(Reuters) – Constellation Brands Inc will buy the remaining half of its Crown Imports joint venture for $1.85 billion to get full control of distributing popular beers like Corona Extra and Modelo Especial in the United States.
Constellation shares jumped nearly 23 percent to their highest level in years on the news. The deal to buy out Grupo Modelo gives Constellation control of the best-selling imported beer in the lucrative U.S. market.
(Reuters) – General Mills Inc (GIS.N: Quote, Profile, Research, Stock Buzz) posted slightly higher-than-expected quarterly profit, but forecast full-year earnings below Wall Street estimates as it boosts investment in emerging markets and its North American Yoplait yogurt business.
In the just-ended fiscal fourth quarter, General Mills, which also makes Progresso soups and Cheerios cereal, said net income rose to $325.4 million, or 49 cents per share, from $320.2 million, or 48 cents, a year earlier.
June 25 (Reuters) – Anheuser Busch InBev (ABI.BR: Quote, Profile, Research) has yet to
swallow Mexican brewer Grupo Modelo (GMODELOC.MX: Quote, Profile, Research) but investors
are already speculating on what other deals may follow, starting
with the U.S. distribution rights for Corona and other beers.
Following news that AB InBev was in talks to buy out Modelo,
Constellation Brands Inc (STZ.N: Quote, Profile, Research) shares jumped as much as 14
percent on Monday — their biggest spike in nearly a decade –
on expectations that AB InBev would also buy Constellation’s
stake in Crown Imports. A 50-50 joint venture with Modelo, Crown
imports and distributes Modelo beers including Pacifico, Corona
and Modelo in the United States.
June 21 (Reuters) – ConAgra Foods Inc’s adjusted
quarterly profit narrowly beat Wall Street estimates as price
increases and easing commodity cost inflation boosted
performance in its consumer foods segment.
The company, which released results from its fiscal fourth
quarter on Thursday, also benefited from its recent acquisitions
of National Pretzel Co, Del Monte Canada, Odom’s Tennessee Pride
and the pita chip business of Kangaroo Brands.
NEW YORK (Reuters) – Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research, Stock Buzz) is facing new competitors in the U.S. single-serve coffee market even before some of its patents expire in September, suggesting pricing pressures could come earlier than analysts had expected.
U.S. supermarket chain Safeway Inc (SWY.N: Quote, Profile, Research, Stock Buzz) last week said it began to sell its own brand of filtered coffee pods that are compatible with Green Mountain’s Keurig brewers, but at prices below Green Mountain’s own K-Cups.
NEW YORK (Reuters) – Rogers Family Co, a privately held company based in California, is the manufacturer for Safeway Inc’s (SWY.N: Quote, Profile, Research, Stock Buzz) private label coffee cups compatible with Keurig brewers, the coffee roaster’s president told Reuters on Thursday.
Rogers’ cup is compatible with the Keurig brewers, but is not made through a licensing agreement with Keurig’s owner, Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research, Stock Buzz).
(Reuters) – Safeway Inc (SWY.N: Quote, Profile, Research, Stock Buzz) is launching under its own store brand five types of filtered coffee pods compatible with Keurig brewers, becoming the latest competitor to Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research, Stock Buzz), which makes the Keurig system and most of the single-serve drink portions that go with it.
Safeway’s new offerings will differ from its existing private label pods for Keurig in that they will be filtered coffee. The products launched in January, two cappuccino flavored drinks and one hot cocoa drink, were instant, Safeway spokesman Brian Dowling told Reuters in an email.
(Reuters) – Green Mountain Coffee Roasters Inc (GMCR.O: Quote, Profile, Research, Stock Buzz) shares fell as much as 10 percent on Monday to a 52-week low after Kroger Co (KR.N: Quote, Profile, Research, Stock Buzz) said it was planning to launch store-branded single-serve coffee cups for Keurig machines that would compete with Green Mountain-branded cups.
Late Friday, Kroger, the biggest U.S. supermarket chain, told Reuters in an interview that it would begin selling cups for the Keurig system.
(Reuters) – Diamond Foods Inc (DMND.O: Quote, Profile, Research, Stock Buzz) said it will miss Monday’s deadline to file restated financial statements, which could lead to a delisting from Nasdaq, sending its shares down 5 percent.
Diamond, the maker of Emerald nuts, Pop Secret popcorn and Kettle potato chips, said it is in the process of preparing a restatement of its financial statements for fiscal 2010 and 2011 after an investigation uncovered improper accounting.
NEW YORK (Reuters) – Coca-Cola Co and McDonald’s Corp slammed a proposed limit on soft drink sales in New York City that would turn a small McDonald’s drink into the new large and could trigger a wave of similar restrictions aimed at curbing obesity.
“New Yorkers expect and deserve better than this. They can make their own choices about the beverages they purchase,” Coca-Cola said in a statement on Thursday. Coke dominates the U.S. fountain drink market, and would likely be the most hurt.