Healthy Snacking Companies that are Poised for a Bigger Piece of the Pie

LAS VEGAS, March 15, 2018 /PRNewswire/ --

FN Media Group Presents Microcapspeculators.com News Commentary 

Millennials have arrived, and they have overwhelmingly shown their propensity for snacking. 90% of consumers say the snack multiple times a day. Sources estimate the U.S. snack business has ballooned in recent years to well over $100B annually. Included in today's commentary: NightFood Holdings, Inc. (OTC: NGTF), Snyder's-Lance, Inc. (NASDAQ: LNCE), Kellogg Company (NYSE: K), Mondelez International (NASDAQ: MDLZ), Conagra Brands (NYSE: CAG).

This new trend has companies like Kellogg, Mondelez, Conagra and Campbell Soup Co. devoting more of their marketing and business to the snack industry.

There have been numerous substantial acquisitions in recent months, and there are a plethora of smaller companies and powerful brands on the rise that could be prime candidates for the major players to scoop up.

Millennials are particularly interested in healthier snacks, which is why Kellogg's recently acquired the "RX Bar" brand.

In fact, Mintel, a global leader in market research, recently released a report on snack trends identifying "functional nighttime snacks" as one of its key global market trends over the coming years.

Companies creating snacks to fulfill this need could be prime candidates for the larger snack companies to acquire.

Some companies affected by this trend include: NightFood Holdings, Inc. (OTC: NGTF), Snyder's-Lance, Inc. (NASDAQ: LNCE), Kellogg Company (NYSE: K), Mondelez International (NASDAQ: MDLZ), Conagra Brands (NYSE: CAG), Campbell Soup Co., and Hostess Brands.

NightFood Holdings, Inc. (OTC: NGTF)

Market Cap: $13.06M, current share price: $.34

NightFood Holdings, Inc. the category leading, better-for-you, sleep-friendly nighttime snack company, recently announced a partnership with Yotpo, the leading platform for generating and leveraging user generated content for web and social media.

Yotpo, which in November raised $51 million, counts Access Industries, Blumberg Capital, and Bessemer Venture Partners among its investors. Yotpo's premise is that consumers value what their peers say about a brand more than any marketing that comes from the brand itself.

NightFood joins a stable of Yotpo clients, including RXBar, Campus Protein, GoPro, Brooklinen, and UntuckIt that use the platform to turn consumer enthusiasm into content that efficiently drives awareness, engagement, and new customer trial.

The CEO of Kellogg, Steven Cahillane, specifically identified late-night snacking as a "key occasion" for snack companies to focus on in a recent presentation for the Consumer Analyst Group of New York in late February.

Snyder's-Lance, Inc. (NASDAQ: LNCE)

Market Cap: $4.90B, current share price: $49.92 

Snyder's-Lance Inc. recently reported fourth-quarter net income of $189.6 million, after reporting a loss in the same period a year earlier.

The Charlotte, North Carolina-based company said it had profit of $1.93 per share. Earnings, adjusted for one-time gains and costs, were 33 cents per share.

The snack maker posted revenue of $551.6 million in the period.

For the year, the company reported profit of $148.5 million, or $1.52 per share. Revenue was reported as $2.23 billion.

Kellogg Company (NYSE: K)

Market Cap: $23.96B, current share price: $69.32 

Yesterday was National Cereal Day. This year, Kellogg's® created an exclusive cereal-themed extravaganza and midnight countdown the night before at Kellogg's NYC Café with Academy Award-nominated actress and multi-platinum selling recording artist Hailee Steinfeld.

Mondelez International, Inc. (NASDAQ: MDLZ)

Market Cap: $64.81B, current share price: $43.58 

Mondelēz International, Inc.  has been notified of an unsolicited "mini-tender" offer by TRC Capital Corporation (TRC) to purchase up to 2.5 million shares of Mondelēz International common stock, representing less than 0.2 percent of shares outstanding. TRC's offer price of $42.20 per share is approximately 4.4 percent below the closing price per share of Mondelēz International's common stock on Feb. 16, 2018, the last trading day before the commencement of the offer.

Mondelēz International does not endorse TRC's unsolicited mini-tender offer and is not associated with TRC, its mini-tender offer or the mini-tender offer documents.

Conagra Brands, Inc. (NYSE: CAG)

Market Cap: $15.13B, current share price: $37.70 

Conagra Brands, Inc. this week announced that the company and The J.M. Smucker Company have terminated their agreement regarding the sale of Conagra's Wesson oil business to The J.M. Smucker Company. This outcome follows the decision of the Federal Trade Commission, announced on March 5, 2018, to challenge the pending transaction.

Campbell Soup Co.  

Market Cap: $12.95B, current share price: $43.08 

Campbell Soup Company recently released its 10th Corporate Responsibility report, detailing the company's fiscal year 2017 achievements and outlining new sustainability goals and strategies that further integrate accountability and transparency across the Campbell business.

"As a purpose-driven company committed to making real food accessible to more people, our sustainability strategy is focused on four areas - how Campbell's food is grown, sourced, produced and shared," said Dave Stangis, Vice President, Corporate Responsibility and Chief Sustainability Officer. "Our new areas of focus allow Campbell to leverage existing capabilities while exploring additional opportunities to accelerate our impact and drive value for Campbell's stakeholders."

Hostess Brands, Inc.  

Market Cap: $1.89B, current share price: $14.57 

Hostess Brands, Inc. recently reported strong financial results for the fourth quarter and full year ended December 31, 2017.

Fourth Quarter 2017 Summary (Compared to Pro Forma Combined Fourth Quarter 2016)1:

  • Net revenue increased 9.7% to $196.2 million, representing the Company's best organic growth rate for the year. The Company's strong performance was led by the introduction of the Hostess Bakery PetitesTM, a premium snacking platform made with no artificial flavors or colors, and no high fructose corn syrup, which contributed 3.1% of the net revenue increase.
  • Net income was $189.6 million (includes $163.1 million of one-time gains relating to the recently enacted tax law referred to as "Tax Reform"), compared to $22.0 million. Diluted EPS was $1.74 per share compared to $0.14 per share.
  • Adjusted EPS increased 13.3% to $0.17 per share.
  • Adjusted EBITDA increased 9.4% to $57.8 million, or 29.5% of net revenue.
  • Point of sale increased 4.3%. Point of sale for the top seven brands increased 8.2% (which comprise 74% of total net revenue).

The snack food industry is growing and all of these companies are worth a look.

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