The tumult during the first quarter of 2020 amid the global COVID-19 virus outbreak was reflected in all beverage stocks tracked by BD. In many cases, the declines reversed gains posted for...
Pantry loading this month by US consumers reacting to the COVID-19 crisis wasn’t limited to large hydration categories, according to all-outlet US data provided to BD by Nielsen. As shown in the table on the next page, categories and segments ranging from carbonated soft drinks to kombucha saw significant...
On March 11, PepsiCo announced an agreement to buy Rockstar Energy for $3.85 billion plus $700 million worth of tax benefits payable over 15 years (BD Email News Alert 3/11/20). Aside from the opportunity to grow Rockstar...
Deal Opens the Energy Shelf Wider for Mtn Dew. PepsiCo CFO Sees Increased Rockstar Investment.
March 11, 2020
PepsiCo has agreed to buy Rockstar Energy for $3.85 billion. The deal, announced today, gives PepsiCo full control of a brand it has distributed since 2009 and removes the handcuffs on PepsiCo’s ability to innovate within the growing energy category...
Bubly to Launch Caffeinated Sparkling Water Variant. Dew Refocus Underway, CFO Says.
February 21, 2020
Since early January, speculation has circulated as to a buyout of Bang by PepsiCo, which has struggled within the energy category for years as its past success with Rockstar faded. When asked by an analyst about the possibility of using an acquisition to dig out of the energy hole, PepsiCo CEO Ramon Laguarta...
Plus: Bang Launches ‘Natural’ Line Sweetened With Stevia
February 21, 2020
After flying under the radar following its 2012 launch, Bang Energy sent a sonic boom across the US energy drink market during the past two years, surpassing an 8.0 dollar share in 2019. The brand, owned by Vital Pharmaceuticals (VPX), ignited what is now known as the “performance energy” segment, taking on established players such as Monster Energy by touting better ingredients, low or no sugar, and supplements such as creatine and branched-chain amino acids (BCAAs). Under threat, Monster Beverage launched a counter-attack early last year with Reign Total Body Fuel, using the company’s partnership with Coca-Cola’s US bottling system to shower retail stores with incremental floor displays and c-store cooler placements. Fast forward a year and the threat posed by Bang may have subsided...
CSD Growth Decelerates. US Carbonated soft drink dollar sales grew +0.3% during the four weeks ending Jan. 25, according to Nielsen data published by Morgan Stanley. That was a deceleration from +1.4% growth in the prior 12-weeks. A -2.8% volume decline during the four weeks...
Wide-Ranging Interview Covers Distribution Complexity, "Significant' Planned Production Investment, E-Commerce and More
February 7, 2020
Late last year, Coca-Cola Bottling United opened a new $86 million sales and distribution center in the metro Atlanta town of Union City, just south of Coca-Cola headquarters. The 456,000-sq-ft facility serves 10,000 retail customers in metro Atlanta, covering 2.8 million consumers. As many as 750 employees will manage the warehousing, picking and delivery of 36 million beverage cases per year. Manual order picking has been converted to an automated process built by System Logistics. Marketed as “Vertique,” the system is “an organized, more ergonomic and efficient sequential operation, with less stress on associates and not as labor intensive,” according to Coke United (click HERE for a video of the system). The Union City facility is among a series of investments by Coke United to modernize its distribution system since acquiring new territory, including Coke’s flagship metro Atlanta market in 2017. Last month, Coke United broke ground for construction of a $60 million, 300,000-sq-ft warehouse and sales center in the South Georgia town of Tifton, about an hour’s drive from the Georgia-Florida line. The facility will consolidate inventory from eight older and smaller facilities into a single automated order picking location when it opens by the end of 2021. Birmingham, Alabama-based Coke United, with franchise roots dating back to 1902, covers territory in Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee. The company is Coca-Cola’s fourth largest US franchise bottler (after Coke Consolidated, Reyes Holdings and Arca’s Coke Southwest Beverages). United distributes 11% of Coca-Cola system bottle/can carbonated soft drink volume in US. Last week, Coke United CEO John Sherman and East Region VP Mike Succo joined officials at the new Union City center for a grand opening attended by Coca-Cola North America President Jim Dinkins. BD sat down for an interview with Sherman.
The following has been edited for clarity and space:
Most beverage and retailer stocks tracked by BD boosted their market value during 2019 as the broader S&P 500 Index grew. Just three companies tracked – Coca-Cola Consolidated, Starbucks and Monster Beverage...