Showing posts with label Beverage sales. Show all posts
Showing posts with label Beverage sales. Show all posts

Tuesday, 20 January 2015

HEALTH ALERT: Wendy’s Drops Soda from Kids’ Meals; Is BK Next?

Trending Foods examines the latest news, market trends, surveys and stats that are helping shape the food industry. 

Wendy’s Drops Soda from Kids’ Meals; Is BK Next?
 - Blog

n the continuing battle of soda wars, Wendy’s is the latest fast-food company to surrender to pressure from parents and health advocacy groups urging it burger chain to remove sugar-sweetened beverages from its children’s menus in an effort to combat childhood obesity.

The move was hailed by MomsRising.org, the Interfaith Center on Corporate Responsibility, and the Center for Science in the Public Interest (CSPI), all of which have been urging the chain to improve the nutritional quality of its kids' meals by removing soda from the kids menu.

According to the advocacy groups, soda is not an appropriate beverage choice for children, given that sugary drinks contribute to diabetes, heart disease, obesity, tooth decay, and other health problems in children and adults. They cited research in The Lancet that found drinking just one additional sugary drink every day increases a child's odds of becoming obese by 60 percent.

Fast-food restaurants have been under fire for years to remove sugary drinks from their kids’ menus and to reduce marketing tactics to children.

In 2011, McDonald's revamped its Happy Meals with its “Commitments to Offer Improved Nutrition Choices" initiative, a long-term plan to help customers—especially families and children—make nutrition-minded choices when dining out. In 2013, the fast-food giant announced it will market only water, milk and juice as the beverage in Happy Meals on menu boards and in-store and external advertising; utilize Happy Meal and other packaging innovations and designs to generate excitement for fruit, vegetable, low/reduced-fat dairy, or water options for kids; dedicate Happy Meal box or bag panels to communicate a fun nutrition or children’s well-being  message; and ensure 100 percent of all advertising directed to children to include a fun nutrition or children’s well-being message.

Last week’s move by Wendy’s to reduce sugar-sweetened beverages to kids now leaves Burger King as the only Big 3 burger chain still with soda in meals specifically intended for children. Will BK follow suit and remove sugary drinks from its kids’ menus? Other large chains including Subway, Chipotle, Arby’s and Panera already don’t include soda as the default option in their kids’ meals.

CSPI Senior Nutrition Policy Counsel Jessica Almy said: “Restaurants should not be setting parents up for a fight by bundling soda with meal options designed for kids. Wendy's is taking a responsible step forward that will improve children's health and make it easier for parents to make healthy choices for their children. We hope Burger King, Applebee's, IHOP, and other chains follow suit."

But if you think the soda war is only being found at the restaurant level, think again.

In June 2104, a proposed bill in California that would have required sugar-sweetened beverages to carry warning labels similar to those on alcohol and tobacco fizzled out when it failed to clear the Assembly Committee on Health.
Remember the infamous restriction on super-sized sodas in New York City that was implemented in 2012 as part of former Mayor Michael Bloomberg’s anti-obesity campaign? Nearly two years later in June 2014, New York’s highest court permanently killed the “Portion Cap Rule." (Click here to view the Slide Show “History of Mayor Bloomberg's Soda Ban."

The majority’s ruling will most certainly not end the contemporary debate on how the United States should tackle an obesity epidemic compromising the health of millions of Americans and whether Congress, states and local governments should impose restrictions on fatty and sugary foods and beverages. In fact, California recently proposed a state law that would have required a warning label on sugar-sweetened beverages. But the bill recentlydied after it failed to clear the California Committee on Health.

The conversation over the role of government in promoting nutrition could soon shift to Capitol Hill where Rep. Rosa DeLauro (D-Conn.) intends to introduce a bill to tax sugar-laden beverages.

Thursday, 14 August 2014

Coke buys $2.15-billion stake in Monster energy drinks



Coca-Cola, like the other companies in the dividend portfolio, has raised its dividend in the past 15 months. (LUCAS JACKSON/REUTERS)

Coke buys $2.15-billion stake in Monster energy drinks

Coca-Cola Co., the world’s largest beverage company, agreed to buy a 17 per cent stake in Monster Beverage Corp. for $2.15-billion, increasing its bet on the burgeoning energy-drink market.
The move is part of a deal that will include the transfer of Coca-Cola’s energy drinks NOS, Full Throttle, Burn, Mother and Play to Monster, according to a statement today. Monster, meanwhile, will shift Hansen’s natural sodas and juices, Peace tea and Hubert’s lemonade to Atlanta-based Coca-Cola.


“It gives them exposure to one of the fastest-growing segments of carbonated soft drinks globally,” said Ali Dibadj, a New York-based analyst at Sanford C. Bernstein & Co. “The category’s growth is clearly slowing in the U.S., but the potential is very strong globally.”
Under the agreement, the two companies will share marketing, production and distribution. Coca-Cola, which already distributes Monster in the U.S. and Canada, will expand the arrangement globally, helping the energy brand grow overseas.
The investment fits into Coca-Cola’s strategy of taking equity stakes in promising new brands and technologies, especially as its main source of revenue is under threat from a shift to healthier habits. In May, Coca-Cola said it would boost its stake in Keurig Green Mountain Inc. to 16 per cent, making it the coffee brewer’s largest shareholder.
Board Members The Monster deal is “a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category,” Coca-Cola Chief Executive Officer Muhtar Kent said in the statement. The company also will add two directors to the board of Corona, California-based Monster.
While Coca-Cola has helped distribute Monster since 2008 and owns smaller brands such as Full Throttle and NOS, it doesn’t have its own major energy drink. Monster and Red Bull, owned by Austria’s Red Bull GmbH, have the largest share of the market worldwide, according to Morningstar Inc.
Skadden, Arps, Slate, Meagher & Flom LLP advised Coca-Cola on the deal. Barclays Plc served as Monster’s financial adviser, while Jones Day provided legal counsel.
Coca-Cola explored an acquisition of Monster in early 2012, a person familiar with the matter has said. The talks ended without a deal because Coca-Cola decided that Monster’s asking price was too high, according to the person.
Buying a minority stake is less risky, given the recent moves by U.S. regulators to investigate energy drinks’ caffeine content, Dibadj said. Coca-Cola may end up buying the rest of the business once the smoke clears, he said.
Still, it may not have benefited as much by waiting to act, he said.
“Coca-Cola should have taken this move faster,” Dibadj said.