Analysts at RBC Capital Markets hosted a global consumer and retail conference on May 27-28. Beverages analyst Nik Modi interviewed leaders from Keurig Dr Pepper, Coca-Cola and Primo Water (formerly Cott). The following is a synopsis of shifts in short-term and long-term trends seen by the executives.
US Non-Alcoholic Beverage Industry Flexed Pricing Muscle Last Year
June 1, 2020
Annually, BD publishes estimated volume and value sales data for US liquid refreshment beverages (LRB) and carbonated soft drinks (CSD). The data included in this special issue estimates beverage consumption for all measured and unmeasured channels, including packaged retail, fountain and vending. Data for juice, tea, coffee and dairy categories focus on single-serve, direct-store-delivered beverages and generally do not include warehouse-delivered or refrigerated products by Coca-Cola, PepsiCo and Keurig Dr Pepper. CSD estimates in this report include traditional soft drinks and energy drinks, which are both carbonated and share similar manufacturing and distribution methods. The fountain channel includes everything from restaurants, such as McDonald’s and Taco Bell, to sports venues.
Several recent reports by Credit Suisse Analyst Lauren Silberman and her team have outlined sales trends for the US restaurant sector during the COVID-19 pandemic. This is an important sales channel for fountain and packaged beverages. The following are highlights from the reports...
In late April, Coca-Cola, PepsiCo and Keurig Dr Pepper reported first-quarter earnings. Those results, however, were less interesting that the outlook for the second quarter and the rest of the year. Below is a synopsis, culled by BD from earnings call transcripts, of actions the three companies are taking to adjust to market conditions during the crisis.
Analysts at Goldman Sachs, led by Bonnie Herzog, surveyed retail and wholesale contacts representing 33,000 US convenience & gas store locations, which represents about a fifth of that retail channel. Here are some of their findings:
A recent report by Credit Suisse Analyst Lauren Silberman and her team outlined trends in the US restaurant sector, which is an important sales channel for fountain and packaged beverages. Here are some of the points from the April 13 report that BD found most important for the beverage industry:
CEO Sees Challenging Second-Quarter. Says Crisis Response in Coke's 'DNA.'
April 21, 2020
Coca-Cola CEO James Quincey emphasized the company’s resilience today as it reported first-quarter earnings amid the COVID-19 pandemic. Here are initial takeaways from today’s earnings release and company-hosted calls with Wall Street analysts and media:
Former CEO Responds to Recent Events, Enthusiastic About Sale.
April 14, 2020
Stevia producer PureCircle has agreed to sell a 75% stake in the company to global ingredients maker Ingredion for about 185.3 million pounds sterling ($231 million). The transaction is expected to close during the second half of this year. The announcement follows a five-month accounting probe at PureCircle and eventual management shake-up, which included the resignation of founder and former CEO Maga Malsagov. Ingredion will appoint...