Category: Beverage

Restaurant Brands Int.-(NYSE: QSR)

Tim Hortons (TH), Burger King (BK) and Popeyes Louisiana Kitchen (PLK).

Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 23,000 restaurants in more than 100 countries and the United States territories, as of September 30, 2017. It operates through three segments: Tim Hortons (TH), Burger King (BK) and Popeyes Louisiana Kitchen (PLK).

TH restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others.

BK restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. PLK restaurants are chicken quick service restaurants that feature Louisiana style menu, including chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items.

Gigondas ~ France

Located in France’s Southern Rhône, Gigondas produces wines that are rich Grenache-based blends, thanks in part to the region’s Mediterranean climate and red clay-alluvial soils. Under the AOP regulations, only red and rosé wines may be produced; white wines are simply declassified to Côtes-du-Rhône status.

A mandated 50% Grenache is required in the wine, with Mourvèdre and/or Syrah usually accounting for the bulk of the remaining blend—adding structure, savory tones and color intensity to Grenache’s alcoholic power and lush richness. These wines are often compared to the great wines of Châteauneuf-du-Pape, but can even offer better value.

Like Châteauneuf-du-Pape, Gigondas is defined by luscious fruit, generosity and spice. It’s typified, however, by a slimmer profile than the brawny wines of Châteauneuf-du-Pape, as well as an intoxicating pungency of garrigue, the rustic base notes of underbrush and herb found throughout Provence and the South of France.

In 1971, Gigondas was the first of the Côtes du Rhône Villages appellations to be elevated to cru status. The wines offer remarkable affordability compared to ever-escalating prices for Châteauneuf-du-Pape.

Coca-Cola ~ KO

Q2 revenue growth of 12% was the fastest rate going back to 2011.KO has benefited from a transition away from company owned bottling operations globally which has driven improved profitability in recent years, although process is nearly complete.

Stock trades at a historically high valuation premium and appears relatively expensive with a disconnect from a long term earnings growth outlook.

Coca-Cola Co. (NYSE:KO) has been something of a turnaround story with current CEO James Quincy successfully revitalizing growth through a lineup of new products following six consecutive years of declining sales.

FDA to Host Public Hearing on Cannabis Friday

This Friday, May 31, the FDA will host a public hearing aimed at gathering scientific data and information about the safety, manufacturing, product quality, marketing, labeling and sale of cannabis-containing products and cannabis-derived compounds. The agency’s objective is to clarify a workable regulatory framework for the products since the cultivation and production of hemp was legalized in the 2018 Farm Bill.

A docket for public comment, FDA-2019-N-1482, will be available until July 2.

ETFs: MJSOILACTYOLO

Selected tickers: Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON), New Age Beverages (NASDAQ:NBEV)

New Age Beverages

Natural, Organic Cold Brew & Energy Teas

Guided by Bob’s vision to live consciously and purposefully, we strategically crafted a lineup of canned, all-natural, and organic cold coffees and teas that embody the Marley values of authenticity and living naturally. Situated at the intersection of an active, creative lifestyle and the emergent health movement, Marley beverages are driven to fuel the personal growth of those they reach. Join us in inspiring mindful, healthy living. One Love.

Newage beverages marley brand slogan

New Age Beverages Corp ~ (NBEV)

New Age Beverages Corp (NBEV) stock has gained 17% today after announcing the distribution expansion of their Marley brand with Walmart.

The average rating from Wall Street analysts is a Strong Buy. Stock Score Report, InvestorsObserver’s proprietary scoring system, gives NBEV stock a score of 57 out of a possible 100.

That score is chiefly influenced by a short-term technical score of 67. NBEV’s score also includes a long-term technical score of 52. The fundamental score for NBEV is 51. In addition to the average rating from Wall Street analysts, NBEV stock has a mean target price of $8.75. This means analysts expect the stock to rise 51.91% over the next 12 months.

New Age Beverages Corp is beverage company. It is engaged in the development, marketing, sales and distribution of a portfolio of Ready-to-Drink (RTD). The company’s target market is currently health-conscious consumers, who are individuals who are becoming more interested and better educated on what is included in their diets, causing them to shift away from options perceived as less healthy such as carbonated soft drinks or other high caloric beverages, and towards alternative beverages choices.

It markets, sells, and distributes current brands including XingTea, XingEnergy, Aspen Pure, and Bucha Live Kombucha brands, and to develop new healthy functional beverage products. It operates in Morinda and New Age segments. The New Age segment accounts for majority revenue of the firm.

New Age Beverages (NBEV) ~ Now At Walmart


Lands a national account with Walmart for the Marley brand.
Marley

April 9, 2019, 10:08 AM EDT
New Age Beverages (NBEV) stock skyrocketed nearly 40% in Monday’s trading session as the CBD drink maker signed a major distribution deal with the largest retailer in the world.  The deal shows that New Age has growth potential with or without CBD-infused beverages that skyrocketed the stock to $10 last year. A unique opportunity exists to own the stock in the $5 range.

Marley ~ New Age Beverage

Regional To National

For the most part, New Age was mostly a regional player lacking the capital for a national or even global rollout of the portfolio of beverages. The company has an interesting mix of drinks that include yerba mate teas like Marley, natural green tea like Xing and organic live kombucha tea like Bucha along with coconut water like Coco-Libre. Until last year, the company lacked the capital and infrastructure for a national expansion leading to weak results.

The closing of the Morinda deal made New Age a global company with a revenue base in excess of $300 million. Along the way, the company added capital providing a cash cushion in the $50 million range along with a new credit facility.

The end result is that New Age landed a national account deal with Walmart for the Marley brand. The Marley mate drink should start hitting Walmart shelves here in early April.

The deal could be just the start of a national expansion plan that could include additional retailers along with morel products at existing retailers like Walmart. The largest retailer alone has 11,300 stores and does over $500 billion in annual sales.

Xing Green Tea

Capital & Take Away

In all regards, New Age is a very small beverage company. The core domestic business generated less than $60 million in gross revenues last year.

The Marley, Bucha and Xing brands were already generating strong revenue growth, but the lack of capital last year caused New Age to miss targets. The company forecast some $20 to $30 million in revenue growth this year generally from these brands when accounting for the acquired business from Morinda that placed the revenue run rate in the $300 million range.

The company already had a placeholder for an additional $30 million in CBD-infused beverage sales that could boost the revenue target above the $320 million forecast. This Walmart deal should provide another big boost for a stock with only a $360 million market cap before this announcement sent the stock soaring.

Natural, Organic Cold Brew & Energy Teas

The one warning here is that New Age constantly over hypes growth expectations having missed analyst estimates every quarter in 2018. The product is shipping to Walmart distribution locations in April so the sales numbers won’t be included in earnings results until the Q2 report that wasn’t released until mid-August last year.