Martinne's Feed
Feb 9, 2013

Constellation wants in on U.S. beer suit to protect Crown

NEW YORK (Reuters) – Constellation Brands Inc (STZ.N: Quote, Profile, Research, Stock Buzz) asked to be joined as a defendant in the U.S. government’s lawsuit to block Anheuser-Busch InBev’s (ABI.BR: Quote, Profile, Research, Stock Buzz) proposed takeover of Corona beer maker Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz), seeking to protect its own interests in the mega merger.

As part of AB InBev’s plan to buy the half of Modelo it does not own for $20.1 billion, Modelo would sell its half of the Crown Imports joint venture to its partner, Constellation, for $1.85 billion.

Feb 8, 2013

Constellation, Crown want in on U.S. antitrust beer suit

By Martinne Geller

(Reuters) – Constellation Brands Inc (STZ.N: Quote, Profile, Research, Stock Buzz) and U.S. beer distributor Crown Imports filed a court motion asking to be joined as defendants in the U.S. government’s complaint against Anheuser-Busch InBev’s (ABI.BR: Quote, Profile, Research, Stock Buzz) proposed takeover of Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz).

The Motion to Intervene, filed in U.S. District Court for the District of Columbia, and made public on Friday, seeks to allow Constellation and Crown direct access to the legal proceedings as neither company was named in the complaint, but each is directly affected by its outcome.

Feb 7, 2013

Green Mountain shares fall on weak sales outlook

Feb 6 (Reuters) – Green Mountain Coffee Roasters Inc
forecast sales growth for the current quarter that is
slightly lower than analysts expected as retailers work through
unsold inventory of its products after a slower-than-expected
holiday season.

The maker of the Keurig single-cup coffee brewer and K-Cups
that go with it also reported first-quarter earnings that were
11 cents per share better than analysts expected. It raised its
full-year outlook, but only by 8 cents per share in a sign of
weakening expectations for later quarters.

Feb 7, 2013

Herbalife fights pyramid charge with distributor data

NEW YORK (Reuters) – Herbalife Inc (HLF.N: Quote, Profile, Research, Stock Buzz) disclosed more information on Wednesday about how much its U.S. distributors earn, looking to provide more clarity as it defends its business model from critics like billionaire hedge fund manager Bill Ackman.

The greater detail about 2012 distributor compensation follows sustained criticism by Ackman, who has a $1 billion bet against the company and alleges that its direct-selling model is nothing more than a “well-managed pyramid scheme.”

Feb 6, 2013

Exclusive: Herbalife to share more data on pay in investor fight

NEW YORK (Reuters) – Herbalife Inc (HLF.N: Quote, Profile, Research, Stock Buzz), the embattled nutritional supplements company, is disclosing more information about how much its U.S. distributors earned in 2012 than it did in 2011, though the details are unlikely to satisfy critics like billionaire hedge fund manager Bill Ackman.

Specifically, Herbalife laid out on Wednesday the ranges of gross compensation it pays to distributors at various levels, how many distributors it had last year at each level, and what their average gross payments were.

Feb 6, 2013

Herbalife to share more data on pay in investor fight

NEW YORK, Feb 6 (Reuters) – Herbalife Inc, the
embattled nutritional supplements company, is disclosing more
information about how much its U.S. distributors earned in 2012
than it did in 2011, though the details are unlikely to satisfy
critics like billionaire hedge fund manager Bill Ackman.

Specifically, Herbalife laid out on Wednesday the ranges of
gross compensation it pays to distributors at various levels,
how many distributors it had last year at each level, and what
their average gross payments were.

Feb 6, 2013

Scotch, Irish whiskey fuel U.S. spirit sales -trade group

NEW YORK, Feb 6 (Reuters) – Sprits companies sold 3 percent
more liquor in 2012 in the United States than in 2011, fueled by
flavored drinks and a big thirst for Irish whiskey and single
malt Scotch, an industry trade group said on Wednesday.

On a revenue basis, sales rose 4.5 percent to $21.3 billion,
as higher-end spirits outshone value brands, according to the
Distilled Spirits Council of the United States.

Feb 5, 2013

Kellogg posts narrower loss, stands by 2013 outlook

Feb 5 (Reuters) – Kellogg Co reported a narrower
quarterly loss on Tuesday, helped by its purchase of Pringles,
and stood by its full-year forecast as the world’s largest
cereal company aims to convince Wall Street that troubling
product recalls are behind it.

For Kellogg, 2012 was a transition year as it bought the
Pringles snack business and reinvested in operations following
several product recalls that shook investor confidence.

Feb 4, 2013

Herbalife shares tumble on law enforcement probe news

NEW YORK/WASHINGTON- (Reuters) – Herbalife Ltd (HLF.N: Quote, Profile, Research, Stock Buzz) shares were down 4.6 percent on Monday after a newspaper reported that the seller of weight loss products faces a law enforcement probe.

The New York Post report, which sent the shares down as much as 12 percent, stems from documents the paper obtained from the U.S. Federal Trade Commission. The documents, which have also been seen by Reuters, stem from a complaint to the agency from a person in Durango, Iowa.

Feb 1, 2013

Modelo deal parties working on DOJ concerns: source

NEW YORK/WASHINGTON- (Reuters) – Anheuser-Busch InBev SA (ABI.BR: Quote, Profile, Research, Stock Buzz), Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz) and Constellation Brands Inc (STZ.N: Quote, Profile, Research, Stock Buzz) are discussing ways to address U.S. regulators’ antitrust concerns over their mega-merger and expect to soon open settlement talks to avoid a trial, a source close to one of the companies said on Friday.

The U.S. Department of Justice said on Thursday it was suing to block AB InBev, the world’s biggest beer maker, from buying the half of Mexico’s Modelo it does not already own for $20.1 billion, saying the combination would hinder competition and lead to higher beer prices.