Beverage News
New Products Push Beverage Companies to New Gains
Alo Juice beverage line
Consumers are opting for ready-to-drink, healthier brand beverages which have a longer shelf life but more importantly, better quality with less unnecessary preservatives and additives. This shift in consumer demand has led to new growth opportunities for companies such as: Long Island Iced Tea Corp., Dr Pepper Snapple Group, Inc., Monster Beverage Corp., Pepsico, Inc. and The Coca-Cola Company.
Long Island Iced Tea Corp., a growth-oriented company focused on the ready-to-drink tea segment in the beverage industry, announced that it has reached an agreement to acquire the ALO Juice beverage brand and trademark rights from The Wilnah International, for a purchase price of 5,000 shares of the Company’s common stock. The closing of the transaction is subject to customary conditions and is expected to occur in the first quarter of 2017.
Dr Pepper Snapple Group, Inc. recently announced that it has reached an agreement to acquire Bai Brands and its complete portfolio of high-growth premium antioxidant infused beverages. The cash purchase price of $1.7 billion includes a tax benefit of approximately $400 million on a net present value basis and will be financed through new unsecured notes and short term commercial paper. We expect to maintain our strong investment grade credit profile and have no plans to change our existing shareholder dividends and share repurchase distributions.
Monster Beverage had a difficult third quarter, but Cowen says it’s not the time to give up on the stock. Analyst Vivien Azer reiterated an Outperform rating on Monster Wednesday, although she did slightly lower her target price, to $52 from $54, citing currency headwinds. She writes that recent Nielsen data has been encouraging, as Monster has notched two straight months of accelerating growth.
The Coca-Cola Company opened a new bottling plant in Phnom Penh, Cambodia. The investment, valued at $100 million, is part of Coca-Cola’s plan to expand its production facility in the Southeast Asian country by 2018. The plant, situated in a special economic zone, will provide employment opportunity to 817 people. Notably, it will also be powered by solar energy.
Ched’d and PepsiCo cooperation
PepsiCo wants to deliver a meal to you, the lazy urban millennial. The soda and snack giant said Tuesday that it has hooked up with online meal kit marketplace Chef’d to deliver three Quaker Oats-branded meals, all featuring the brand’s trademark oats as the star. People who order the Quaker Oats-inspired meals receive all the necessary, pre-portioned ingredients and step-by-step instructions for making the meal. The meal kits, which will cost $10 for a serving of two, will also include a mason jar as well as additional oats-inspired recipe cards.
Source: Market News Updates
