For Immediate Release
Chicago, IL - December 10, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Keurig Green Mountain, Inc. ( GMCR ), Coca-Cola Company ( KO ), Mondelez International, Inc. ( MDLZ ), PepsiCo, Inc. ( PEP ) and Monster Beverage Corp. ( MNST ).
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Here are highlights from Wednesday's Analyst Blog:
After Keurig Buyout, What's Next for Beverage Stocks?
The recent buyout of coffee machine maker Keurig Green Mountain, Inc. ( GMCR ) has stirred the beverage sector and brought many stocks into the limelight.
On Monday, Keurig agreed to sell itself to an investor group led by a Luxembourg based private company, JAB Holding Company ('JAB'), for $13.9 billion, pushing its share price up 72% on Friday. The deal, expected to close in the first quarter of 2016, seems to be quite attractive for Keurig, as it will offer significant cash value for its shareholders, who have seen the stock fall nearly 61% since the beginning of the year.
The deal also brought good fortunes for The Coca-Cola Company ( KO ) which owns around 17% stake in the specialty coffee retailer . Coca-Cola reportedly stands to make a profit of around $25.5 million from its investment in Keurig, if the merger gets through. Prior to JAB's buyout, this investment in Keurig was reportedly worth a loss of approximately $1 billion.
This coffee deal could also have an impact on the ongoing speculation on the merger of Mondelez International, Inc. ( MDLZ ) and PepsiCo, Inc. ( PEP ). The rumor has been flowing since 2013 that activist investor Nelson Peltz is fast building stakes in PepsiCo and Mondelez, possibly in pursuit of a large $170 billion merger of the consumer giants. Mondelez is a coffee JV partner of JAB Holdings.
Coca-Cola also acquired approximately 16.7% equity stake in the energy drink maker Monster Beverage Corp. ( MNST ) in June to gain a share of the energy market.
We note that there's a lot of consolidation and expansion activity going on among the industry's largest beverage companies and now the M&A platform has become overcrowded. Besides coffee and soft beverages, the beer industry, especially craft beer, is an attractive space for growth-seeking brewers. We note that craft beers are gaining popularity among youngsters and their market shares have doubled over the last five years on increased demand.
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