Consumables Call Today (HSY, MNST, CELH, TAP, BUD, GIS, KR, ACI)
We are hosting our monthly Consumables Digest call today at 11 AM ET.
We will recap position monitor changes, answer inbounds, discuss our top questions from client meetings, and more.
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For the live webcast Click Here at 11 AM. |
Management changes (BRCC)
Black Rifle Coffee announced several changes to its management team. Chief Marketing Officer Chris Mondzelewski will become the President. Chief Operating Officer Toby Johnson will leave the company. Chief Financial Officer Greg Iverson is stepping down and Mark Weinstein will be the interim CFO. In conjunction with the personnel changes the company reaffirmed guidance for revenue, gross margins and EBITDA. For the current quarter management guided revenue to be $91M and adjusted EBITDA to approach break-even. The consensus estimate for revenue was $93.7M and for adj. EBITDA was -$2.4M. The situation is less than ideal, but young start-ups often experience growing pains. CFO Greg Iverson had been the subject of a short report. His recent experience concerned some shareholders, but it is not clear if there were any differences. The pre-announcement should reassure investors.
Beer Distributors Index (BUD)
The National Beer Wholesalers Association’s (NBWA) Beer Purchasers Index (BPI) upticked to 54 in June from 52 in May. The BPI is a diffusion index where a reading above 50 denotes expansion in volumes while below 50 indicates contraction.
There were four categories of beer in expansion territory and three in contraction.
- Imports were 68 in June, falling from 75 in May, but above 61 in the prior year.
- Below premium ticked up from 50 in May to 53 in June, up 11 points YOY.
- Premium lights were 52, improving from 49 in May and above 44 in the prior year.
- Premium regular was 53, improving from 43 in May and 36 in the prior year.
- Craft beer remained in contraction at 38, slipping one point from May, but improved from 33 in the prior year.
- FMBs & hard seltzer were 31, down from 36 in the prior year.
- Cider was 28, below the reading of 30 in the prior year.
The at-risk inventory reading improved as it fell from 61 in May to 51 in June.
AB InBev’s takebacks from distributors and rebates for consumers while throttling production have helped it bring supplies into better balance as demand has dropped.
Will the IPO window remain open for SharkNinja? (SN)
SharkNinja filed its Form F-1 to separate it from JS Global (1691-HK) and list it on the New York Stock Exchange. SharkNinja, a household products company best known for its vacuums and blenders, has expanded across 27 subcategories in home appliances. Revenue has grown at a 26% CAGR between 2018 through 2022 to $3.7B. Shark was the number 1 selling vacuum brand in the U.S. for the past four years. Ninja was the number 1 small kitchen appliance brand in the U.S. for the past three years. Last year it had a market share in the U.S. of 43% in upright vacuums, 41% in blenders, and 43% in electric grills.
JS Global shareholders will receive a pro-rata distribution of SharkNinja shares. SharkNinja will continue to focus on the North American and European markets while JS Global will remain focused on the SharkNinja APAC region and Joyoung segment. The two companies will continue to cooperate on product development, R&D, engineering, and supply chain management. The company is splitting to enhance growth in both regions, not for balance sheet reasons.
The only person who is expected to have overlapping duties between the two companies will be Wang Xuning. He will serve as a director of both companies. CEO Mark Rosenzweig founded and has remained with the company since 1997. Mark Barrocas has served as the President since 2008. CFO Paul Carbone, who was most recently the CFO of Yeti Holdings joined the company in November. The company is hosting an investor day on July 12. The next step will be the SEC approving the registration statement before it seeks an IPO.
