Core Insights - PepsiCo, Inc. (PEP) is experiencing strong momentum in its PepsiCo Beverages North America (PBNA) division, which has achieved high-single-digit growth in away-from-home channels and gained market share in no-sugar colas and Gatorade sports drinks [2][9] - The Frito-Lay North America (FLNA) division is facing challenges in stabilizing volumes across its core snack portfolio, particularly with the Lay's brand, while making progress in subcategories like Cheetos and Doritos [3][4][9] - The overall performance of PepsiCo in Q3 2025 will depend on whether the strong growth in PBNA can offset the ongoing headwinds faced by FLNA [4] PepsiCo Beverages North America (PBNA) - PBNA has delivered high-single-digit growth in away-from-home channels and gained market share in no-sugar colas and Gatorade [2][9] - The division's focus on innovation, affordability, and functional hydration products is driving consumer demand [2][9] - Management believes that PBNA will remain a key growth driver in the latter half of 2025 [2] Frito-Lay North America (FLNA) - FLNA is struggling with volume stabilization, particularly in the potato chip segment and Lay's brand, while making progress in other snack categories [3][4][9] - The division is addressing challenges through relaunches that emphasize natural ingredients and "real food" positioning [3] - Management is rightsizing its manufacturing footprint and pursuing productivity savings, but excess capacity and workforce adjustments may impact near-term performance [3] Competitive Landscape - Compared to Coca-Cola (KO), which is heavily beverage-focused and has a more straightforward growth trajectory, PepsiCo faces challenges in its snacking business [5][6] - Mondelez International (MDLZ) benefits from strong pricing power in its snacking category, unlike PepsiCo's FLNA, which is currently under pressure [7] Stock Performance and Valuation - PepsiCo shares have gained 12.8% in the past three months, contrasting with a 0.5% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 17.89X, slightly below the industry average of 18.24X [10] - The Zacks Consensus Estimate for PepsiCo's 2025 earnings implies a year-over-year decline of 1.8%, while the 2026 estimate suggests a growth of 5.2% [11]

Core Viewpoint - PepsiCo is highlighted as a potentially "recession-proof" investment opportunity due to its strong business model and history of dividend increases, despite current challenges affecting its stock price [2][7]. Company Overview - PepsiCo is a leading player in the consumer staples sector, focusing on food and beverages, with well-known brands like Pepsi, Frito-Lay, and Quaker Oats [5]. - The company has a market capitalization of approximately $200 billion, providing it with the ability to consolidate promising brands and adapt to consumer preferences [5]. Business Model Strength - PepsiCo's business model is characterized by its resilience during economic downturns, as consumer staples are essential items that maintain steady demand [3]. - The company has a strong dividend history, being classified as a Dividend King with over five decades of annual dividend increases, indicating reliable execution and a solid business model [6]. Current Challenges - Despite its strengths, PepsiCo is currently facing challenges, with its stock price down over 20% from its 2023 highs, placing it in a personal bear market [9]. - The company's dividend yield has increased to 3.8%, providing an attractive income stream for investors during uncertain economic times [8]. Investment Considerations - Investing in PepsiCo may be beneficial during a recession, as consumer staples are viewed as safe haven stocks, potentially leading to better stock performance even in a bear market [10]. - Recent acquisitions, including a Mexican-American food maker and a pre-biotic beverage company, suggest that PepsiCo is returning to strategies that have historically driven long-term growth [12].

Group 1 - The core event is the "Summer Carnival" co-hosted by the brand "Lian Shang Ya," the well-known snack store "Lao Po Da Ren," and "Snow Beer," featuring actor Ding Jiawen as the event ambassador [2] - The event runs from July to August 2025, with a highlight being Ding Jiawen's "One-Day Store Manager" appearance and offline meet-and-greet on August 16, which significantly boosted the summer campaign [2] - The event attracted a large number of fans and customers, enhancing the brand's visibility and engagement [1][4] Group 2 - "Lian Shang Ya" has established itself as a leader in the duck meat snack market, recognized by Frost & Sullivan for being the top-selling brand in the supermarket channel for three consecutive years from 2022 to 2024 [4] - The brand emphasizes the use of fresh meat and unique double-marination techniques, along with scientific sterilization and preservation methods, to provide high-quality duck meat snacks [4] - The successful marketing and promotional activities are expected to continue, with the brand aiming to deliver more delightful products in the future [4]

Core Insights - The Hershey Company has appointed Natalie Rothman as Chief Human Resources Officer, effective August 18, 2025, to lead its global HR function [1][3] - Rothman has over 25 years of HR experience and is recognized for her ability to build high-performing teams and modernize HR operations across various industries [2][3] Company Overview - The Hershey Company is a leading snacks company with over 20,000 employees globally, generating more than $11.2 billion in annual revenues from over 90 brand names in approximately 80 countries [5] - The company is committed to ethical and sustainable operations, with a long history of supporting education through initiatives like the Milton Hershey School [6] Leadership Experience - Rothman previously served as CHRO at Inspire Brands, where she implemented business process automation and AI tools to modernize HR operations [3] - At Advance Auto Parts, she led efforts to drive cultural change and enhance organizational capabilities through technology [3][4] Professional Affiliations - Rothman is a member of the New York and New Jersey Bar and the Human Resources Policy Association, and serves on the boards of Udemy and Pearce Services [4]

Core Viewpoint - The article discusses the transformation of traditional snack brands in Jinjiang, China, as they adapt to the rise of new e-commerce platforms like Pinduoduo, which has revitalized their brand presence and sales performance. Group 1: Historical Context - Jinjiang, a key city in the ancient Maritime Silk Road, has a rich cultural heritage that fostered a spirit of innovation and entrepreneurship among its people [1] - The snack industry in Fujian has a history of 30 to 40 years, with over 700 food companies in Jinjiang alone, producing well-known brands like Jincuan, Youchen, and Yake [3][4] - Many Jinjiang snack brands were slow to embrace e-commerce due to the success of traditional offline sales, leading to a delayed entry into the online market [3][4] Group 2: E-commerce Transformation - Traditional brands like Yake and Crayon Shin-chan faced challenges in transitioning to e-commerce, initially relying on third-party operators before deciding to build their own teams [5][6] - Pinduoduo has become a significant platform for these brands, offering better ROI compared to traditional e-commerce channels, with Yake achieving a store ROI of 1:10 on Pinduoduo [5][7] - Jinjiang brands are now focusing on younger consumer demographics, with Jincuan targeting the 18 to 25 age group on Pinduoduo, leading to significant sales growth [8][9] Group 3: Product Innovation and Consumer Engagement - Brands are rapidly iterating on products based on direct consumer feedback obtained through e-commerce platforms, significantly reducing the time to market for new products [9][11] - Jincuan has adapted its popular black sugar plums to meet consumer preferences, changing the product size and quantity while maintaining price points [9][10] - The collaboration with Pinduoduo's "small assistants" has enabled brands to better understand market trends and consumer preferences, leading to successful product launches [11][15] Group 4: Future Outlook - The article highlights the potential for domestic brands to rise in the snack industry, with Pinduoduo's support through initiatives like "100 Billion Subsidies" and "100 Billion Support" aimed at fostering brand growth [15][16] - There is a strong belief among industry leaders that the future of domestic snack brands is promising, with aspirations to elevate their status and compete on a global scale [15][16]

Core Insights - Utz Brands reported Q2 2025 GAAP revenue of $366.7 million, exceeding analyst expectations by $4.57 million, while Non-GAAP earnings per share were $0.17, missing estimates by $0.01 [1][2] - The company experienced a 2.9% year-over-year increase in GAAP revenue, driven by a 5.4% organic growth in branded salty snacks, which represent 88% of total sales [5][6] - Despite revenue growth, escalating costs constrained margins, leading to a significant 60.2% decline in net income compared to the previous year [2][7] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.17, down 10.5% from $0.19 in Q2 2024 [2] - Adjusted EBITDA decreased by 2.0% to $48.7 million, while adjusted gross profit margin improved to 39.8%, up 2.2 percentage points year-over-year [2][7] - Selling, distribution, and administrative costs rose to $119.5 million, representing 32.6% of sales, up from 29.4% in Q2 2024 [7] Business Strategy - The company focuses on geographic expansion and investment in its "Power Four" product families, aiming to enhance operational efficiency and distribution [4][5] - Utz's retail sales increased by 3.3% in a category that saw a 1.5% decline, indicating strong consumer demand for its branded products [6] - The company is consolidating its supply network, closing a facility in Grand Rapids, Michigan, to drive productivity savings [8] Future Outlook - Management raised the organic net sales growth forecast for FY2025 to at least 2.5%, while adjusting the adjusted EBITDA growth guidance to a range of 7% to 10% [11] - The outlook for adjusted earnings per share was lowered to 7% to 10% growth due to increased capital expenditures and rising interest expenses [11] - The company aims to reduce its net leverage ratio to around 3 times by the end of FY2025, down from 4.1 times currently [12]

Core Viewpoint - Consumer staple companies may benefit from higher inflation due to their ability to pass on cost increases to customers, but consumer resistance to price hikes is a concern [2]. Group 1: PepsiCo - PepsiCo's second-quarter revenue increased by 2%, driven entirely by higher prices, which contributed 4 percentage points, while lower volume subtracted about 1.5 percentage points [5]. - Adjusted operating income for PepsiCo fell by 3%, indicating that price hikes were insufficient to offset rising costs [5]. - PepsiCo's share price dropped by 16.9% over the past year, contrasting with a 16.8% gain in the S&P 500 index during the same period [6]. - The price-to-earnings (P/E) ratio for PepsiCo increased from 19 to 26, which is still lower than the S&P 500's P/E of 30, suggesting potential for patient investors [7]. Group 2: Procter & Gamble - Procter & Gamble's fiscal third-quarter adjusted sales grew by only 1%, with higher prices accounting for the entire increase and volumes remaining flat [9]. - In the fourth quarter, adjusted sales increased by 2%, with higher prices and mix each contributing 1 percentage point, while volume remained constant [10]. - Procter & Gamble's stock price decreased by 7.9% over the past year, and its P/E multiple contracted from 28 to less than 25 [10].

Financial Performance - Net Sales grew by 2.9% to $366.7 million in 2Q'25[15, 67] - Branded Salty Snacks Net Sales increased by 5.4%[15, 22, 68] - Adjusted EBITDA decreased by 2.0% to $48.7 million[15, 20, 66, 67] - Adjusted EPS decreased by 10.5% to $0.17[15, 20, 66, 67] - Adjusted Gross Profit increased by 9.0% to $146.1 million, with a margin of 39.8% of Net Sales, a 220 bps expansion[15, 67, 68, 99] Market Share and Volume Growth - The company achieved its 8th consecutive quarter of volume share growth in the Salty Snacks Category[15] - The company holds a 5.7% volume share and a 4.3% dollar share in the Salty Snacking category[29] - Retail volume for Power Four Brands increased by 6.3%, leading to a 5.7% increase in retail sales dollars[31] Strategic Initiatives - The company is optimizing its manufacturing network by closing the Grand Rapids plant, reducing the footprint to 7 primary plants[16] - The company anticipates approximately 6% productivity savings in 2025 as part of its supply chain transformation[18] - The company is updating its FY25 outlook, expecting Organic Net Sales to grow by 2.5% or better and Adjusted EBITDA to increase by 7% to 10%[15, 93]

Core Insights - The collaboration between OREO® and REESE'S brands aims to meet consumer demand for innovative snacking experiences by combining their iconic flavors [2][4] - The new products include the OREO® REESE'S Cookie and the REESE'S OREO® Cup, both designed to appeal to fans of both brands [3][4] Product Details - The OREO® REESE'S Cookie features OREO® chocolate sandwich cookies filled with REESE'S peanut buttery crème and OREO cookie crumbs [3] - The REESE'S OREO® Cup combines milk chocolate and white crème peanut butter cups with OREO® cookie crumbs, representing a significant collaboration between the two brands [4] Availability - Both products will be available for presale starting August 18, 2025, with nationwide rollout planned for September 2025 [5][6] - The OREO® REESE'S Cookies will return to shelves as part of the OREO brand's portfolio in January 2026 [6] Company Background - The Hershey Company, which owns the REESE'S brand, generates over $11.2 billion in annual revenues and operates in approximately 70 countries [8] - OREO® is a leading cookie brand, selling over 60 billion cookies annually, with more than 20 billion sold in the U.S. [10]

Market Overview - The S&P 500 and Nasdaq reached intra-day record highs but closed in the red, with the Dow down 204 points (-0.46%), S&P 500 down 18 points (-0.30%), Nasdaq down 80 points (-0.38%), and Russell 2000 down 13 points (-0.61%) [1] - Trade deals are progressing but lack the strength to drive the market higher, with Q2 earnings showing some weaknesses outside of Big Tech [2] Federal Reserve Policy - A new announcement on Fed policy is expected, with the current interest rate of 4.25-4.50% likely to remain unchanged for the fifth consecutive FOMC meeting [3] - Some analysts anticipate dissent among Fed members regarding the need for rate cuts despite current unemployment at +4.1% and inflation at +2.7% [3] Earnings Reports - **Starbucks (SBUX)**: Reported Q3 earnings of $0.50 per share, missing the consensus of $0.65, attributed to a one-time charge of $0.11. Revenues were $9.50 billion, exceeding expectations of $9.30 billion. Same-store sales fell -2% compared to a -1.3% consensus [4][5] - **Visa (V)**: Reported earnings of $2.98 per share, beating expectations of $2.86, with revenues of $10.2 billion surpassing the $9.87 billion forecast. Despite strong performance, shares fell -3% in after-hours trading [6] - **Booking Holdings (BKNG)**: Reported Q2 earnings of $55.40 per share, exceeding the $50.59 estimate, with revenues of $6.8 billion above the $6.56 billion consensus. Gross bookings reached $46.7 billion [7] - **Mondelez (MDLZ)**: Reported earnings of $0.73 per share, beating estimates by $0.05, with revenues of $8.98 billion exceeding the $8.88 billion expectation. The company faced challenges from rising cocoa prices and tariffs [8] Upcoming Market Events - The earnings season is expected to peak with reports from major companies like Microsoft and Meta Platforms, along with others such as Ford and Qualcomm [9] - Private-sector payroll data from ADP is anticipated, with a consensus of +64K jobs for July, following a previous decline of -33K [10] - Q2 GDP is projected to rebound to +2.3% from Q1's -0.5%, influenced by tariff policies and economic outlook improvements [10]