Pandemic-related uncertainty this year has weighed on beverage stocks tracked by BD through the close of trading on April 27. Most, including Monster Beverage, underperformed when compared to an +11.5% gain by the S&P 500 index so far this year. Coca-Cola and PepsiCo, with exposure to global markets, posted share price declines. Keurig Dr Pepper, which has a limited footprint outside the US, rose +11%, tracking close to the broader market gain. A big winner this year has been LaCroix sparkling water maker National Beverage, whose +19% share price increase came on top of a +66% gain in 2020. This year’s performance by National Beverage was helped by activist traders on Reddit looking to disrupt short sellers. Bottlers Coca-Cola Consolidated and Coca-Cola European Partners also outperformed the S&P 500 index.
RETAILERS. Share price performance for retailers and distributors tracked by BD was mixed, with discounter Walmart and club store Costco declining. Discounter Dollar General posted a slight gain that fell far short of the broader market index. Shares of online retailer Amazon gained +4.9%, which too fell short of the index. UNFI, meanwhile, posted a +120% share price jump. Investors bet that some of the consumer shift to at-home eating will stick even as pandemic-driven lockdowns continue to ease. Kroger, Walgreens, Target, and Sprouts all posted health share price gains that outpaced the S&P 500.
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