Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

PepsiCo, Inc. (PEP - Analyst Report) recently announced the opening of a new yogurt production facility for Muller Quaker Diary, a joint venture between PepsiCo and Theo Muller Group.

The new state-of-the-art manufacturing unit, located in Batavia, N.Y., will have three production lines and can produce 120,000 cups of yogurt per hour. The facility will employ about 180 people. The facility can further accommodate up to eight more production lines in the future.

Muller Quaker Dairy will source milk from the local market and the new facility will produce Muller Corner, Muller Greek Corner and Muller FrutU yogurt varieties.  

Yogurt is one of the fastest growing categories in the U.S. With changing consumer preferences, there is a huge demand for nutritious products. Yogurts are rich in protein, calcium and vitamin D and thus prove to be a healthy snacking option.

Despite PepsiCo’s increased marketing investments and package and product innovation to boost its American beverage business, the company’s carbonated beverage sales have been sluggish due to changing consumer preferences, increasing health consciousness, rising obesity concerns, possible new taxes on sugar-sweetened beverages and growing regulatory pressures.  

As such, PepsiCo is continuously focusing on products that have improved nutritional value. Quaker is one of the company’s leading health and wellness brands, which also include other non-carbonated beverages such as Tropicana and Gatorade. The latest attempt to produce yogurt compliments the company’s focus on wellness brands.

PepsiCo carries a Zacks Rank #2 (Buy).

Some other consumer staple stocks that are worth a look include Flower Foods Inc. (FLO - Snapshot Report) carrying a Zacks Rank #1 (Strong Buy), and J&J Snack Foods Corp. (JJSF - Snapshot Report) and H. J. Heinz Company holding a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%