Late Year Slump Hits National Beverage Hard. KDP, SBUX, KO Gain. PEP, MNST Down
January 18, 2019
Beverage company share prices tracked by BD were generally weak in 2018 thanks to sluggish U.S. markets and a December decline that saw the Dow Jones Industrial Average shed almost 2500 points. The market has since regained some of those losses. Bright spots for 2018 were Keurig Dr Pepper, Starbucks and the U.S.-traded shares of Coca-Cola European Partners.
On Jan. 15, Birmingham-based Pepsi bottler Buffalo Rock sued PepsiCo for breach of contract, alleging the franchisor has failed to stop the transshipping of unauthorized products such as Pepsi-Cola and Mtn Dew into Buffalo Rock’s exclusive territory. Buffalo Rock’s franchise rights cover portions of Alabama, West Georgia and Florida. The lawsuit asks for at least $1 million in actual damages, plus more for punitive damages. PepsiCo’s company-owned bottler, Pepsi Beverages Co., also is named.
Farm Bill Legalizes Hemp. The newly-passed $867 billion U.S. Farm Bill, awaiting President Trump’s signature, includes a provision to legalize hemp nationally. This could make it easier for beverage companies to market products infused with CBD, a non-psychoactive ingredient derived from hemp...