Canaccord Genuity Morning Coffee on PepsiCo (PEP): Yogurt Wars
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Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 20 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on PepsiCo (NYSE: PEP): Yogurt Wars.
PepsiCo is teaming up with German dairy company, Müller, to roll out its first yogurt in the U.S., as the company known for its sodas and Frito-Lay snacks continues bulking up its cupboard of offerings with a more nutritious appeal. In the joint venture with Theo Müller, the company is building a $206 million yogurt plant in Batavia, N.Y., that PepsiCo says will be one of the largest in the country. PepsiCo says the plant will create more than 180 jobs and churn out five billion cups of yogurt a year. In the meantime, the company’s yogurts will be made in Germany. PepsiCo, under its chief executive, Indra K. Nooyi, has been working to decrease its reliance on sugary carbonated beverages and snacks by developing new products and retooling old ones to increase their nutritional quality while remaining true to the company’s more playful roots. However, some of the new yogurt flavours, such as “Choco Balls” and “Chocolate Flakes,” seem to straddle that line. The yogurts will also come in standard flavours such as blueberry and strawberry, mixed fruit, and Greek. The company did not know the caloric range of the yogurts but said they’re comparable to those on the market. With the rapidly expanding U.S. yogurt market expected to reach $9 billion by 2016, double what it was in 2008, it isn't the only company looking to capitalize on Americans' growing appetite. General Mills (NYSE: GIS) also plans to launch 40 new yogurt products this year, including 100-calorie versions of Greek yogurt under its Yoplait brand.
PepsiCo is teaming up with German dairy company, Müller, to roll out its first yogurt in the U.S., as the company known for its sodas and Frito-Lay snacks continues bulking up its cupboard of offerings with a more nutritious appeal. In the joint venture with Theo Müller, the company is building a $206 million yogurt plant in Batavia, N.Y., that PepsiCo says will be one of the largest in the country. PepsiCo says the plant will create more than 180 jobs and churn out five billion cups of yogurt a year. In the meantime, the company’s yogurts will be made in Germany. PepsiCo, under its chief executive, Indra K. Nooyi, has been working to decrease its reliance on sugary carbonated beverages and snacks by developing new products and retooling old ones to increase their nutritional quality while remaining true to the company’s more playful roots. However, some of the new yogurt flavours, such as “Choco Balls” and “Chocolate Flakes,” seem to straddle that line. The yogurts will also come in standard flavours such as blueberry and strawberry, mixed fruit, and Greek. The company did not know the caloric range of the yogurts but said they’re comparable to those on the market. With the rapidly expanding U.S. yogurt market expected to reach $9 billion by 2016, double what it was in 2008, it isn't the only company looking to capitalize on Americans' growing appetite. General Mills (NYSE: GIS) also plans to launch 40 new yogurt products this year, including 100-calorie versions of Greek yogurt under its Yoplait brand.
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