Beginning to look like past flu seasons (PRGO)
The percentage of outpatient visits for a respiratory illness that included fever, a cough, or sore throat also referred to as influenza-like illness increased to 3.1% from 2.6% in the previous week. Last year’s flu season was a particularly mild one as seen in the chart below due to the measures being taken to prevent COVID-19. This year’s influenza appears to be more similar to the three years prior so far as seen in the chart below. Perrigo would benefit from a normal flu season after seeing severe category consumption declines in cough and cold products last year. 18% of sales are in the upper respiratory OTC category.
Starbucks UK drops the plant-based milk upcharge (STKL, OTLY)
Starting on January 5th Starbucks will no larger charge extra for vegan milk substitutes at all of its U.K. stores. Starbucks is also launching three new oat milk lattes flavors. The three beverages are part of its “oat platform,” which it plans to expand. Starbucks said, “The platform will see the addition of new dairy alternative beverages for future seasons as part of our ongoing work to expand our plant-based menu.” The move by Starbucks comes a month after a guerrilla marketing stunt where a group was saying Starbucks was contributing to dietary racism for charging the 65% of the world’s population that can not digest dairy milk more for their drink.
PETA has staged similar guerrilla campaigns in the U.S. in recent weeks. In the U.S. Starbucks generally charges about $.70 for soy, oat, almond or coconut milk. In North America, about 20% of customers choose non-dairy milk options. SunOpta supplies Starbucks with all the options including oat milk for which it is a backup supplier to Oatly.
8,000 store order (SNAX)
Stryve Foods announced a distribution agreement with 7-Eleven to carry three flavors of its Vacadillos snacks in nearly 8,000 stores. The stores will feature a standing floor display. Stryve Foods' air-dried meat snacks have significant distribution growth ahead. Snacking is a secular growth category and Stryve's biltong snacks have several nutritional advantages. Popular trends in diets including no sugar, a focus on healthy snacking, and an emphasis on protein are all tailwinds for the company. Stryve also has a competitive moat as it has the only USDA-approved large-scale facility to produce biltong. The management team of Stryve Foods will be presenting at the ICR conference in less than two weeks. For a replay of our fireside chat with the management team:
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