(Reuters) – Herbalife Ltd (HLF.N: Quote, Profile, Research, Stock Buzz) said on Tuesday it has engaged PricewaterhouseCoopers LLP PWC.UL as its auditor, replacing KPMG in the wake of alleged insider trading.

Shares of the nutritional products company rose 4 percent in afternoon trading, as the engagement of an auditor is often seen as lending credibility to a company’s financial statements.

Herbalife’s stock price has been volatile recently as big name investors William Ackman, Carl Icahn and Daniel Loeb battled over the company’s future with Icahn and Loeb saying the price should rise while Ackman said the company’s stock price would eventually go to zero. Ackman’s Pershing Square Capital Management took a roughly $1 billion short position, while Icahn and Daniel Loeb took the other side of the bet.

Loeb has since exited his Herbalife position with a $50 million profit, while Icahn raised his stake and put two representatives on the company’s board.

Herbalife said on Tuesday that PwC would audit its financial statements for fiscal year 2013 and reaudit statements for fiscal 2011 and 2012.

Ackman, who has criticized Herbalife, comparing it to a pyramid scheme, has spoken less about the company in public recently. But, in a letter sent to investors last week, Ackman said he was standing by his short thesis, five months after unveiling it in public and arguing that Herbalife should eventually go out of business.

His letter went on to say that the engagement of a new auditor could be positive for the short thesis as the reauditing of the company books could lead to “some additional interesting disclosures”.

“At a minimum, every day that Herbalife goes without an auditor further calls into question the legitimacy of the business in our view,” Ackman said in the letter, which was sent on Thursday. A copy of it was seen by Reuters.

Pershing Square did not immediately respond to a request on Tuesday to comment on the letter.

Last month, KPMG resigned as auditor for Herbalife and Skechers USA Inc (SKX.N: Quote, Profile, Research, Stock Buzz) and parted ways with Scott London, a senior auditor. U.S. authorities have filed criminal and civil charges against London, who is accused of passing on non-public information about the companies to his longtime golf partner, jeweler Bryan Shaw.

Herbalife shares were up $1.91, or 3.9 percent, at $51.12 on the New York Stock Exchange.

They had risen 10.7 percent on Monday. S&P Capital IQ analyst Tom Graves had said on Monday that the stock was likely moving due to hopes that Herbalife was close to naming a new auditor and possible purchases by short-sellers buying back shares to cover their negative bets. Graves stood by his “hold” rating on the stock on Monday.

Ackman said the investment by Icahn, who now owns more than 16 percent of Herbalife, has been “helpful to our ability to borrow stock at low cost, for he has catalyzed most other shorts in the investment to cover their positions.”

Short-sellers bet that a stock price will fall by borrowing shares at one price and then repurchasing them at a lower price to repay the loan.

(Additional reporting by Svea Herbst-Bayliss in Boston; Editing by Maureen Bavdek and Gunna Dickson)

(Reuters) – Campbell Soup Co (CPB.N: Quote, Profile, Research, Stock Buzz) reported higher-than-expected quarterly earnings and raised its full-year forecast on Monday on improved sales, sending its shares up 2.5 percent in premarket trading.

The world’s largest soup maker said net income rose to $181 million, or 57 cents per share, in the fiscal third quarter ended April 28, from $177 million, or 55 cents per share, a year earlier.

Excluding items, profit was 62 cents per share. On that basis, analysts, on average, expected 56 cents per share, according to Thomson Reuters I/B/E/S.

Net sales rose 15 percent to $2.09 billion, boosted by the acquisition of Bolthouse Farms. Analysts expected $2.05 billion. Campbell also sells Prego pasta sauces, Pepperidge Farm cookies and V8 vegetable juices.

Sales rose 11 percent in its U.S. simple meals business, and were up 5 percent in the global baked goods business, and 2 percent in the international simple meals and drinks business. Sales fell 5 percent in the U.S. drink business.

The company forecast full-year earnings of $2.58 to $2.62 per share, up from a prior outlook of $2.51 to $2.57. It said sales growth should be at the upper end of its range of 10 percent to 12 percent.

Shares rose $1.17, or 2.5 percent, to $48.80 in premarket trading from their close on Friday at $47.63 on the New York Stock Exchange.

(Reporting by Martinne Geller in New York; Editing by Gerald E. McCormick and Jeffrey Benkoe)

(Reuters) – A small-batch vodka made in Austin, Texas, has found its way onto one of the world’s biggest airlines.

Tito’s Handmade Vodka, created by geologist and geophysicist Bert “Tito” Beveridge, is now the exclusive vodka supplier to United Airlines, the companies are set to announce on Friday.

They declined to discuss terms of the agreement, but industry sources say that selling alcohol to airlines is not that profitable, since drinks are often complimentary in Business or First Class.

Still, for Tito’s, which is relatively small and virtually unknown outside the United States, Canada and the U.S. Virgin Islands, the deal is an opportunity to get the word out.

“I never thought it would go from being this one-man show to being on an airline. I always thought you had to be this big multinational corporation for that,” said the 51-year-old Beveridge.

Tito’s replaced Pernod Ricard’s Absolut vodka on United flights at the start of the month. A spokesman for Pernod declined to comment.

Vodka is the top-selling spirit on airplanes, as it is in the United States. It is also quite competitive.

The world’s No. 1 vodka, which is also the top-selling spirit of any kind, is Diageo Plc’s Smirnoff, which rang up an estimated 26.3 million 9-liter cases last year, according to Impact Databank.

The United States alone accounted for some 65 million cases of vodka last year, according to the Distilled Spirits Council of the United States. Absolut sold about 4.7 million cases here last year, according to Impact Databank, which also said Tito’s sold about 850,000 cases.

That makes Tito’s small compared with the giants, but already too big to be a “craft” distiller, which the Distilled Spirits Council defines as a maker of 40,000 cases or less.

Beveridge attributes part of his success to his pricing. A 750 ml bottle might sell for just under $20, in line with premium brands like Absolut and Stolichnaya, but well below very high-end brands like Grey Goose and Belvedere.

“I make a filet mignon but I sell it at a pot roast price,” Beveridge said.

(Reporting by Martinne Geller in New York; editing by Matthew Lewis)

(Reuters) – Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research, Stock Buzz), maker of Keurig single-serve brewers and K-Cups, raised its full-year earnings outlook on Wednesday after a better-than-expected second quarter and said it had expanded its relationship with Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz), sending its shares up almost 16 percent after hours.

The new 5-year agreement, which replaces one first signed in 2011, triples the number of Starbucks drinks to be sold in K-Cups with the addition of Seattle’s Best and Torrefazione Italia coffees, Teavana teas and Starbucks cocoa.

It also ends speculation that Starbucks might walk away from their partnership following the expiration of certain Green Mountain patents and the launch of Starbucks’ own single-serve brewer of espresso drinks.

“Starbucks is the largest coffee brand out there. Them coming and saying ‘we want a long-term deal with you’ is a very good thing for our system,” Brian Kelley, Green Mountain’s chief executive, told Reuters. “This certainly puts away any fear that the Keurig system isn’t the winning system.”

The exact expiration date of the prior agreement is not known, but it was slated to last at least through most of 2014. The new agreement is for at least five years, starting now.

“The Starbucks deal changes the conversation to longer-term opportunities,” said Marc Riddick, an analyst with The Williams Capital Group. “It further confirms our belief that K-Cups are a growth driver for many strong companies, not just Green Mountain.”

Starbucks shares rose nearly 1 percent after hours.

Green Mountain’s net income was $132.4 million, or 87 cents per share, in its fiscal second quarter ended on March 30, up from $93.0 million, or 58 cents per share, a year earlier.

Excluding certain costs, earnings were 93 cents per share. On that basis, analysts, on average, had been expecting 74 cents per share, according to Thomson Reuters I/B/E/S.

Net sales rose 14 percent to $1.00 billion, as a 21 percent increase in K-Cups offset a 10 percent decline in sales of brewers and accessories.

Green Mountain sells its brewers virtually at cost to fuel adoption of its system. It makes the vast majority of its profits from the K-Cups.

Last year, certain of the company’s design patents expired, inviting a host of private-label competitors and raising concerns among investors that an erosion of its dominant market share would hurt its pricing power and margins.

For the current third quarter, Green Mountain said it expects earnings of 71 cents to 78 cents per share and net sales growth of 11 percent to 15 percent.

For the full year, it now expects earnings of $3.05 to $3.15 per share, excluding items, and net sales growth of 11 percent to 14 percent.

It had previously forecast earnings of $2.72 to $2.82 per share on net sales growth of 15 percent to 20 percent. The company said the lower sales growth is due largely to the shrinking of its more traditional bagged coffee business, which is being replaced by its single-serve Keurig business.

Green Mountain shares rose $9.66, or 16.2 percent, to $69.14 in after-hours trade.

(Reporting by Martinne Geller in New York; Editing by Toni Reinhold and Michael Perry)

The maker of Keurig single-serve brewers and the K-Cups that
go with them also said it had expanded an agreement with
Starbucks Corp, ending speculation that Starbucks might
walk away from their partnership following the expiration of
certain Green Mountain patents and the launch of Starbucks’ own
single-serve brewer.

Green Mountain shares rose nearly 11 percent after hours.

Net income was $132.4 million, or 87 cents per share, in
Green Mountain’s fiscal second quarter ended on March 30, up
from $93.0 million, or 58 cents per share, a year earlier.

Excluding certain costs, earnings were 93 cents per share.
On that basis, analysts, on average, had been expecting 74 cents
per share, according to Thomson Reuters I/B/E/S.

For the current third quarter, Green Mountain said it
expects earnings of 71 cents to 78 cents per share. For the full
year, it now expects earnings of $3.05 to $3.15 per share,
excluding items. It had previously raised its forecast to $2.72
to $2.82 per share.

Green Mountain and Starbucks said they had entered into an
expanded partnership governing Starbucks and Tazo-branded
K-Cups. Financial terms were not disclosed, but the new
agreement, which is for a minimum of five years, adds Seattle’s
Best and Torrefazione Italia coffees, Teavana teas and Starbucks
cocoa to the Keurig system.

Green Mountain shares rose $6.34, or 10.7 percent, to $65.82
in after-hours trade.

Quarterly revenue beat Wall Street estimates for the first
time since Mondelez separated last year from Kraft Foods Group
Inc and took with it snacks like Oreo cookies and
Cadbury chocolate and the international business of Maxwell
House coffee.

Still, revenue growth was below the company’s long-term
target, hurt by lower coffee prices, capacity constraints and
the continued struggle of its gum business, and Chief Executive
Irene Rosenfeld said she was “clearly not satisfied.” Mondelez
is seeking growth by reinvesting in emerging markets – where it
gets 40 percent of its revenue – and by boosting brand-building,
production capacity and distribution.

Mondelez shares fell 21 cents, or 0.7 percent, to $31.20 in
after-hours trade. Through Tuesday’s close they have gained 4
percent since last month when Trian Fund Management reported
stakes in Mondelez and PepsiCo Inc. That prompted
speculation that Trian’s Nelson Peltz would push them to merge
given his role in Kraft’s purchase of Cadbury and subsequent
breakup.

In an interview on Tuesday, Rosenfeld declined to comment on
Peltz or any other shareholder, which, as of Dec. 31, also
included Southeastern Asset Management and Bill Ackman’s
Pershing Square Capital Management.

Ackman is leading campaigns involving J.C. Penney Co Inc
and Herbalife, while Southeastern is talking
about teaming up with Carl Icahn to nominate directors at Dell
, according to the Wall Street Journal.

“We certainly listen to all of our shareholders,” Rosenfeld
told Reuters, without saying whether she has recently met with
any of them.

COFFEE PRICES, GUM

Weighing on the top line was coffee prices, which Mondelez
lowered after a decline in the cost of the raw commodity, and
production capacity constraints in India that prevented it from
meeting the full demand for its chocolates. In addition, revenue
for gum, which includes brands like Trident and Stride, fell at
a “high teens” percentage rate in developed markets, the company
said.

But after pruning slower-selling gum products and refocusing
on more successful products, the company is seeing “green
shoots” in its U.S. gum business, Rosenfeld said. In April, it
gained 2 percentage points of market share, she said.

In the first quarter, net income was $568 million, or 32
cents per share. That was down from $813 million, or 46 cents
per share, a year earlier, before the company spun off its
stable of mature North American grocery brands into Kraft Foods.

Excluding items, earnings were 34 cents per share, topping
analysts’ average estimate by a penny, according to Thomson
Reuters I/B/E/S.

Revenue rose nearly 1 percent to $8.74 billion, north of
Wall Street’s estimate of $8.68 billion.

Organic revenue, which strips out the impact of
acquisitions, divestitures and other one-time issues, rose 3.8
percent in the quarter, below the company’s long-term target of
5 to 7 percent growth.

Mondelez stood by its 2013 goal for revenue growth at the
low end of its long-term growth target, and raised its earnings
goal to $1.55 to $1.60 per share from a prior forecast of $1.52
to $1.57 per share.

The 3 cent increase is due to a 7 cent-per-share tax
benefit. The company said it was holding the other half of the
benefit “in reserve … since it’s still early in the year and
considering the volatility in many of our markets.”

(Reuters) – Mondelez International Inc (MDLZ.O: Quote, Profile, Research, Stock Buzz) posted quarterly earnings on Tuesday that were slightly better than expected and raised its full-year earnings forecast due to a benefit from a tax item.

The newly independent maker of Cadbury chocolates and Oreo cookies said net income was $568 million, or 32 cents per share, in the first quarter. That was down from $813 million, or 46 cents per share, a year earlier, before the company separated from Kraft Foods Group Inc (KRFT.O: Quote, Profile, Research, Stock Buzz).

Excluding items, earnings were 34 cents per share.

On that basis, analysts on average were expecting 33 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose nearly 1 percent to $8.74 billion. That topped Wall Street’s estimate of $8.68 billion, the first time the company beat revenue estimates since it became a standalone snacks company late last year.

Still, revenue growth was below the company’s long-term target, and Chief Executive Officer Irene Rosenfeld said Mondelez is “certainly not satisfied with that.”

Mondelez is using its profits to reinvest in emerging markets and to boost brand-building, production capacity and distribution.

“You’ll begin to see the payoff of these investments more clearly as revenue growth accelerates in the second half,” Rosenfeld told analysts.

The performance of Mondelez is of particular interest this quarter, given the recent revelation that Trian Fund Management has taken stakes in Mondelez and PepsiCo Inc (PEP.N: Quote, Profile, Research, Stock Buzz). The move sparked speculation that Trian’s Peltz would push for a merger of the two, given his involvement in Kraft’s purchase of Cadbury and subsequent breakup.

Mondelez stood by its 2013 goal for revenue growth at the low end of its long-term growth target of 5 to 7 percent, but raised its earnings goal to $1.55 to $1.60 per share from a prior forecast of $1.52 to $1.57 per share.

Analysts on average were expecting $1.56 per share.

The company’s shares rose 17 cents, or 0.5 percent, to $31.58 in afterhours trading after closing at $31.41.

(Reporting by Martinne Geller in New York; Editing by Phil Berlowitz)

“We’ll see what happens with market share and commodity costs and all that kind of stuff. But we don’t really see a big change in the beer-pricing strategy from history,” CFO Robert Ryder told Reuters on Friday.

To see Ryder on Reuters Insider, click here: link.reuters.com/xac87t

Constellation is taking over the U.S. business of Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz) in a $4.75 billion deal required as part of Anheuser-Busch InBev’s (ABI.BR: Quote, Profile, Research, Stock Buzz) $20.1 billion takeover of Mexico’s largest brewer. U.S. regulators were very concerned that if AB InBev owned Modelo in the United States, it would raise prices for consumers more aggressively than Modelo’s U.S. importer, Crown Imports, had in the past.

Crown is a joint venture between Constellation and Modelo and Constellation is buying out its partner. Ryder noted that the management team that made pricing decisions before will stay the same.

Corona is the top-selling imported beer in the United States. Its sales have been helped by the fact that Crown often has not raised prices as much as its larger rivals, AB InBev and MillerCoors, the combined U.S. operations of SABMiller (SAB.L: Quote, Profile, Research, Stock Buzz) and Molson Coors (TAP.N: Quote, Profile, Research, Stock Buzz).

Following closure of the deal, Ryder said Constellation will be focused on paying down debt. Once its target leverage ratio is reached, which should take about two years, the company will consider a dividend for the first time, and expects to buy back more stock.

Constellation is less focused on buying more assets, Ryder said. Instead, the company is putting more attention on growing its beers organically, and is testing new products, like Modelo Especial Light, and working to expand the availability of Modelo beers on draught at bars.

(Reporting by Martinne Geller in New York; Editing by Marguerita Choy)

(Reuters) – A public relations disaster pumped up Beam Inc’s (BEAM.N: Quote, Profile, Research, Stock Buzz) first-quarter profit.

Sales of Maker’s Mark soared 44 percent after the company announced it would lower the alcohol content in its bourbon because of a limited supply of whiskey.

A consumer outcry led Beam to quickly reverse that decision, but not before die-hard fans stocked up.

“As you know, we heard our consumers loud and clear, responded quickly and maintained Maker’s at 90 proof,” said Beam Chief Executive Matt Shattock.

He said that kind of growth was not sustainable and that Beam would control the supply of Maker’s by managing bottle sizes, prices and promotions.

Maker’s, one of several higher-end bourbons in the Beam portfolio, is made in Loretto, Kentucky, with red winter wheat meant to stimulate taste buds in the front of the mouth.

Beam on Thursday said net income rose to $114.5 million, or 71 cents per share, in the first quarter, from $79.1 million, or 49 cents per share, a year earlier.

Excluding items, Beam earned 64 cents per share, or 10 cents per share more than analysts were expecting on average, according to Thomson Reuters I/B/E/S.

Sales rose 8 percent to $577.7 million, as the strength in Maker’s Mark was partially offset by declines in Sauza tequila, Courvoisier cognac and Kilbeggan Irish whiskey.

Still, Beam stood by its full-year outlook, saying that some of the factors that helped results earlier in the year will reverse themselves later.

The company said it had benefited from the timing of ingredient costs, selling a higher proportion of more-expensive products, price increases and a shift in advertising spending to the second and third quarters from the first quarter.

The company affirmed its full-year forecast, which called for earnings before one-time items to grow at a high single-digit percentage rate from the $2.40 per share it earned in 2012. It said it still expected 2013 free cash flow of $300 million to $350 million.

Beam shares ended regular trading on Thursday up $1.82, or 2.8 percent, at $66.11.

(Reporting by Martinne Geller in New York; Editing by Lisa Von Ahn and Steve Orlofsky)

(Reuters) – Kellogg Co (K.N: Quote, Profile, Research) and Hillshire Brands (HSH.N: Quote, Profile, Research) reported weaker-than-expected quarterly sales on Thursday, as budget-conscious U.S. consumers cut back on desserts, sending the food companies’ shares lower.

Kellogg, which makes Keebler cookies, posted a quarterly profit in line with estimates and stood by its full-year outlook. Hillshire, which owns Sara Lee frozen cakes, reported a better-than-expected profit and said 2013 earnings would be at the high end of its forecast.

Still, a 21 percent gain in food sector stocks this year has given food makers very high multiples, which demands better performance. Investors have been enticed by the promise of high-yield investments and hope for more deal-making following the buyout of H.J. Heinz Co (HNZ.N: Quote, Profile, Research) and speculation of a merger between PepsiCo (PEP.N: Quote, Profile, Research) and Mondelez (MDLZ.O: Quote, Profile, Research).

Specifically, Kellogg shares rose nearly 16 percent and Hillshire shares rose more than 26 percent through Wednesday, fuelling expectations of strong results.

“When you go on big runs like that, you have to beat and raise guidance,” Edward Jones analyst Brian Yarbrough said, adding that for Kellogg, “This is just a ho-hum quarter, so I think there could be a little profit-taking.”

Kellogg sales rose to $3.86 billion (£2.5 billion), but missed analysts’ average estimate of $3.94 billion, according to Thomson Reuters I/B/E/S.

Shares of Kellogg, which also makes Corn Flakes cereal and Eggo waffles, fell 2.8 percent to $62.81 on the New York Stock Exchange, while Hillshire, which also makes Ball Park hot dogs and Jimmy Dean sausages, fell 3 percent to $34.49.

Hillshire, which separated last year from D.E Master Blenders 1753 (DEMB.AS: Quote, Profile, Research) and is now seen as a potential takeover target, reported quarterly revenue of $924 million, which was below analysts’ average estimate of $953.3 million, according to Thomson Reuters I/B/E/S.

SKIPPING DESSERT

Kellogg said net income was $311 million, or 85 cents per share in the first quarter, down from $351 million, or 98 cents per share, a year earlier.

The decline in profit was largely due to the rising cost of commodities, Kellogg said, adding that the first quarter included most of the inflation it expects for the full year.

Excluding items including a hit from the devaluation of Venezuela’s currency, earnings were $1.02 per share, in line with analysts’ average estimate, according to Thomson Reuters I/B/E/S.

Kellogg Chief Executive John Bryant said the one business that was softer than he would like was cookies, where consumption fell 5.5 percent in the quarter.

For Hillshire, sales in its foodservice business declined due to weakness in frozen bakery products.

“Consumers continued their retreat from desserts amidst challenged household budgets,” Sean Connolly, Hillshire CEO, said on a conference call.

Slow sales of cookies and sweets could bode poorly for Mondelez, which will report quarterly results next week.

Kellogg, the world’s biggest cereal maker, said it was on track to meet its goal for the full year, which calls for profit growth of 5 percent to 7 percent. That would translate to earnings of $3.82 to $3.91 per share.

(Reporting by Martinne Geller in New York; Editing by Maureen Bavdek)