Latest news with #premiumization
Yahoo
a day ago
- Business
- Yahoo
Will Constellation Brands' Focus on Core Brands Deliver in 2025?
Constellation Brands, Inc. STZ is a powerhouse in the alcoholic beverage industry, with balanced presence across beer, wine and spirits. The company continues to prioritize premiumization, brand strength and portfolio optimization as a central theme of its growth strategy. Armed with a portfolio of consumer-led, top-notch brands such as Modelo Especial, Corona Extra, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble and Mi CAMPO, STZ is poised well to serve the evolving tastes of is sharpening its focus on high-performing core brands in high-margin categories, particularly beer, which makes up roughly 83% of total sales. STZ is capitalizing on favorable U.S. beer trends, especially the rising demand for Mexican imports and premium offerings. Modelo, now the top-selling beer in the US, continues to be a standout performer. Corona and Pacifico are the other beer brands that are performing well. For fiscal 2026, the company anticipates sales growth of 0–3% for the beer segment. In the wine and spirits business, the portfolio continues to evolve toward higher-end offerings, with premium brands like The Prisoner, Kim Crawford and Meiomi driving growth. The company is investing in innovation, flavor extensions and omnichannel capabilities to strengthen consumer engagement, particularly among younger, tech-savvy audiences. Additionally, STZ is divesting lower-performing assets and streamlining operations to drive margin expansion and enhance long-term near-term challenges like inflation and channel shifts persist, Constellation Brands' disciplined focus on fewer, stronger brands and strategic execution provides a solid foundation for sustainable growth in 2025 and beyond. As Constellation Brands doubles down on its core portfolio strategy, a closer look at how peers like Anheuser-Busch InBev SA/NV BUD, The Boston Beer Company, Inc. SAM and Molson Coors Beverage Company TAP manage their core brand playbooks offers key insights into competitive positioning and evolving industry InBev SA/NV, alias AB InBev, has been gaining from continued consumer demand for its brand portfolio. The company's premiumization strategy is a key growth lever. AB InBev has been focused on premium beer offerings, aligning with consumer preferences in the alcohol industry. Among the above-core brands, Corona has been leading the performance, delivering low-teens revenue growth outside of Mexico. BUD has been focused on expanding its Beyond Beer portfolio as well. Boston Beer remains focused on product innovations and brand development to strengthen its market position and drive operational performance. Among the most iconic brands in American craft brewing, Samuel Adams is the keystone of Boston Beer. The company has diversified its lineup with beverages like Truly Hard Seltzer and has grown beyond traditional beer. SAM's diversification strategy centers on expanding its 'Beyond Beer' portfolio, including hard seltzers, ciders and other alternative alcoholic beverages, to capitalize on the evolving consumer taste, reducing reliance on the traditional beer Coors remains committed to bolstering growth through innovation and premiumization. To accelerate portfolio premiumization, the company has been aggressively growing its above-premium portfolio. It remains focused on stabilizing its larger above-premium brands in the US, while simultaneously pursuing meaningful growth opportunities for its most strategic, high-performing brands. The company intends to invest in iconic brands and growth opportunities in the above-premium beer space and expand in adjacencies and beyond beer. Shares of Constellation Brands have lost 25.9% year to date against the industry's growth of 2.2%. Image Source: Zacks Investment Research From a valuation standpoint, STZ trades at a forward price-to-earnings ratio of 12.34X compared with the industry's average of 15.23X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for STZ's fiscal 2026 earnings implies a year-over-year decline of 7.9%, while that for fiscal 2027 indicates growth of 8.5%. The company's EPS estimate for fiscal 2026 and fiscal 2027 has moved down in the past 30 days. Image Source: Zacks Investment Research Constellation Brands stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
- Business
- Yahoo
Should You Consider Ralph Lauren Stock Despite Its Elevated Valuation?
Ralph Lauren Corporation RL is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.54x, notably higher than the industry average of 11.2x. This premium valuation reflects investor confidence in the company's robust brand equity, successful execution of its strategic transformation, and consistent performance across geographies and channels. RL's strong pricing power, margin expansion, disciplined inventory and real estate management further support its elevated valuation. Image Source: Zacks Investment Research In contrast, peers such as Duluth Holdings DLTH, Guess? Inc. GES and Gildan Activewear GIL trade at lower forward P/E ratios of 7.59x, 7.59x and 13.21x, respectively. These lower valuations of Duluth Holdings, Guess? and Gildan Activewear are a reflection of the company-specific challenges, such as inconsistent earnings performance, lower pricing power, greater exposure to price-sensitive customers or weaker brand Ralph Lauren, which has successfully leaned into premiumization and digital transformation, these peers operate with more constrained growth profiles, narrower international footprints and less diversified product offerings.A key factor behind Ralph Lauren's elevated P/E ratio is its impressive stock performance. In the past year, shares of the company have climbed 55.5%, significantly outperforming the industry, which declined by 13.5%. It has also outperformed the broader sector and the S&P 500 index, which posted growth of 19.8% and 10.8%, respectively. Image Source: Zacks Investment Research RL's stock performance stands out among apparel stocks. In the past year, Duluth Holdings and Guess? have declined 48.3% and 41%, respectively, whereas Gildan Activewear gained 27.6%. Ralph Lauren continues to demonstrate exceptional strength, closing fiscal 2025 with robust performance that exceeded expectations across all regions and channels. The company's global desirability remains its most powerful asset, underpinned by its iconic brand identity and elevated product portfolio. With a lifestyle approach that resonates across generations and geographies, Ralph Lauren has effectively executed its key city ecosystem model, combining physical stores, digital flagships and selective wholesale Lauren's digital transformation continues to be a significant growth lever, with direct-to-consumer (DTC) channels now making up two-thirds of the business. Digital comps grew in the double digits globally in the fourth quarter, supported by targeted marketing activations, improved site experiences and increasing traction on social media platforms. The company added nearly 6 million new DTC consumers in fiscal 2025, with growth led by younger, female and less price-sensitive like predictive buying and AI-enabled planning are improving inventory efficiency and responsiveness. Across platforms owned, wholesale and social, Ralph Lauren is not just keeping pace with digital trends but actively shaping them, creating immersive, emotionally resonant brand experiences that fuel both consumer loyalty and higher-margin company's multi-year strategy, centered on three pillars — brand elevation, driving the core while expanding for more and winning in key cities — has delivered tangible results. Ralph Lauren's core products, which represent about 70% of the business, saw low double-digit growth in the fourth quarter, led by strong demand for knitwear, outerwear and company's strategic pricing actions, product elevation and discount discipline helped drive average unit retail growth while reinforcing luxury and value perceptions. Ralph Lauren is also making smart investments in prime real estate to future-proof its presence, such as acquiring its Polo flagship in SoHo, aligning with a broader DTC-led growth strategy that continues to strengthen profitability. Reflecting positive sentiment around Ralph Lauren, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 30 days, the consensus estimate has risen 6 cents to $13.69 and 7 cents to $15.03 for 2026 and 2027, respectively. These estimates indicate expected year-over-year growth rates of around 11% and 9.8% for 2026 and 2027, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Despite its strong performance, Ralph Lauren faces mounting challenges from an increasingly volatile global macroeconomic environment. Consumer sentiment remains pressured across key markets such as the United States, the U.K. and China due to persistent inflation, geopolitical tensions and uncertainty around trade policy, particularly new cost inflation is an evolving concern, with the company expecting gross margin pressures to intensify in the second half of fiscal 2026. Ralph Lauren has proactively implemented selective pricing actions and diversified its supply chain, ensuring no single country exceeds 20% of production tariffs. However, tariffs are expected to pose risks to its cost structure and pricing power in the near term. Ralph Lauren remains a compelling investment, supported by its strong brand positioning, lifestyle-driven product strategy and expanding global footprint. The company's focus on premiumization, digital transformation and disciplined execution has fueled consistent performance across regions and channels. Its success in driving brand desirability, coupled with ongoing investments in high-growth categories and key markets, underpins long-term growth the stock's premium valuation reflects high investor expectations, which could be tested amid ongoing macroeconomic uncertainty, shifting consumer sentiment and evolving tariff risks. Current investors should retain their positions in RL stock, while new investors might wait for a more favorable entry point. Ralph Lauren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
2 days ago
- Business
- Globe and Mail
Coca-Cola Pushes for Premiumization: Is This Strategy Working?
In today's competitive beverage landscape, The Coca-Cola Company KO is leaning heavily into a premiumization strategy to drive growth across global markets. The company's strategy centers on expanding consumer choice through brand innovation and a diverse pricing spectrum, ranging from affordable, local products to premium and functional beverages. This shift comes against a backdrop of macroeconomic uncertainty, with mixed consumer sentiment and volatile regional demand. Despite these challenges, Coca-Cola delivered strong organic revenue growth, expanded margins and demonstrated resilience by quickly adapting to shifting market dynamics. Coca-Cola's premiumization strategy is most evident in its product innovation and marketing initiatives. The company emphasized the success of higher-end and health-focused products such as Fairlife, Coca-Cola Zero Sugar and the new Simply Pop prebiotic soda. Fairlife was the top dollar-contributing brand in U.S. retail in the first quarter, reinforcing the commercial viability of premium-tier offerings. On the marketing front, the global return of the 'Share a Coke' campaign, alongside digital customization efforts, underscores Coca-Cola's attempt to elevate brand engagement and perceived value as part of its premiumization strategy. The company's marketing strategy also focuses on leveraging connected packaging, Studio X digital content, and targeted experiential marketing, each tailored to strengthen engagement and drive growth in higher-margin segments. As Coca-Cola continues to evolve, its premiumization strategy positions the company to capture value in a changing consumer landscape. By balancing affordability with aspirational offerings and investing in innovation and targeted marketing, Coca-Cola is not only defending its global leadership but also redefining it for the next generation of beverage consumers. If executed effectively, premiumization has the potential to be a powerful catalyst for long-term margin expansion and sustainable value creation. KO's Rivals Step Up: PEP & KDP Double Down on Premium Plays As Coca-Cola leans into premiumization, rivals like PepsiCo Inc. PEP and Keurig Dr Pepper Inc. KDP are stepping up their game with strategic moves aimed at capturing a larger share of the high-margin beverage market. PepsiCo highlighted premiumization as a core pillar of its growth strategy, focusing on transforming its portfolio to meet evolving consumer preferences for health, functionality and value. The company emphasized the success of premium offerings such as Gatorade Zero, Propel and hydration powders and tablets, which are gaining share in the functional beverage space. It is also expanding through strategic acquisitions like Poppi, a prebiotic soda brand, and strengthening partnerships with Celsius, Starbucks and Unilever to grow in high-value categories like energy drinks, coffee and tea. Keurig emphasized its strategic push into premiumization across its beverage and coffee portfolios. The company is building a tier of premium and super-premium coffee offerings through brands like Lavazza, La Colombe, Philz and Kicking Horse, which resonate with higher-value consumers and drive positive mix. KDP also expanded its presence in ready-to-drink (RTD) and cold coffee segments, with La Colombe RTD showing strong growth. Additionally, its Refreshers platform is adding incremental value. KO's Price Performance, Valuation & Estimates Shares of Coca-Cola have gained around 11.8% year to date compared with the industry 's growth of 5.8%. Image Source: Zacks Investment Research From a valuation standpoint, KO trades at a forward price-to-earnings ratio of 22.58X, significantly above the industry's average of 17.59X. The Zacks Consensus Estimate for KO's 2025 and 2026 EPS implies year-over-year growth of 3.1% and 8.2%, respectively. The estimates for 2025 have moved up by a penny, whereas the estimates for 2026 have been stable in the past 30 days. KO stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report
Yahoo
19-06-2025
- Business
- Yahoo
Clorox's Innovation Strategy Elevates Everyday Essentials
Innovation sits at the core of The Clorox Company's CLX strategy to remain competitive in a category dominated by global giants and cost-effective private labels. It focuses on consumer-centric innovation, wherein improvements in performance, sensory appeal and convenience are key levers. In third-quarter 2025, Clorox highlighted the success of several premium products such as Scentiva disinfecting sprays, the upgraded ToiletWand and odor-control litter, all designed to command a premium while meeting real, evolving consumer needs. This strategy aligns with the company's belief that consumers are still willing to pay more for products that deliver superior value per approach to innovation is both bifurcated and realistic. On one hand, the company is leaning into premiumization across categories to differentiate from private label. On the other hand, it is expanding price-pack architecture to provide budget-conscious consumers with flexible options, such as smaller entry-price packs and value sizes for club and mass channels. Clorox has been disciplined in its promotional strategy, choosing to support innovation through targeted marketing and selective discounting rather than broad-based price cuts. This dual approach allows the company to protect margins while defending its share across income segments and competitive ahead, Clorox remains committed to investing in R&D, supported by tools like its digital transformation and upcoming ERP system upgrade, which will enable more agile innovation and supply chain responsiveness. Despite current market headwinds and volatility in consumer spending, the company sees innovation as a key driver of long-term growth and margin expansion. Clorox's track record of delivering trustworthy, high-performing products in essential categories uniquely positions it to win in both up and down cycles, provided the company continues to innovate where it matters most to consumers. The Procter & Gamble Company PG, Colgate-Palmolive Company CL and Church & Dwight Co., Inc. CHD are the key consumer staple companies competing with Clorox in the global & Gamble uses a smart strategy when it comes to innovation. The company keeps improving its popular brands like Tide, Febreze and Mr. Clean by adding new features, better scents or easier packaging. At the same time, PG gives shoppers different choices depending on their focuses on value-driven innovation, especially in home care and personal hygiene. The company regularly updates products with new scents, improved cleaning formulas and convenient packaging. Colgate also invests in sustainability, such as recyclable bottles and concentrated products. Its innovation is often designed to meet the needs of both budget-conscious and environmentally aware & Dwight is a key competitor to Clorox, known for its value-focused and niche household brands like OxiClean and Arm & Hammer. The company emphasizes cost-effective innovation, often targeting specific consumer needs with affordable, functional products. CHD competes directly with Clorox in laundry additives, cleaning sprays, and baking soda-based solutions. Clorox shares have lost 25.5% year to date compared with the industry's growth of 2.2%. Image Source: Zacks Investment Research From a valuation standpoint, CLX trades at a forward price-to-earnings ratio of 18.0X, significantly below the industry's average of 20.23X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CLX's 2025 earnings implies year-over-year growth of 14.9%, whereas its 2026 earnings estimate suggests a year-over-year decline of 5.4%. The estimates for 2025 and 2026 have been unchanged in the past 30 days. Image Source: Zacks Investment Research CLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Colgate-Palmolive Company (CL) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
19-06-2025
- Business
- Globe and Mail
Clorox's Innovation Strategy Elevates Everyday Essentials
Innovation sits at the core of The Clorox Company 's CLX strategy to remain competitive in a category dominated by global giants and cost-effective private labels. It focuses on consumer-centric innovation, wherein improvements in performance, sensory appeal and convenience are key levers. In third-quarter 2025, Clorox highlighted the success of several premium products such as Scentiva disinfecting sprays, the upgraded ToiletWand and odor-control litter, all designed to command a premium while meeting real, evolving consumer needs. This strategy aligns with the company's belief that consumers are still willing to pay more for products that deliver superior value per use. Clorox's approach to innovation is both bifurcated and realistic. On one hand, the company is leaning into premiumization across categories to differentiate from private label. On the other hand, it is expanding price-pack architecture to provide budget-conscious consumers with flexible options, such as smaller entry-price packs and value sizes for club and mass channels. Clorox has been disciplined in its promotional strategy, choosing to support innovation through targeted marketing and selective discounting rather than broad-based price cuts. This dual approach allows the company to protect margins while defending its share across income segments and competitive environments. Looking ahead, Clorox remains committed to investing in R&D, supported by tools like its digital transformation and upcoming ERP system upgrade, which will enable more agile innovation and supply chain responsiveness. Despite current market headwinds and volatility in consumer spending, the company sees innovation as a key driver of long-term growth and margin expansion. Clorox's track record of delivering trustworthy, high-performing products in essential categories uniquely positions it to win in both up and down cycles, provided the company continues to innovate where it matters most to consumers. Clorox's Competitors in Innovation: PG,CL & CHD's Smart Moves The Procter & Gamble Company PG, Colgate-Palmolive Company CL and Church & Dwight Co., Inc. CHD are the key consumer staple companies competing with Clorox in the global arena. Procter & Gamble uses a smart strategy when it comes to innovation. The company keeps improving its popular brands like Tide, Febreze and Mr. Clean by adding new features, better scents or easier packaging. At the same time, PG gives shoppers different choices depending on their budget. Colgate focuses on value-driven innovation, especially in home care and personal hygiene. The company regularly updates products with new scents, improved cleaning formulas and convenient packaging. Colgate also invests in sustainability, such as recyclable bottles and concentrated products. Its innovation is often designed to meet the needs of both budget-conscious and environmentally aware consumers. Church & Dwight is a key competitor to Clorox, known for its value-focused and niche household brands like OxiClean and Arm & Hammer. The company emphasizes cost-effective innovation, often targeting specific consumer needs with affordable, functional products. CHD competes directly with Clorox in laundry additives, cleaning sprays, and baking soda-based solutions. CLX's Price Performance, Valuation & Estimates Clorox shares have lost 25.5% year to date compared with the industry's growth of 2.2%. From a valuation standpoint, CLX trades at a forward price-to-earnings ratio of 18.0X, significantly below the industry's average of 20.23X. The Zacks Consensus Estimate for CLX's 2025 earnings implies year-over-year growth of 14.9%, whereas its 2026 earnings estimate suggests a year-over-year decline of 5.4%. The estimates for 2025 and 2026 have been unchanged in the past 30 days. Image Source: Zacks Investment Research CLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG): Free Stock Analysis Report Colgate-Palmolive Company (CL): Free Stock Analysis Report The Clorox Company (CLX): Free Stock Analysis Report Church & Dwight Co., Inc. (CHD): Free Stock Analysis Report
