Latest news with #beverage
Japan Times
21 hours ago
- Business
- Japan Times
Suntory will gauge U.S. consumer sentiment for whisky price hike
Suntory Holdings will consider price increases in line with consumer sentiment for ultra-premium whisky it exports to the U.S., after the two countries struck a trade deal that set tariffs on imported Japanese goods at 15%. "We have to learn and read the sentiment in the United States,' Co-Chairman and CEO Takeshi Niinami said on Tuesday. The beverage giant could still consider raising U.S. prices for premium whisky lines, Niinami said. That's despite Suntory's feeling — like many other Japanese firms — that the tariff is a "relief' and that it can absorb some of the added costs, he said. Niinami said the company is "overreliant on the U.S. and Japan' and has realized the importance of emerging markets including China, Southeast Asian nations and India. Suntory said in April that it could shift products to its home market and other countries in Asia if tariffs were to make its whisky prohibitively pricey in America. The trade pact reached earlier this month will impose levies on imports including automobiles from Japan, a key U.S. ally, while creating a $550 billion fund to make investments in America.
Yahoo
a day ago
- Business
- Yahoo
Thirsty for Dividend Income? 2 Beverage Companies That Qualify as Dividend Kings
Key Points Coca-Cola and PepsiCo both raised their dividends annually for more than 50 years. Coca-Cola pays a lower dividend and trades at a higher multiple. PepsiCo looks cheaper and pays a higher yield, but it faces more headwinds. 10 stocks we like better than Coca-Cola › Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP), two of the world's largest beverage companies, are resilient long-term income investments. Over the past 30 years, Coca-Cola's stock rose 324% as PepsiCo's stock rallied 551%. If we include reinvested dividends, Coca-Cola and PepsiCo generated total returns of 796% and 1,220%, respectively. Coca-Cola and PepsiCo are both Dividend Kings that have raised their payouts annually for at least 50 consecutive years. They're also the only two beverage makers in that elite club. Coca-Cola, which pays a forward yield of 2.95%, has raised its payout annually for 63 years. PepsiCo, which pays a forward yield of 3.91%, has increased its payments for 52 straight years. Those consistent dividend hikes reflect their ability to grow their earnings through economic downturns. Coca-Cola and PepsiCo are still good stocks to buy, hold, and forget. But let's take a closer look and see which beverage-making Dividend King has more upside potential. The differences between Coca-Cola and PepsiCo Coca-Cola and PepsiCo both sell a broad range of beverages beyond their flagship brands. To offset slower soda consumption rates, both companies expanded their portfolios with healthier and non-carbonated drinks. They also refreshed their flagship sodas with new flavors, smaller serving sizes, and sugar-free versions. Both companies only produce concentrates and syrups, then rely on their bottling partners to produce and distribute the finished drinks. That capital-light approach keeps their costs under control and helps them generate stable cash flows and profits. However, PepsiCo also sells packaged foods through its Frito-Lay, Quaker Foods, and Pioneer Foods divisions. Coca-Cola doesn't sell any packaged foods. That difference exposes PepsiCo to more inflationary headwinds than Coca-Cola, since it needs to deal with a broader mix of commodities that aren't used in its beverages. PepsiCo's Quaker Foods also dealt with several major recalls related to salmonella outbreaks over the past two years. Coca-Cola hasn't dealt with as many major recalls as PepsiCo. Which company has been growing faster? Coca-Cola's organic sales rose 16% in 2022, 12% in 2023, and 12% in 2024, even as the global economy was rattled by inflation, rising rates, and other macro headwinds. For 2025, it expects its organic sales to grow 5% to 6% as its comparable earnings per share (EPS) rises 8% in constant currency terms. PepsiCo's organic sales increased 14% in 2022, 10% in 2023, and 2% in 2024. That slowdown was caused by Quaker Foods' recalls, sluggish spending in China and Latin America, and the diminishing returns of its "shrinkflation" strategy of shrinking its packages while raising its prices. For 2025, PepsiCo expects a "low single-digit" increase in its organic sales as its core comparable EPS stays flat on a constant currency basis. So for now, it will likely face more near-term headwinds than Coca-Cola as it tries to stabilize Quaker Foods and improve its pricing power. From 2024 to 2027, analysts expect Coca-Cola's revenue and EPS to grow at a compound annual growth rate (CAGR) of 5% and 11%, respectively. They expect PepsiCo's revenue and EPS to increase at a slower CAGR of 3% and 8%, respectively. Coca-Cola still looks reasonably valued at 22 times next year's earnings, but PepsiCo looks cheaper with a forward multiple of 18. Which dividend looks more sustainable? Coca-Cola has a trailing payout ratio of 71%, which means it spent that percentage of its earnings per share on its dividends over the past 12 months. PepsiCo had a much higher payout ratio of nearly 100%, which gives it less room for future dividend hikes. That said, both companies should continue to raise their dividends annually for the foreseeable future to appease their income investors and keep their Dividend King crowns. Which Dividend King is a better buy today? PepsiCo generated bigger gains than Coca-Cola over the past three decades, but past performance isn't a reliable indicator of future gains. A lot of PepsiCo's previous returns were driven by its packaged foods business, but that growth engine could sputter out over the next few years if it struggles with more recalls, high commodity costs, and competitive threats. So while Coca-Cola trades at a higher multiple and pays a lower dividend, I think it's a better overall investment than PepsiCo right now. Its capital-light model, stronger growth rates, and lack of exposure to the saturated packaged foods market should impress more investors. Should you invest $1,000 in Coca-Cola right now? Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Thirsty for Dividend Income? 2 Beverage Companies That Qualify as Dividend Kings was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Radeberger's Getränke Hoffman and Edeka form buying alliance
Specialty beverage retailer Getränke Hoffmann has formed a buying alliance with local German supermarket chain Edeka. In a statement, Radeberger-owned Getränke Hoffmann, which operates 600 stores around Germany, said the tie-up will enable the retailers to jointly source products from international and national beverage suppliers. It said the partnership was its "response to intensifying competition in the German beverage market, which is putting increasing pressure on specialty store operators". Getränke Hoffmann, which is owned by brewery group Radeberger, added the alliance looked to ensure the 'long-term viability' of the beverage specialty market channel. Commenting on the news, Mario Benedikt, managing director of Getränke Hoffmann, said 'we work in a highly competitive environment' and 'good prices can only be offered by those who receive competitive terms from their suppliers'. The purchasing cooperation, pending approval by antitrust authorities, is expected to provide consumers "alternative shopping venues" and "consumer-friendly prices", Getränke Hoffmann said. The alliance will focus on buying products from "internationally and nationally active beverage manufacturers", the group said, though local and regional suppliers will continue to be negotiated individually by Getränke Hoffmann and Edeka as before. The two retailers will also continue to manage distribution separately. Benedikt added: "It's no secret that food retailers and beverage retailers sometimes purchase their goods under different conditions: This is where we want to address this with our cooperation with Edeka in order to be able to offer competitive prices in the future – and thus maintain a viable perspective for our sales channel." He also stressed the importance of specialty retailers as outlets that provide consumer choice and sustainability. Benedikt explained: 'Unlike other retail formats, we focus on one product group – beverages. We can represent these in their entirety in our branches – and thus also provide space for smaller, regional beverage manufacturers' assortments that would no longer find a place in the often primarily nationally oriented food retail structures.' Specialty drinks retailers also provide 'crucial' sales points for beverages in reusable containers, he added. The partnership will be limited to 'defined beverage manufacturers', and is not expected to impact competition between Getränke Hoffmann and Edeka, Benedikt said. "We will cooperate where it makes sense for both sides: in the purchasing of beverages from internationally and nationally active beverage manufacturers." However, the Markenverband (German Brand Association) disagrees. Its deputy managing director Andreas Gayk said the partnership comes at the 'expense of genuine, fair competition'. The non-profit entity represents the interests of some 300 brand companies in Germany. Gayk said if the 'bargaining power of large food retailers is allowed to increase in any way, it will worsen the situation of smaller market participants in the retail sector, as well as producers, manufacturers, and suppliers'. "Radeberger's Getränke Hoffman and Edeka form buying alliance " was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
2 days ago
- Business
- Yahoo
UBS Lifts Price Target on National Beverage (FIZZ) Stock
National Beverage Corp. (NASDAQ:FIZZ) is one of the Best Mid Cap FMCG Stocks to Buy Now. UBS lifted the price target on the company's stock to $45 from $42, while keeping a 'Sell'' rating. As per the firm analyst, National Beverage Corp. (NASDAQ:FIZZ)'s Q4 2025 top line was better than feared, but margins might be more challenged. Furthermore, the firm remains encouraged by management's commentary that volume performance was robust quarter-to-date. However, UBS believes that investors are likely to take a wait-and-see approach and will check for more concrete signs in the data pointing to a sustained inflection. In Q4 2025, the company's net sales rose 5.5% to $314 million. A colorful display of sparkling waters, juices, energy drinks and carbonated soft drinks on a convenience store shelf, emphasizing the company's impressive beverage portfolio. National Beverage Corp. (NASDAQ:FIZZ)'s net sales, operating profit, and net income touched record highs, with both Power + Brands and carbonated soft drinks reporting volume increases. LaCroix's new variants- Sunshine, Cherry Lime, and Blackberry Cucumber- began shipping in Q4 2025, offering a growth stimulus amidst a tough consumer environment. The company's net sales for FY 2025 rose 0.8% to $1,201.4 million compared to $1,191.7 million for FY 2024. The rise in sales was mainly because of a 1.7% rise in average selling price per case and an additional selling week, partially mitigated by a 0.9% decline in case volume. National Beverage Corp. (NASDAQ:FIZZ)'s gross profit for FY 2025 increased to $443.9 million as compared to $428.5 million for FY 2024. This was mainly because of a decline in packaging costs and higher average selling price per case. National Beverage Corp. (NASDAQ:FIZZ) develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks. While we acknowledge the potential of FIZZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey.
Japan Times
2 days ago
- Business
- Japan Times
U.S. alcohol sector prepares to fight back against buzzy cannabis drinks
Top alcohol makers have been sitting on the sidelines of a cannabis beverage boom, watching brands in the fast-growing category like Cann and Wynk make deals with beer and booze distributors and gain valuable space on liquor store shelves. Now some alcohol companies, seeing their sales falter, are laying the groundwork to potentially enter the lucrative but risky market, a dozen founders of cannabis brands, ingredients suppliers and drinks manufacturers said. Drinks containing THC, the mood-altering ingredient in marijuana, are restricted to licensed dispensaries in 24 U.S. states where recreational use of pot is legal. But small amounts of THC can also be extracted from hemp, a crop that's related to marijuana but is legal federally. Beverages containing THC derived from hemp can be sold in many liquor shops, convenience stores and supermarkets. That's where Big Alcohol sees opportunity, despite some companies having been burned by past cannabis investments. Corona brewer Constellation Brands has been internally researching hemp-based cannabis drinks to weigh its next steps, a source familiar with the company's thinking said. Absolut Vodka distiller Pernod Ricard has met with Brez, maker of drinks with THC derived from hemp, as recently as last month to discuss a possible investment, Brez's founder Aaron Nosbisch said. "They did not invest now but are circling," Nosbisch said. Corona brewer Constellation Brands has been internally researching hemp-based cannabis drinks to weigh its next steps. | Reuters Pernod declined to comment on the meeting. Constellation Brands said it does not comment on rumors and speculation. Alcohol makers are still suffering a hangover following America's pandemic drinking binge, when sales spiked as cash-flush consumers splurged on pricey bottles of liquor for their homes, and then rushed back to bars when lockdown restrictions lifted. Alcohol sales have been falling ever since as inflation and interest rates rose and wallets became stretched. The companies also now face growing warnings from public health authorities who say drinking even small amounts of alcohol is associated with at least seven types of cancer. Overall U.S. beer volumes fell nearly 6% through May of this year, according to the Beer Institute. Volumes of spirits and wine sold in the same time period have declined by 5.6% and 9%, respectively, according to the Wine & Spirits Wholesalers of America. In a sign of tumult in the industry, the CEO of the world's biggest alcohol maker, Diageo, stepped down last week as the company struggles to revive growth. But hemp-based drinks are expanding fast. The market for drinks infused with THC from hemp is projected to top $1 billion in sales this year, according to market research firm Euromonitor, and climb past $4 billion in 2028. Molson Coors CEO Gavin Hattersley said in January he'd be naive to say THC beverages aren't having an effect "at least in a small way." Tilray Brands, the fourth-largest U.S. craft brewer with brands including Montauk and Shock Top, is selling its new hemp-derived THC seltzers through its beer distributors such as United Distributors in Georgia, executives said in an interview. The company's THC drinks are for sale in 13 states. "There's not a real leader that's taken a hold of the (market) so far, and that's what we look to do," Tilray's CEO Irwin Simon said earlier this year. Others, including Heineken's Lagunitas brand and Pabst Blue Ribbon, the fifth-largest U.S. brewer, have lent their names to THC seltzers for sale in dispensaries in California. Lagunitas is looking to grow distribution of its THC seltzer, potentially using hemp, to other states, a representative from Cannacraft, its ingredient supplier, said. A spokesperson for Lagunitas said it has no immediate plans to expand, but monitors market development and looks for opportunities as consumer tastes and regulations change. Boston Beer, the maker of Samuel Adams, is one of the brewers with the clearest path to eventually enter the U.S. cannabis drinks market, although it has not provided a time frame for doing so. The company is already selling its Teapot brand of THC-infused tea in Canada where weed is legal, and in the last year tested a potential U.S. version made from THC derived from hemp. To test the reformulated product, a panel of trained sensory experts sampled Teapot with both THC from hemp and marijuana, and could not taste a difference, said the company's head of cannabis, Paul Weaver. "This is a source of growth for our organization, flat out," Weaver said. Big Alcohol is treading carefully in cannabis drinks because state and federal regulations have shifted, and could change again, said five executives at ingredients suppliers and THC beverage brands. California, which has legal weed, banned hemp-based drinks last year to try to prevent children from consuming them. Other states have introduced special taxes or restricted sales, ambiguity that has held alcohol companies back from entering the market. Sen. Mitch McConnell, who helped first legalize hemp in 2018 to support farmers in his home state of Kentucky, in July introduced a provision in a government spending bill that could ban intoxicating products using the plant. McConnell wrote in an op-ed published in the Louisville Courier Journal on July 17 that his efforts are aimed at keeping THC gummies that look like familiar candies out of the hands of children. He did not provide comment beyond the op-ed. Big brewers have been burned by past cannabis investments. In 2022, the biggest U.S. brewer Anheuser-Busch inBev exited a deal with Tilray to research cannabis drinks in Canada. The same year, Molson Coors shuttered its U.S. business selling beverages infused with CBD, a compound in marijuana and hemp that does not have psychoactive effects, citing an uncertain regulatory environment. Constellation Brands restructured its investment in Canadian cannabis company Canopy Growth last year after poor sales. Now, however, hemp-based THC drinks are sold widely. Beyond beer's declining sales, brewers face an additional squeeze from tariffs, which threaten to push up prices for imported drinks, and Hispanic consumers, who are staying home due to fears of U.S. immigration enforcement. Liquor stores are embracing the buzzy beverages to boost their margins as the drinks, typically more expensive than a six-pack of beer, start to outsell other types of alcohol. Jon Halper, CEO of Minnesota liquor store chain Top Ten Liquors, said in June that THC beverages now make up 15% of his business after the company introduced them two years ago. By next year, they could grow to rival wine, currently in the mid-20% of his sales, he said. The drinks take shelf space mostly from beer because they are in coolers, Halper said. The margins on cannabis beverages are higher than those for beer and spirits, helping his firm offset softening alcohol sales. Charleston, South Carolina-based Southern Horizon Logistics, a sister company of Budweiser distributor Southern Crown Partners, is now selling more hemp-based drinks than wine and spirits, said Justin Ashby, the company's chief administrative officer. Ryan Moses, CEO of Nashville, Tennessee-based beer, wine and spirits distributor Best Brands, said that growth from THC-infused drinks has helped offset flat and declining alcohol sales. Instead of possible layoffs, Moses has been able to re-allocate employees to the new category. "It could be as big as the other categories five to 10 years from now," Moses said. Consumers like Josh Goldberg, 39, of Lindenhurst, New York, are also trading out beer and tequila for THC seltzers. Goldberg made the switch almost two years ago, and hasn't had a drink since. "It replaces the physical act of drinking with drinking something else," Goldberg said. Halper, the owner of Minnesota liquor stores, said the customers buying THC-infused drinks tend to skew female and over the age of 35. "The soccer mom has really embraced the category in a big way," Halper said.
