.jpg)
Last Week’s Moves
BLS Cash Index 573.35 (-3.38%) BLS Industrials Index 588.78 (-3.84%)
BLS Foodstuffs Index 551.35 (-2.71%) BLS Fats and Oils Index 839.30 (-0.24%)
BLS Livestock Index 701.39 (-2.96%)
______________________________________________________________________
Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, CPG manufacturers are changing the way they think about their strategy, fallout from a tumultuous stock market led to less IPOs, and one company is in hot coffee, er, water. Let’s dig in.
CPGs facing continuing supply chain issues explore ways to increase production capacity. But like everything else these days, the price tag may be higher.
Supply chain issues have firmly cemented themselves as a part of ‘the new normal’, which is having an impact on how food and beverage companies navigate business deals. For CPG companies, demand is still climbing while the supply has yet to bounce back from pandemic stress. Some food companies are building their own new facilities, while others are looking to acquire existing manufacturing plants to help boost production or widen their geographical reach.
- Production paying off… Last year, Hershey enacted its $1.2 billion purchase of Dot’s Homestyle Pretzels. The move was both to acquire the brand, as well as its production capabilities. Since the purchase, Hershey’s (HSY) retail sales have shot up about 50% over the past three months. Market share is up 3.6% over the same period.
- Worth the price tag?... Companies leaning towards the acquisition route, however, are looking at a seller’s market. Tons of food producers are looking for additional manufacturing capacity, yet the perhaps expensive acquisition route avoids the construction time of building new facilities, keeps proprietary secrets from leaking, and can accelerate product innovation.
As both employees and corporations work to navigate a changing environment, outstanding factors are shaping strategies and decisions
IP-Oh no… Last Friday, a regulatory filing confirmed that Chobani has withdrawn its plans for its initial public offering. After initially filing in November to go public with the ticker CHO on the Nasdaq, Chobani joined payroll vendor Justworks, grocery store Fresh Market, and file-sharing software company WeTransfer in calling off its IPO this year.
- Feeling cautious… Initially Chobani was seeking a valuation of over $10 billion, however the tough year for the stock market has led to 73% less IPOs in the Americas as compared to this time last year. Chobani cited the current market conditions as reason for cancellation.
Retaliation across the nation… New York City has filed a lawsuit against Starbucks (SBUX) after allegations came out that the coffee chain wrongfully fired a barista and union organizer. New York City’s Department of Consumer and Worker Protection noted the case is the first lawsuit around a violation of the city’s “just cause” protections for fast food workers.
- Out with the old… As unionizations take hold across the country, organizers have called out alleged retaliation by Starbucks. The company named a new CEO last Thursday, effectively ending Howard’ Shultz’s interim position as CEO.
Other stories…
- Impossible, you say?... Impossible Foods has announced the launch of its first branded frozen plant-based entrees, Impossible Bowls. The frozen meals offer eight different options, all featuring the brand’s plant-based meat options.
- Rushing yards… Gatorade (PEP) is expanding its offerings to include a new caffeinated spin-off, Fast Twitch. The drink is expected to launch for the public in February, but NFL players will have access during their upcoming season.
- The snack that smiles back… Ad Age’s annual listing is out, and has revealed that Campbell Soup Co.’s (CPB) Goldfish crackers are the media brand’s pick for “America’s Hottest Brands 2022.”
That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.
More Food & Beverage News from Barchart
/Super%20Micro%20Computer%20Inc%20logo%20on%20building-by%20Poetra_RH%20via%20Shutterstock.jpg)
