind. Think again. "Grass-fed" is a term that's sort-of regulated by the USDA, who has defined it to mean that an animal ate 100 percent grass and no corn or soy and had continuous access to pasture throughout its life. But the USDA allows anyone to use that terminology, provided a meat producer submits documentation saying that's what he or she is doing; no farm inspections are required to meet the definition. Furthermore, before this rule went into place in 2006, anyone could use the term "grass-fed" on food products, and those people were grandfathered in under the new rule, whether they meet the requirements or not. A final kicker? The rule applies only to cattle and other ruminant animals, but you'll often see it on packages for pork or chicken—animals that can't survive on a grass-only diet.
To get the real thing: If you see the words "U.S. Grass-fed" accompanied by a “USDA Process Verified” shield, you're in the clear. USDA verification requires actual farm visits, and it means that someone other than a farmer has witnessed that animals are eating grass. Or look for the American Grassfed Association certification, which has even stricter standards on "grass-fed" than the USDA. A third option: Buy your meat at the farmer's market, where the farmer who raised the meat can give you a detailed rundown of what his or her animals eat every day and who will allow you to visit the farm yourself.
Antibiotic-free
The lie: Like "no added hormones," "antibiotic free" is a meaningless term, and it’s actually illegal to use it on packages, according to the USDA. Manufacturers often skirt the issue by using phrases like “raised without antibiotics” or “no antibiotics administered.” Furthermore, some meat producers use those phrases while dousing animals with anti-microbials, drugs that work identically to antibiotics but are defined differently by the FDA. And from an animal welfare perspective, "antibiotic free" isn't always a good thing. Operators of big concentrated animal feeding operations may overuse antibiotics to fatten up chickens and hogs faster, but small farmers save antibiotics for when animals get sick, as they should be used.
To get the real thing: Under organic regulations, any animal treated with antibiotics must be removed from organic production (it can still be sold as a conventionally raised product, though), and purchasing organic meat and dairy is the only way to truly avoid them. Or, find a local farmer who uses antibiotics on his or her herd responsibly.
Nutrition Facts
The lie: The FDA allows food manufacturers to use averages for the calorie counts, salt content and fat grams (and any other information on the Nutrition Facts panel) of their foods, and food manufacturers are allowed to be off by as much as 20 percent. So that 500-calorie frozen dinner you're eating could have as many as 600 calories. If every meal you ate had 100 extra calories, you'd gain an additional 30 pounds this year. Another sticky label? Trans fats. The FDA allows manufacturers to put “0” if the amount of trans fats per serving is below .5 grams. “That’s a quarter of a day’s worth,” says Jayne Hurley, RD, senior nutritionist at the Center for Science in the Public Interest, who notes that 2 grams is what health experts suggest should be your daily limit.
To get the real thing: Avoid packaged foods. The foods without "Nutrition Facts" labels—fruits and vegetables—are the healthiest foods. When you do buy them, read ingredient labels, not nutrition labels, to avoid trans fats. And avoid any product with partially hydrogenated oils listed. “If there’s no partially hydrogenated oil, the trans-fat content really is zero," Hurley says.
Gluten-Free
The lie: Gluten-free foods are becoming one of the fastest-growing food categories on store shelves, according to Nielsen Company, jumping a whopping 74 percent from 2004 to 2009. But buying foods based solely on a label shouting "gluten-free" doesn't necessarily mean you're avoiding gluten, much to the dismay of the 3 million Americans suffering from celiac disease (which requires avoiding gluten to avoid getting sick) and the other 18 million who suffer from gluten sensitivity. The FDA has never created an actual regulated definition of the claim, despite the fact that advocacy groups have been pushing them to do so for 10 years. While some gluten-free products may indeed be free of wheat gluten, Pam King, director of operations and development at the Center for Celiac Research at the University of Maryland, says that not all are free of rye or barley gluten, which is just as problematic. "And honestly, there is no such thing as zero gluten because of cross-contamination," she adds, referring to food processing facilities that make both wheat-based and gluten-free foods.
To get the real thing: There are currently two organizations that certify food to be free of wheat, barley, and rye gluten at levels that cause problems for people trying to avoid gluten: the Gluten-Free Certification Organization and the other is the Celiac Sprue Association. Gluten can hide behind vague labels like "artificial flavoring," so buy certified products if you're really trying to avoid gluten.
Multi-Grain
The lie: If one grain is good, "multi" grains must be better, right? Yes, except when all those multigrains are just multiple versions of unhealthy refined grains. And that could be what you're getting when you reach for that loaf of multigrain bread. The FDA has never explicitly stated that anything labeled "multi-grain" must contain the whole version of all grains that are used, and food marketers like to use the claim on wheat products because it makes their products seem healthier than they are.
To get the real thing: "Multi-grain" isn't always bad; some companies do in fact use whole grains in multigrain breads, cereals and other baked goods. It just means you have to read the ingredients list and make sure the word "whole" precedes every grain listed. Or look for the "100% whole grain" claim. That is regulated by the FDA and would mean that all grains used in the product are whole.
Front-of-Package Labeling Systems
The lie: They may seem like a useful tool for finding the healthiest foods on the shelf. But the 20, mostly industry-created, front-of-package labeling systems that have been launched in the past few years aren't trying to make finding healthy food easy for you, says Marion Nestle, PhD, MPH, Paulette Goddard Professor in the Department of Nutrition, Food Studies, and Public Health at New York University. They're just trying to sell you products. "Food companies have been setting their own nutrition criteria for evaluating their very own products and identifying the 'better-for-you' or 'more nutritious' products with special front-of-package logos. By company standards, many of their products qualify for the logos," she says. FOP labels are a tool for selling, not buying, she adds, and often highlight the good (levels of fiber, vitamins and minerals) and ignore the bad (fat, sodium and added sugar).
To get the real thing: The FDA got annoyed by these standards when "better for you" labels started appearing on Froot Loops and Fudgsicles, and the agency asked an independent advisory board to evaluate the claims and come up with a better front-of-package labeling system. That board determined that consumers need to care about four things, which may or may not appear on a front-of-package label: calories, saturated and trans fats, added sugars and sodium. But since Nutrition Facts panels can be unreliable measures of those ingredients, your best bet is to avoid packaged foods altogether and opt for whole foods: fruits, vegetables, whole grains, and unprocessed meats.
BPA-Free
The lie: More of a food packaging claim than a food marketing claim, "BPA Free" is appearing on a growing number of plastic food containers, food service items, and canned food packaging (nearly all canned foods contain a plastic lining made from BPA), hoping to lull shoppers into a sense of security that the food packaging isn't leaching a toxic chemical linked to reproductive problems, heart disease, and some types of cancer into their food. Those items may not be leaching BPA—but they could be leaching some other damaging chemical. A study published in the journal Environmental Health Perspectives found that all plastics leached chemicals that interfere with your reproductive system, some even more potent than BPA.
To get the real thing: Opt for products packaged in glass or aseptic cartons (like those used for boxed soups and soy milk), and bring your own glass or stainless steel to-go containers with you when you eat out. There is one exception to the BPA-Free claim you can trust: Eden Foods. That company packages its beans, rice and chilies in BPA-free cans that are lined with a plant-based (plastic-free) resin, and is currently the only company in the US that does so.
Pesticide-free
The lie: Organic foods are soaring in popularity, even in spite of a bad economy, a recent survey found. One major reason for this trend is the increasing evidence on what pesticides such as Roundup and atrazine, the two most widely used pesticides in agriculture, are doing to our bodies: interfering with our hormones, increasing the risk of diseases such as Parkinson's and cancer, and causing birth defects and attention-deficit disorder in children. So naturally, big food producers want a cut of the profits—but they don't want to pay for the added cost of organic certification. So they try to fool shoppers into thinking that "pesticide-free" or "free from pesticide residues" is just as good as organic. Some of those foods even feature certifications from independent third parties attesting to the fact that the produce has been tested and found to be "free of pesticide residues." But the Consumers Union doesn't agree. According to their "Greener Choices" Ecolabel guide, many of the pesticide-free rating and certification programs out there use the same detection limits as the Environmental Protection Agency, meaning that those certified foods contain the same levels of pesticides as all the other non-organic produce in the market.
To get the real thing: Support food companies that support organic. The only way to protect yourself and your family from the damages of synthetic pesticides is to buy certified organic foods that were grown without them.
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>>> Will the FDA Finally Ban BPA?
A lawsuit is forcing the agency to make a decision about BPA in food packaging, and consumer health may fall victim to industry lobbying.
By Emily Main
http://www.rodale.com/bpa-food-2
Come next March, canned peaches may have less BPA—but probably no less sugar.
Come March of next year, the toxic chemical bisphenol A, used in the linings of cans and other types of food packaging, may make its curtain call. Or not. On March 31, the Food and Drug Administration (FDA) will finally announce whether it will ban the chemical from all uses in food packaging, not just ban BPA in baby bottles, which the agency did earlier this year.
The agency announced on Wednesday that it would make its decision, after being sued by the nonprofit Natural Resources Defense Council (NRDC) for not acting on a petition filed more than three years ago. The group filed its petition asking the agency to ban the use of BPA in food packaging, yet never got an answer. "FDA could have agreed to ban BPA, rejected our petition, or accepted some parts of it and not others, but instead, it chose not to respond at all," wrote NRDC senior scientist Sarah Janssen, in a blog on the group's website. "We waited and we waited, but never got an answer." Legally, FDA is required to respond to such petitions within three months, but Janssen notes that 18 months passed before NRDC got a response, so "we had to ask the court to intervene just to get FDA to do its job."
Whether the FDA actually votes to remove BPA from food packaging remains to be seen, but given its reputation in regulating the chemical in the past, the outlook isn't bright. A three-year investigation of the agency by reporters at the Milwaukee Journal Sentinal revealed that FDA regulators deferred to industry scientists in the agency's original assessment that the chemical is safe, allowing scientists paid by chemical makers to write entire sections of the agency's review. The FDA also relied on just two industry-funded studies in its assessment. Those two studies are the only studies concluding that the chemical is safe, in contrast to hundreds of independently funded studies that have found that the chemical contributes to diabetes, obesity, heart problems, reproductive problems, infertility, hyperactivity, and some forms of cancer.
It will also be hard for the FDA to fight intense industry lobbying. Last year, Senator Diane Feinstein (D-Calif.) added an amendment to the hotly debated Food Safety and Modernization Act that would have banned BPA from all food packaging. Her amendment was removed from the final legislation after the American Chemistry Council, a chemical-industry trade group, and the Grocery Manufacturer's Association, a trade group for processed-food makers, made it clear they would work to defeat the entire bill if it were included.
Consumer buying power carries a lot of weight, though, and some canned food manufacturers are already exploring (but not necessarily using) BPA-free alternatives to line their cans; currently Eden Organic foods is the only company using a BPA-free can lining, and only for its line of canned beans. In the meantime, these are the six most reliable ways to cut back on BPA exposure:
• Limit your consumption of canned or processed food by eating fresh or frozen produce and buying processed food in cartons, foil pouches, or glass containers. This is particularly important if you're pregnant, as research is finding that it's in utero exposure to BPA that causes the most long-term problems (which is why banning BPA from baby bottles and sippy cups isn't as helpful as you might think).
• Use a BPA-free reusable water bottle, such as an unlined stainless steel or a glass bottle.
• Decline cash-register receipts as much as possible. Thermal paper receipts are coated with high levels of BPA, which you can absorb through skin.
• Take good care of your teeth. Dental sealants contain BPA.
• If you aren't breastfeeding, feed your newborn powdered formula. Tests on prepared liquid formulas have shown high levels of BPA, but powders are known to be BPA-free.
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>>> U.S. Food Not Getting Any Safer, Says Gov’t Report
While the Feds get their act together, you can protect your own dinner with food-safety measures.
By Leah Zerbe
http://www.rodale.com/food-safety?page=0,1
With food safety efforts stalled, we all need to be careful about how we handle our food.
• Know where the food’s from. Buying what food you can directly from a local, sustainable farmer doesn’t protect you 100 percent against foodborne illness. But if something you eat does make you sick, you’ll know the source. Buying locally also puts you in the driver’s seat. You can visit the farm, look around, and make sure conditions are sanitary. In the peanut butter salmonella outbreak, the plant in question had a leaky roof and was noticeably infested with pests—problems that probably would have been fixed if they were likely to be spotted by visitors. Also, ask your local farmer to see the results of an updated well test. That can ensure that the water they’re using to water crops and hydrate their animals is free of pathogens.
• Make your own produce wash. Buying organic produce means your fruits and veggies weren’t marinated in harmful chemicals in the growing field, but that doesn’t mean you shouldn’t wash them when you bring them home. Even organic produce can harbor Salmonella and E. coli bacteria, so use this homemade mix to kill lingering germs: In a spray bottle, mix 1 tablespoon lemon juice, 2 tablespoons distilled white vinegar and 1 cup cold tap water. Shake well to mix it up, spray on your produce, and rinse before eating.
• Be safe with meat and fish. Sidestep chicken seasoned with Salmonella by avoiding store-bought meat that’s not cold to the touch. When you cook it, your sizzling chicken should read at least 165 degrees Fahrenheit on a meat thermometer to kill off bacteria. Pick red beef over gray-tinted meat—again, avoiding any that’s not cold to the touch—and cook ground beef until it reaches at least 165 degrees. Beef roasts, steaks, and fish should reach 145 degrees. Invest in a meat thermometer to make sure your cooked meat reaches the ideal temperature. Shellfish like shrimp, scallops, clams, or oysters should boil for 3 to 5 minutes to be safe. Thawed lobster requires broiling 4 inches from heat for 3 to 15 minutes.
• Cut out cross-contamination. Use one cutting board for produce and another for meat and fish products. When storing meat, poultry, and seafood in your refrigerator, place them on the bottom shelf wrapped in pans to avoid spillage.
• Nuke it right. Make sure you heat up leftovers to at least 165 degrees Fahrenheit, or dangerous bacteria could survive the warm-up. Mix the food up halfway through cooking so there won’t be any cold spots. As a side note, never heat your food in plastic or Styrofoam containers because they can leach dangerous chemicals into your food.
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>>> The 9 Nastiest Things in Your Supermarket
Think pink slime is gross? Wait 'til you see what other unappetizing secrets lurk within your grocery store.
By Leah Zerbe & Emily Main
http://www.rodale.com/pink-slime?page=8
"Pink Slime"
The Gross Factor: The meat industry likes to call it "lean finely textured beef," but after ABC News ran a story on it, the public just called it what it looks like—pink slime, a mixture of waste meat and fatty parts from higher-quality cuts of beef that have had the fat mechanically removed. Afterwards, it's treated with ammonia gas to kill Salmonella and E. coli bacteria. Then it gets added to ground beef as a filler. Food microbiologists and meat producers insist that it's safe, but given the public's reaction to the ABC News report, there's an "ick" factor we just can't overcome. The primary producer of pink slime just announced that it's closing three of the plants where pink slime is produced, and Kroger, Safeway, Food Lion, McDonald's and the National School Lunch Program (among others) have all pulled it from their product offerings.
Eat This Instead: Organic ground beef is prohibited from containing pink slime, per National Organic Program standards, so it's your safest bet. If you can't find organic, ask the butcher at your grocery store whether their products contain the gunk.
Vet Meds in Beef
The Gross Factor: Hankering for a burger? Besides a hefty dose of protein, a 2010 report from the United States Department of Agriculture found your beef could also harbor veterinary drugs like antibiotics, Ivermectin, an animal wormer linked to neurological damage in humans, and Flunixin, an anti-inflammatory that can cause kidney damage, stomach and colon ulcers, and blood in the stool of humans. Still hungry? We didn't think so.
Eat This Instead: Look for beef from a local grass-fed beef operation that rotates the animals on fresh grass paddocks regularly, and inquire about medicine use. Typically, cows raised this way are much healthier and require fewer drugs. The meat is also more nutritious, too. If you're in the supermarket, opt for organic meats to avoid veterinary drugs in meat.
Heavy Metal Oatmeal
The Gross Factor: Sugary and calorie-laden, those convenient instant-oatmeal packets all have one thing in common. They're sweetened with high fructose corn syrup (HFCS), which, according to tests from the Institute for Agriculture and Trade Policy, may be contaminated with mercury. The group tested 55 samples of HFCS and found mercury in a third of them at levels three times higher than what the average woman should consume in a day.
Eat This Instead: Buy yourself some instant oats, which cook in less time than it takes to microwave a packet of the sugary stuff, and add your own flavorings, like fresh fruit or maple syrup. And buy HFCS-free versions of other foods, as well. The artificial sweetener lurks in seemingly all processed foods.
Filthy Shrimp
The Gross Factor: Food safety experts refer to imported shrimp as the dirtiest of the Seafood's Dirty Dozen list, and it's not hard to see why when you consider the common contaminants: Antibiotics, cleaning chemicals used in farmed shrimp pens, residues of toxic pesticides banned in the U.S., and pieces of insects. Less than 2 percent of all imported seafood is inspected—clearly, that's a problem.
Eat This Instead: Look for domestic shrimp. Unfortunately, 70 percent of domestic shrimp comes from the Gulf of Mexico, and the recent oil spill may have long-term impacts on its shrimp stocks. But shrimp can be purchased from Texas, the East Coast, Maine, and the Carolinas, so you still have options.
MRSA in the Meat Aisle
The Gross Factor: Hard-to-treat, antibiotic-resistant infections are no joke. Superbug strains like MRSA are on the rise, infecting 185,000 people -and killing 17,000-people annually in the U.S. Thought to proliferate on factory farms where antibiotics are overused to boost animal growth, a Jan. 2012 study from Iowa State University found that the dangerous organisms wind up in supermarket meat, too. The dangerous MRSA strain lingered in 7 percent of supermarket pork samples tested. The bacteria die during proper cooking, but improper handling could leave you infected. The spike in superbug infections is largely blamed on antibiotic abuse in factory farms that supply most supermarkets.
Eat This Instead: The Iowa state researchers found MRSA in conventional meat and store-bought "antibiotic-free" meat likely contaminated at the processing plant. Search LocalHarvest.org to source meat from small-scale producers who don't use antibiotics or huge processing plants.
Pregnancy Hormones in a Can
The Gross Factor: Bisphenol A (BPA), a chemical that acts like the hormone estrogen in your body, is used to create the epoxy linings of canned food. What food processors don’t tell you is that the chemical was created over 70 years ago as a drug that was intended to promote healthy pregnancies. Though it was never used as a drug, the food industry saw no problem adding this pregnancy drug to a wide range of products, including canned food linings and plastic food containers. "Low levels of BPA exposure has been linked to a wide range of adverse health effects, including abnormal development of reproductive organs, behavior problems in children, cardiovascular disease, and metabolic changes that result in altered insulin levels, which leads to diabetes," says Sarah Janssen, senior scientist at the Natural Resources Defense Council. And its use in canned food is the number one reason why 90 percent of Americans have it in their bodies.
Eat This Instead: Look for products in glass bottles or aseptic cartons. Canned food manufacturers are in the process of switching over to BPA-free cans, but they aren't disclosing what they're using to replace BPA, there's no evidence that BPA-free cans are any safer than those containing BPA.
Bacteria-Infused Turkey
The Gross Factor: Turkey marinated in MRSA? It's true. A 2011 study published in the journal Clinical Infectious Diseases found that half of the U.S. supermarket meat sampled contain staph bacteria, including potentially lethal MRSA. Turkey was the worst offender: Nearly 80 percent of turkey products samples contain staph bacteria. Pork (42 percent) was next in line in terms of bacterial contamination, followed by chicken (41 percent), and beef (37 percent). Researchers ID the overuse of antibiotics as the culprit.
Eat This Instead: If you serve meat for Thanksgiving, invest in an organic, pastured turkey, such as one from Ayrshire Farm in Maryland.
Moldy Berries
The Gross Factor: If pregnancy hormones in your canned fruit isn't enough to make you turn to fresh, consider this: The FDA legally allows up to 60 percent of canned or frozen blackberries and raspberries to contain mold. Canned fruit and vegetable juices are allowed to contain up to 15 percent mold.
Eat This Instead: Go for fresh! When berries are in season, stock up and freeze them yourself to eat throughout the winter. To freeze them, just spread fruits out on a cookie sheet, set the sheet in your freezer for a few hours, then transfer the berries to a glass jar or other airtight, freezer-safe container.
Rocket Fuel in Lettuce
The Gross Factor: Lettuce is a great source of antioxidants, and thanks to the great state of California, we can now eat it all year long. However, much of the lettuce grown in California is irrigated with water from the Colorado River. According to the Environmental Protection Agency, Colorado River water is contaminated with low levels of perchlorate, a component of rocket fuel known to harm thyroid function, and that perchlorate can be taken up inside lettuce plants. A separate study from the Environmental Working Group found perchlorate in 50 percent of store-bought winter lettuce samples.
Eat This Instead: Perchlorate is hard to avoid, but some of the highest levels in the country have been found in California's agricultural regions. If you eat locally and in season, you can ask your local farmers whether it’s a problem in their irrigation water supply
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Commonly used fungicide linked to obesity -
>>> The Shocking Reason Your Salad Could Be Making You Fat
This important health food could harbor fat-promoting compounds, new research suggests.
By Leah Zerbe
http://www.rodale.com/fungicides
Worried about your waistline? Make sure those salad greens are organic.
Ever wonder if there's really that much difference between conventional and organic lettuce sold at the supermarket? On the outside, the two may not look very different at all. But what's on—and even inside—some of those greens could predispose people to weight gain. New research appearing in the online version of the journal Environmental Health Perspectives suggests you may want to fill your cart with the chemical-free version, particularly if you're pregnant or have young children in the house.
A new animal study found that when a pregnant mouse ingested tiny doses of the fungicide triflumizole, she gave birth to babies that were more prone to obesity. Researchers believe triflumizole, a chemical fungicide commonly used on ornamental plants and leafy greens, acts as an obesogen, an environmental chemical that disrupts our bodies in ways that makes it harder to maintain a healthy weight. The negative effects were seen in tiny doses that are believed to be present in the food system.
Researchers believe the sharp rise in obese and overweight infants has something to do with the chemicals that a mother's exposed to during pregnancy. Between 1980 and 2001, the rate of overweight infants 6 months of age and younger increased by 73 percent.
While obesogens may act in many ways, they appear to have more impact on developing babies during gestation, a time when the new baby is forming important bodily signaling systems that will help determine his or her health even decades down the line. Young children are also more at risk.
Obesogen research is uncovering different ways that environmental chemicals interfere with our ability to maintain a healthy weight. Some obesogens cause a rise in fat cells in the body, while others tamper with a healthy metabolic system. And some obesogens actually alter your hormones in a way that makes your body want to store fat cells or by making you feel hungry when you are really full.
Certain chemicals used in farming and gardening have been implicated as obesogens, along with other everyday chemicals like bisphenol A and those in vinyl plastics, nonstick cookware, and stain-resistant carpeting and furniture.
To better protect you and your family from the chemical obesogens health threat, eat organic as much as possible, opt for fresh or frozen foods in place of canned foods, and avoid plastics. (Never heat food or drinks in plastic containers—doing so accelerates chemical leaching.) Opting for untreated cast-iron, glass, or ceramic cookware and avoiding products marketed as being stain resistant will also cut down on your exposure to these harmful chemicals.
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>>> Foodborne Illness: A Problem That Never Seems to Go Away
http://www.rodale.com/10-dirtiest-foods-youre-eating?cm_mmc=MSN-_-14%20Foods%20You%20Should%20Never%20Eat-_-Slideshow-_-10%20dirtiest%20foods%20youre%20eating
Whether it's listeria in cantaloupes, E. coli in sprouts, or even salmonella in ground turkey or peanut butter, it seems like our food supply is a ticking time bomb. With government programs facing unprecedented cut, it largely leaves food safety up to us, the average consumer, to keep our kitchens clear of harmful bacteria. So where are these bugs lurking? Chances are, in one of these 10 foods.
Chicken
The dirt: Testing released by Consumer Reports in 2010 found campylobacter in 62 percent of tested broilers; salmonella turned up in 14 percent. The number of birds infected with hard-to-kill supergerms is up more than 30 percent compared to 2007. In 2012, feather testing found antidepressant, caffeine, and allergy med residues.
At the supermarket: Look for organic birds; they are raised in less-crowded conditions, making it harder to pass along germs. Better yet, look for a local farmer who raises pastured broilers in smaller numbers.
At home: Bypass rinsing your raw bird in the sink—instead, put it directly into a baking dish or pan. Cook breasts and other cuts until the internal temperature hits 180°F. For the whole bird, check the temperature in the thickest part of the thigh.
Ground Beef
The dirt: When U.S. Department of Agriculture (USDA) inspectors last tested hamburger meat, they looked at 563 sources nationwide and discovered Clostridium perfringens in 53 percent of the batches, Staphylococcus in 30 percent, and Listeria monocytogenes in 12 percent. At the supermarket: Choose grass-fed ground beef. A study looking at salmonella contamination found it present in just 4.5 percent of samples taken from grass-fed animals, compared to 9 percent of feedlot cattle. Cows weren't designed to eat grain, and corn and soy increase the acidity their stomachs—and levels of bacteria along with it.
At home: Add fresh oregano to your burgers and meat loaf. When researchers at Kansas State University mixed a variety of common household spices into ground beef to test their antibacterial properties, oregano tested as one of the best at wiping out bacteria. Use at least 1 tablespoon per pound of meat. Just as important, flatten your patties—thick burgers will char on the outside before the interior reaches the required safe temp of 160°F.
Ground Turkey
The dirt: Potentially one of the foulest of the fowl. A USDA survey showed that the odds are better than one in four that your ground gobbler contains Listeria, Campylobacter, clostridium, or some combination of the three. In 2011, an antibiotic-resistant, virulent strain of salmonella prompted a recall of 36 million tons of fresh and ground turkey.
At the supermarket: Hunt for organic turkey...it's grown without using antibiotics. Most commercial turkey processors pump up their birds the drugs, a practice that may have encouraged the rise of resistant bacteria. In fact, a study from the University of Maryland found that organic turkey operations not only had lower levels of Salmonella, but the strains they did find were less resistant to antibiotics than strains found on factory turkey farms.
At home: "Change your mind-set about poultry. Start by thinking of it as being contaminated," says Donald W. Schaffner, PhD, an extension specialist in food science at Rutgers University. Immediately wash any platter that has come in contact with raw ground turkey. Serve cooked turkey burgers (180°F) on a clean plate. And wipe up any spillage with a paper towel instead of a sponge—the most dangerous item in the house because of bacteria, says Philip Tierno, PhD, a microbiologist at New York University medical center and author of The Secret Life of Germs.
Raw Oysters
The dirt: These filters for ocean waste can contain the norovirus, campylobacter, and vibrio vulnificus. Researchers who studied oysters from so-called certified-safe beds discovered that 9 percent were in fact contaminated with salmonella bacteria.
At the supermarket: Buy from the same beds that a chef stakes his reputation on: Sandy Ingber, executive chef and seafood buyer for Grand Central Oyster Bar in New York City, buys Blue Point, Chincoteague, Glidden Point, Narragansett Bay, Pemaquid, and Wellfleet oysters in the winter months. During summer, he buys Coromandel oysters from New Zealand. The reason for the seasonal shift: More than three-quarters of outbreaks involving raw oysters occur during the Northern Hemisphere's warm-water months.
At home: Very simple: Eat only thoroughly cooked oysters. If you must slurp, do so only after following the buying advice above. But don’t avoid oysters all together. They're one of the more sustainable fish you can eat, and they provide lots of health benefits as well—provided you cook them first.
Eggs
The dirt: Which is dirtier, the chicken or the egg? Definitely eggs. Food poisoning linked to eggs sickens an estimated 660,000 people annually and kills 300. br>
At the supermarket: Check egg cartons for one word—"pastured." Research has shown that the rate of salmonella contamination in eggs is directly related to flock size. Therefore, factory-farmed eggs from henhouses containing 80,000 hens are more likely to pass the bacteria along to you than those from a local farmer with a flock of 100 or so hens that he raises on pasture. In fact, bypass the supermarket altogether. Get your eggs at the farmer's market, or even from a backyard chicken owner.
At home: Keep eggs in their carton and stow that in the coldest part of your fridge (usually the back of the lowest shelf). After you crack one open, wash your hands. Finally, cook your eggs—thoroughly (or, if they're an ingredient in a dish, to 160°F).
Cantaloupe
The dirt: When the FDA sampled domestically grown cantaloupe, it found that 3.5 percent of the melons carried Salmonella and Shigella, the latter a type of bacteria normally passed person-to-person. In 2011, a cantaloupe recall involving fruit from Colorado was infected with Listeria, a bacterium more commonly associated with meat and dairy products.
At the supermarket: Dents or bruising on the fruit can provide a pathway in for pathogens; cut up slices may not be any safer if employees don't properly wash their hands.
At home: Because cantaloupe grow on the ground and have a netted exterior, it's easy for salmonella to sneak on. Scrub the fruit with a dab of mild dishwashing liquid for 15 to 30 seconds under running water.
Peaches
The dirt: Being pretty as a peach comes at a price. The fruit is doused with pesticides in the weeks prior to harvest to ensure blemish-free skin. By the time it arrives in your produce department, the typical peach can be coated with up to nine different pesticides, according to USDA sampling. On an index of pesticide toxicity devised by Consumers Union, peaches rank highest.
At the supermarket: Fill your produce bag with organic peaches. And since apples, grapes, pears, and green beans occupy top spots on the Toxicity Index, too, you may want to opt for organic here, as well. Just know that organic produce also contains some pesticide residues, but in minuscule amounts.
At home: "A lot of produce has a natural wax coating that holds pesticides, so wash with a sponge or scrub brush and a dab of mild dishwashing detergent. This can eliminate more than half of the residues," says Edward Groth III, Ph.D., a senior scientist with Consumers Union. But in many cases, pesticides are systemic, meaning they are absorbed by the plant after being applied to seeds, soil, or leaves, and contaminate the meat of the fruit, where washing and peeling won't remove them—which is why it's that much more important to opt for organic.
Prepackaged Lettuce
The dirt: Tthe lettuce on a burger could cause you more grief than the beef. February 2010 tests from Consumers Union on 208 packages of salad greens found that 40 percent tested positive for fecal coliform bacteria. Before then, the Center for Science in the Public Interest estimated that lettuce accounted for 11 percent of reported food-poisoning outbreaks linked to produce from 1990 to 2002, and "salad" accounted for 28 percent.
At the supermarket: Prepackaged salad mix is not inherently more hazardous than loose greens or a head of lettuce. It's the claims of being "triple washed" that lull consumers into complacency.
At home: Rinse salad greens one leaf at a time under running water before eating. Beware of cross-contamination, too. You know it's risky to put salad in the same colander you washed chicken in but may accidentally touch a towel used to wipe up poultry juice, then make a salad.
Cold Cuts
The dirt: Germs don't take a number in the deli; cold cuts have been labeled at "high risk" of causing listeriosis by a joint team of researchers from the USDA, FDA, and Centers for Disease Control and Prevention. Combine that with the fact that cold cuts are, well, eaten cold, and you've got trouble; Listeria thrives at refrigerator temperatures that stun other foodborne pathogens.
At the supermarket: Turns out the most likely source of Listeria-contaminated cold cuts is the deli slicer. Without regular cleaning, the blade can transfer bacteria from roast beef to turkey to pastrami and back. Don't buy more deli meat than you can eat within two days because the germ multiplies quickly.
At home: When you're ready to build your sandwich, slather on the mustard. Researchers at Washington State University killed off 90 percent of three potent pathogens—Listeria, E. coli, and salmonella—within two hours of exposing them to a mustard compound.
Sprouts
The dirt: Sprouted seeds of all kinds—broccoli, alfalfa, mung bean, pea—contain potent amounts of phytonutrients, and broccoli sprouts have even been shown to help prevent stomach cancer. Unfortunately, the warm, humid conditions needed for the sprouts to grow are heaven to Listeria, Salmonella, and E. coli bacteria. According to Marler Clark, a law firm that handles high-profile foodborne-illness cases, sprouts have been blamed for at least 40 significant outbreaks of foodborne illness across the United States, Canada and Europe over the past 20 years.
At the supermarket: The FDA has recommendations for sprout producers to follow, such as decontaminating the seeds before sprouting or conducting regular microbial testing. But experts say those rules aren't strictly enforced. So, bottom line? Don't buy them. But if you must, look for crisp-looking sprouts with the buds attached. Avoid musty-smelling, dark, or slimy-looking sprouts.
At home: If you must get your sprout fix, make sure you refrigerate them as soon as you get them home, and cook them before eating them.
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Part 4 - Bread, Corn, Artificial Sweeteners -
http://healthyliving.msn.com/nutrition/14-foods-you-should-never-eat#2
Bread
William Davis, MD, cardiologist and author of the New York Times best-seller Wheat Belly
The Problem: Modern wheat is nothing like the grain your mother or grandmother consumed. Today, wheat barely resembles its original form, thanks to extensive genetic manipulations of the 1960s and '70s to increase yields. "You cannot change the basic characteristics of a plant without changing its genetics, biochemistry, and its effects on humans who consume it," Dr. Davis notes.
In his book, Dr. Davis makes the case that modern-day wheat is triggering all sorts of health problems, everything from digestive diseases like celiac and inflammatory bowel disease to acid reflux, obesity, asthma, and skin disorders. "If there is a food that yields extravagant, extraordinary, and unexpected benefits when avoided, it is bread," says Dr. Davis. "And I don't mean white bread; I mean all bread: white, whole wheat, whole grain, sprouted, organic, French, Italian, fresh, day-old…all of it."
The Solution: Try eliminating bread from your diet for a few weeks to see if you note health improvements. When you do choose grains, look to things like quinoa, buckwheat, millet, and wild rice, but in smaller quantities (less than a half cup) because these can also trigger high blood sugar, Dr. Davis says.
Corn
Maryam Henein and George Langworthy, directors of the documentary Vanishing of the Bees
The Problem: Today's corn plants are more like little pesticide factories with roots. Most of the nation's corn supply is genetically engineered to either produce its own pesticide supply within the plant or withstand heavy sprayings of chemicals, which wind up inside of the food. That's problematic not just for bees, but for people, too. "I avoid corn because most is genetically modified, and on top of that, most of the seeds are treated with systemic pesticides that are killing our bees," says Henein. "And let's not be fooled—the sublethal effects of these pesticides also slowly impair our health."
The Solution: In one way or another, corn is present in the vast majority of processed foods. From ketchup to salad dressing, and even bread, it's hard to escape corn ingredients. One to look out for? "I always try to avoid foods containing high-fructose corn syrup," says Langworthy. "Not only is it unhealthy, but the pesticides used in the production of the corn is detrimental to honeybees and other pollinators."
To avoid genetically engineered corn, which has never been tested for long-term impacts on human health, choose organic or Non-GMO Verified foods.
White chocolate
Drew Ramsey, MD, assistant clinical professor of Psychiatry at Columbia University College of Physicians and Surgeons and coauthor of The Happiness Diet
The Problem: The right kind of chocolate serves not only as a sweet treat but a brain-boosting superfood, too. The problem is, white chocolate's health profile is blank. "The data on the health benefits of cacao is pretty awesome," says Dr. Ramsey. "Much of this is due to a set of amazing phytonutrients that can increase blood flow to the brain, protect blood vessels, and boost mood and focus. White chocolate is missing all this goodness."
The Solution: Indulging in a chocolate treat? Look for organic versions from companies like Theo and NibMor.
Artificial sweeteners
Maria Rodale, CEO of Rodale Inc. and author of Organic Manifesto
The Problem: Ironically, there's a lot of evidence that suggest using artificial sweeteners, which have zero calories, is just as bad for your waistline as using regular, high-calorie sugar. For instance, research from the University of Texas has found that mice fed the artificial sweetener aspartame had higher blood sugar levels (which can cause you to overeat) than mice on an aspartame-free diet. Not only are they bad for your health, scientists have detected artificial sweeteners in treated wastewater, posing unknown risks to fish and other marine life. Plus, as Rodale says, "They're unnatural, nonorganic, taste horrible, and lead to all sorts of bad health consequences, false expectations, and short-term strategic thinking."
The Solution: Refined white sugar isn't any healthier, but you can replace it with small amounts of nutritional sweeteners, including honey, blackstrap molasses, and maple syrup, all of which have high levels of vitamins and minerals.
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Pesticide residues in Fruits and Vegetables - list -
http://www.ewg.org/foodnews/list/
>>> EWG analyzed pesticide residue testing data from the US Department of Agriculture and Food and Drug Administration to come up with rankings for these popular fresh produce items.
Note: Nectarines, blueberries, plums and cantaloupe are on the list as domestic and imported sources, so they are counted once in the 45 fruits and vegetables but the list has 49 entries.
Lower numbers = more pesticides.
1
Apples
2
Celery
3
Sweet bell peppers
4
Peaches
5
Strawberries
6
Nectarines - imported
7
Grapes
8
Spinach
9
Lettuce
10
Cucumbers
11
Blueberries - domestic
12
Potatoes
13
Kale/collard greens
14
Cherries
15
Hot peppers
16
Pears
17
Nectarines - domestic
18
Green beans
19
Plums - imported
20
Blueberries - imported
21
Carrots
22
Raspberries
23
Summer squash
24
Oranges
25
Broccoli
26
Green onions
27
Bananas
28
Honeydew melon
29
Tomatoes
30
Cantaloupe - imported
31
Cauliflower
32
Papaya
33
Plums - domestic
34
Winter squash
35
Mushrooms
36
Watermelon
37
Grapefruit
38
Sweet potatoes
39
Cantaloupe - domestic
40
Kiwi
41
Eggplant
42
Mangoes
43
Asparagus
44
Sweet peas - frozen
45
Cabbage
46
Avocado
47
Pineapples
48
Sweet Corn
49
Onions
^ back to top
>>> Which Foods Should You Avoid?
http://www.rodale.com/7-foods-you-should-never-eat?page=0
Clean eating means choosing fruits, vegetables, and meats that are raised, grown, and sold with minimal processing. Often they're organic, and rarely (if ever) should they contain additives. But in some cases, the methods of today's food producers are neither clean nor sustainable. The result is damage to our health, the environment, or both. So we decided to take a fresh look at food through the eyes of the people who spend their lives uncovering what's safe—or not—to eat. We asked them a simple question: "What foods do you avoid?" Their answers don't necessarily make up a "banned foods" list. But reaching for the suggested alternatives might bring you better health—and peace of mind.
Canned Tomatoes
Fredrick Vom Saal, PhD, an endocrinologist at the University of Missouri who studies bisphenol-A, gives us the scoop:
The problem: The resin linings of tin cans contain bisphenol-A, a synthetic estrogen that has been linked to ailments ranging from reproductive problems to heart disease, diabetes, and obesity. Unfortunately, acidity (a prominent characteristic of tomatoes) causes BPA to leach into your food. Studies show that the BPA in most people's body exceeds the amount that suppresses sperm production or causes chromosomal damage to the eggs of animals. "You can get 50 mcg of BPA per liter out of a tomato can, and that's a level that is going to impact people, particularly the young," says vom Saal. "I won't go near canned tomatoes."
The solution: Choose tomatoes in glass bottles (which do not need resin linings), such as the brands Bionaturae and Coluccio. You can also get several types in Tetra Pak boxes, like Trader Joe's and Pomi.
Budget tip: If your recipe allows, substitute bottled pasta sauce for canned tomatoes. Look for pasta sauces with low sodium and few added ingredients, or you may have to adjust the recipe.
Corn-Fed Beef
Joel Salatin, co-owner of Polyface Farms and author of half a dozen books on sustainable farming, gives us the scoop:
The problem: Cattle evolved to eat grass, not grains. But farmers today feed their animals corn and soybeans, which fatten up the animals faster for slaughter. But more money for cattle farmers (and lower prices at the grocery store) means a lot less nutrition for us. A recent comprehensive study conducted by the USDA and researchers from Clemson University found that compared with corn-fed beef, grass-fed beef is higher in beta-carotene, vitamin E, omega-3s, conjugated linoleic acid (CLA), calcium, magnesium, and potassium; lower in inflammatory omega-6s; and lower in saturated fats that have been linked to heart disease. "We need to respect the fact that cows are herbivores, and that does not mean feeding them corn and chicken manure," says Salatin.
The solution: Buy grass-fed beef, which can be found at specialty grocers, farmers' markets, and nationally at Whole Foods. It's usually labeled because it demands a premium, but if you don't see it, ask your butcher.
Budget tip: Cuts on the bone are cheaper because processors charge extra for deboning. You can also buy direct from a local farmer, which can be as cheap as $5 per pound. To find a farmer near you, search eatwild.com.
Microwave Popcorn
Olga Naidenko, PhD, a senior scientist for the Environmental Working Group, gives us the scoop:
The problem: Chemicals, including perfluorooctanoic acid (PFOA), in the lining of the bag, are part of a class of compounds that may be linked to infertility in humans, according to a recent study from UCLA. In animal testing, the chemicals cause liver, testicular, and pancreatic cancer, and human studies suggest they could even lead to high cholesterol. Studies show that microwaving causes the chemicals to vaporize—and migrate into your popcorn. "They stay in your body for years and accumulate there," says Naidenko, which is why researchers worry that levels in humans could approach the amounts causing cancers in laboratory animals. DuPont and other manufacturers have promised to phase out PFOA by 2015 under a voluntary EPA plan, but millions of bags of popcorn will be sold between now and then.
The solution: Pop natural kernels the old-fashioned way: in a skillet. Or, make your own microwave popcorn in a paper bag. For flavorings, you can add real butter or dried seasonings, such as dillweed, vegetable flakes, or soup mix.
Budget tip: Popping your own popcorn is dirt cheap.
Nonorganic Potatoes
Jeffrey Moyer, chair of the National Organic Standards Board, gives us the scoop:
The problem: Root vegetables absorb herbicides, pesticides, and fungicides that wind up in soil. In the case of potatoes—the nation's most popular vegetable—they're treated with fungicides during the growing season, then sprayed with herbicides to kill off the fibrous vines before harvesting. After they're dug up, the potatoes are treated yet again to prevent them from sprouting. " Try this experiment: Buy a conventional potato in a store, and try to get it to sprout. It won't," says Moyer, who is also farm director of the Rodale Institute (also owned by Rodale Inc., the publisher of Prevention). "I've talked with potato growers who say point-blank they would never eat the potatoes they sell. They have separate plots where they grow potatoes for themselves without all the chemicals."
The solution: Buy organic potatoes. Washing isn't good enough if you're trying to remove chemicals that have been absorbed into the flesh.
Budget tip: Organic potatoes are only $1 to $2 a pound, slightly more expensive than conventional spuds.
Farmed Salmon
David Carpenter, MD, director of the Institute for Health and the Environment at the University at Albany and publisher of a major study in the journal Science on contamination in fish, gives us the scoop:
The problem: Nature didn't intend for salmon to be crammed into pens and fed soy, poultry litter, and hydrolyzed chicken feathers. As a result, farmed salmon is lower in vitamin D and higher in contaminants, including carcinogens, PCBs, brominated flame retardants, and pesticides such as dioxin and DDT. According to Carpenter, the most contaminated fish come from Northern Europe, which can be found on American menus. "You could eat one of these salmon dinners every 5 months without increasing your risk of cancer," says Carpenter, whose 2004 fish contamination study got broad media attention. "It's that bad." Preliminary science has also linked DDT to diabetes and obesity, but some nutritionists believe the benefits of omega-3s outweigh the risks. There is also concern about the high level of antibiotics and pesticides used to treat these fish. When you eat farmed salmon, you get dosed with the same drugs and chemicals.
The solution: Switch to wild-caught Alaska salmon. If the package says fresh Atlantic, it's farmed. There are no commercial fisheries left for wild Atlantic salmon.
Budget tip: Canned salmon, almost exclusively from wild catch, can be found for as little as $3 a can.
Milk Produced with Artificial Hormones
Rick North, project director of the Campaign for Safe Food at the Oregon Physicians for Social Responsibility and former CEO of the Oregon division of the American Cancer Society, gives us the scoop:
The problem: Milk producers treat their dairy cattle with recombinant bovine growth hormone (rBGH or rBST, as it is also known) to boost milk production. But rBGH also increases udder infections and even pus in the milk. It also leads to higher levels of a hormone called insulin-like growth factor in milk. In people, high levels of IGF-1 may contribute to breast, prostate, and colon cancers. "When the government approved rBGH, it was thought that IGF-1 from milk would be broken down in the human digestive tract," says North. As it turns out, the casein in milk protects most of it, according to several independent studies. "There's not 100% proof that this is increasing cancer in humans," admits North. "However, it's banned in most industrialized countries."
The solution: Opt for organic milk, which is produced without the use of growth hormones.
Budget tip: Look for generic or store-brand organic milks if the national brands are too pricey, or find a local producer who can guarantee the milk comes from hormone-free cows. Even milk labeled "rBGH-free" can come from cows doused with high levels of antibiotics, which are also used to boost milk production.
Conventional Apples
Mark Kastel, former executive for agribusiness and codirector of the Cornucopia Institute, a farm-policy research group that supports organic foods, gives us the scoop:
The problem: If fall fruits held a "most doused in pesticides contest," apples would win. Why? They are individually grafted (descended from a single tree) so that each variety maintains its distinctive flavor. As such, apples don't develop resistance to pests and are sprayed frequently. The industry maintains that these residues are not harmful. But Kastel counters that it's just common sense to minimize exposure by avoiding the most doused produce, like apples. "Farm workers have higher rates of many cancers," he says. And increasing numbers of studies are starting to link a higher body burden of pesticides (from all sources) with Parkinson's disease.
The solution: Buy organic apples.
Budget tip: If you can't afford organic, be sure to wash and peel them. But Kastel personally refuses to compromise. "I would rather see the trade-off being that I don't buy that expensive electronic gadget," he says. "Just a few of these decisions will accommodate an organic diet for a family."
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>>> These Foods Will Make You Smile
http://www.rodale.com/brain-food?cm_mmc=MSN-_-14%20Foods%20You%20Should%20Never%20Eat-_-Slideshow-_-11%20instant%20mood%20boosting%20foods
The Modern American Diet—MAD—way of eating is throwing off our bodies' natural feel-good chemistry, resulting in a miserable, moody, anxious, and agitated nation. Luckily, an instant jolt of happiness is just a forkful of brain food away. People should be focusing on brain foods and mood-promoting fats to best nurture happiness, says Drew Ramsey, MD, coauthor (with Tyler Graham) of The Happiness Diet: A Nutritional Prescription for a Sharp Brain, Balanced Mood, and Lean, Energized Body. "Just a few meals away from the modern American diet, and you'll start to feel benefits like better energy and a more stable mood," explains Dr. Ramsey. "The moment you make a better food choice you are instantly building a better brain."
Mussels
Mussels are loaded with some of the highest naturally occurring levels of brain-protecting vitamin B12 on the planet. That makes the mollusk an important food source, considering that a significant portion of the U.S. population is B12 deficient. So what's the nutrient's mood-saving trick? Maintaining a healthy level preserves the myelin sheath that insulates your brain cells, helping your brain stay sharp as you grow older.
Mussels also contain trace nutrients that are important to balancing your mood, including zinc, iodine, and selenium, things vital to keeping your thyroid, your body's master mood regulator, on track. An added benefit? Mussels are a healthy choice for you and the environment, which isn't always the case when it comes to fish. Just be sure to look for farmed—not wild—mussels raised in the United States.
Swiss Chard
This leafy green is packed with magnesium, a nutrient essential for the biochemical reactions in the brain that boost your energy levels. According to Dr. Ramsey, some of the first studies on magnesium involved its effect on depression. That could come in handy today, since the majority of Americans simply don't get enough magnesium in their diet.
Green-thumb tip: Swiss chard is easy to grow in a home garden. If you plant it, harvest just a few outer leaves—not everything all at once—and the plant will continue producing all season long.
Blue Potatoes
Blue potatoes aren't a common supermarket find, but they're popping up as a unique offering at farmer's markets all over the country. The color in blue potatoes is courtesy of anthocyanins, powerful antioxidants that provide neuro-protective benefits such as bolstering short-term memory and reducing mood-killing inflammation.
Be sure to eat their skins, too. The potatoes' skins are loaded with iodine, a diet-derived nutrient essential for life, and one that helps regulate the thyroid, what Dr. Ramsey calls one of our "master mood regulators."
And always choose organic potatoes. Nonorganic spuds usually fall victim to multiple toxic chemical sprays that are absorbed into the vegetables' flesh.
Grass-Fed Lamb
Animals raised on grass pastures boast much higher levels of healthy conjugated linoleic acid, or CLA. This happy fat beats back stress hormones protecting brain cells and erases dangerous inflammation-promoting belly fat, Dr. Ramsey explains. Grass-fed lamb is also packed with mood-promoting heme iron, the type that your body most readily absorbs. Iron is vital for a stable mood—its highest concentrations in the brain are located in areas related to mood and memory.
Dark Chocolate
Ever wonder why chocolate makes you feel so good? Sure, it tastes good, but it also provides an instant boost in concentration and mood and even improves blood flow to the brain, helping you feel more vibrant and energized. Skip the sugary milk chocolate blends and go directly for the darkest organic (highest percentage of cocoa) chocolate you can. A recent study published in the Journal of Psychopharmacology found that just a few ounces of dark chocolate a day results in better mood. (We love organic, fair trade Theo chocolate.)
Greek Yogurt
This dairy pick is packed with more calcium than you'll find in milk or regular yogurt, and it can make you happy, too. Proper calcium levels give the "Go" command, alerting your body to release feel-good neurotransmitters. "Disturbances in calcium levels can produce anxiety, depression, irritability, impaired memory, and slow thinking," says Dr. Ramsey in The Happiness Diet. Plus, the probiotics help aid in digestion and can even ward off colds.
If you find yourself nervous or agitated for an unexplained reason, try reaching for an organic Greek yogurt from cows raised on grass pastures. Pastured dairy is higher in healthy fats, and, like grass-fed lamb, often contain higher levels of CLA, the healthy fat that reduces the effects of stress on the brain.
Asparagus
This vegetable is one of the top plant-based sources of tryptophan, which serves as a basis for the creation of serotonin, one of the brain's primary mood-regulating neurotransmitters. High levels of folate also add to asparagus's happiness-promoting profile; research has shown that up to 50 percent of people with depression suffer from low folate levels. Like tryptophan, it's a necessary factor for creating neurotransmitters. It's also good to add to the menu if you plan on drinking. The enzymes in asparagus are highly effective in breaking down alcohol in your system, preventing a hangover—and that can make anyone happy.
Honey
Eating sugar unleashes harmful free radicals linked to disease—even cancer—inside of your body. Honey—although sweet like sugar—is packed with beneficial compounds such as quercetin and kaempferol that actually help clean up the free radicals and reduce inflammation. "Honey helps reduce inflammation, which is very important to maintaining a healthy brain," Dr. Ramsey explains. "Some depression actually stems from chronic, low-grade inflammation."
Cherry Tomatoes
All tomatoes are a great source of lycopene, a fat-soluble phytonutrient that helps protect vital brain fat, and a nutrient that actually stops the buildup of pro-inflammatory compounds linked to depression. Because lycopene lives in tomato skins, the best way to get it is through cherry tomatoes, whose smaller surface area means you'll eat more skin than if you eat a full-size tomato, explains Dr. Ramsey. To maximize the amount of lycopene your body absorbs, drizzle some olive oil over the tomatoes, and enjoy!
Just be sure to always choose organic. Trials at University of California–Davis have found that organic tomatoes have higher lycopene levels.
Pastured Eggs
Dr. Ramsey calls eggs the perfect food. They're loaded with mood-promoting omega-3 fatty acids, zinc, B vitamins, and iodide, and they'll keep you full and energized.
The problem is that these days, buying the best egg has become complicated, even for the savviest label sleuth. Egg carton claims promise all sorts of nutrients and living conditions for the laying hens, but many claims aren't even regulated. The best egg for your brain is the kind your great-grandmother probably enjoyed: hens raised on pasture, where they can exercise and eat a diet of grass and bugs, supplemented with organic grains. Look for pastured eggs from local farmers you trust, and rely less on grocery store eggs advertised as "omega-3 enriched" or "free-range," both claims that aren't regulated.
Lemon Macaroons
Sugar is a known mood annihilator, but that doesn't mean you have to completely give up on desserts. The authors of The Happiness Diet devised a citrus-rich macaroon recipe chock-full of brain-healthy coconut, a health food boasting medium-chain fats that fuel better moods. And the lemon provides not just a burst of flavor, but also brain-protecting flavonoids. Give their recipe for Mood-Boosting Lemon Macaroons a go this weekend.
<<<
Part 3 - Soda - (Reeds) -
>>> 14 foods you should never eat
Diet soda
Isaac Eliaz, MD, integrative health expert and founder of The Amitabha Medical Clinic and Healing Center in Sebastopol, CA
The Problem: Dr. Eliaz stays away from any diet soda or foods, sugar-free candies, and gum containing artificial sweeteners such as sucralose, aspartame, acesulfame K, and neotame, among others. "The safety data on these sweeteners is shrouded in controversy and conflicts of interest with the manufacturers of these chemical compounds," Dr. Eliaz warns. "Independent research strongly suggests that when metabolized in the body, these sweeteners can cause health-related issues and problems related to metabolism and weight gain, neurological diseases, joint pain, digestive problems, headaches, depression, inflammatory bowel disease, chemical toxicity, and cancer, among others."
The Solution: If you're craving a soda but want to avoid the shady sweeteners, fake food dyes, and preservatives found in popular brands, try a bottle of Steaz zero-calorie green tea soda or Bionade, a fermented soda that's majorly popular in Europe.
"Healthy" Soda?
http://www.rodale.com/healthy-soda-0?cm_mmc=MSN-_-14%20Foods%20You%20Should%20Never%20Eat-_-Slideshow-_-8%20healthy%20sodas
We've said it before and will probably say it a hundred times more: Soda is toxic stuff. Not only is most of it full of diabetes-inducing high-fructose corn syrup, but drinking too much of the bubbly stuff has also been linked to an increased risk of heart attack and stroke. It contains genetically modified ingredients (GMOs) and phosphates, preservatives that have been linked to kidney disease and accelerated aging. Obviously, not something you want as part of a regular diet. But at some point, we all crave something fizzy, and that's no reason to reach for a toxic can of kidney-killing GMO water.
We looked high and low for healthy soda alternatives, free of the worst offenders in traditional sodas, such as GMOs or artificial caramel coloring that can be contaminated with carcinogens. Nor do any of our healthy sodas come bottled in cans, which are normally lined with hormone-disrupting bisphenol A. Some do contain cane sugar, a less-processed sugar that still should be consumed in moderation, and others are flavored with other sweeteners to avoid, but they're all far better alternatives to what's lurking in most soda cans. Next time a soda craving strikes, try one of these eight healthy sodas.
Steaz Sparkling Green Tea
Put down the Diet Coke! If you need an afternoon caffeine fix, grab a Steaz Green Tea soda instead. In addition to the fact that green tea is loaded with antioxidants, this no-cal soda alternative is sweetened with stevia and erythritol, a natural sugar alcohol. It's also fortified with vitamin B12, which helps improve your mood, your energy levels, and mental fog.
www.steaz.com
Reed's Light Extra Ginger Brew
Ginger ale, or ginger beer depending on who you're talking to, is a fantastic home remedy for nausea, upset stomachs, and even sore muscles, but 99 percent of what the big companies pass off as ginger ale contains tons of sugar and little to no real ginger. Not so with Reed's ginger brews, which contain the most ginger of any brand out there. And the company has just introduced a new "light" variety that, at just 55 calories per bottle, is sweetened with honey and stevia.
Virgil's Root Beer
Also from the purists at Reed's, Virgil's Root Beer is root beer made the way nature intended, by brewing a combination of herbs and spices naturally, rather than concocting a chemistry experiment of artificial flavorings, dyes, and additives. The ingredients list reads like the gatherings of a world traveler —anise from Spain, vanilla from Madagascar, molasses from the U.S., and balsam oil from Peru—and will get you off that artificial canned stuff forever. However, good as it is, this soda won't win you any favors with your waistline. At 160 calories per serving and 42 grams (g) of sugar, make it a weekly indulgence.
Bionade
This German brand may be hard to find, but it's worth it if you can get it. A naturally fermented drink made from malt and water, just like beer, this nonalcoholic soda has just 60 calories and 14 g of sugar per bottle, and it's certified organic. The sodas come in decidedly grown-up flavors like elderberry, lychee, ginger-orange, and herb, all invented by a former beer brewer. The sodas are so popular in Europe the company even rejected a takeover by Coca-Cola.
www.bionade.com
Oogave
Oogave is one of few certified-organic soda brands out there, and the line includes an honest-to-goodness organic cola alternative for people who love Coke or Pepsi. The company also has other cool flavors like strawberry-rhubarb and mandarin-key lime, the best organic alternative to Sprite or 7-Up. All the company's sodas contain half the sugar (24 g) that conventional sodas and other cane-sugar-sweetened sodas do. Plus, none of their products exceeds 100 calories per bottle.
www.thirstmonger.com
GT's Enlightened Organic Raw Kombucha
Not technically a soda, we had to throw in kombucha simply because it's so good and so good for you. Kombucha is tea that's been fermented with a probiotic culture, similar to the way vinegar is made, and the end product is low in sugar and full of healthy bacteria that aid digestion and even ward off infections. Fizzy like a soft drink, kombucha is much less sweet; these products contain just 4 g of sugar per bottle and only 60 calories. Try the slightly tart original kombucha or the fruitier citrus or ginger flavors.
www.synergydrinks.com
Hot Lips Soda
Made to "worship the magnificent fruits and berries" of the Pacific Northwest, this fruit soda is another winner, with the brand's lineup even changing with the seasons based on what's locally available—apples and pears in the fall and raspberries, blackberries, strawberries, and other berries in spring and summer. Some of the fruits are even organic. The company takes fruit, cooks it, adds water and cane sugar then bottles it, with much of the fiber-rich pulp intact, and carbonates it. Unlike a lot of so-called natural sodas, Hot Lips sodas contain organic lemon juice as a preservative, rather than ascorbic or citric acid, both of which can be derived from genetically modified corn and soy. For the healthiest Hot Lips drinks, grab the cranberry or pear sodas, neither of which has any added sugar.
Cranberry: 155 calories; Pear: 122 calories
www.hotlipssoda.com
Fizzy Lizzy
All Fizzy Lizzy sodas are nothing more than carbonated water combined with actual fruit juice, with a little vitamin C added for extra nutrition. The makers don't add sugar of any kind, so all the sugars in their sodas are naturally occurring. For the lowest-calorie options, go with the cranberry soda—just 100 calories per bottle and 22 g of sugars—or the grapefruit—also 100 calories with 25 g of sugar. Or give their award-winning pineapple soda a try, maybe mixed with some coconut water for a faux piña colada.
www.fizzylizzy.com
<<<
Part 2 - Fruit and Vegetables -
>>> 14 foods you should never eat -
Nonorganic strawberries
http://healthyliving.msn.com/nutrition/14-foods-you-should-never-eat#3
Robert Kenner, director of Food Inc. and founder of FixFood.org
The Problem: While filming Food Inc., Kenner says he wanted to film strawberry farmers applying pesticides to their fields. "The workers wear these suits to protect themselves from the dozens and dozens of known dangerous pesticides applied to strawberries," he says. "When I saw this, I thought to myself, if this is how berries are grown, I don't really want to eat them anymore. I haven't been able to eat a nonorganic strawberry ever since." Unfortunately, for the food-concerned public, he wasn't able to get the shot of these farmers. "I guess they didn't think it looked too appetizing."
The Solution: Opt for organic! The Environmental Working Group, which analyzes U.S. Department of Agriculture pesticide-residue data, has found 13 different pesticide residues on chemically grown strawberries.
Eat Organic
Scan any supermarket produce section and what do you see? Rows of brightly hued, blemish-free fruits and vegetables. They're gorgeous. But plants, like people, have natural imperfections—and some require more help than others to look good, not to mention maintain their youthful looks as they age.
In the plant world, the equivalent of beauty products are the dozens of chemicals that farmers use to fend off insects, pests, weeds, fungal attacks, and rot. Not surprisingly, plants that are more vulnerable to attack need more of them. To help you tell which is which (and, therefore, which are best to eat organic, as opposed to those you can buy conventionally to save money), the Environmental Working Group publishes two lists—the Dirty Dozen and the Clean 15. The EWG rankings are based on USDA-tested levels of chemical residues that remain on conventionally raised fruits and vegetables after washing. Revised lists came out in spring 2010, with a couple of surprising new additions.
Read more: http://www.prevention.com/food/healthy-eating-tips/fruits-and-veggies-buy-organic#ixzz2L4zp1dGt
Buy Organic: Celery
Why it's dirty: Due to peak consumer demand around Thanksgiving and Christmas, 75% of the crop is grown during the fall and winter, when rain and wind promote the growth of bacteria and fungal diseases. And because we eat the entire stalk, it must be sprayed repeatedly to ward off pests. "Nobody likes to find a caterpillar-damaged stalk in their celery bunch," says Stuart Reitz, PhD, a research entomologist with the USDA.
Buy Organic: Peaches
Why they're dirty: Sweet and succulent, peaches can be just as alluring to insects as to people. Farmers may spray peaches every week or two from bloom to harvest—and peach fuzz can trap pesticides, says peach breeder John R. Clark, PhD, a horticulturalist at the University of Arkansas, who peels every one of the thousands of peaches he eats each year.
Buy Organic: Strawberries
Why they're dirty: Strawberries are not only sweet and juicy but also delicate and prone to disease, including fungal attacks that can turn them to mush during transit and storage. "With apples and peaches, a lot of spraying is cosmetic to get blemish-free fruits," says Richard Wiles, senior vice president for policy at EWG. "With berries, you're just trying to get them across the finish line into the store before they go bad."
Buy Organic: Apples
Why they're dirty: Sweet-smelling and delicious, apples are susceptible to more than 30 insects and at least 10 diseases. And fungicides and other chemicals are added after picking to prevent tiny blemishes that can accumulate during storage of up to 9 months.
Buy Organic: Blueberries
Why they're dirty: Blueberries are new on the Dirty Dozen list—possibly because the USDA began testing them only 3 years ago, after large increases in production. The berries are targets for insects such as blueberry maggots and bagworms.
Buy Organic: Nectarines
Why they're dirty: Nectarines differ from peaches only in the absence of fuzz—a trait that likely arose as a natural mutation of a peach tree—so it's no wonder they're susceptible to many of the same pests, including oriental fruit moths and peach twig borers. Thanks to their waxy skin, they don't retain as many pesticides as peaches. On the other hand, they are more vulnerable to rot and scarring.
Buy Organic: Bell Peppers
Why they're dirty: Unlike cruciferous vegetables such as broccoli, sweet bell peppers (which are technically fruits) have no bitter compounds to serve as built-in insect repellents. They even lack the fiery taste of their cousins, the chile peppers. And the creases at their crowns may provide nooks for pesticides to accumulate, says Philip Stansly, PhD, an entomologist at the University of Florida.
Buy Organic: Spinach
Why it's dirty: Spinach is a mere leaf that's crunched by a variety of insects, including grasshoppers. In addition, says Wiles, "spinach tends to pull persistent DDT residues out of the soil and into the leaf." These chemicals remain in the earth decades after they were banned.
Buy Organic: Kale
Why it's dirty: The outer leaves are not removed before sale, so any amount of damage will make it unmarketable. Even natural enemies of the pests that feed on kale can be considered contaminants in harvested produce, so farmers spray for all bugs, including the "good" ones
Buy Organic: Cherries
Why they're dirty: Because cherries are a naked fruit—without peel or protection—they're vulnerable to pests such as the western cherry fruit fly. If just one of its maggots is found in a shipment, the entire load of fruit must be dumped, according to quarantine regulations, so growers spray out of fear of losing their crops.
Buy Organic: Potatoes
Why they're dirty: New to the list, America's number one vegetable is sprayed 5 or more times throughout the growing season to protect against various pests—and to ensure a crop of uniform shape and size for fast-food outlets and potato chip producers. After harvesting, another round of spraying occurs in the packing shed to ward off molds and sprouting.
Buy Organic: Imported Grapes
Why they're dirty: During their long transit from the southern hemisphere, imported grapes are susceptible to Botrytis cinerea rot, which causes the fruits to split and leak. To prevent that, farmers spray aggressively with fungicides. (Domestic table grapes do not need the same spraying because most are grown in the dry desert climate of Southern California, where botrytis does not thrive.)
Buy Conventional: Onions
Why they're clean: Onions manufacture their own protective chemicals, a series of unpleasant-tasting sulfur compounds that discourage insect munching. Though farmers may spray early in the growing season, residues are removed when the dry outer layer of the bulb is shed during harvest.
Buy Conventional: Avocado
Why it's clean: Most of the pesticides that are used to treat avocados accumulate on the peel.
Buy Conventional: Sweet Corn
Why it's clean: Corn is husked before eating, eliminating residues on the outside.
Buy Conventional: Pineapple
Why it's clean: Most spraying is done early in the growing season, so minimal residues remain after harvest. Those that do are removed with the thick rind.
Buy Conventional: Mangoes
Why they're clean: Mangoes are grown in Mexico, the Caribbean, and South America, where the dry climate discourages fungus and hand weeding is a common alternative to herbicides. In addition—repeat after us—mangoes are peeled before eating.
Buy Conventional: Sweet Peas
Why they're clean: They are protected by their pods.
Buy Conventional: Asparagus
Why it's clean: The spears spring up so fast, there's little time for insects to attack.
Buy Conventional: Kiwifruit
Why it's clean: Lacewings and parasitic wasps help control the pests that like to feed on kiwis.
Buy Conventional: Cabbage
Why it's clean: The plant is sprayed, but the outer leaves that absorb pesticides are discarded before sale.
Buy Conventional: Eggplant
Why it's clean: The eggplant has a slick surface that sheds chemicals easily.
Buy Conventional: Cantaloupe
Why it's clean: Though the melons are sprayed with insecticides, we don't ingest them because the fruit is cut out of the thick rind before, well, you know.
Buy Conventional: Watermelon
Why it's clean: The fruit has a thick protective rind that is not eaten
Buy Conventional: Grapefruit
Why it's clean: Although farmers often use fungicides to control green mold, most of the residues remain on the peel.
Buy Conventional: Sweet Potato
Why it's clean: The sweet potato has built-in defenses. If bitten, it oozes a milky-white sap that gums up insect mouthparts. Before they're sold, sweet potatoes are cured at warm temperatures and high humidity. This causes the skin to thicken, providing protection against damage and disease.
Buy Conventional: Honeydew Melon
Why it's clean: Honeydew may be washed in diluted chlorine during packing in order to ward off rot-inducing microbes. But—need we say it again?—you discard the rind before eating. See, you're an expert already.
Just remember that whether you opt for conventional or organic, you're better off eating more fruits and vegetables rather than less. And whatever produce you buy, wash or peel it before eating.
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>>> 14 foods you should never eat - Part 1 -
http://healthyliving.msn.com/nutrition/14-foods-you-should-never-eat#2
Swordfish
Philip Landrigan, MD, professor of pediatrics and professor and chair of preventive medicine at Mount Sinai School of Medicine
The Problem: One of Dr. Landrigan's No. 1 warnings to women pregnant or looking to become pregnant? "Make avoiding mercury in fish a priority," he says. Swordfish is notoriously high in the heavy metal, a potent neurotoxin that can damage developing children and even trigger heart attacks in adults. Aside from obvious health concerns, swordfish is often overfished and some of the gear commonly used to wrangle in swordfish often kills turtles, seabirds, and sharks.
The Solution: For a healthy omega-3 brain boost, look for fish that are low in contaminants and have stable populations, such as wild-caught Alaskan salmon, Atlantic mackerel, or pole- or troll-caught Pacific albacore tuna. Got a more adventurous palate? Try snakehead fish to satisfy your fish craving and improve the environment. The invasive species lives on land and water, where it wipes out important frogs, birds, and other critters. Snakehead fish is popping up on some restaurant menus, and the taste and texture is about identical to swordfish.
12 Fish You Should Never Eat
The Dirty Dozen
http://www.rodale.com/12-fish-you-should-never-eat?cm_mmc=MSN-_-14%20Foods%20You%20Should%20Never%20Eat-_-Slideshow-_-12%20fish%20you%20should%20never%20eat
Yes fish, no fish, red fish…OK fish? Our oceans have become so depleted of wild fish stocks, and so polluted with industrial contaminants, that trying to figure out the fish that are both safe and sustainable can make your head spin. "Good fish" lists can change year after year, because stocks rebound or get depleted every few years, but there are some fish that, no matter what, you can always decline. The nonprofit Food and Water Watch looked at all the varieties of fish out there, how they were harvested, how certain species are farmed, and levels of toxic contaminants like mercury or PCBs in the fish, as well as how heavily local fishermen relied upon fisheries for their economic survival. These are the 12 fish, they determined, that all of us should avoid, no matter what.
Imported Catfish
Why It's Bad: Nearly 90 percent of the catfish imported to the U.S. comes from Vietnam, where use of antibiotics that are banned in the U.S. is widespread. Furthermore, the two varieties of Vietnamese catfish sold in the U.S., Swai and Basa, aren't technically considered catfish by the federal government and therefore aren't held to the same inspection rules that other imported catfish are.
Eat This Instead: Stick with domestic, farm-raised catfish, advises Marianne Cufone, director of the Fish Program at Food & Water Watch. It's responsibly farmed and plentiful, making it one of the best fish you can eat. Or, try Asian carp, an invasive species with a similar taste to catfish that's out-competing wild catfish and endangering the Great Lakes ecosystem.
Caviar
Why It's Bad: Caviar from beluga and wild-caught sturgeon are susceptible to overfishing, according to the Food and Water Watch report, but the species are also being threatened by an increase in dam building that pollutes the water in which they live. All forms of caviar come from fish that take a long time to mature, which means that it takes a while for populations to rebound.
Eat This Instead: If you really love caviar, opt for fish eggs from American Lake Sturgeon or American Hackleback/Shovelnose Sturgeon caviar from the Mississippi River system.
Atlantic Cod
Why It's Bad: This one was difficult to add to the "dirty dozen list," says Cufone, because it is so vital to the economic health of New England fishermen. "However, chronic mismanagement by the National Marine Fisheries Service and low stock status made it very difficult to recommend," she says. Atlantic cod stocks collapsed in the mid-1990s and are in such disarray that the species is now listed as one step above endangered on the International Union for Conservation of Nature's Red List of Threatened Species.
Eat This Instead: The good news, if you love fish 'n' chips (which is nearly always made with cod), is that Pacific cod stocks are still strong and are one of Food and Water Watch's best fish picks.
American Eel
Why It's Bad: Also called yellow or silver eel, this fish, which frequently winds up in sushi dishes, made its way onto the list because it's highly contaminated with PCBs and mercury. The fisheries are also suffering from some pollution and overharvesting.
Eat This Instead: If you like the taste of eel, opt for Atlantic- or Pacific-caught squid instead.
Imported Shrimp
Why It's Bad: Imported shrimp actually holds the designation of being the dirtiest of the Dirty Dozen, says Cufone, and it's hard to avoid, as 90 percent of shrimp sold in the U.S. is imported. "Imported farmed shrimp comes with a whole bevy of contaminants: antibiotics, residues from chemicals used to clean pens, filth like mouse hair, rat hair, and pieces of insects," Cufone says. "And I didn't even mention things like E. coli that have been detected in imported shrimp." Part of this has to do with the fact that less than 2 percent of ALL imported seafood (shrimp, crab, catfish, or others) gets inspected before its sold, which is why it's that much more important to buy domestic seafood.
Eat This Instead: Look for domestic shrimp. Seventy percent of domestic shrimp comes from the Gulf of Mexico, which relies heavily on shrimp for economic reasons. Pink shrimp from Oregon are another good choice; the fisheries there are certified under the stringent Marine Stewardship Council guidelines.
Atlantic Flatfish
Why It's Bad: This group of fish includes flounder, sole, and halibut that are caught off the Atlantic coast. They found their way onto the list because of heavy contamination and overfishing that dates back to the 1800s. According to Food and Water Watch, populations of these fish are as low as 1 percent of what's necessary to be considered sustainable for long-term fishing.
Eat This Instead: Pacific halibut seems to be doing well, but the group also recommends replacing these fish with other mild-flavored white-fleshed fish, such as domestically farmed catfish or tilapia.
Atlantic Salmon (both wild-caught and farmed)
Why It's Bad: It's actually illegal to capture wild Atlantic salmon because the fish stocks are so low, and they're low, in part, because of farmed salmon. Salmon farming is very polluting: Thousands of fish are crammed into pens, which leads to the growth of diseases and parasites that require antibiotics and pesticides. Often, the fish escape and compete with native fish for food, leading to declines in native populations. Adding to our salmon woes, the U.S. Food and Drug Administration is moving forward with approving genetically engineered salmon to be sold, unlabeled, to unsuspecting seafood lovers. That salmon would be farmed off the coast of Panama, and it's unclear how it would be labeled. Currently, all fish labeled "Atlantic salmon" come from fish farms.
Eat This Instead: Opt for wild Alaskan salmon now, and in the event that GE salmon is officially approved.
Imported King Crab
Why It's Bad: The biggest problem with imported crab is that most of it comes from Russia, where limits on fish harvests aren't strongly enforced. But this crab also suffers from something of an identity crisis, says Cufone: "Imported king crab is often misnamed Alaskan king crab, because most people think that's name of the crab," she says, adding that she's often seen labels at supermarkets that say "Alaskan King Crab, Imported." Alaskan king crab is a completely separate animal, she says, and it's much more responsibly harvested than the imported stuff.
Eat This Instead: When you shop for king crab, whatever the label says, ask whether it comes from Alaska or if it's imported. Approximately 70 percent of the king crab sold in the U.S. is imported, so it's important to make that distinction and go domestic.
Shark
Why It's Bad: Problems associated with our eating too many sharks happen at all stages of the food chain, says Cufone. For one, these predatory fish are extremely high in mercury, which poses threats to humans. But ocean ecosystems suffer, too. "With fewer sharks around, the species they eat, like cownose rays and jellyfish, have increased in numbers," Cufone says. "And the rays are eating—and depleting—scallops and other fish." There are fewer of those fish in the oceans for us to eat, placing an economic strain on coastal communities that depend on those fisheries.
Eat this instead: Among the recommendations for shark alternatives are Pacific halibut and Atlantic mackerel.
Orange Roughy
Why It's Bad: In addition to having high levels of mercury, orange roughy can take between 20 and 40 years to reach full maturity and reproduces late in life, which makes it difficult for populations to recover from overfishing. Orange roughy has such a reputation for being overharvested that some large restaurant chains, including Red Lobster, refuse to serve it. However, it still pops up in grocer freezers, sometimes mislabeled as "sustainably harvested." There are no fisheries of orange roughy that are considered well-managed or are certified by the Marine Stewardship Council, so avoid any that you see.
Eat This Instead: Opt for yellow snapper or domestic catfish to get the same texture as orange roughy in your recipes.
Atlantic Bluefin Tuna
Why It's Bad: A recent analysis by The New York Times found that Atlantic bluefin tuna has the highest levels of mercury of any type of tuna. To top it off, bluefin tuna are severely overharvested, to the point of reaching near-extinction levels, and are considered "critically endangered" by the International Union for Conservation of Nature. Rather than trying to navigate the ever-changing recommendations for which tuna is best, consider giving it up altogether and switching to a healthy, flavorful alternative, such as Alaska wild-caught salmon.
Eat This Instead: If you really can't give up tuna, opt for American or Canadian (but not imported!) albacore tuna, which is caught while it's young and doesn't contain as high levels of mercury.
Chilean Sea Bass
Why It's Bad: Most Chilean sea bass sold in the U.S. comes from fishermen who have captured them illegally, although the U.S. Department of State says that illegal harvesting of the fish has declined in recent years. Nevertheless, fish stocks are in such bad shape that the nonprofit Greenpeace estimates that, unless people stop eating this fish, the entire species could be commercially extinct within five years. Food and Water Watch's guide notes that these fish are high in mercury, as well.
Eat This Instead: These fish are very popular and considered a delicacy, but you can get the same texture and feel with U.S. hook-and-line–caught haddock.
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Yum Brands -- >>> Yum! Brands Still Has Indigestion, But Investors Have An Opportunity
February 07, 2013
http://www.investopedia.com/stock-analysis/2013/yum-brands-still-has-indigestion-but-investors-have-an-opportunity-yum-mcd-sbux-mkc0207.aspx?partner=YahooSA#axzz2KEvFdDgb
Yum! Brands (NYSE:YUM) has stumbled into a perfect storm in China. Concerns about contaminated chicken at what is still a relatively expensive dining option have sent Chinese same-store sales plunging, robbing the company of its primary growth driver. The company has reset expectations significantly lower for 2013, and now the question is just how quickly (and perhaps "if") the company can put this stumble behind it. In the meantime, investors are looking at the nearest thing to a bargain in the shares as they are likely to see.
Troubles in China Outweigh Progress Elsewhere
China dominates the story at Yum! Brands, so whatever positives there were for the company in other reasons is largely moot. What's more, all of that is likely to be overshadowed by bracing guidance for the year.
Reported revenue rose 1% as reported this quarter, with system sales rising 5% on an adjusted basis. Adjusted system sales in China were up 20%, up 7% in the Yum! Restaurants International (YRI) segment and up 5% in the United States. As the company previously provided updated information on comps, there weren't many surprises here - China was down 6% (against 21% growth last year), YRI was up 3% (up 3% last year) and the U.S. was up 3% (versus 1%), as 5% growth at Taco Bell and 4% growth at KFC offset a 1% decline at Pizza Hut.
One of the biggest risks to YUM's quarters now is deleverage tied to lower Chinese sales, and that started showing up this quarter. While company-reported gross margin was flat and adjusted operating income was up more than 5%, the company-wide restaurant margin improved only 10 basis points. U.S. restaurant margins improved more than three points and YRI margins improved more than two points, but the restaurant margin in China dropped nearly two points and went from the company leader to the company laggard.
Guidance Was Startling but Probably Pragmatic
To its credit, management at Yum! Brands doesn't seem to be trying to wave off the issues at the Chinese KFC stores. Management not only guided Chinese same-store sales down a shocking 25% in the first quarter, but also guided for full-year earnings per share to decline by a mid-single digit percentage - breaking a long streak of double-digit growth.
The question is now both whether management has fully captured the magnitude of the risk to sales and margins, and how quickly the business can turn around. To be sure, these are not easy times in China. Neither McDonald's (NYSE:MCD) nor Starbucks (Nasdaq:SBUX) has YUM's problem in China, but neither has exactly been planning parades for their near-term growth expectations in the country. Even seasoning manufacturer McCormick (NYSE:MKC) has noticed an impact from this decline in quick service restaurant (QSR) traffic (and Yum! Brands is a significant customer).
SEE: Can Earnings Guidance Accurately Predict The Future?
With the Chinese economy still looking wobbly and KFC representing something of a luxury/splurge option, Yum! Brands could have its work cut out repairing the damage to store traffic in 2013. Looking at the situation on a longer term basis, it's easier to be calmer about the situation. Yum! Brands didn't succeed because it was the only American-style dining option in China and people will eventually return to the stores. What's more, India (and to a lesser extent, Indonesia) still represents a "China, Part Two" growth opportunity - sales were up 16% this quarter, and the company has years of aggressive store expansion in its future.
The Bottom Line
Investors looking at Yum! Brands today need to be aware of the risk that sales and margins in China could fall even further and/or recover more slowly than expected. That isn't likely to matter much to investors with a truly long-term focus, but Yum! Brands has long carried a premium valuation due to its consistent above-average growth, and that multiple could be vulnerable if the next couple of quarters disappoint.
I believe that Yum! Brands can continue to grow its revenue at a long-term rate in the mid-single digits. At the same time, I believe good store-level and system-wide operating leverage can lead to better margins and free cash flow generation down the line. That points toward low teens free cash flow growth and a fair value in the low $70s.
Yum! Brands clearly carries the risk that the situation will get worse before it gets better, but that's what it takes to get a previously bulletproof stock at any sort of real discount. Patient investors may want to consider taking a position here, but this isn't likely to be an easy stock to own for a few quarters.
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Church & Dwight -- >>> Church & Dwight 4Q US sales boom
Church & Dwight tops revenue expectations, with domestic sales jumping
Feb 5, 2013
http://finance.yahoo.com/news/church-dwight-4q-us-sales-161223885.html
EWING, N.J. (AP) -- Church & Dwight's fourth-quarter net income jumped 27 percent, driven by strong sales of Arm & Hammer and other consumer products in the U.S. offset weaker demand overseas.
The company, which makes everything from toothbrushes and baking powder, to cat litter and condoms, now foresees 2013 earnings at the high end of its prior guidance.
Church & Dwight earned $80.8 million, or 57 cents per share, for the period ended Dec. 31. That's up from $63.8 million, or 44 cents per share, a year ago.
Profits matched Wall Street expectations, but revenue rose 11 percent, to $809.7 million, and beat forecasts by most analysts, according to a poll by FactSet. Analysts had been looking for $803.4 million in revenue.
Church & Dwight Co. said its consumer domestic revenue rose 17.3 percent in the quarter, buoyed by better sales of Arm & Hammer liquid laundry detergent, cat litter and toothbrushes, as well as its Trojan products.
Revenue for consumer products overseas fell 6 percent mostly because of a change in the fiscal calendar for some subsidiaries in the prior-year period.
Specialty product revenue declined 3.8 percent.
Full-year net income climbed 13 percent to $349.8 million, or $2.45 per share, from $309.6 million, or $2.12 per share, in the previous year.
Annual revenue increased 6 percent to $2.92 billion from $2.75 billion.
Church & Dwight now anticipates 2013 earnings of $2.79 per share, which is the top of its prior outlook of earnings between $2.74 and $2.79.
Analysts expect full-year earnings of $2.80 per share.
The company expects first-quarter earnings to climb about 8 percent. Based on the year-ago period's earnings of 66 cents per share, this implies earnings of about 71 cents per share.
Wall Street predicts first-quarter earnings of 73 per share.
Company shares rose 35 cents to $58.75 in morning trading.
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>>> Church & Dwight says board increased dividend 17% on January 30
http://finance.yahoo.com/news/church-dwight-says-boar-dincreased-120337389.html
On January 30, the Company’s Board of Directors declared a 17% increase in the regular quarterly dividend from 24c to 28c, equivalent to an annual dividend of $1.12 or a current dividend yield of approximately 2.0% per share. The quarterly dividend will be payable March 1, 2013 to stockholders of record at the close of business on February 15, 2013.
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J+J Snack Foods -- >>> J&J Outperforms in 1Q13
By Zacks Equity Research
Jan 29, 2013
http://finance.yahoo.com/news/j-j-outperforms-1q13-134847409.html
J&J Snack Foods Corp. (JJSF), a food processing company,reported strong fiscal first-quarter 2013 (ending Dec 29, 2012) financial results. Both the earnings as well as revenue surpassed the Zacks Consensus Estimate by a huge margin.
The company reported first quarter earnings per share of 54 cents, 22.7% higher than the Zacks Consensus Estimate of 44 cents. The quarterly earnings improved 86.2% from the year-ago earnings of 29 cents a share,
Revenue
Revenue increased 10.8% year over year to $191.4 million in the reported quarter. It also surpassed the Zacks Consensus Estimate of $185.0 million by 3.5%, due to improvement in foodservice and frozen beverage businesses.
Sales in the Food Service segment increased 15.1% year over year to $130.2 million, led by improvement in soft pretzels, churros and bakery product sales.
Sales in the Retail Supermarkets segment remained almost flat year over year at $20.7 million in the reported quarter, led by soft pretzel and handhelds sales.
Frozen Beverages segment revenue increased 4.5% year-over year increase to $40.5 million, boosted by beverages as well as machine sales.
Costs/Margin
During the reported quarter, cost of goods sold edged up 8.7% from the year-ago quarter to settle at $137.3 million. Gross profit margin inched up 141 basis points from the year-ago quarter, to 28.3%, led by higher volume in the foodservice business.
Total operating expenses for 1Q13 came in at $39.1 million, an increase of 3.0% year over year. However, the operating profit margin dropped by 4 basis points to 4.86%.
Balance Sheet/Cash Flow Statement
J&J’s cash and cash equivalents at the end of first quarter were approximately $80.2 million, representing a decrease of 48.0% from the previous quarter. Total debt decreased 19.0% sequentially to $281 million as of Dec 29, 2012.
Total capital expenditure incurred for the quarter amounted to $7.5 million against $8.9 million in the year-ago quarter. Net operating cash flow experienced a decline of 16.5%, to settle at $17.3 million.
The company is a manufacturer of nutritional snack foods and frozen beverages. The stock currently bears a Zacks Rank #3 (Hold). Other stocks worth a look in the industry are ConAgra Foods Inc. (CAG), H. J. Heinz Company (HNZ) and Campbell Soup Co. (CPB); each holding a Zacks Rank #2 (Buy).
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Flowers Foods -- >>> Go With the FLO and its Wonder-Full News
By Marc Courtenay
1/14/13
http://www.thestreet.com/story/11812407/1/go-with-the-flo-and-its-wonder-full-news.html?puc=yahoo&cm_ven=YAHOO
NEW YORK (TheStreet) -- Everyone I speak with, whether they eat junk food or they hate it, has heard about the bankruptcy of Hostess Foods. The infamous maker of Ding-Dongs, Twinkies and Devil Dogs is parsing itself out to the highest bidder.
When it comes to its equally famous Wonder Bread, Nature's Pride and Merita bread brands, they've found a buyer who offered to pony up a huge amount of monetary "bread." Flower Foods(FLO_), the Thomasville, GA-based food company with some famous names of its own, bid $390 million for Hostess' prize bread names.
FLO, with a current market cap of $3.43 billion, produces and markets bakery products throughout the U.S. It operates in two segments; direct store delivery and warehouse delivery. When you look at these two divisions you'll better understand how it generated $21.68-per-share ($2.95 billion) in revenue during the trailing-12-months ending Oct.6.
The DSD segment produces fresh bakery foods, including fresh breads, buns, rolls, tortillas, snack cakes, pastries, pies, brownies, cupcakes, sandwich rounds, sandwich rolls and hot dog rolls and thin sliced bagels, as well as chocolate bells and muffins. Yet it's FLO's brand names that ring the cash registers.
These include Nature's Own, White-Wheat, Cobblestone Mill, Tastykake, Blue Bird, Butter Krust, Dandee, Mary Jane, Mary Jane and Friends, Evangeline Maid, Captain John Derst, Country Hearth, Natural Grain, Flowers Foods, Mi Casa and Frestillas brands. FLO also markets regional franchised brands such as Sunbeam, Roman Meal, Bunny, Holsum and Aunt Hattie's. Oh, the childhood memories!
Let's take a look at how the shares of FLO have performed pricewise on the following one-year chart. When we also look at the trailing year-over-year diluted quarterly earnings-per-share, one can't help but wonder if the market is anticipating big EPS gains when FLO reports on Feb. 7. FLO data by YCharts
Flower Foods has done an impressive job of growing both organically and through well-timed, reasonably priced acquisitions. No wonder the return-on-equity (TTM) is over 14% and its operating cash flow is nearly $222 million.
OK, I can't resist the following pun: All the good news is already "baked into" the share price. FLO has a great deal of debt -- $604 million as of the last quarter -- and with the purchase of the Hostess bread brands that debt will be soar to almost $1 billion!
Yes, it has been paying a sweet dividend with a yield-to-price currently of nearly 2.39%. But that dividend equals a payout ratio of 70%, which in the food and bakery business is dauntingly high and perhaps unsustainable. Now with the news on the Hostess deal shares spiked 8% on Monday the 14th.
Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
No wonder insiders and beneficial owners (5% owners) who collectively hold 12% of FLO's outstanding shares have been slowly selling as the stock's price has been ascending. Director Amos R. McMullian's reported holdings alone, as of Dec. 5, were close to an impressive 2.435 million shares.
CEO George Deese, whose annual compensation is a comfortable $1.54 million, owns nearly 1,337,000 shares. At the current share price approaching $27, that's over $36,000,000 worth of commitment. It should be pointed out that insiders aren't selling large amounts, just a little at a time.
Perhaps that's because with the good news about the Hostess acquisitions (which generated just under $1 billion in sales last year), Flower Foods is on the verge of a big year ahead in revenue, operating income and EPS. Added to the $3 billion in FLO's current annual sales and the aroma of fresh-baked loaves of bread also includes the scent of much-needed cash flow.
So my take on FLO is if you'd like to join McMullian and Deese as shareholders, it might be prudent to cool your heels for awhile. The stock price appears to have gotten ahead of itself from a technical as well as a fundamental perspective.
With a forward (one-year) price-to-earnings ratio of 21 and a price-to-earnings-to-growth ratio of a lofty 2.87, I'd wait till the stock settles back to $23 or below before I'd be a buyer. Since FLO is planning to finance the deal with Hostess, investors are wise to remember how that adds to the company's total debt load.
At the very least, study the company, watch the news and press releases from Flower Foods, and resolve to buy the dips and to not overpay. If you own the stock consider a tighter trailing stop alert to preserve your gains.
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Latin American Beverage Stocks
>>> JPMorgan Likes Latin American Beverage Stocks
By Ben Levisohn
Jan 11, 2013
http://blogs.barrons.com/emergingmarketsdaily/2013/01/11/jpmorgan-likes-latin-american-beverage-stocks/?mod=yahoobarrons
JPMorgan released a note on Latin American staples on Dec. 10– and the company is particularly bullish on beverage stocks.
Lynn Bo Bo/European Pressphoto AgencyBeverage stocks should continue growing earnings at a double-digit clip, analysts Alan Alanis and Sambuddha Ray say, and their high valuations can be sustained if the good news continues.
They’re particularly bullish on Companhia de Bebidas Das Americas (ABV) , known as AMBEV. Not only do they see earnings growing, they also believe there’s a good chance the company will raise its dividend. The analysts set a 2013 price target of 97 reais on the stock, up 11% from today’s 87.28, and rate the stock and overweight.
Compania Cervecerias Unidas S.A. (CCU), meanwhile, should benefit from easy comparisons–so operating performance should “improve significantly in 2013.” JPMorgan set a 2013 price target of $36 on the stock, up 14K% from today’s $31.58.
Fomento Económico Mexican (FMX), or FEMSA, will benefit from its exposure to Mexican retailer Oxx0, which is trading at a discount to other Mexican–despite having stronger growth and better margins. JPMorgan set a 2013 price target of $110 on the stock, up 3.9% from today’s $105.86.
Coca-Cola Femsa (KOF), a Coca-Cola Co. (KO) bottler, concerns JPMorgan because of its extreme valuation–it currently trades at a PE multiple of 24.6, according to Morningtsar. The analysts set a 2013 price target of $158 on the stock, up 1.4% from today’s $155.83.
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Reeds -- >>> Reed's: New Age In Soft Drinks
January 14, 2013
by: Growth Stock Insider
http://seekingalpha.com/article/1111081-reed-s-new-age-in-soft-drinks?source=yahoo
Reed's (REED) is a leading producer of natural sodas for health conscious consumers. The company has built up a loyal following for its non-alcoholic Ginger Brews, which are brewed instead of being manufactured and are based on recipes that pre-date commercial soft drinks. Reed's also sells a line of natural root beer and natural cola through the same distribution channels. Those outlets are predominantly specialty gourmet and natural food stores like Whole Food Markets (WFM), Trader Joe's, and Sprouts. They additionally include mainstream supermarkets, retailers and restaurants. Organic growth is being maintained in the 10%-15% range as more consumers become familiar with the products. Total sales are expanding more rapidly as a result of the recent introduction of private label products for Whole Foods and other health food oriented supermarkets. Those are original recipes that Reed's invented to provide those stores with their own brewed offerings. They don't compete directly with the company's own line. That segment is gaining momentum as more products are introduced and existing customers expand the number of stores that carry them.
A new product offers huge potential. Kombucha is a fermented tea based drink that originally was developed 100 years ago in Russia and Germany. Despite evidence that suggested it provided a range of health benefits kombucha didn't gain popularity until the 1990s. A privately owned company, GT Dave, created the U.S. market with a social media marketing program that emphasized those health benefits. The primary topic was cancer prevention. Other claims included liver detoxification, arthritis prevention, high levels of antioxidants, and probiotic benefits. Ronald Reagan used kombucha to fight his cancer starting in 1987 and lived until 2004. He got the tip from Alexander Solzhenitsyn, who used it to battle his stomach cancer.
Kombucha has grown into a $300 million (retail) industry in the United States. GT Dave still controls 80%-90% of the market, perhaps more. Other drinks manufacturers have tried to enter the lucrative business but have had difficulty making the product correctly. Reed's appears to have solved the riddle, at least in small quantities. In June 2012 the company announced the introduction of four flavors. The official launch started in November. Production currently is limited by capacity constraints. Larger vats are slated for operation during the first half of 2013. Reed's additionally plans to add four more flavors during the first quarter. Distribution is ramping up at a brisk pace, although initial deliveries are relatively small and most of that will be sold at promotional pricing. The retail channel is anxious for Reed's to be successful in lifting output and providing an alternative to DL Dave's offering. The theory is that with two strong contenders the kombucha category will expand and become a mainstream product.
Our estimates assume Reed's is successful at expanding kombucha production. We also think the company's traditional drinks and private label brands will continue growing at their current rate. Start-up costs are likely to exert a drag on income, though. And while the manufacturing expansion will raise volume we estimate the kombucha line will grow in fits and starts as the technology is fine tuned. We estimate 2013 income (fully taxed) will advance to $.10 a share on sales of $40 million.
Once the scaling up is complete results could skyrocket. In 2-3 years sales could reach $75-$100 million to produce earnings of $.55-$.75 a share. Cash flow will be stronger than that due to the availability of extensive tax loss carryforwards. Reed's carries a fairly high debt load, so downside risk could be high in the event the kombucha line fails to develop. Losses could be substantial if problems arise, potentially requiring dilutive financing. If things pan out worthwhile appreciation could be realized. Applying a P/E multiple of 20x to the midpoint of our projected earnings range suggests a target price of $15 a share (+165%). Reed's could obtain an even higher valuation as an acquisition candidate. A large buyer theoretically could enhance margins and expand distribution.
These shares entail a higher than normal degree of risk - Limits are advised. Conservative investors are advised to wait either for a lower stock price or more evidence that the kombucha launch will prove successful. <<<
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Food and Beverage stock list -
FOOD -
************
Brazil Foods (BRFS) - Food products (Brazil) (18 Bil)
ConAgra (CAG) - Food products (12 Bil)
Flowers Foods (FLO) - Packaged bakery products (3.5 Bil)
Harris Teeter (HTSI) - Grocery stores (2 Bil)
Heinz (HNZ) - Food products (18 Bil)
Hormel Foods (HRL) - Meat and food products (7 Bil)
J+J Snack Foods (JJSF) - Snack foods (1.2 Bil)
Kraft (MDLZ) - Food products (47 Bil)
McCormick (MKC) - Food flavorings (6 Bil)
McDonalds (MCD) - Fast food restaurants (90 Bil)
Nestle (NSRGY.PK) - Food products (Switzerland) (209 Bil)
Panera Bread (PNRA) - Bakery / cafes (4.8 Bil)
Sensient (SXT) - Colors, flavors, and fragrances (1.8 Bil)
Smucker (SJM) - Food products (8 Bil)
Treehouse Foods (THS) - Packaged foods (2 Bil)
Yum Brands (YUM) - Fast food restaurants (30 Bil)
BEVERAGE -
*******************
Ambev (ABV) - Beverages (Brazil) (132 Bil)
Anheuser-Busch InBev (BUD) - Beverages (131 Bil) (Belgium)
Boston Beer (SAM) - Beer (1.8 Bil)
Brown Forman (BF-B) - Distiller (13 Bil)
Diageo (DEO) - Alcoholic beverages (UK) (73 Bil)
Caribou Coffee (CBOU) - Coffeehouses (328 mil)
Compania Cervecerías Unidas (CCU) - Beverages (Chile) (4.2 Bil)
Coca Cola Femsa (KOF) - Coca Cola brand beverages (Mexico)
Craft Brewers (BREW) - Craft beer (128 mil)
Fomex (FMX) - Beverages (Mexico) (30 Bil)
Monster Beverage (MNST) - Beverages (9 Bil)
National Beverage (FIZZ) - Beverages (682 mil)
Reeds (REED) - Natural beverages (78 mil)
SABMiller (SBMRF.PK) - Beverages (UK) (74 Bil)
Reeds -- >>> Reed's Inc. Moves to the New York Stock Exchange
Press Release: Reed's, Inc
Dec 19, 2012
http://finance.yahoo.com/news/reeds-inc-moves-york-stock-133000761.html
LOS ANGELES, CA--(Marketwire - Dec 19, 2012) - Reed's Inc. ( NASDAQ : REED ), maker of the top-selling sodas in natural food stores nationwide announced today the pending transfer of the listing of its common stock from the NASDAQ Global Market ("NASDAQ") to the NYSE Euronext's NYSE MKT ("NYSE MKT"). The Company expects to begin trading on the NYSE MKT on January 2, 2013. The Company's common stock will continue to trade under the ticker symbol "REED."
"It such an exciting milestone to be accepted to the most prestigious stock exchange," said Christopher Reed, Founder and Chief Executive Officer. "With this move to NYSE MKT we will be joining ranks with some of the most highly recognized food, beverage and consumer packaged goods companies in the world. We feel that transferring the listing of our common stock to NYSE MKT will result in heightened awareness throughout the financial community and capital markets, while improving our liquidity."
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
For more information about Reed's, please visit the Company's website at: http://www.reedsinc.com or call 800-99-REEDS.
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Reeds -- >>> Reed's Inc. Expands National Presence of New Culture Club Kombucha
Press Release: Reed's, Inc.
Dec 12, 2012
http://finance.yahoo.com/news/reeds-inc-expands-national-presence-133000552.html
LOS ANGELES, CA--(Marketwire - Dec 12, 2012) - Reed's, Inc. ( NASDAQ : REED ), maker of the top-selling sodas in natural food stores nationwide, is delivering successful distribution results with the rollout of Culture Club Kombucha into the $609 million+ Functional Juice & Kombucha Beverage category.
Our initial strategy was to launch on the west coast only and gain consumer, distributor and retailer response. Due to overwhelming positive feedback, we have now entered into distribution centers throughout the country, including United Natural Foods and their twelve distribution centers, Kehe Natural Food Distributors and Nature's Best Distribution. Additionally, the Culture Club Kombucha launch has sparked interest with new specialty distributors and existing DSD network distribution. This successful national rollout to date has resulted in placement in over 1,200 natural food stores with momentum just starting to build. Initial chain authorizations include select Whole Foods regions throughout the US, Fairway Market, The Fresh Market, Lassen's, Earth Fare, and Bristol Farms, with many more announcements to follow.
Chris Reed, founder and CEO, states, "The launch of our new Culture Club Kombucha has exceeded our expectations. According to recent syndicated data, the functional juices and Kombucha category has surpassed $609 million and is the fastest growing category at +35% retail dollar growth. In our early store-by-store analysis, we are finding that our four Kombucha flavors are tracking to outsell our top four Reed's and Virgil's SKUs. Consumer and retailer feedback has been extremely positive to date and we intend to capitalize on the feedback and the opportunity to build Culture Club Kombucha into a national, dominant player within this fast-expanding category."
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line.
Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
For more information about Reed's, please visit the Company's website at: http://www.reedsinc.com or call 800-99-REEDS.
Follow Reed's on Twitter at http://twitter.com/reedsgingerbrew
Reed's Facebook Fan Page at https://www.facebook.com/ReedsGingerBrew
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Annie's (BNNY) -- >>> Insiders Are Selling Shares of This Company, Should You?
By Adam Levy
November 13, 2012
http://beta.fool.com/adamlevy/2012/11/13/insiders-are-selling-shares-of-this-company-should/16302/?ticker=BNNY&source=eogyholnk0000001
In the six months after Annie’s (NYSE: BNNY) IPO the stock price ballooned over 150% to nearly $50 per share from its initial price of $19. A missed earnings report and overall correction brought the share price back down to the $40 range, but the stock is still up over 100% since the IPO.
At these high valuation levels, many insiders at Annie’s have chosen to exercise options and sell shares. Year to date, insiders have dumped in excess of $200 million of shares into the market. Obviously, this is not a good sign for investors.
Let The Selling Begin!
In July, Credit Suisse and JPMorgan waived the original 180 day post-IPO lock-up on shares held by Annie’s insiders. This allowed Annie’s to offer a secondary share sale in which insiders sold an additional 3.2 million shares to the public. Founder, Ann E. Withey, took advantage of the truncated lock-up period to sell 42.8% of her shares in July 31 for $3.3 million.
More recently, Sarah Bird, Senior Vice President of Marketing, sold 28,506 shares, 96% of her holdings on November 1. Additionally, Mark Mortimer, Senior VP of Sales, and Lawrence Waldman, Senior VP of Supply Chain and Operations, each sold 100% of their shares on November 1 as well.
Just five days later, Waldman took advantage of his generous options. He exercised his 10,000 options with a strike price of $8.88 and immediately sold the shares to the public for $40.10. The transaction netted him a profit of over $300,000.
With so many members of the Annie’s management team dumping shares, it’s hard to believe they have stockholders’ interests in mind. If insiders believe it’s a good time to sell at $40 a share, maybe public investors should as well.
Why Are They Selling?
In its most recent earnings report, Annie’s recorded a 20.1% increase in net sales year-over-year with $46.7 million in revenue. The increase in sales resulted in a gross profit of $17.9 million, an increase of 26.6% over the year ago period. Gross margin improved 190 basis points to 38.3%, however, the operating margin fell 200 basis points as a result of a 400 basis point increase in SG&A costs as a percentage of revenue.
The company is growing sales, but its margins are falling. This is a worrisome sign. Most companies improve margins with growing sales. Sales are likely getting a boost from the rapidly expanding natural and organic foods segment and the rollout of new products. Sales of initial stockings for new stores and new products may be masking weakness in the company’s product line.
There are a couple areas of glaring weakness. Annie’s recently discontinued its cereal product line because it couldn’t compete against Kellogg’s Kashi brand and other big cereal makers. Additionally, growth in the company’s dressings and condiments line is stagnating, contributing just 12% to total sales in the most recent quarter. In comparison, the dressings and condiments category made up 17% of revenues in the 2012 fiscal year.
Valuation
At $40 price levels, Annie’s appears to be over-valued. The company currently trades for 4.3 times net sales, 29 times adjusted EBITDA, and a P/E of 69.4 over the last twelve months. Looking forward, the company trades at 46.9 times estimated earnings for the 2013 fiscal year, and 37.3 times 2014 estimates.
The closest comparables I could find are Hain Celestial (NASDAQ: HAIN) and Whole Foods Market (NASDAQ: WFM). Both of these companies are big names in the rapidly growing health foods business. While not perfect comparables, Hain is another food manufacturer with a focus on healthy eating, and Whole Foods is the largest grocery chain specializing in natural and organic foods and just so happens to stock Annie’s products.
Hain Celestial and Whole Foods typically trade between 25 and 30 times forward earnings. Moreover, the stocks price at around 14 times forward EBITDA. So, Annie’s looks overpriced by 60% to 100%. It should be noted, both companies are substantially larger and better capitalized than Annie’s indicating the company is further over-valued.
Looking at the company’s balance sheet, I see a glaring issue. Goodwill, which totals in excess of $30 million, accounts for over 35% of the company’s total assets. Goodwill is an intangible asset that is periodically reviewed and adjusted in value. Writing down the value of its goodwill may have a significant impact on Annie’s balance sheet in the future.
I can understand why a lot of insiders are ringing the register on their own company’s stock at this price. Annie’s appears entirely overvalued on a pure earnings basis. Additionally, weakening margins while sales grow is quite atypical in the industry, and a warning sign that sales will slow down sooner rather than later. The company’s balance sheet is a bit out of sorts, with a huge portion of their assets in intangible goodwill. Overall, if you got in early, congratulations, you doubled your money, but if you don’t get out soon, you may see all your profits get eaten up.
Eat Up, Investors
It's hard to believe that a grocery store could book investors more than 30-times their initial investment, but that's just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic foods powerhouse.
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Green Mtn Coffee, Herbalife -- >>> 2 Einhorn Shorts to Short
By David Gould
November 30, 2012
http://beta.fool.com/takeoveranalyst/2012/11/30/2-einhorn-shorts-short/17727/?ticker=GMCR&source=eogyholnk0000001
Value investor David Einhorn has been successful targeting entrenched management before and shaking up the status quo to unlock value. However, of late, he has targeted the wrong companies--those that have succeeded despite challenging macro conditions. His short theses have crashed company valuations in the past, sometimes from speculation alone. While these attacks have netted Einhorn millions, it has opened up the opportunity for you to create wealth through just the opposite approach. Below, I review two companies that he wrongly targeted.
Green Mountain Coffee Roaster (NASDAQ: GMCR)
This well known Einhorn short fell from a high of $110 to a local low of around $17.50. It has since recovered to $25.15 but, in my view, remains incredibly undervalued. First, the company is cheap probably by anyone's standards on a multiples basis. It trades at a respective 11.7x and 10.1x past and forward earnings with a PEG ratio of 0.67. Second, it has delivered 75.4% annual EPS growth over the past five years. By contrast, competitor Starbucks (NASDAQ: SBUX), which trades at 28.9x past earnings, has only grown EPS by a rate of 5.4% during the same time. While the analysts continue to expect GMCR to outperform by around 200 bps more per year, this is not nearly optimistic enough for several reasons.
First, Starbucks has made a name for itself by saturating the market. The question that naturally follows but seems to not be asked is: How much penetration potential is left? Whereas Starbucks has few growth opportunities, as I see it, in the specialty coffee market, it has plenty of headwinds. The entrance of McDonald's in the grocery coffee market will pose a secular margin pressure on Starbucks in its attempt to stay, or even elevate, demand for higher-price coffee. GMCR, however, is just getting started in penetrating new markets. I thus strongly encourage buying GMCR over Starbucks. It should not be surprising then that GMCR has outperformed expectations by a higher average amount (36.3% vs. 2.4%) compared to its competitor.
Going forward, I anticipate strong returns for GMCR. The company recently made a deal with Costco that will help the company increase leverage towards a recovering economy. In the deal, Costco will carry single-serve coffee pods for the Keurig brewing system with a goal to sell the items by December. Shorts are starting to cover while people are becoming more encouraged about the single-serve market allowing for multiple competitors.
Herbalife (NYSE: HLF)
Herbalife is perhaps the most famous Einhorn short in recent months. In the company's earnings call, the well known short seller suggested that the company could be running an illegal pyramid scheme. While the company has recovered from the bear attack, it still remains incredibly undervalued and underestimated. In regard to the pyramid scheme allegation, Lieberman Research has shown that one-twentieth of US households have consumed a Herbalife product in the last three months, and that 90% of those individuals came outside of the distribution network. In order for a company to be getting most of its sales outside the distribution network, it requires, well, real products.
Fortunately, the MLM seller has consistently outperformed expectations over the last five quarters by an average beat of 11.7%. Assuming the company merely meets growth expectations (which I find overly bearish), 2016 EPS will come out to $4.40. At a multiple of 15x, this translates to a future stock value of $66. Discounting backwards by 10% yields a present value of around $41--considerably above the $25.27 current market assessment.
It should be noted how far off the company is from analyst price targets. While Argus recently downgraded the stock from a "buy" to a "hold," Longbow upgraded to a "buy" with a $130 price target. You read that correctly: a price target more than quintuple the current trading price. If the company's strong growth curve and low multiples weren't enough to compel an investment then this should be.
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Diamond Foods -- >>> Can This Company Turn Itself Around?
By Jacob Roche
November 21, 2012
http://www.fool.com/investing/general/2012/11/21/can-this-company-turn-itself-around.aspx
Recently, I made a confession about my ill-conceived bet on Diamond Foods (Nasdaq: DMND ) . I used call options to make a short-term bet that the company would manage to release two years' worth of earnings restatements before the Securities and Exchange Commission's Dec. 7 deadline. Diamond did release the restatements last Wednesday, but the stock didn't respond the way I'd hoped, instead plunging more than 30% and leaving me with little recourse.
But as I think about this company as an investor instead of a gambler, I'm finding there might still be an opportunity for those with a strong stomach.
First, the bad news
While the audit committee decided that there wasn't sufficient evidence of outright fraud, it did find that the accounting methods for payments to walnut growers were, at best, disorganized. Payments that should have been made were pushed into later periods, causing confusion in the company as to what expenses were for a given period, and confusion among the growers as to when they would be paid and for which crop shipment.
Thus, the major impact of the audit was to revise gross margins downward, from 23.7% to 21.2% in 2010 and from 26% to 22.4% in 2011. That might not sound like a big difference, but small changes to gross profits can have a big impact on net profits. Things have only gotten worse in 2012. Diamond has so far released financials for only the first three quarters, up through April of this year, but it offered full-year gross margin guidance of 18% to 18.5%.
The primary reason for the steep drop this year was that the company received sharply lower walnut shipments but still had to pay the usual fixed operational costs. And the primary reason for the lower walnut shipments is, you guessed it, the damage the walnut accounting scandal did to the company's brand. Essentially, walnut growers are wary of selling to the company, and it will need to regain their trust to move forward.
It is disastrous for a company to lose the trust of its suppliers, and one of the surest ways to win it back is by bringing in a new management team. Unfortunately, the name of one new manager may sound familiar -- that of CEO Brian Driscoll. He has more than 30 years of experience holding important positions at some of the top food companies in the world, but most recently he was CEO of Hostess Brands. Yes, that Hostess.
Now, granted, Driscoll headed Hostess only from June 2010 to March 2012, and Hostess has been in and out of bankruptcy since 2004, so the blame for its recent liquidation can't be placed solely at Driscoll's feet. However, his departure from Hostess was less than ideal, as he was essentially forced out by the workers' union, who believed they couldn't negotiate with him after the board of directors tripled his salary.
Now the good news
Let's be blunt -- Diamond's margins are terrible. For comparison, the Frito-Lay division of PepsiCo (NYSE: PEP ) commanded about a 28% operating margin in 2011. The grocery segment of the newly independent Kraft (Nasdaq: KRFT ) carried a nearly 29% operating margin. Kellogg (NYSE: K ) , which became the world's second-largest snack company after buying Pringles in the wake of Diamond's failed attempt, managed only about 15% -- much lower than its competitors and still three times as high as Diamond.
This is strange. For all Diamond's troubles, its brands are absolute powerhouses. Kettle, Pop Secret, and Emerald all command significant market share in their respective categories. Kettle essentially created the kettle-cooked-chip category, and Diamond's culinary nuts brand has double the market share of its nearest competitor.
The new team understands that there is significant room for margins to grow. A major factor will involve reduced promotional selling, especially for its premium Kettle brand. Kettle has a certain status as a healthier potato chip, a status Diamond can exploit with higher prices. Meanwhile, Diamond also has cost-saving initiatives in the works. The company is cutting 170 Emerald products, which represent 65% of the brand's products but only 20% of its revenue. This will be a blow to sales, but increased operating efficiencies will more than make up for it. Diamond will also consolidate operations into one of its two manufacturing plants, further cutting costs by closing the other.
As for the new management team, aside from Driscoll, Diamond appointed Mark Hair, a veteran forensic accountant, as senior vice president of finance, a good step toward reforming the company's accounting practices. It also appointed five new directors to the board, including one of the company's biggest walnut growers, hopefully giving Diamond more of an edge in regaining growers' trust.
The Foolish bottom line
Obviously, Diamond has been through a lot. Even without the scandal, the company has been on the decline for a few years, and its reputation is tarnished. Management even admitted last week that things are likely to get worse before they get better.
But the turnaround initiatives they've proposed seem like good ideas, and there's no denying that the stock has been hit hard, putting it far below book value and raising the possibility that a larger company will buy the company out just to get its brands. I wouldn't exactly recommend buying shares, but definitely add this stock to My Watchlist to keep an eye on things.
In the meantime, Diamond is hardly the only snack company with a powerful brand portfolio. Kraft Foods Group is entering a new era after its recent corporate breakup. Its brand power is indisputable and its market share dominates, but Kraft's growth potential is limited, and its heavily commoditized categories face massive pressures. In The Motley Fool's brand-new premium report on the company, we guide you through everything you need to know about Kraft, including the key opportunities and threats facing the company.
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Yum Brands -- >>> Heartburn And Heartache Ahead: Sour Taste For Yum After Growth Worries
Forbes
Nov 30, 2012
http://www.forbes.com/sites/abrambrown/2012/11/30/heartburn-and-heartache-ahead-for-yum-sour-taste-for-stock-after-growth-worries/?partner=yahootix
Yum! Brands‘ consistent growth and expansion into China have made the stock a tasty delight. Investors today, though, are likely left with a sour taste after the company warned about a slowdown in Asia. Increased wariness—and some profit taking—seems rightly warranted.
Yum, operator of Taco Bell, Pizza Hut and KFC restaurant chains, forecast a 4% fall in fourth-quarter China same-store sales, an effective measure of financial health, as well as popularity, because it strips away volatile results from newly opened or closed locations. How significant is this? A year ago, Chinese same-store sales rose 22%.
China is key to Yum, and this forecast is distressing. The country represents more than half of Yum’s annual profits (roughly $660 million), and Yum aims to open at least 700 new locations there in 2013. It’s an untenable situation; the Chinese economy is cooling, and income growth isn’t likely to be as substantial as in past years. Moreover, the situation might be worse than Yum predicts: Deutsche Bank analyst Jason West sees the slowdown in same-store sales nearer 6% than 4%.
Other Yum competitors aren’t as heavily tied to the fortunes in China. Only around 4% of McDonald’s ($1.1 billion) and Starbucks ($530 million) profits come from there. That leaves them positioned to outperform Yum in the immediate future.
“We remain concerned about fundamentals in the core China business, and think Street estimates for about 15% growth in earnings per share in 2013 do not fully reflect this risk, ” says Jeffries analyst Andy Barish.
Shares of Yum fell 9.5% in early morning trading.
From a valuation perspective, the selloff makes sense. The stock yesterday closed at $74.40, shortly before Yum detailed the forecast—a long-range outlook that also included a prediction of 13% earnings growth this year and 10% or more next year—in after-hours trading. At that price, the shares traded close to 23.5 times forward earnings. That valuation is among the richest that the stock has received in the past two decades, and the stock hasn’t crested 24 times earnings since 2007.
Next, look at another useful metric: the enterprise multiple. (This comes from enterprise value/earnings before interest, taxes, depreciation and amortization.) It’s a favorite of bottom-up stock pickers, like Warren Buffett, and it’s also what an acquirer would use to value a company. Importantly, debt is analyzed—a financial constraint that doesn’t show up in the P/E ratio.
After today’s slide, Yum has an enterprise multiple of 11.6. That’s near the top of the past five years. (Yum holds nearly $3 billion in long-term debt.) For contrast, McDonald’s enterprise multiple is 9.5, beneath where the stock has recently traded; Cheesecake Factory’s multiple is 7.9 and Wendy’s is 8.9. Burger King, newly public after a leveraged buyout that loaded on $3 billion in long-term debt, sports an enterprise multiple higher than even Yum: 13.2.
Coming up: a meeting in New York, on Dec. 6, where Yum executives will detail company strategy leading into next year. Market participants will be looking for trouble, and any comments that could possibly be viewed as bearish could mean renewed pressure on the stock.
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National Beverage -- >>> National Beverage shares up on special dividend
National Beverage shares soar on move to pay special dividend between $1.50 to $3 per share
By The Associated Press
Nov 23, 2012
http://finance.yahoo.com/news/national-beverage-shares-special-dividend-174612406.html
National Beverage Corp.'s shares jumped Friday after the company declared a special cash dividend.
THE SPARK: The soft-drink maker said it would pay a dividend of $1.50 to $3 per share to shareholders of record as of Dec. 5. The Fort Lauderdale, Fla., company said it will finalize the payment by Nov. 30 but it will be made during 2012 to take advantage of current tax rates. It currently does not pay dividends regularly.
THE BIG PICTURE: National Beverage is one of a number of companies to issue a special end-of-year payment to protect investors from potentially having to pay higher taxes on dividend income starting in January.
Since 2003 investors have paid a maximum 15 percent on dividend income, but that historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending. As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent.
SHARE ACTION: Shares of National Beverage, which makes Shasta, LaCroix and other drinks, increased nearly 15 percent to $16.87 in midday trading. Its stock is nearing the top of its 52-week trading range of $13.30 to $17.39.
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Reeds -- >>> Reed's, Inc. Announces New Distribution for Reed's Culture Club Kombucha Line Throughout Mid Atlantic Market
Press Release: Reed's, Inc.
Nov 27, 2012
http://finance.yahoo.com/news/reeds-inc-announces-distribution-reeds-133000802.html
LOS ANGELES, CA--(Marketwire - Nov 27, 2012) - Reed's, Inc. ( NASDAQ : REED ), maker of the top-selling sodas in natural food stores nationwide, announced today that Hana Food Distributors Inc. will be distributing their new Reed's Culture Club Kombucha throughout the greater Washington, D.C. market. Headquartered in Forestville, Maryland, Hana Food Distributors is a full service gourmet and specialty foods distributor. Their customer base includes supermarkets, grocery stores, delicatessens, convenience stores, gas stations and newsstands located throughout Maryland, Virginia and North Carolina markets. Distributing brands like Bolthouse Brands, GT Synergy, Naked Juice, Horizon Organic Dairy, Organic Valley Dairy Products and San Pellegrino Water, Hana's primary focus is to deliver gourmet quality, healthier, all natural foods throughout their marketplace.
Neal Cohane, Senior Vice President of Sales & Marketing for Reed's, Inc., commented, "Hana Distributors opens Reed's Culture Club Kombucha to Mid Atlantic consumers looking for the best tasting Kombucha in the market today. Securing this distribution with Hana will provide Reed's new exposure and a foothold in open coolers, as well as refrigerated dairy and produce sections throughout supermarket and specialty stores in this key marketplace."
About Hana Food Distributors, Inc.
Hana Food Distributors is one of the largest organic, gourmet and specialty food distributors in the Washington, D.C., Virginia, Maryland and North Carolina area. With focus on the eastern seaboard region, they bring value to customers by building strong business relationships and delivering quality that people have come to expect from their products. Hana carries over 3,000 products in the gourmet grocery and food category. After outgrowing their initial warehouse in Virginia in 2007, Hana relocated the company headquarters to Maryland. They hope to continue sharing their history of providing quality products and services. Learn more about how Hana Food Distributors can help your business by visiting: http://www.hanafoodinc.com
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
For more information about Reed's, please visit the Company's website at: http://www.reedsinc.com or call 800-99-REEDS.
Follow Reed's on Twitter at http://twitter.com/reedsgingerbrew
Reed's Facebook Fan Page at https://www.facebook.com/ReedsGingerBrew
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Reeds -- >>> Reed's, Inc. Announces New Distribution for Reed's Culture Club Kombucha Line Throughout New York Metro Market
Press Release: Reed's, Inc.
Nov 20, 2012
http://finance.yahoo.com/news/reeds-inc-announces-distribution-reeds-133000294.html
LOS ANGELES, CA--(Marketwire - Nov 20, 2012) - Reed's, Inc. ( NASDAQ : REED ), maker of the top-selling sodas in natural food stores nationwide, announced today that Abraham Natural Foods Corp. will be distributing their new Reed's Culture Club Kombucha throughout the greater New York Metro market. Headquartered in Long Island City, NY, Abraham Natural is a fully integrated wholesale distributor with refrigerated distribution capabilities, delivering an extensive brand line up including, Amy's Natural brands, GT Synergy, Muscle Milk, Myoplex, Organic Valley Dairy products, Chobani Yogurt, Cabot Dairy products and 5 Hour Energy.
Neal Cohane, Senior Vice President of Sales & Marketing for Reed's, Inc., commented, "Abraham Natural Foods provides Reed's unique access to Kombucha retailers across the New York market. Their refrigerated distribution capabilities allows our new Kombucha access to thousands of mainstream and specialty retailers that have been recognizing the growing demand for extremely healthy, live products, like our new Reed's Culture Club Kombucha."
About Abraham Natural Food Corp.
Abraham Natural Foods Corp. is a leading grocery wholesale distributor in New York area. Located in Long Island City, Abraham Natural offers unparalleled customer service, providing a comprehensive listing of products for all their clients to compete in the retail market. Abraham Natural Foods offers the highest quality certified organic products, as well as natural foods and specialty products. Their product listings are continuously updated, as they aim for clients to effectively compete in any market environment. Abraham Natural has established one of widest distribution networks and serve a wide variety of retail formats, including supermarkets, health food stores and extreme value stores in New York, New Jersey, Connecticut and Pennsylvania. Their delivery schedules are individually tailored to match each of their customers' needs. Every product is delivered with the utmost care and is subject to enhanced technological inspection. They are committed to providing their clients with the highest level of customer service.
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
For more information about Reed's, please visit the Company's website at: http://www.reedsinc.com or call 800-99-REEDS.
Follow Reed's on Twitter at http://twitter.com/reedsgingerbrew
Reed's Facebook Fan Page at https://www.facebook.com/ReedsGingerBrew
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Reeds - Q3-2012 conf call notes -
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81503281
>>> Q3 Call Notes (long)
(Chris at jury duty so speaking softly and keeps jumping in and out of call, with CFO and COO picking up at various points).
Private Label (PL) up due to better contract terms
Kombucha (K) responsible for gross margin decline (plant and labor intensive)
K margins higher than others
Paid down $77,000 in long term debt
Chris:
• Q3 usually has less YOY growth
• Main activity at HQ is the launch of K
• Data suggests that they have a winner in a tough category
• One company (GT Synergy) is dominating the Kombucha market with 90% of the business
o Estimated at $150-$200 million in wholesale sales with no defined #2 competitor.
• Reed’s still tinkering with plant efficiency, but Reed’s has pushed the limits with their technology because of things like the curved glass with a label on it
• Efficiencies are working themselves out and they expect that Q1 will smooth out completely
• Results of coming in of Kombucha
• Didn’t ignore others, new distribution agreements
• Geyser agreement came because of Kombucha
• Told sales team that their whole commission structure is going to be based for the next couple months on Kombucha
• Kombucha line dollars sales could anywhere from 33% to 200% of core business, too early to tell now.
• Bidding smarter on the private labels, anticipate better margins moving forward on that
• Lots of PL accounts have come back, lots of new business for 2013.
• Hopefully Kombucha is the biggest driver of growth for the company.
• K has over 800 new accounts, the universe is probably 10,000 accounts with reed’s that they could put K in, 3,500 whole foods type stores as well.
• They will be developing new K flavors, will most likely have some new ones in Q1. Already getting lots of requests. Chemical engineers have been developing them.
• PI helped with the development of K flavors because they have been knocking off sodas for the PI.
• It would be shocking to Chris if their prediction that they move into the #2 competitor slot as they believe they will.
• Going into 2013 is the most exciting time in the company’s history.
• Haven’t even tapped into convenience yet.
Question 1:
o Insider acquisition – Why did 2 insiders buy stock that is greater than their annual salaries?
• Undervalued tremendously to start the year, switched IR to in-house, Chris is on the road talking about the stock (5-6 days this Q) and would do more but too busy, Annie’s Natural went public and that had a effect because it opened peoples eyes to natural foods.
Question 2:
o Rollout of Kombucha into Trader Joe’s or Publix?
• Have already started picking up some supermarket chains, but initial rollout in the Southeast will be with Whole Foods. TJ’s has not made up their mind on if they will sell Kombucha.
Question 3:
o Spend to launch for Kombucha for the 800 stores? Margin?
• In a perfect world it’s a little bit more per bottle to produce than a bottle of ginger brew but you can charge twice as much. To morph plant into Kombucha production facility cost some money but it should level out. Believe they are producing it more efficiently than most because of their brewing experience.
• It would be disappointing if they didn’t have at least $5 million in K sales within the first 12 months of this launch.
Question 4:
o Rolled out aggressively with K, you will see some BOGO type offers but they will be specific. No big slotting expense with K which is great, it’s a one-time slotting fee.
o Secondary pull through with K, some stores have 3-4x pull through. It’s all about taste, not even because of marketing.
Question 5:
o How many people does Reed’s reach?
• Quite frankly, whole US.
• DSD, whole west coast is covered. Pretty much covered in Maine down to Florida.
• Working our way in.
? Just opened up Chicago. Got Utah.
• Won’t be long before they have the whole country covered.
o Chris:
• Sorry, I got dropped off the call 5 minutes ago, I have jury duty today.
• In 99% of natural food stores.
• Picky about distributors, it took us a while to get into San Fran and 18 months to get into Chicago.
Question 6
o Sorry I forgot and signed up for jury duty this weekend, for K we have it as a moving target but we’re feeling better about it all the time. PL has been increasing and we can get $2-3 million more next year. Branded does about $4 million more each year.
o We’re hoping to hit $40 million this year, that’s not guidance or anything but just generally on what we think we could do. We could spend more of the revenue to increase growth but don’t want to be unbalanced.
o Our K is premium because
o We we use spring water instead of city water, oylang tea, and we age it longer for more health properties.
Question 7:
o Some of the PL business in seasonal business in celebration bottles. Skew heavy in 4th Q. But now we have picked up some good summer business so we should see it level out soon.
o Generally, our PL runs 3-4% behind margins on branded business, the thing about PL is that you don’t have fees (?), K will be higher margins could be about 5-10% higher. PL contracts could be all over.
Question 8:
o We’re brewing it so it’s not alcoholic, our recipe is proprietary. We keep alcohol under the .5% max. We usually keep it under .2%. Our K is alive and some K companies dilute their K. Ours is not diluted so the taste is good.
o We’re not making this bottle for you (caller), we want to make it for the market that is out there worth $200 million. Some people say it tastes vinegary, but we are going after those K drinkers.
o No liability if people don’t refrigerate it because it’s like OJ, milk, etc.
Question 9:
o K probably only in 15% of their accounts.
o Went into a hard launch on Nov. 1
o It’s so young into the K launch but it’s not hard to sell.
o Probably bringing in 30ish accounts new day.
o Sometimes sell K for $3.99 at full price or 2 for $5. Other company is selling it for $3.50ish.
o New flavors are already being developed for the next round. Next bring trade show in March will likely get some new flavors.
Question 10:
o We’re not putting out our specific brewing processes but we are producing 20,000+ cases (12 per case) of K and we’re gearing up for 30,000+ cases per month.
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Reeds -- >>> Reed's Inc. Continues Profitable Growth
23% Sales Improvement for Third Fiscal Quarter
Press Release: Reed's, Inc.
http://finance.yahoo.com/news/reeds-inc-continues-profitable-growth-195144326.html
LOS ANGELES, CA--(Marketwire - Nov 14, 2012) - Reed's, Inc. ( NASDAQ : REED ), maker of the top-selling sodas in natural food stores nationwide, today announced the financial results for its third fiscal quarter ending September 30, 2012.
Financial Highlights for the Quarter:
•Revenues increased 23% to $7.9 million in 2012, compared to 2011.
•Gross profit increased to $2.5 million in 2012, an increase of 21% from 2011.
•Earnings before non-cash items and finance costs (modified EBITDA) increased to $395,000 during 2012, as compared to $269,000 in the prior year period (See EBITDA table at end of this release for further non-GAAP information).
•Net income for the 2012 second quarter was $22,000 compared to a loss of $175,000 a year earlier.
•Working capital at June 30, 2012 was $3.2 million, as compared to $2.7 million at December 31, 2011.
Operational Highlights:
•Volume of branded Reed's and Virgil's products shipped grew at a rate of 16% versus same quarter prior year and is up over 20% YTD over last year.
•New distribution partnership with Central Beverage of Chicago.
•New distribution arrangement with Geyser Beverage of the Greater San Francisco Bay area market.
•Expanded Reed's and Virgil's into Tops Friendly Markets located upstate NY and PA.
•New distribution agreement with Zip Beverage of Montana.
•Secured three new private label brand contracts with some of the largest retailers in the US.
•Introduced Reed's and Virgil's products to the Asian market attending the Natural Products Expo Asia show for first time.
•Reed's introduces Culture Club Kombucha in Baltimore, MD, becoming a title sponsor of Natural Products Show Expo East and sampling more than 10,000 retailers, distributors and attendees.
•Gained Culture Club Kombucha distribution into a minimum of 800+ new retailers throughout the US and into select Whole Foods regions with more to come.
•Snoop Lion Partners With Reed's Ginger Brew and Causes.com to Raise Awareness for the Mind Gardens Project in Jamaica.
•Continued Los Angeles plant upgrades designed to increase capacity and efficiency, including doubling tank capacity to accommodate fast expansion of the new Kombucha line.
"We have now expanded our business at over 20% for the last twelve quarters. Brand growth continues to be the main driver for this expansion. Our recent launch of Reed's Culture Club Kombucha has taken off and could possibly be our biggest growth driver for 2013 and beyond. We have set our goal at being the number one or two in this $250-300 million fast growing Kombucha category," stated Chris Reed, Founder and CEO at Reed's Inc.
Chris Reed further commented, "Additionally, our private label business is accelerating as we become more accepted as a reliable supplier. Revenues from private label brands grew twofold over same quarter prior year due to the development of two new partnerships with national retail chains."
James Linesch, Chief Financial Officer, stated, "Our business has continued its healthy organic expansion in the third quarter. Gross margins on our branded products improved slightly over last year and gross margins on our private label products are running about 5% higher than last year. Our kombucha launch has involved an increase in production costs as well as promotional costs, both of which affected our overall margins and profitability in the quarter. As our kombucha rollout progresses, however, these start-up costs will come down. We anticipate that all of our product lines will contribute strong net margins in 2013."
The Company will conduct a conference call @ 4:15PM EST today, November 14th, to discuss its 2012 third quarter results and outlook for the future. To participate in the call, please dial the following number 5 to 10 minutes prior to the scheduled call time (866) 240-5139. International callers should dial (713) 481-0091.
A replay will be available within a few days after the meeting in the investor relations section of the Company's website at: http://www.reedsinc.com/investor-relations/.
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line.
Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
For more information about Reed's, please visit the Company's website at: http://www.reedsinc.com or call 800-99-REEDS.
Follow Reed's on Twitter at http://twitter.com/reedsgingerbrew
Reed's Facebook Fan Page at https://www.facebook.com/ReedsGingerBrew
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Reeds -- >>> Snoop Lion Partners With Reed's Ginger Brew and Causes.com to Raise Awareness for the Mind Gardens Project in Jamaica
Entertainment Icon Creates Self Sustainable Organic Gardens Throughout Kingston and Creates Mind Gardens Project Pledge at Causes.com/MindGardens
Press Release: Reed's, Inc.
Nov 13, 2012
LOS ANGELES, CA--(Marketwire - Nov 13, 2012) - Today, pop culture icon Snoop Lion is excited to announce a new partnership in support of the Mind Gardens Project, his latest non-profit initiative to establish sustainable, organic community gardens that will provide fresh fruits and vegetables to school aged children in Jamaica. Beverage maker Reed's Ginger Brew has joined the effort to give back to Jamaica, adding momentum as they prepare to launch a massive Mind Gardens awareness campaign on Causes.com. ( NASDAQ : REED )
Earlier this year, Snoop Lion unveiled his latest project, Reincarnated, which consists of a soon-to-be released album, a photo book, and a feature length documentary by VICE Films and Snoopadelic films illustrating Snoop's evolution and transition from rap to reggae. This dramatic change came about as a result of Snoop's recent personal journey to Jamaica and his time spent with the culture and people of the land. Wanting to give something back in return, Snoop partnered with entrepreneur and philanthropist John Paul DeJoria of Paul Mitchell and Patrón Spirits for the Mind Gardens Project.
"When I went to Jamaica we took time to visit these communities in Kingston, and I was deeply affected by the poverty and lack of good food available to the children," says Snoop Lion. "No child should go hungry. After all the inspiration Jamaica had provided me, I felt compelled to create a program to give back to the community."
The Mind Gardens Project has already begun work in Kingston, Jamaica with locations in the neighborhoods of Trench Town and Tivoli Gardens. Here, local residents are provided with tools and resources to help them effectively grow their own food. Plans for additional domestic and international locations are in the works for the future.
As a first step to help raise awareness for the initiative, the Mind Gardens Project, with the support of Reed's Ginger Brew, has launched a campaign on Causes.com, which empowers people to take the Mind Gardens Pledge and make an effort to learn more about their own local community gardens. Everyone who takes the pledge will have the chance to win a year's supply of Reed's Ginger Brew by visiting www.causes.com/mindgardens. As the Mind Gardens Project launches, the partnership with Reed's Ginger Brew brings a new element of positive synergy and perfectly complements Snoop Lion's efforts to provide children with proper nutrition. Reed's Ginger Brews, founded in 1989, is based on traditional Jamaican style ginger ales or "ginger beers" as the locals call it. When Reed's CEO and Founder, Chris Reed, learned of Snoop Lion's Mind Gardens Project, he knew he wanted to get involved.
"We've been looking for a way to give back to Jamaica," says Chris Reed. "Nothing is more basic than food in helping people help themselves. Snoop helping to educate the world on how to eat better, and encouraging communities to grow their own organic food -- this is very positive change. We are also excited about rolling out this project to many U.S. cities. My company has always tried to offer people better, healthier options when it comes to what they drink. Our larger goal is about helping people live better, healthier lives. Snoop's Mind Gardens Project is in line with our vision. We have committed a percentage of our sales this year to help fund the program."
"This is just the start, we have some big plans to roll out Mind Gardens stateside in the year to come," says Snoop Lion. "We can all do our part to help people eat healthier and live better. Bless up! Jah Rastafari!"
For more information about the Mind Gardens Project, please visit MindGardens.org and Causes.com/MindGardens.
About The Mind Gardens Project
Launched in Kingston, Jamaica in late 2012, Mind Gardens is a non-profit initiative started by Snoop Lion and John Paul DeJoria, with the goal of establishing sustainable, organic community gardens that will provide fresh fruits and vegetables to school aged children in the community. Bringing these communities the proper tools and resources to cultivate their own nutritional alternatives not only makes for healthy bodies, but also healthy minds. With two gardens already underway, we need your help to spread the word, build more gardens and take this project worldwide. Together we can plant a seed, grow a garden, and change a life. For more information, please visit MindGardens.org
About Snoop Lion
Snoop Lion is the new moniker of multi-platinum artist and entertainment icon, Snoop Dogg, whose ability to stay at the forefront of popular culture and new technology has resulted in unwavering relevance. Snoop Lion, in conjunction with VICE Media and Stampede Management, are set to release Reincarnated, a project that grew from Snoop's recent trip to Jamaica where the people and culture positively affected him. The project includes a reggae album produced by Diplo and the Major Lazer production team, a feature-length documentary of his life and career, which premiered at the 2012 Toronto Film Festival to rave reviews, as well as a photo book. The full Reincarnated project is set to release early 2013. For more information, please visit SnoopLion.com
About Reed's Ginger Brew
Reed's, Inc. ( NASDAQ : REED ) makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural and mainstream supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains. For more information about Reed's, please visit ReedsInc.com
About Causes
Causes.com is an online platform that provides tools for driving change. With 180 million users and over 500,000 campaigns for change, Causes is the world's largest platform for activism and philanthropy. Causes enables grassroots organizers, nonprofits and companies to run online, social impact campaigns that raise brand awareness, engage targeted audiences, and build dynamic communities. For more information, please visit Causes.com/about
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Contact:.
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MEDIA CONTACTS:
Snoop Lion Contact
Brianne Pins
Email Contact
(323) 928-5003
Kristen Tambara
Email Contact
(323) 928-5005
Reed's Ginger Brew Contact
Julie Pantiskas
Email Contact
(310) 527-1340
Causes.Org Contact
Jessica Dahl
Email Contact
(202) 680-2073
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Name | Symbol | % Assets |
---|---|---|
Procter & Gamble Co | PG | 15.51% |
Coca-Cola Co | KO | 10.95% |
PepsiCo Inc | PEP | 9.55% |
Walmart Inc | WMT | 8.35% |
Costco Wholesale Corp | COST | 6.49% |
Philip Morris International Inc | PM | 6.29% |
Altria Group Inc | MO | 4.16% |
Mondelez International Inc Class A | MDLZ | 3.75% |
Colgate-Palmolive Co | CL | 2.78% |
Kimberly-Clark Corp | KMB | 2.27% |
Name | Symbol | % Assets |
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Procter & Gamble Co | PG | 15.15% |
Coca-Cola Co | KO | 10.44% |
PepsiCo Inc | PEP | 9.20% |
Walmart Inc | WMT | 8.01% |
Costco Wholesale Corp | COST | 4.78% |
Philip Morris International Inc | PM | 4.21% |
Mondelez International Inc Class A | MDLZ | 4.04% |
Altria Group Inc | MO | 3.84% |
Colgate-Palmolive Co | CL | 2.88% |
Kimberly-Clark Corp | KMB | 2.39% |
Name | Symbol | % Assets |
---|---|---|
Procter & Gamble Co | PG | 15.93% |
Coca-Cola Co | KO | 11.64% |
PepsiCo Inc | PEP | 10.39% |
Walmart Inc | WMT | 8.62% |
Mondelez International Inc Class A | MDLZ | 4.91% |
Philip Morris International Inc | PM | 4.69% |
Costco Wholesale Corp | COST | 4.67% |
Altria Group Inc | MO | 3.90% |
Colgate-Palmolive Co | CL | 3.74% |
Kimberly-Clark Corp | KMB | 2.90% |
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