Monster, PepsiCo, Starbucks, and WhiteWave: 4 Interesting Stories to Watch

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

This week's beverage industry headlines revealed some interesting product and expansion news for energy drink company Monster Beverage (NASDAQ: MNST  ) , snack and beverage giant PepsiCo (NYSE: PEP  ) , tea and coffee restaurant chain Starbucks (NASDAQ: SBUX  ) , and "plant based foods and beverages" company WhiteWave Foods (NYSE: WWAV  ) . Exploring this week's news centering on these companies may help you decide their investment worthiness.

Monster innovations
Monster Beverage plans to introduce new products such as Punch Monster which will replace Monster DUB according to an article in Beverage Daily. Company executives believe it "will appeal to a far broader audience of consumers" than DUB. Monster's line of punch will certainly appeal to the party going weekender who desires to stay up all night long to enjoy the festivities. Moreover, Monster plans to introduce a Viva Mango brand of juice cocktail which comprises 5% real juice under the Monster Peace Tea Brand.

PepsiCo movements
On Jan. 24, PepsiCo announced a $5 billion investment in Mexico giving indication that the company shows no intention of resting on its laurels. This literally means an investment in Mexico via a four pronged approach that involves innovation and brand building, infrastructure, agriculture, and community. PepsiCo wants to expand its brand and product portfolio in the country to meet the changing needs of Mexican customers. It also wants to enhance its research and development capabilities there. In addition, PepsiCo will expand manufacturing capability; enhance logistics, and retailing technologies.The company also wants to strengthen its relationship with the local farming community in an effort to improve agricultural yields and strengthen the company's supply chain. Finally, PepsiCo via the PepsiCo Mexico Foundation will invest in "societal development projects throughout the country".  

In other surprising PepsiCo news, newsletter Food Navigator reported that the company axed the "stevia-sweetened" Gatorade Natural line saying it failed in consumer appeal which should tell you that slapping a "natural" or "organic" label on a product doesn't necessarily translate into sales growth. 

Starbucks expands
Carbonated beverage giants such as Coca-Cola, PepsiCo, and Dr. Pepper Snapple Group should take note of Starbucks' successful experimentation with carbonated soda beverages in various test markets such as Atlanta, Japan, and Singapore according to an article in Beverage Daily. Starbucks CEO Howard Schultz called these products "premium hand-crafted, cold-carbonated beverages" that involve Starbucks' employees carbonating a customer's favorite drink in a soda fountain tradition and creating an entertaining social experience. Moreover, Starbucks plans to eventually expand its premium juice brand Evolution Fresh and Teavana brands both in its restaurants and in the consumer packaged goods category over the long-term. 

WhiteWave on the move
According to newsletter Food Navigator, WhiteWave Foods entered a licensing agreement with Dunkin' Brands to make and sell coffee creamers with the Dunkin' Donut label. The company will offer the product in various container sizes and product variations. WhiteWave and Dunkin' Brands executives agree this deal represents a win-win situation that will boost the sales of WhiteWave and reinforce Dunkin' Brands' leadership in the coffee business. 

Foolish takeaway
Monster, PepsiCo, Starbucks, and WhiteWave show no interest in standing still. Monster resides in the No. 2 spot in the energy drink category and new product introductions show its desire to knock competitor Red Bull out of the No. 1 spot. Look for a larger company such as Coca-Cola, PepsiCo, or Red Bull to buy them out in the future. If not then, Monster will probably expand the wealth of public shareholders at a brisk pace. PepsiCo wants a larger share in the Mexican economy that exhibits a growing middle class. A $5 billion investment represents no small amount of money even for a company like PepsiCo and will surely pay off for the company and its shareholders in the future. Starbucks' entry into carbonated soda and expansion of its premium juice and tea categories will give beverage giants like Coca-Cola a run for their money. WhiteWave's recent expansion into the organic vegetable market , its planned entry into China , and now its partnership with Dunkin' Brands show that this company will not go anywhere anytime soon. Monster, PepsiCo, Starbucks, and WhiteWave deserve a place on your Motley Fool Watchlist.


More long-term investment ideas
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2811076, ~/Articles/ArticleHandler.aspx, 9/1/2015 8:36:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

William Bias

William has been a stock market enthusiast since 1992.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:00 PM
MNST $138.46 Down -1.97 -1.40%
Monster Beverage CAPS Rating: ***
PEP $92.93 Down -0.60 -0.64%
PepsiCo CAPS Rating: *****
SBUX $54.71 Down -0.92 -1.65%
Starbucks CAPS Rating: ****
WWAV $46.14 Down -0.65 -1.39%
WhiteWave Foods CAPS Rating: ****