US Consumer Staples "The Weekly Tab: The Summer Of Staples? Probably Not" Grom

Research evidence excerpt

US Consumer Staples "The Weekly Tab: The Summer Of Staples? Probably Not" Grom

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Investment risk considerations:

1) Snacking competition: Mondelez is a global leader in snacking and faces fierce competition

from well-capitalized competitors across many large and profitable markets. A gain/loss in

competitive edge and market share would positively/adversely impact Mondelez's earnings

2) Currency risk: With a meaningful % of Mondelez revenues coming from outside the United

States, further strengthening/weakening of the US dollar would create incremental margin

and earnings headwinds/tailwinds for the company

3) Consumer preference: Confection and snacking are indulgent categories, a positive/

negative perception change in the nutritional value of Mondelez products could positively/

adversely impact future sales trends

4) Inflation: Further/less inflation on cocoa, dairy, grain, and other key input/packaging costs

could pressure/alleviate COGS over a near and medium term basis

Monster: Valuation method: Weighted average valuation framework involving forward P/E

and EV/EBITDA. Risks to our price target include any material changes in: (a) General

consumer preferences and/or government regulation pertaining to the consumption of

Beverage/Tobacco products (including taxation, restrictions on sales, the introduction or

subsidization of substitute products, etc.); (b) Government regulation with respect to

commerce and/or taxation in general; (c) Macroeconomic trends, interest rate, and/or credit

environments within any of our companies' key markets; (d) Competitive intensity between

Beverage/Tobacco companies within any of our companies' key markets; (e) Customer or

supplier relationships; (f) Commodity cost and/or foreign exchange fluctuations; (g) Our