ICR Preview
We are hosting an ICR Conference preview for companies in the Consumer Staples & Restaurants sector today at 12:30 PM ET.
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Beer price increases (BUD, TAP)
According to Untappd Insights’ analysis of nearly 20,000 U.S. on-premise businesses, the average price of an American light lager draft increased by 3.3% from March to December. An American IPA on draft increased by 1.9% over the same time period. The average price of an American light lager in a can at on-premise retailers increased by 0.9%. By brand, the average price of a Bud Light on draft increased 2.7% compared to 2.9% for Miller Lite, and 2.4% for Coors Light. Beer price increases in the off-premise channel have outpaced the on-premise channel with November up 7.7% YOY and up 1.8% MOM. Price hikes are increasingly having an impact on unit demand such that the beer distributors' diffusion index is at a low.
Oatly finds a co-packer (OTLY, STKL)
Oatly announced a long-term strategic hybrid partnership with Ya Ya Foods, a contract manufacturer of aseptic food and beverages. Oatly will continue to produce its oat base at the Ogden, Utah, and Fort Worth, Texas facilities and transfer it to Ya Ya Foods for co-packing at each location. Ya Ya Foods will acquire the plants and pay Oatly ~$72M for the assets. Ya Ya Foods currently operates an 800,000 square foot manufacturing plant in Toronto.
Oatly had previously stated a desire to partner on manufacturing after repeated problems in the U.S. The co-packing arrangement will reduce capex and operational complexity. Aseptic manufacturing is not easy, which is why so many brands outsource it. SunOpta could have been the co-packer for Oatly, but Oatly seems to view SunOpta as a competitor instead of a potential supplier.
New COO (APPH)
AppHarvest announced that board member Tony Martin will be the company’s new COO. He is joining AppHarvest after spending 12 years at Windset Farms, one of the largest controlled agricultural producers in North America. David Lee, the previous President and COO resigned from his position in November but still serves on the board. It makes a lot more sense to have a COO who has operated an indoor farm. However, the more immediate challenge is the balance sheet.
