Food & Bev Companies Could Lose $150 Billion If They Don't Go Green

Last Week’s Moves

BLS Cash Index  560.33 (-1.48%)         BLS Industrials Index 570.73 (-1.89%)        

BLS Foodstuffs Index 545.21 (-0.89%) BLS Fats and Oils Index 814.25 (-1.40%)   

BLS Livestock Index 83.60 (-1.02%)

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Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, a new study finds that climate change initiatives will pay off for corporations, leadership within the food and beverage industry refocuses, and one beverage giant says goodbye to summer and hello to fall. Let’s dig in. 

As climate change continues to dominate conversations and impacts strategy, study finds companies will miss out on revenue if they don’t get on board

Pollution comes with a price tag… A new report published by UN-affiliated Race to Zero has said that top farming and food firms stand to lose a quarter of their value by 2030 if they don’t adapt to new government policies and consumer behavior tied to climate change. The report explored how 40 companies across both the agricultural industry and the food retail industry could perform with practices aimed at reducing emissions, such as a federal carbon emission price or if consumers were to drop their meat consumption. 

• Go green to save green… The results found these companies’ value would decline by an average of around 7%, translating to approximately $150 billion in investor losses if they did not adopt new practices. 
• Lead the way… Researchers used data from Vivid Economics, a program with McKinsey & Co. The report’s findings will be discussed at Climate Week in New York, where a series of events will be running for world leaders. 

Food and Beverage companies are changing who’s holding leadership positions, and what their main focuses are, as economic stress looms

Mr. Worldwide… US-based Greek yogurt company Chobani has appointed Kenneth Bishop to the new role of senior vice president of international market development. A core focus of Bishop’s role will be centered around expanding the brand’s footprint in international markets. Chobani currently holds around roughly 20% of market share.

• Going abroad… Domestic growth is still a key focus for the company, however Chobani is targeting untapped sales in regions where it hasn’t established a strong presence. Chobani currently manufactures and distributes products in the US and Australia, and exports to some countries in Asia and Latin America. 

Keep your nose clean… Beyond Meat’s (BYND) operating chief Doug Ramsey was arrested for allegedly punching another man and biting him in the nose. Ramsey, the company’s chief operating officer since December, has since been suspended from his position, the company said in a statement.

• Under pressure… Beyond Meat has been struggling with lackluster numbers and investor skepticism over long-term growth prospects. Its stock is down 75% this year, bringing its market cap to $1.02 billion. 

Other stories…

• A lively idea… Major brands are pledging to reduce plastic packaging, and bio-based packaging manufacturers are stepping in with a unique solution: products made with seaweed and mushrooms. 
• Want s’more?... PepsiCo (PEP) has launched a new line of its namesake soda featuring a new chocolate soda, marshmallow, and graham cracker soda. 
• Drinking and driving… Last week, drivers along Interstate 75 in Florida were met with a five-vehicle accident that resulted in hundreds of cans and cases of Coors Light beer spilling out into the roadway.. 

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. 

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