Nielson Data Shows Pod Prices Continue to Decline (SBUX) (GMCR)
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Price: $107.08 +2.97%
Rating Summary:
26 Buy, 22 Hold, 5 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Starbucks (NASDAQ: SBUX) branded coffee (ex-pods) declined 2.1% in the for weeks ending Dec. 21st, according to Wells Fargo analyst Bonnie Herzog, citing Nielsen data. Starbucks pod share grew to 16%, while Green Mountain Coffee Roasters, Inc. (NYSE: GMCR) share fell to 36.1%.
"In the recent 4-wks ending 12/21/13, Starbucks brand packaged coffee (ex-pods) $ sales fell -2.1%, as strong +7.4% unit growth was not enough to offset -8.9% pricing. We note that results this period may be flattered due to the Thanksgiving holiday falling in the current period this year vs. the prior period LY. Despite the $ sales decline, Starbucks’ brand packaged coffee share (ex-pods) grew to 5.6% - the best share result of the past 7 periods. Encouragingly, SBUX total share of the ground category incl. pods reached a new high of 12.5%, up from 11.3% last period and 11.0% LY), likely driven by relative price gaps of SBUX vs. the category slightly narrowing in both pods and packaged. Seattle’s Best’s sales decline accelerated this period with -10.9% $ sales and -4.9% pricing," said Herzog.
On pods, Herzog said, "Overall, the pod category's growth continues to be strong but gradually decelerating, with category $ sales up +40.4% vs. +59.8% LY and unit growth up +48.4% vs. +58.7% LY. Category pricing declines continue, down -5.4% this period – vs. -5.6% last period and +0.7% LY). Both GMCR and SBUX's pricing decelerated more than the category, down -6.4% and -5.9%, respectively, which likely contributed to share gain for SBUX (but not for GMCR). Private label (PL) pods' pricing decreased "only" -1.9%, likely driving sequential pod $ share loss for PL (PL $ share was 7.4% vs. 8.3% last period – but still up vs. 3.2% share LY). The relative price gaps have been narrowing slightly which has contributed to SBUX pod share gains," added the analyst.
"We believe SBUX is managing its price gaps well and is striking a solid balance between volume and pricing to maximize its pod profitability," added the analyst.
Wells Fargo has a Market Perform rating on Starbucks with a price target of $75.00
For an analyst ratings summary and ratings history on Starbucks (NASDAQ: SBUX) click here. For more ratings news on Starbucks click here.
Shares of Starbucks closed at $78.39 yesterday.
"In the recent 4-wks ending 12/21/13, Starbucks brand packaged coffee (ex-pods) $ sales fell -2.1%, as strong +7.4% unit growth was not enough to offset -8.9% pricing. We note that results this period may be flattered due to the Thanksgiving holiday falling in the current period this year vs. the prior period LY. Despite the $ sales decline, Starbucks’ brand packaged coffee share (ex-pods) grew to 5.6% - the best share result of the past 7 periods. Encouragingly, SBUX total share of the ground category incl. pods reached a new high of 12.5%, up from 11.3% last period and 11.0% LY), likely driven by relative price gaps of SBUX vs. the category slightly narrowing in both pods and packaged. Seattle’s Best’s sales decline accelerated this period with -10.9% $ sales and -4.9% pricing," said Herzog.
On pods, Herzog said, "Overall, the pod category's growth continues to be strong but gradually decelerating, with category $ sales up +40.4% vs. +59.8% LY and unit growth up +48.4% vs. +58.7% LY. Category pricing declines continue, down -5.4% this period – vs. -5.6% last period and +0.7% LY). Both GMCR and SBUX's pricing decelerated more than the category, down -6.4% and -5.9%, respectively, which likely contributed to share gain for SBUX (but not for GMCR). Private label (PL) pods' pricing decreased "only" -1.9%, likely driving sequential pod $ share loss for PL (PL $ share was 7.4% vs. 8.3% last period – but still up vs. 3.2% share LY). The relative price gaps have been narrowing slightly which has contributed to SBUX pod share gains," added the analyst.
"We believe SBUX is managing its price gaps well and is striking a solid balance between volume and pricing to maximize its pod profitability," added the analyst.
Wells Fargo has a Market Perform rating on Starbucks with a price target of $75.00
For an analyst ratings summary and ratings history on Starbucks (NASDAQ: SBUX) click here. For more ratings news on Starbucks click here.
Shares of Starbucks closed at $78.39 yesterday.
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