International investors have recently gotten a lot more interested in currency-hedged ETFs. But what are currency-hedged ETFs, and how can you decide whether they belong in your portfolio? (NYSEMKT: DXJ )
In the following video, Fool contributor Dan Caplinger discusses the ins and outs of currency-hedged ETFs. As Dan notes, the strong performance of the Japanese stock market amid weakness in the Japanese yen led to a big surge in interest in currency hedging strategy. Yet Dan also points out that the currency hedge can work both ways with these ETFs, hurting results when the U.S. dollar is weak. Dan concludes with some examples of situations in which trying to hedge currency risk really doesn’t make any sense.
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5 Best Beverage Stocks To Own For 2015: Dr Pepper Snapple Group Inc (DPS)
Dr Pepper Snapple Group, Inc. (DPS), incorporated on October 24, 2007, is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers. The Company operates in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company primarily serves two groups of customers: bottlers and distributors and retailers. As of December 31, 2011, it operated 20 manufacturing facilities across the United States and Mexico, excluding its manufacturing facility for its joint venture with Acqua Minerale San Benedetto. Effective March 1, 2013, it acquired Dr. Pepper/7-UP Bottling Co of the West, a producer and wholesaler of bottled soft drinks.
The Company’s Beverage Concentr ates segment is principally a brand ownership business. In this segment the Company manufactures and sells beverage concentrates in the United States and Canada. Most of the brands in this segment are CSD brands. Its brand portfolio includes CSD brands, such as Dr Pepper, Sunkist soda, 7UP, A&W, Canada Dry, Crush, Squirt, Penafiel and Schweppes. Beverage concentrates are shipped to third party bottlers, as well as to its own manufacturing systems, who combine them with carbonation, water, sweeteners and other ingredients, package it in PET containers, glass bottles and aluminum cans, and sell it as a finished beverage to retailers. Beverage concentrates are also manufactured into syrup, which is shipped to fountain customers, such as fast food restaurants, who mix the syrup with water and carbonation to create a finished beverage at the point of sale to consumers. Its Beverage Concentrates brands are sold by its bottlers, including its own Packaged Beverages segment, through all retail channels, including supermarkets, fountains, mas! s merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains and dollar stores.
The Company’s Packaged Beverages segment is principally a brand ownership, manufacturing and distribution business. In this segment, it primarily manufacture and distribute packaged beverages and other products, including its brands, third party owned brands and certain private label beverages, in the United States and Canada. Key NCB brands in this segment include Hawaiian Punch, Snapple, Mott’s, Yoo-Hoo, Clamato, Deja Blue, AriZona, FIJI, Mistic, Nantucket Nectars, ReaLemon, Mr and Mrs T, Rose’s and Country Time. Key CSD brands in this segment include 7UP, Dr Pepper, A&W, Sunkist soda, Canada Dry, Squirt, RC Cola, Big Red, Sun Drop, Diet Rite, IBC and Vernors. Approximately 87% of its 2011 Packaged Beverages net sales of branded products come from its own brands, with the remaining from the distribu tion of third party brands, such as Big Red, AriZona tea, FIJI mineral water, Neuro beverages, Vita Coco coconut water and Hydrive energy drinks. A portion of its sales also comes from bottling beverages and other products for private label owners or others, which is also referred to as contract manufacturing. Its Packaged Beverages’ products are manufactured in multiple facilities across the United States and are sold or distributed to retailers and their warehouses by itsown distribution network or by third party distributors. The Company sells its Packaged Beverages’ products both through its Direct Store Delivery system (DSD), supported by a fleet of approximately 6,000 vehicles and 12,000 employees, including sales representatives, merchandisers, drivers and warehouse workers, as well as through its Warehouse Direct delivery system (WD), both of which include the sales to retail channels, including supermarkets, fountain channel, mass merchandisers, club stores, ven ding machines, convenience stores, gas stations, small groce! ries, dru! g chains and dollar stores.
Latin America Beverages
The Company’s Latin America Beverages segment is a brand ownership, manufacturing and distribution business. This segment participates mainly in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories, with particular strength in carbonated mineral water, vegetable juice categories and grapefruit flavored CSDs. Its brands include Squirt, Penafiel, Aguafiel, Crush and Clamato.
In Mexico, it manufactures and distributes its products through its bottling operations and third party bottlers and distributors. In the Caribbean, it distributes its products through third party bottlers and distributors. In Mexico, it also participate in a joint venture to manufacture Aguafiel brand water with Acqua Minerale San Benedetto. The Company sells its finished beverages through Mexican retail channels, including mom and pop stores, supermarkets, hypermarkets, and on premise channels.
The Company competes with The Coca-Cola Company (Coca-Cola), PepsiCo, Inc. (PepsiCo), Nestle, S.A. (Nestle), Kraft Foods Inc. (Kraft) and The Cott Corporation (Cott).
- [By Damian Illia]
The company has also been focusing on store opening. Despite the macroeconomic uncertainty, Buffalo has kept with this initiative, and has witnessed unit growth of nearly 11.6% in 2011, 9.1% in 2012 and 10.9% in 2013. Moreover, associations are on track, and the company has acquired a minority stake in PizzaRev, launching in 2012 PizzaRev fast-casual pizza restaurant, with a Craft Your Own initiative. The company plans to open two more PizzaRev units in Minneapolis in 2014 and a few more outlets by the end of 2014. Another partnership on track is with Pepsico Inc. (PEP) and Dr. Pepper Snapple Group, Inc. (DPS) to serve drinks across all its locations. Through these partnerships, Buffalo Wild Wings is developing new sauces and salad dressings for the restaurant chain, like the Mountain Dew-flavored salad dressing and Doritos-flavored wing sauce. These partnerships are expected to increase visibility and improve guest traffic as well.
- [By Ben Levisohn]
The news that someone somewhere was in talks with SodaStream actually broke April 16, when Israeli website, Calcalist noted that SodaStream was talking with either PepsiCo (PEP), Dr. Pepper Snapple (DPS) or Starbucks. As a result, “the cost of higher-strike options increased at a faster pace than the decline in lower-strike options,” noted Interactive Broker’s Andrew Wilkinson at the time.
5 Best Beverage Stocks To Own For 2015: Anadolu Efes Biracilik ve Malt Sanayii AS (AEFES)
Anadolu Efes Biracilik ve Malt Sanayii AS is the holding company of Efes Beverage Group, based in Turkey. Its activities consist of production, bottling, selling and distribution of beer under a number of trademarks and also production, bottling, selling and distribution of sparkling and still beverages with the Coca-Cola company trademark. The Company owns and operates a number of breweries in Turkey and abroad, malt production facilities in Turkey and Russia, and also a number of facilities in Turkey and in other countries for sparkling and still beverages production. It has joint control over Coca-Cola Icecek AS (CCI), which undertakes production, bottling and distribution facilities of Coca-Cola products in Turkey, Pakistan, Central Asia and the Middle East. Also the Company has joint control over Anadolu Etap Tarm ve Gda Urunleri San. ve Tic. AS, which undertakes production and sales of fruit juice concentrates and purees in Turkey. Advisors’ Opinion:
- [By Andras Gergely]
The Borsa Istanbul Stock Exchange National 100 Index slid a second day after reaching a record on May 22. Anadolu Efes (AEFES) sank the most since September 2011. Otokar Otomotiv ve Savunma Sanayi AS, a Turkish producer of civilian and military vehicles, rose to an all-time high after Hurriyet Daily News reported the company could sell tanks to Saudi Arabia.
5 Best Beverage Stocks To Own For 2015: MOJO Organics Inc (MOJO)
MOJO Organics, Inc., incorporated on August 2, 2007, engages in product development, production, marketing and distribution of CHIQUITA TROPICALS. CHIQUITA TROPICALS are a 100% fruit juice, produced under license agreement from Chiquita Brands. The Company’s product flavors include Banana Strawberry, Mango, Passion Fruit, and Pineapple.
The Company’s juices are produced without preservatives and without added sugar. The Company produces and packages the CHIQUITA TROPICALS products through production facilities and services on a contract basis.
The Company competes with The Coca-Cola Company and PepsiCo, Inc.
- [By Lisa Levin]
Catalog & Mail Order Houses: The industry gained 1.13% by 10:15 am. The top performer in this industry was Mojo Organics (OTC: MOJO), which gained 6.6%. Mojo Organics shares have jumped 361.54% over the past 52 weeks, while the S&P 500 index has gained 16.18% in the same period.
5 Best Beverage Stocks To Own For 2015: Cott Corp (COT)
Cott Corporation (Cott), incorporated on December 31, 2006, is a producers of beverages on behalf of retailers, brand owners and distributors. The Company’s product lines include carbonated soft drinks (CSDs), 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy products, sports products, new age beverages, and ready-to-drink teas, as well as alcoholic beverages for brand owners. The Company operates in five segments: North America (which includes the United States operating segment and Canada operating segment), the United Kingdom (which includes its United Kingdom reporting unit and its Continental European reporting unit), Mexico, Royal Crown International (RCI) and All Other. The Company markets or supplies over 500 retailer, licensed and Company-owned brands in its four core geographic segments. In March of 2012, its U.K. reporting segment acquired a beverage and wholesale business based in Scotland.
- [By Rick Munarriz]
It’s been a year of brand-widening initiatives for SodaStream, and not just because it cranked out its first Super Bowl ad back in February.
In February it teamed up with Ocean Spray to co-develop cranberry juice blends exclusively for the SodaStream system. This follows deals last year with Crystal Light, Kool-Aid, and V8 for non-conventional carbonated beverages. My 2012 wish for SodaStream to strike a deal with Monster Beverage (NASDAQ: MNST ) to make a bigger splash in the energy-drinks market hasn’t materialized, but a deal with EBOOST did happen earlier this year. The initial natural energy drink flavors of orange and acai pomegranate will hit the market as SodaStream syrups during the latter half of this year, packing an all-natural energy boost and vitamins in every serving. EBOOST doesn’t have the same allure as Monster or Red Bull, but the move was still a strong one since there’s a real value proposition for home-crafted energy drinks. If SodaStream is successful, the big boys will be on notice. In March, SodaStream, which is based in Israel, teamed up with private-label bottler Cott (NYSE: COT ) to produce SodaStream’s existing flavors at its facility in Georgia, making it easier to get SodaStream products into the country with the world’s largest soda consumption per capita.
The next chapter in what has been a successful year will naturally write itself on Wednesday. There is plenty to prove, even after SodaStream proves quarter after quarter that it’s not just a company behind a faddish novelty.
- [By Dan Caplinger]
But SodaStream is continuing to pull out all stops in order to improve its results. SodaStream’s recent partnership with Samsung to incorporate carbonation technology into high-end refrigerators could help drive growth for consumers who don’t want to deal with a separate appliance in their kitchens. Moreover, SodaStream’s deal in March with bottler Cott (NYSE: COT ) to produce soda syrup within the U.S. should help it boost its efficiency in getting flavors to domestic customers.
- [By Nicole Seghetti]
Regardless, private labels are becoming a bigger problem for companies such as Kraft and, to a lesser extent, Mondelez. According to an industry profile compiled by First Research, these brands typically cost 20% to 40% less than name-brand products. Couple that with the fact that more consumers are ditching big brands, and we can easily see why ConAgra (NYSE: CAG ) , Cott (NYSE: COT ) , and others are continually strengthening their private-label positions.
- [By Lee Jackson]
Cott Corp. (NYSE: COT) stock has pulled back some 30% from its 52-week high of $11.25 after second-quarter market conditions were presented as “challenging.” However, the dividend was reinstated after a ten-year hiatus, and the company bought back $6 million worth of shares in the second quarter. The company mainly does business in the United States, the United Kingdom, Canada and Mexico, but it also sells beverage concentrate to 50 other countries. Deutsche Bank rates Cott as a stock to buy and has an $11 price target. The consensus is posted at $10. Investors are paid a decent 2.9% dividend. The Friday close for Cott was $7.87.
5 Best Beverage Stocks To Own For 2015: Brown-Forman Corp (BF.B)
Brown-Forman Corporation, incorporated on October 19, 1933, primarily manufactures, bottles, imports, exports, markets, and sells a variety of alcoholic beverage brands. The Company’s principal brands are Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Whiskey, Pepe Lopez Tequilas, Jack Daniel’s Single Barrel, Woodford Reserve Bourbons, Jack Daniel’s Ready-to-Drinks, Canadian Mist Blended Canadian Whiskies, Jack Daniel’s Tennessee Honey, Chambord Liqueur, Jack Daniel’s Winter Jack Chambord Vodka, Gentleman Jack, Collingwood Canadian Whisky, Southern Comfort, Early Times Bourbon, Southern Comfort Ready-to-Drinks, Early Times flavored line extensions, Southern Comfort flavored line extensions, Early Times Kentucky Whisky, Finlandia Vodkas, Korbel California Champagnes, Finlandia Ready-to-Drinks, Little Black Dress Vodkas, Antiguo Tequila, Maximus Vodkas, el Jimador Tequilas, Old Forester Bourbon, el Jimador New Mix Ready-to-Drinks, Sonoma-Cutrer Wines, Herradura Tequilas, and Tuaca Liqueur.
The Company’s products are sold in more than 150 countries around the world. The Company’s international markets include Australia, the United Kingdom, Mexico, Germany, Poland, France, Russia, Japan, Turkey, Canada, Spain, Czech Republic, South Africa, Brazil and Italy.
The Company competes with Bacardi Limited, Beam Inc., Davide Campari-Milano S.p.A., Diageo plc, LVMH Moet Hennessy Louis Vuitton S.A., Pernod Ricard S.A., and Remy Cointreau S.A.
- [By Sue Chang and Saumya Vaishampayan]
BFB: Brown-Forman Corp. (BF.B) Class B shares gained 3.7%. The alcoholic beverage maker reported fiscal third-quarter earnings Wednesday that beat expectations and boosted its full-year view on per-share earnings to between $2.95 and $3.05.
- [By Marc Bastow]
Alcohol manufacturer and distributor Brown-Forman (BF.B) raised its quarterly dividend 13.7% to 29 cents per share, payable on Dec. 27 to shareholders of record as of Dec. 4.
BF.B Dividend Yield: 1.54%