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Strategies & Market Trends : Speculating in Takeover Targets
CTG 8.280+1.0%2:30 PM EST

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To: richardred who wrote (4040)3/22/2018 1:06:07 PM
From: richardred  Read Replies (3) of 6147
BGS - HAIN - Speculation aspects - CAG had good earnings today. They sold their private label brands to Treehouse. The deal to sell it Wesson oil business is off due to regulatory concerns. I was used to remembering the talk of Private labels generally thriving in a recession environment. I think the economy is doing much better now a days. IMO meaning Brand names will see slower declines in historical traditional branded space and can withstand price increases better. I see companies using existing brand name awareness by creating or extending offshoot lines. This by way of healthier,organically,and strategically packaged lines geared for better for consumer tastes of today. IMO- A good earnings report today just might mean CAG is ready for a bigger acquisition? BGS & HAIN IMO BGS needs a bigger parent to compete better. IMO HAIN's itself has a good line of brands for newer consumers taste. The fact that GIS was willing to pay a big goodwill price (8 billion for a 1.3 billion business) for diversification. IMO Shows food companies are willing to make big moves for growth. Privately held Mars also made a big acquisition in the pet space. It's $9.1 billion acquisition of pet care company VCA. I also think wev'e got to the point now bigger food companies with want to fold in some of the acquisitions made by some of the smaller companies made to grow themselves faster. Pirate's Booty/Back to Nature Foods Company by BGS are examples.

Costs are rising in the group and customers are trying to keep costs down. IMO Consolidation is one way to combat pressures from customers. I can't help but see some synergies here.

CAG snips> The Refrigerated & Frozen segment continued its growth momentum in the third quarter with 3.2% net sales growth.

>Volume declined 4%, driven by retailer inventory reductions, which were higher than anticipated, and deliberate actions to optimize distribution on certain lower-margin products, consistent with the Company's value over volume strategy. Price/mix declined 2% as the Company increased its investments with retail customers to drive brand saliency, enhanced distribution, and consumer trial. The acquisitions of the Duke's, BIGS, and Angie's BOOMCHICKAPOP businesses added approximately 500 basis points to the net sales growth rate.

BGS snip>Net sales growth was primarily driven by our three most recent acquisitions, all of which performed better than expected, as well as strong growth in Green Giant frozen and Pirate Brands
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