CHICAGO, June 24, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses the U.S. Consumer Staples, including Procter & Gamble Co (NYSE:PG-Free Report), The Hershey Co. (NYSE:HSY-Free Report), PepsiCo Inc (NYSE:PEP-Free Report) and Molson Coors Brewing Co (NYSE:TAP-Free Report).
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Industry: Consumer Staples
Link: http://www.zacks.com/commentary/27831/consumer-staples-stock-outlook-june-2013
Consumer product companies regularly need to innovate and upgrade their brands to boost consumer confidence and create differentiated value propositions for their customers in order to remain successful.
A consumer product giant Procter & Gamble Co (NYSE:PG-Free Report) has a strong tradition of not only introducing blockbuster products but also of creating new categories. The company has consistently increased market share in fast growing businesses over the years through innovation and new product launches. Through its game-changing new products like Daz automatic detergent and concentrated liquid detergent, P&G was able to capture a strong market share in U.K. in the laundry category in 2011.
Similarly, Head & Shoulders has transformed itself from merely being a North American brand to the largest shampoo brand in the world due to the company's marketing efforts and product innovation. In 2012, P&G invested around $2 billion in innovation. It intends to expand its innovation and marketing strategies to more categories, geographies and channels, thus boosting top- and bottom-line growth.
Chocolate makerThe Hershey Co. (NYSE:HSY-Free Report) regularly innovates in its core brands to meet consumer needs that are not addressed by its current portfolio. Some successful product innovations in recent years include Reese's Minis, Hershey's Drops and Rolo minis. Some new products lined up for 2013 include Kit Kat Minis (Jun 2013), Twizzlers Bites, Jolly Ranchers Bites, Kisses Deluxe, Hershey's Mais and many more. The company also has products planned for some international markets like China, Mexico and Brazil in 2013.
Beverage company PepsiCo Inc (NYSE:PEP-Free Report) regularly creates new flavors of existing products alongside maintaining a robust pipeline of new products. The company also invests aggressively in new packaging to shift consumers to more profitable purchases. PepsiCo's popular innovations at the premium end include Quaker Real Medleys hot cereals, Stacy's Gingerbread and Stacy's Cocoa and Lay's Stax potato chips. The new products are expected to boost revenue growth and also enable increased price realization in the long run.
Global brewer Molson Coors Brewing Co (NYSE:TAP-Free Report) introduced several beer brands in 2012 to ensure variety. New brands like Rickard's Cardigan and Oakhouse in the above-premium portfolio were launched in Canada. New varieties of beer brand Leinenkugel were rolled out in the U.S. under the Lemon Berry Shandy and Batch 19 brands.
Most recently, the company launched a non-beer drink, Molson Canadian Cider, made from apples. Cider will form a part of the popular Canadian beer brand Molson Canadian. Molson Coors has plans to roll out beer brands like Apple Ale and Third Shift brands under Redd's beer brand in 2013 in the U.S. These brands are strengthening the company's portfolio and also adding to its market share.
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