Saturday, November 22, 2014

Hot Beverage Companies To Own For 2014

Editor's note: A previous version of this article incorrectly stated that PepsiCo will also remove the "non-GMO" claim from its Naked Juice packaging. The Fool regrets the error.

Once you go down the rabbit hole of the government determining what's "natural" and what's not, it's hard to get back out, but food and beverage companies like PepsiCo (NYSE: PEP  ) may need it to do so since plaintiff's attorneys seem determined to wring cash out of them for dubious violations of labeling laws.

Pepsi's Naked Juice brand recently agreed to settle for $9 million a class action lawsuit that the claims of "natural" made on its bottles were misleading or false because they�contained unnaturally processed and synthetic ingredients. They were also charged with using genetically modified ingredients.

As readers may know, I'm a proponent of GMO labeling because I believe that when an organism is being manipulated in the lab and being released into the food chain, consumers ought to know they're ingesting that. Yet while I might not be big supporter of GMO crops, I wouldn't stop Monsanto (NYSE: MON  ) or Syngenta from developing their seeds. I just want to know if what I'm eating or drinking contains their Frankenfood strains.

Top 5 Recreation Companies To Invest In Right Now: Brown-Forman Corp (BF.B)

Brown-Forman Corporation, incorporated on October 19, 1933, primarily manufactures, bottles, imports, exports, markets, and sells a variety of alcoholic beverage brands. The Company�� principal brands are Jack Daniel�� Tennessee Whiskey, Jack Daniel�� Tennessee Whiskey, Pepe Lopez Tequilas, Jack Daniel�� Single Barrel, Woodford Reserve Bourbons, Jack Daniel�� Ready-to-Drinks, Canadian Mist Blended Canadian Whiskies, Jack Daniel�� Tennessee Honey, Chambord Liqueur, Jack Daniel�� Winter Jack Chambord Vodka, Gentleman Jack, Collingwood Canadian Whisky, Southern Comfort, Early Times Bourbon, Southern Comfort Ready-to-Drinks, Early Times flavored line extensions, Southern Comfort flavored line extensions, Early Times Kentucky Whisky, Finlandia Vodkas, Korbel California Champagnes, Finlandia Ready-to-Drinks, Little Black Dress Vodkas, Antiguo Tequila, Maximus Vodkas, el Jimador Tequilas, Old Forester Bourbon, el Jimador New Mix Ready-to-Drinks, Sonoma-Cutrer Wines, Herradura Tequilas, and Tuaca Liqueur.

The Company�� products are sold in more than 150 countries around the world. The Company�� international markets include Australia, the United Kingdom, Mexico, Germany, Poland, France, Russia, Japan, Turkey, Canada, Spain, Czech Republic, South Africa, Brazil and Italy.

The Company competes with Bacardi Limited, Beam Inc., Davide Campari-Milano S.p.A., Diageo plc, LVMH Moet Hennessy Louis Vuitton S.A., Pernod Ricard S.A., and Remy Cointreau S.A.

Advisors' Opinion:
  • [By John Udovich]

    Whiskey has become increasingly cool and popular thanks to the whole cocktail movement, something that�� good for big whiskey stocks like Suntory Beverage & Food Limited (OTCMKTS: STBFY), Diageo plc (NYSE: DEO) and Brown-Forman Corporation (NYSE: BF.B) who�also produce a wide variety of�liquors and beverages. In fact,�a recent episode of the�Daily Ticker�cited these stats from a USA Today article:

Hot Beverage Companies To Own For 2014: Molson Coors Brewing Company(TAP)

Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. It sells its products in Canada, under the Coors Light, Molson, Rickard's Red, Carling, Pilsner, Keystone Light, Creemore Springs, and Granville Island brands. The company also brews or distributes products under license from third parties, which include Heineken, Amstel Light, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, it imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, the company sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Blue Moon, Henry Weinhard 's, George Killian's Irish Red, Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in the United Kingdom comprising Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as various regional ale brands. The company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd.; and distributes brands sold under license, including Corona, Coronita, Negra Modelo, Pacfico, Singha, and Magners Draught Cider. In addition, it markets and sells Zima, Si'hai, Coors Gold, and Coors Extra brands to various international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartere d in Denver, Colorado.

Advisors' Opinion:
  • [By Alex Planes, Sean Williams, and Travis Hoium]

    Things haven't been too much better on the beer front, with both domestic giant Anheuser-Busch InBev (NYSE: BUD  ) and Molson Coors (NYSE: TAP  ) looking abroad to make deals. With pocketbooks clenched tight as higher taxes and a slow recovery drain the American consumer, Anheuser-Busch took to purchasing Grupo Modelo's international operations, while Molson Coors gobbled up Eastern Europe's StarBev in a $3.5 billion transaction last year to get their share of faster emerging-market growth. Diageo is attempting to find new pathways to growth as well, but it's approaching things from a distilling angle by attempting to become a majority stakeholder in India's largest distiller, United Spirits.

  • [By Dan Caplinger]

    The impact of beer taxes
    State excise taxes on beer don't necessarily have a huge impact on state budgets overall, but in tough times, they still represent an important source of tax revenue, and beer producers from giants Anheuser-Busch InBev (NYSE: BUD  ) and Molson Coors (NYSE: TAP  ) down to smaller craft beer producers like Boston Beer (NYSE: SAM  ) end up bearing their share of the burden along with their customers.

Hot Beverage Companies To Own For 2014: Montalvo Spirits Inc (TQLA)

Montalvo Spirits Inc., incorporated on November 18, 2010, is a development-stage company. The Company develops, markets and distributes alcoholic beverages with initial offering being the Montalvo Tequila, primarily in the United States. The Company sells its products through a network of spirits distributors, who are licensed to distribute alcoholic beverages throughout the United States. The Company intends to focus on growing the market share of its initial products, the ultra-premium Montalvo line of tequilas, whose expressions include Plata, Reposado, Anejo and Extra-Anejo. The Company owns the Montalvo brand trademark and have exclusive worldwide master distribution rights to the brands.

The Company�� portfolio of alcoholic beverage brands includes additional spirits categories, as well as beer and wine, through additional importation and distribution contracts of existing brands. In addition, the Company may choose to develop new brands or acquire existing companies with their own brand portfolios. The Company�� subsidiary, Casa Montalvo, has an exclusive worldwide distribution agreement with Destilidora Huerta Real, S.A. de C.V., the producers of Montalvo Tequila. Montalvo, an ultra-premium tequila brand, is a handcrafted, formulated tequila produced from blue agave plants from the Lowlands of Jalisco, Mexico. Montalvo is available in four expressions: Plata, Reposado, Anejo and Extra-Anejo.

The Company competes with Diageo PLC, Pernod Ricard S.A., Bacardi Limited, Brown-Forman Corporation, Beam Inc., Remy Cointreau S.A. and Constellation Brands, Inc.

Advisors' Opinion:
  • [By CRWE]

    Today, TQLA surged (+10.80%) up +0.042 at $.431 with 1,344,844 shares in play thus far (ref. google finance Delayed: 1:09PM EDT� September 24, 2013).

    Montalvo Spirits, Inc. previously reported they have entered into a sales and marketing agreement with Prestige International Exports, LLC (“Prestige”). Prestige will represent the Montalvo Spirits portfolio brands in certain international markets, as well as provide sales and marketing support for Montalvo Tequila and Broken Heart Gin throughout the state of California, and will assist the Company in attempting to secure distribution in additional markets in the U.S.

Hot Beverage Companies To Own For 2014: Fomento Economico Mexicano SAB de CV (FMX)

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), incorporated on May 30, 1936, is a holding company. The Company conducts its operations through principal holding companies, each of which it refers to as a principal sub-holding company. These companies are Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA), which engages in the production, distribution and marketing of soft drinks, and FEMSA Comercio, S.A. de C.V. (FEMSA Comercio), which operates convenience stores. The Company�� convenience store chain OXXO operated a total of 7,492 stores as of March 31, 2010. Compania Internacional de Bebidas, S.A. de C.V. (CIBSA) owns a 53.7% interest in Coca-Cola FEMSA. On April 30, 2010, FEMSA announced the closing of the transaction, pursuant to which FEMSA agreed to exchange 100% of its beer operations conducted by FEMSA Cerveza for a 20% economic interest in the Heineken Group. In February 2009, Coca-Cola FEMSA acquired with The Coca-Cola Company the Brisa bottled water business in Colombia from Bavaria, a subsidiary of SABMiller. Coca-Cola FEMSA acquired the production assets and the rights to distribute in the territory, and The Coca-Cola Company obtained the Brisa brand.

Coca-Cola FEMSA, S.A.B. de C.V.

Coca-Cola FEMSA is a bottler of Coca-Cola trademark beverages. Coca-Cola FEMSA operates in various territories, including Mexico, a substantial portion of central Mexico (including Mexico City and the states of Michoacan and Guanajuato) and southeast Mexico (including the Gulf region); Central America, including Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide) and Panama (nationwide); Colombia; Venezuela; Argentina, including Buenos Aires and surrounding areas, and Brazil, including the area of greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do Sul, the state of Minas Gerais and part of the state of Goias.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages, own brands and b! rands licensed from the Company. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), water, and still beverages (including juice drinks, ready-to-drink teas and isotonics). Out of the more than 100 brands and line extensions of beverages sold and distributed by Coca-Cola FEMSA, its most important brand, Coca-Cola, together with its line extensions, Coca-Cola light, Coca-Cola Zero and Coca-Cola light caffeine free, accounted for 61.4% of total sales volume during the year ended December 31, 2009. Coca-Cola FEMSA�� next largest brands, Ciel (a water brand from Mexico), Fanta (and its line extensions), Sprite (and its line extensions), ValleFrut and Hit, accounted for 10.5%, 5.8%, 2.6%, 1.5% and 1.3%, respectively, of total sales volume in 2009. Coca-Cola FEMSA uses the term line extensions to refer to the different flavors in which it offers its brands.

Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages in each of its territories in containers authorized by The Coca-Cola Company, which consist of a variety of returnable and non-returnable presentations in the form of glass bottles, cans and plastic bottles made of polyethylene terephtalate (PET). Coca-Cola FEMSA uses the term presentation to refer to the packaging unit in which it sells its products. Presentation sizes for its Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. For all of its products excluding water, Coca-Cola FEMSA considers a multiple serving size as equal toor larger than one liter. In addition, it sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which it refers to as fountain. It also sells bottled water products in bulk sizes, which refers to presentations equal to or larger than five liters, which have a much lower average price per unit case than its other beverage products.

In Mexico, Coca-Cola FEMSA�� product portfolio consis! ts of Coc! a-Cola trademark beverages, and includes Mundet trademark beverages licensed from FEMSA in some Mexican territories. Coca-Cola FEMSA�� product sales in Latincentro consist predominantly of Coca-Cola trademark beverages. Per capita consumption of its sparkling beverages products in Colombia and Central America was 92 and 146 eight-ounce servings, respectively, in 2009. Its product portfolio in Venezuela consists of Coca-Cola trademark beverages. Sparkling beverages per capita consumption of its products in Venezuela was 174 eight-ounce servings during 2009. Coca-Cola FEMSA�� product portfolio in Mercosur consists mainly of Coca-Cola trademark beverages, and the Kaiser beer brand in Brazil, which Coca-Cola FEMSA sells and distributes on behalf of FEMSA Cerveza. Sparkling beverages per capita consumption of its products in Brazil and Argentina was 214 and 359 eight-ounce servings, respectively, in 2009.

The Company competes with Pepsi Beverage Company, Grupo Embotelladores Unidos, S.A.B. de C.V., Grupo Jumex, Groupe Danone, Cadbury Schweppes, Big Cola, Consorcio AGA, S.A. de C.V., Postobon, Florida Ice and Farm Co. S.A., Cerveceria Nacional, S.A., Pepsi-Cola Venezuela, C.A., AmBev and Quilmes Industrial S.A.

FEMSA Comercio, S.A. de C.V.

FEMSA Comercio operates a chain of convenience stores in Mexico, under the trade name OXXO. OXXO stores are concentrated in the northern part of Mexico, but also have a presence in central Mexico and the Gulf coast. FEMSA Comercio is the largest single customer of FEMSA Cerveza and of the Coca-Cola system in Mexico. During 2009, a typical OXXO store carried 1,954 different store keeping units (SKUs) in 31 main product categories.

The Company competes with 7-Eleven, Super Extra, Super City, Circle-K and AM/PM.

Advisors' Opinion:
  • [By Dividends4Life]

    Memberships and Peers: PEP is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: The Coca-Cola Company (KO) with a 2.8% yield, Dr Pepper Snapple Group, Inc. (DPS) with a 3.2% yield and Fomento Econ (FMX) with a 1.7% yield.

  • [By Robert Martin]

    South Africa, China, Mexico and Brazil collectively make up 68% of ECON�� holdings. The top three holdings are Naspers LTD (NPSNY) at 10%, AmBev (ABV) at 8% and FEMSA (FMX) at 5.6%.

Hot Beverage Companies To Own For 2014: Brown-Forman Corp (BFB)

Brown-Forman Corporation, incorporated on October 19, 1933, primarily manufactures, bottles, imports, exports, markets, and sells a variety of alcoholic beverage brands. The Company�� principal brands are Jack Daniel�� Tennessee Whiskey, Jack Daniel�� Tennessee Whiskey, Pepe Lopez Tequilas, Jack Daniel�� Single Barrel, Woodford Reserve Bourbons, Jack Daniel�� Ready-to-Drinks, Canadian Mist Blended Canadian Whiskies, Jack Daniel�� Tennessee Honey, Chambord Liqueur, Jack Daniel�� Winter Jack Chambord Vodka, Gentleman Jack, Collingwood Canadian Whisky, Southern Comfort, Early Times Bourbon, Southern Comfort Ready-to-Drinks, Early Times flavored line extensions, Southern Comfort flavored line extensions, Early Times Kentucky Whisky, Finlandia Vodkas, Korbel California Champagnes, Finlandia Ready-to-Drinks, Little Black Dress Vodkas, Antiguo Tequila, Maximus Vodkas, el Jimador Tequilas, Old Forester Bourbon, el Jimador New Mix Ready-to-Drinks, Sonoma-Cutrer Wines, Herradura Tequilas, and Tuaca Liqueur.

The Company�� products are sold in more than 150 countries around the world. The Company�� international markets include Australia, the United Kingdom, Mexico, Germany, Poland, France, Russia, Japan, Turkey, Canada, Spain, Czech Republic, South Africa, Brazil and Italy.

The Company competes with Bacardi Limited, Beam Inc., Davide Campari-Milano S.p.A., Diageo plc, LVMH Moet Hennessy Louis Vuitton S.A., Pernod Ricard S.A., and Remy Cointreau S.A.

Advisors' Opinion:
  • [By Laura Brodbeck]

    Wednesday

    Earnings Expected From: Christopher & Banks Corporation (NYSE: CBK), Brown Forman Corporation (NYSE: BFB), Express, Inc. (NYSE: EXPR), Avago Technologies (NASDAQ: AVGO) Economic Releases Expected: US nonfarm employment change, US trade balance, Canadian trade balance, US new home sales, US ISM non-manufacturing PMI

    Thursday

Hot Beverage Companies To Own For 2014: Coca-Cola Enterprises Inc. (CCE)

Coca-Cola Enterprises Inc. produces, distributes, and markets non-alcoholic beverages in Europe. It provides a range of beverage categories, including energy drinks, still and sparkling waters, juices, sports drinks, fruit drinks, coffee-based beverages, and teas. The company primarily offers its products under Coca-Cola, Diet Coke/Coke light, Fanta, Coca-Cola Zero, Capri Sun, Schweppes, Sprite, Chaudfontaine, MinuteMaid, and Dr. Pepper brands. It provides its products to customers and consumers through licensed territory agreements in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. Coca-Cola Enterprises Inc. was founded in 1986 and is based in Atlanta, Georgia.

Advisors' Opinion:
  • [By L.A. Little]

    Coca-Cola Enterprises Inc. (CCE) � is a consumer staple and has a lot less volatility than most stocks. As seen below, it has broken over multiple swing points on the short-term time frame.

Hot Beverage Companies To Own For 2014: Pernod Ricard SA (PDRDY)

Pernod Ricard SA is a France-based producer and distributor of spirits and wines. The Company offers such products as whiskies, aniseed spirits, liqueurs, cognacs and brandies, white spirits and rums, bitters, champagnes and wines. Its business is divided into three segments: Top 14 Spirits & Champagne, Priority Premium Wines and 18 key local spirits brands. Pernod Ricard SA�� flagship brands include ABSOLUT, Ricard, Havana Club, Ballantine��, Malibu, The Glenlivet, Chivas Regal, Beefeater, Kahlua, Martell, Royal Salute, Mumm, Perrier-Jouet and Jameson, among others. The wine category includes, Jacob�� Creek, Brancott Estate, Campo Viejo and Graffigna. It operates as a holding company, with the structure divided between brand owner subsidiaries, such as The Absolut Company, Havana Club International and Chivas Brothers and regional distribution subsidiaries, such as Pernod Ricard Europe, Pernod Ricard Americas and Pernod Ricard Asia, distribute local brands. Advisors' Opinion:
  • [By Charles Sizemore]

    But its current valuation��t trades at 31 times earnings��akes me pause. At that price, you are implicitly expecting one of two things to happen:

    The American whiskey boom continues unabated for years��nd isn�� replaced by something new and trendy. Brown-Forman will be acquired by a larger competitor (think Diageo or Pernod-Ricard (PDRDY)).

    The first assumption is one I�� be hesitant to make given the whims of fashion. And the second is even less likely. Brown-Forman is family controlled, and in the past the company has very adamant about preserving its independence.

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