Revisiting the Market’s Yogurt Binge

Revisiting the Market’s Yogurt Binge

Research  these Stocks on Kapitall’s Playground Now

research now

It may seem strange to reiterate to aspiring investors that they might seek out their fortunes in yogurt. The brown-bag-lunch staple is hardly sexy, requires a spoon, and resides in an uncomfortable middle-ground between being healthy enough for a stand-alone meal, and indulgent enough for desert. 

It's a small wonder that Greek yogurt dollars financed the rise of one of New York's most successful immigrants into billionaire status. True, enthusiasm for the once hipster-delicacy has waned slightly, in part because kids didn't quite take to the usually child-friendly product. But some companies are making deals which suggest that they think yogurt consumption will continue to rise. 

A recent partnership between Starbucks (SBUX) and Danone (DANOY) is further evidence of the speculation about the yogurt market, as the French dairy distributor hopes to meet a rising demand by developing a new brand to be sold exclusively to Starbucks' 70 million weekly customers.

At the moment, American families consume far less yogurt than those in Europe. The most ardent yogurt-eaters on the planet, the average Frenchman is likely to eat almost six times as much of the stuff as his American counterpart. Danone, a French company, is banking on the idea plenty of Americans haven't discovered their product yet and that there is a huge market of potential new buyers.  

The new brand, Evolution Fresh, Inspired by Dannon may be a bit wordy, but it caters to recent demands among Starbucks customers for more, healthier options. Unlike typical yogurt products, which are sold in supermarkets with a limited amount of space for healthy snacks – Evolution Fresh will provide Danone with a way to side-step the competition from General Mills (GIS), Kraft (KRFT), and smaller independant producers.  

Will the yogurt market continue its rapid growth? Or are French dairy owners in for a surprise? Use the charts below to begin your own analysis.  

The List

1.Starbucks Corporation (SBUX, Earnings, Analysts, Financials):Operates approximately 16,858 stores, including 8,833 company-operated stores and 8,025 licensed stores. Market cap at $51.7B, most recent closing price at $69.02.


2.Danone (DANOY, Earnings, Analysts, Financials): Produces and distributes food and beverage products. Market cap at $45.7B, most recent closing price at $15.19.


3.General Mills, Inc. (GIS, Earnings, Analysts, Financials):General Mills, Inc. manufactures and markets branded consumer foods worldwide. Market cap at $33.36B, most recent closing price at $51.53.


4.Kraft Foods Group, Inc. (KRFT, Earnings, Analysts, Financials):Operates as a consumer packaged food and beverage company in North America. Market cap at $34.51B, most recent closing price at $58.29.


(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research. All other data is sourced from Finviz.)


Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

New to Kapitall?

1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, TheStreet and Twitter


Kapitall Wire, which is not a broker/dealer, offers free cutting edge investing ideas, lively commentary and timely analysis of companies enhanced by interactive tools. And the Investing 101 section breaks complex concepts down to their basics, offering education to novices that doubles as a refresher course for more seasoned investors.

Kapitall Wire is a division of Kapitall Inc. Securities products and services are offered by Kapitall Generation, LLC, member FINRA/SIPC . Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.


2 responses to “Revisiting the Market’s Yogurt Binge”

  1. Paleo Book says:

    I think yogurt will always be a good investment. There has always been interest and it has continuted to grow. These are all signs of an evergreen product.

  2. read info says:

    The new brand, Evolution Fresh, Inspired by Dannon may be a bit wordy, but it caters to recent demands among Starbucks customers for more, healthier options

Leave a Reply

Your email address will not be published. Required fields are marked *

  • See Most Recent Articles