Among ample advice concerning healthy eating and drinking habits, mothers typically trumpet that too much of anything sweet is something to avoid. Soda pop is the usual target; mothers advocate for drinks they view as more nutritious, such as milk and pure juices.
From an investing standpoint, however, mothers should also consider the income opportunities available through investing in companies that delve in an array of drinks. The following are seven things your mother never told you about beverage companies, such as Cott Corporation (USA) (NYSE:COT) , Monster Beverage Corp (NASDAQ:MNST) , and Starbucks Corporation (NASDAQ:SBUX):
1. The Potential Exists for EPS Growth
Cott’s earnings per diluted share increased to $0.02 for the fourth quarter of 2012. This is in comparison to a loss per diluted share of $0.12 in the prior year period.
Monster Beverage’s net income per diluted share for the same quarter increased 10.6 percent to $0.39. The company’s net income per diluted share was $0.35 in the comparable quarter in 2011.
For Q1 2013 (13 weeks ended Dec 30, 2012) Starbucks Corporation (NASDAQ:SBUX)’ EPS increased 14% to a record $0.57 per share. This is versus $0.50 per share in the first quarter of the prior fiscal year.
2. They’re Forward Thinking
announced last month a strategic agreement with Cott’s subsidiary Cott Beverages, Inc. to make flavors produced specifically for the SodaStream carbonation system. First production will consist of existing SodaStream flavors, and this represents a new revenue stream for Cott.
Monster Beverage Corp (NASDAQ:MNST) is full speed ahead with new launches this year. They successfully launched the Monster Beverage Corp (NASDAQ:MNST) Energy brand in several new global markets recently.
Starbucks acquired the Evolution Fresh juice brand (bottled/cold pressed juices) more than a year ago. The company is expanding this brand’s distribution to Boston and New York. By the end of 2013, their corporate objective is to have this brand in approximately 8,000 locations. In addition, Starbucks opened their first trio of stores in India.
3. They Often Deliver Income Growth
Cott’s net income for 2012 was $48 million, a 27% increase versus the year prior’s $38 million.
For the same fiscal year, Monster Beverage Corp (NASDAQ:MNST)’s net income grew 18.8 percent to $340 million. This is in comparison to 2011’s $286.2 million.
For Starbucks’ Q1 (2013), consolidated operating Income increased 13% to $630.6 million – a record for the company. This is compared to $556 million for the year ago period.