Cott (NYSE: COT ) produces and sells over 200 different types of beverages in over 50 countries, and it implements a highly effective strategy. Cott is what is known as a Fast Follower, which makes it unique to other beverage companies.�
Strategy and operation
As�a Fast Follower, Cott will copy a beverage industry product that is performing well and alter it to meet the company's marketing approach. This strategy tends to be highly effective, simply because it's based on proven results. It's also a strategy that Cott wants to rely on in an economic environment where the consumer is weak. In this environment, it would be very risky to rely on innovation. If a new product failed, it could potentially significantly hurt Cott's top and bottom lines. Since the consumer isn't strong at the moment, it would be more difficult for the company to recover than in normal economic environments.
Cott is also a low-margin operation. Therefore, it's sensitive to cost structure fluctuations. This especially pertains to ingredient and packaging costs, which are affected by commodity trends in aluminum, sugar, corn, and more. Commodity costs are likely to come down when quantitative-easing ends or is tapered, but no one knows when that will be. However, it's likely to happen sooner rather than later, which is a potential positive for Cott. On the other hand, once QE is tapered or ends and excess liquidity is removed from the system, the global economy will be without a big support it once relied on. It's possible that demand for almost all products and services will fall.
Top Supermarket Companies To Invest In 2015: CirTran Corp (CIRC)
CirTran Corporation, incorporated on March 23, 1987, manufactures, markets, and distributes internationally an energy drink under a license with Playboy Enterprises, Inc. (Playboy) through its subsidiary, CirTran Beverage Corporation. It operates in Beverage Distribution and Contract Manufacturing segments. In the United States, it provides a mix of high- and medium-volume turnkey manufacturing services and products using various high-tech applications for electronics original equipment manufacturers (OEMs) in the communications, networking, peripherals, gaming, law enforcement, consumer products, telecommunications, automotive, medical, and semiconductor industries. The Company�� services include pre-manufacturing, manufacturing, and post-manufacturing services.
Beverage Distribution
CirTran Beverage Corporation (CirTran Beverage) manufactures, markets, and distributes Playboy-licensed energy drinks, flavored water beverages, and related merchandise through various distribution channels. As of December 31, 2012, the Company had 65 countries throughout Europe, Africa, Australia, the Pacific, and the Middle East.
Contract Marketing
CirTran Products Corp. pursues contract-manufacturing relationships in the domestic consumer products markets, including products in areas, such as home/garden, kitchen, health/beauty, toys, licensed merchandise, and apparel for film, television, sports, and other entertainment properties. The Company concentrates its product development efforts into three areas: home and kitchen appliances, beauty products, and licensed merchandise. Through CirTran - Asia, Inc., the Company designs, manufactures, and supplies products in the international electronics, consumer products, and general merchandise industries for various marketers, distributors, and retailers selling overseas. This subsidiary provides manufacturing services to the direct-response and retail consumer markets.
The Company competes with Hansen�! � Energy, Diet Red, Monster Energy, Lost Energy, Joker Mad Energy, Ace Energy, Unbound Energy, Rumba energy juice, Red Bull, Rockstar, Full Throttle, No Fear, Amp, Adrenaline Rush, 180, Extreme Energy Shot, Red Devil, Rip It, NOS, Boo Koo, and Vitaminenergy.
Advisors' Opinion:- [By CRWE]
Last Friday, CIRC remained (0.00%) +0.000 at $.0005 at the close (ref. google finance August 30, 2013 ��Close).
CirTran Corporation has recently filed its Quarterly Report on Form 10-Q for the period ended June 30, 2013, showing continued growth in sales and a dramatic improvement in profits. CirTran�� sales were again driven by its Playboy Energy Drink line, which has grown to represent nearly 98% of revenues.
For the quarter, CirTran previously reported sales of $1,096,691, a 247% increase over the $315,755 reported for the same period a year ago. For the six months ended June 30, 2013, CirTran reported sales of 1,964,843, a 110% improvement over the $934,455 reported for the first half of 2012.
5 Best Beverage Stocks To Invest In Right Now: Suntory Beverage & Food Ltd (STBFY)
Suntory Beverage & Food Limited is principally engaged in the manufacture and sale of beverages and food. The Company operates in two geographical segments. The Domestic segment is engaged in the manufacture and sale of various soft drinks within Japan, such as coffee drinks, mineral water, green tea drinks, tea drinks, carbonated drinks, fruit juice drinks, functional beverages, milk beverages, and food for specified health use, as well as syrup for general and business usage. The International segment is engaged in the manufacture and sale of carbonated drinks, fruit juice drinks, health food, seasoning, tea-based beverages and others, with operations in Europe, Oceania, Asia and the Americas. As of May 29, 2013, the Company had 80 subsidiaries and 10 associated companies. On October 15, 2013, the Company acquired Lucozade Ribena Suntory Limited. On December 12, 2013, the Company acquired Suntory Beverage & Food Europe Limited. Advisors' Opinion:- [By John Udovich]
Whiskey has become increasingly cool and popular thanks to the whole cocktail movement, something that�� good for big whiskey stocks like Suntory Beverage & Food Limited (OTCMKTS: STBFY), Diageo plc (NYSE: DEO) and Brown-Forman Corporation (NYSE: BF.B) who�also produce a wide variety of�liquors and beverages. In fact,�a recent episode of the�Daily Ticker�cited these stats from a USA Today article:
- [By Charles Sizemore]
Let�� start with Suntory Beverage & Food Limited (STBFY),which recently completed its acquisition of�Beam Inc., formerly the purest play on bourbon. Beam was the owner of the eponymous Jim Beam brand, as well as the higher-end Maker�� Mark and Knob Creek and the lower-end Old Crow.�Suntory is Japan�� leading spirits company, though most Americans will be unfamiliar with its Japanese whisky brands, such as Yamazaki and Hakushu. (Note for booze snobs: Japanese whisky��ike Scotch and Canadian whisky��s correctly spelled ��hisky.��American bourbon, Tennessee whiskey and Irish whiskey are correctly spelled ��hiskey.��
5 Best Beverage Stocks To Invest In Right Now: Pernod Ricard SA (PDRDY)
Pernod Ricard SA is a France-based producer and distributor of spirits and wines. The Company offers such products as whiskies, aniseed spirits, liqueurs, cognacs and brandies, white spirits and rums, bitters, champagnes and wines. Its business is divided into three segments: Top 14 Spirits & Champagne, Priority Premium Wines and 18 key local spirits brands. Pernod Ricard SA�� flagship brands include ABSOLUT, Ricard, Havana Club, Ballantine��, Malibu, The Glenlivet, Chivas Regal, Beefeater, Kahlua, Martell, Royal Salute, Mumm, Perrier-Jouet and Jameson, among others. The wine category includes, Jacob�� Creek, Brancott Estate, Campo Viejo and Graffigna. It operates as a holding company, with the structure divided between brand owner subsidiaries, such as The Absolut Company, Havana Club International and Chivas Brothers and regional distribution subsidiaries, such as Pernod Ricard Europe, Pernod Ricard Americas and Pernod Ricard Asia, distribute local brands. Advisors' Opinion:- [By Charles Sizemore]
But its current valuation��t trades at 31 times earnings��akes me pause. At that price, you are implicitly expecting one of two things to happen:
The American whiskey boom continues unabated for years��nd isn�� replaced by something new and trendy. Brown-Forman will be acquired by a larger competitor (think Diageo or Pernod-Ricard (PDRDY)).The first assumption is one I�� be hesitant to make given the whims of fashion. And the second is even less likely. Brown-Forman is family controlled, and in the past the company has very adamant about preserving its independence.
5 Best Beverage Stocks To Invest In Right Now: Fomento Economico Mexicano SAB de CV (FOMC)
Fomento Economico Mexicano SAB de CV (FEMSA) is a Mexico-based holding company engaged in the beverages industry. Through its subsidiary Coca-Cola FEMSA SAB de CV, the Company is active in the production and distribution of a variety of non-alcoholic beverages, bottled water and still beverages such brands as Coca-Cola, Fanta, Sprite, Powerade, Delaware Punch and other trademark beverages of The Coca-Cola Company in Mexico. Through FEMSA Comercio SA de CV, it operates the OXXO convenience-store chain in Latin America. The Company operates in a number of Latinamerican countries and in Philippines. Advisors' Opinion:- [By CanadianValue]
Former Philadelphia Fed President Edward Boehne elegantly described the approach at a Federal Open Market Committee (FOMC) meeting in late 1989:
��ow, sooner or later, we will have a recession. I don�� think anybody around the table wants a recession or is seeking one, but sooner or later we will have one. If in that recession we took advantage of the anti-inflation (impetus) and we got inflation down from 4 1/2 percent to 3 percent, and then in the next expansion we were able to keep inflation from accelerating, sooner or later there will be another recession out there. And so, if we could bring inflation down from cycle to cycle just as we let it build up from cycle to cycle, that would be considerable progress over what we��e done in other periods in history.��/p>
- [By Canadian Value]
Also interesting is that the duration of rising rate environments is distinctly shorter after 1982. The average duration declines to 14 months from 40 months prior to 1982. A possible explanation could be changes in the monetary mechanism influencing interest rates. In 1982, the Federal Open Market Committee (FOMC) first referenced a targeted federal funds rate.7
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