Latest news with #beverage industry
The Independent
22-07-2025
- Business
- The Independent
Coca-Cola announces plans to launch cane sugar line in the fall after Trump promised it would return
The Coca-Cola Company announced that it will bring back a cane sugar version of its iconic drink less than a week after Donald Trump declared that 'it's just better.' Just days after the president teased its return, the Atlanta-based beverage goliath announced that it plans to use U.S.-grown cane sugar alongside high-fructose corn syrup in its sodas. Coca-Cola made clear that the drink, which it says will be launched in the U.S. in the fall, will be an addition to its range rather than a full replacement of ingredients. 'As part of its ongoing innovation agenda, this fall in the United States, the company plans to launch an offering made with U.S. cane sugar to expand its Trademark Coca‑Cola product range,' the company said in its second-quarter earnings report. 'This addition is designed to complement the company's strong core portfolio and offer more choices across occasions and preferences.' Trump announced last week that he spoke to Coca-Cola about using 'REAL' cane sugar, harking back to the 1980s before the company largely switched to using high-fructose corn syrup. The president said that company executives 'agreed to do so.' 'I'd like to thank all of those in authority at Coca-Cola,' he added. 'This will be a very good move by them — You'll see. It's just better!' While the soft drink giant didn't confirm the change at the time, the company said in a statement it appreciates Trump's 'enthusiasm for our iconic Coca‑Cola brand' and announced that more details on its product range would be 'shared soon.' The proposed push to bring back cane sugar seemed to align with Health and Human Services Secretary Robert F. Kennedy Jr.'s 'Make America Healthy Again' agenda, including a shift away from high-fructose corn syrup. There is currently no strong evidence that high-fructose corn syrup is more harmful than cane sugar. When consumed in excess, both can negatively impact health. While today Coca-Cola in the U.S. is typically made with high-fructose corn syrup, the soda company uses cane sugar in other countries, such as Mexico. People often praise Mexican Coke for its more natural, authentic taste compared to the modern U.S. version. But in a blind taste test conducted by culinary scientist and food writer J. Kenji López‑Alt for Serious Eats, the majority of participants preferred the corn syrup–sweetened Coke over the cane sugar variety. Mexican Coke is widely available in U.S. grocery stores – from Walmart to Target – and in areas with large Hispanic communities. There is currently no indication that Mexican-produced beverages will be pulled from U.S. shelves. After Trump's announcement last week, U.S. corn growers had warned that a full shift 'doesn't make sense' and would cost thousands of American food manufacturing jobs. However, placing the onus on using U.S.-grown cane sugar would likely boost demand for producers in states like Louisiana and Florida, where sugarcane is a key crop.
Yahoo
12-07-2025
- Business
- Yahoo
Crown Holdings, Inc. (CCK): A Bull Case Theory
We came across a bullish thesis on Crown Holdings, Inc. on by Hal. In this article, we will summarize the bulls' thesis on CCK. Crown Holdings, Inc. 's share was trading at $103.50 as of June 27th. CCK's trailing and forward P/E were 22.31 and 15.50 respectively according to Yahoo Finance. A high-speed robotic arm carefully packing aluminum cans into a cardboard carton. Crown Holdings, named after the iconic 'crown cork' bottle cap invented in 1892, has evolved into a leading global producer of aluminium beverage cans, which now account for 80% of its profit contribution. Operating 70 can factories globally, Crown supplies major beverage segments including soda, beer, energy drinks, and seltzers. Despite the commodity-like nature of cans, Crown earns robust 14% EBITA margins and a 35% pre-tax return on tangible capital, thanks to a durable moat built on geographic advantages and rational industry behavior. The high logistical costs of transporting empty cans over long distances, combined with high upfront capital costs and local market saturation, discourage new entrants and protect market share. The industry is also highly consolidated, with Crown, Ball, and Ardagh dominating North America. Competitors like Ball adhere to disciplined capital allocation frameworks, ensuring rational growth and limited oversupply. Crown's customer relationships are sticky, with 90%+ retention supported by multi-year contracts and embedded operational linkages. The shift back to aluminium—driven by recyclability and premium positioning—has revived can volume growth after decades of stagnation, especially with rising demand for energy drinks and seltzers. Crown's positioning in high-growth regions like Southeast Asia further strengthens its outlook. Despite recent demand fluctuations post-COVID and softness in Asia, Crown is shedding underperforming assets and sharpening its focus on cans. Valuation appears attractive with a 13.5–14x forward P/E and 6.5% FCF yield, trading at a discount to peers. While not reliant on a specific catalyst, Crown offers a compelling case for re-rating based on fundamentals and market structure. Previously, we covered a bullish thesis on PepsiCo, Inc. by Kroker Equity Research in October 2024, which highlighted the company's strong brand portfolio, pricing power, and strategic partnership with Celsius as key growth drivers. The company's stock price has depreciated by approximately 25% since our coverage. This is because the thesis hasn't played out amid sector-wide headwinds. Hal shares a similar view on industry resilience but emphasizes the upstream opportunity in aluminium beverage cans through Crown Holdings. CCK isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of CCK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
