Food & Beverage Sector

[winston]

Grocery store prices are plunging

In a startling development, food prices have fallen for nine straight months in the U.S.

It’s the longest streak of food deflation since 1960 (with the exception of 2009, when the financial crisis was winding down).

Analysts credit low oil and grain prices, as well as cutthroat competition from discounters.

It’s not unusual to see a dozen eggs for 99 cents; a year ago, you would have paid, on average, three times that price.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... 092716_BIZ

[winston]

<China; Research Report>BofAML's Latest Ratings & TPs on Food & Beverage Stocks (Table)

Bank of America Merrill Lynch listed its latest ratings and target prices on food and beverage stocks:

Shares/ Ratings/ Target Prices
CHINA RES BEER (00291.HK)/ Buy/ 17.8?17.2
DALI FOODS (03799.HK)/ Buy/ 4.8
MENGNIU DAIRY (02319.HK)/ Buy/ 17.6
TSINGTAO BREW (00168.HK)/ Underperform/ 22.3?26.5
TINGYI (00322.HK)/ Neutral/ 9.6?8.9
U-PRESID CHINA (00220.HK)/ Neutral/ 5.5?5.9
WANT WANT CHINA (00151.HK)/ Underperform/ 4.5

Source: AAStocks Financial News

[winston]

Double whammy for F&B companies

BY P. ARUNA

The price of raw sugar has spiked by over 50% since February 2016, and resumed its uptrend in December 2016 to trade at about 20.6 US cents per lb at the end of January 2017 - which is 13.2% higher than the average sugar price of 18.2 US cents per lb last year.

A report by Alliance DBS Research states that raw sugar prices will remain elevated due to the global supply deficit which is estimated to hit five million tonnes this year due to drought affecting sugar production in India, Thailand and Brazil.

Source: The Star

http://www.thestar.com.my/business/busi ... companies/

[winston]

It’s time to buy Chinese breweries... and not just because Chinese will drink more beer this year, analysts say

The top five brand names in China by market share are:-
1. China Resources Beer at 24.6 per cent,
2. Tsingtao Brewery at 17.9 per cent,
3. Budweiser at 15.7 per cent,
4. Yanjing Brewery at 10 per cent and
5. Carlsberg Group at 5 per cent
according to data from Euromonitor.

“Consolidation in the Chinese beer market seems unavoidable, and we see a high chance that the current big five may eventually become a big three,”

Who would buy a 20 per cent stake in Tsingtao Brewery, which Japanese brewer Asahi is reportedly selling?

Among favoured companies in the sector, Charlie Chen (an analyst at Deutsche Bank) highlighted China Resources Beer because of the company’s management, which he labelled “superior”.

He also highlighted the company’s ability to raise beer prices and the ability to uncover future cost savings from operations.

Deutsche Bank forecasts beer consumption in China by volume will expand 1.9 per cent annually from 2016 through 2020.

In recent years beer consumption has been falling owing to factors such as the anti-corruption movement which curbed expenditure by government officials on entertainment and dining.

Changing consumer preferences, including a switch to pre-mixed alcoholic beverages sold through convenience stores, was also cited by Chen as a factor impacting beer sales.

Meanwhile, CITIC Securities’ Dai expects organic growth in China’s beer industry, but acknowledged that some of the growth would go towards imported beer and China-made craft beer.

Source: SCMP

http://www.scmp.com/business/companies/ ... inese-will

[winston]

Americans drank more bottled water than soda in 2016

Bottled-water consumption in the United States reached 39.3 gallons per capita last year, while carbonated soft drinks slipped to 38.5 gallons, Beverage Marketing Corp said.

In contrast, per capita soda consumption regularly exceeded 50 gallons in the late 1990s and early 2000s, according to the report.

Total bottled water volume rose about 9 percent to 12.8 billion gallons in 2016, compared with a year earlier.

Source: Reuters

http://www.reuters.com/article/us-usa-b ... h%20Report

[winston]

Why Japanese Beer Stocks Could Be the Next Big Play of 2017

"Abenomics" needs a facelift that only Japanese beer stocks can provide

By Josh Enomoto

Source: Investor Place

http://investorplace.com/2017/03/japane ... MdWvvl96M8

[behappyalways]

Japanese snack giant Calbee hit by potato shortage
http://www.bbc.com/news/business-39574512

[winston]

3 Tasty Restaurant Stocks to Buy

MCD, SBUX and DRI are all flashing attractive buy setups

By Tyler Craig

Source: Tales of a Technician

http://investorplace.com/2017/05/tasty- ... QgEgtJ96M8

[behappyalways]

2019.12.28【文茜世界周報】網店、外送物流網發達　帶動共享廚房風潮
https://www.youtube.com/watch?v=cdJKV5- ... AU&index=5

[behappyalways]

How Inflation and Supply Chain Issues Are Reshaping Fast Food Value Menus | WSJ
https://m.youtube.com/watch?v=Mc5K2zHTezc