Coffee prices will increase. Tyson wins Hillshire. Hershey sues the manufacturer of edible pot products. Time magazine will no longer be part of Time-Warner. And "The Fault in our Stars" becomes the "Love Story" of a new generation.
Kraft raises coffee prices by 10 percent
CNBC is reporting that Kraft Foods Group, Inc. will raise US retail prices for its well-known Maxwell House and Yuban roast and ground coffees by 10 percent due to rising coffee bean costs. The move follows J.M. Smucker Co.’s price increase of 9 percent for Folgers and Dunkin’ Donuts coffee announced early last week. ICE Arabica coffee futures soared 90 percent between January and April to the highest level in two years at $2.19 per pound. This was due to a drought in Brazil.
Tyson wins Hillshire
The Associated Press reports that meat producer Tyson Foods, Inc. has won the bidding war for Hillshire Brands, the maker of Jimmy Dean sausages and Ball Park Hot Dogs. The price was $63 per share or $7.75 billion. Both Tyson and Pilgrim’s Pride had been bidding for Hillshire Brands. Tyson says that the combination will help it to expand in the prepared foods market. The deal is contingent on Hillshire terminating its deal with Pinnacle Foods, which makes Birds Eye frozen vegetables and Wish Bone salad dressings. Tyson shares fell 4 percent in pre-market trading.
Time magazine to begin trading as an independent company
Today the nation’s largest magazine publisher will begin trading as an independent company with the stock symbol TIME. According to the New York Times, the magazine has become a drag on the share price of Time Warner, its parent company, and is being spun off with little ceremony and a load of debt. Time, Inc. will have more than 90 magazines and 45 websites in a market that views print as a thing of the past. The new entity will start off with $1.3 billion in debt. In contrast, Rupert Murdoch’s News Corporation was given a $2 billion cash cushion when it was spun into a separate company last year. At three times earnings, Time Inc.’s debt is high-risk and Moody’s has rated it at less than investment grade. In 2006, Time produced about $1 billion in earnings, that figure is now down to $370 million.
Hershey sues Colorado edible pot company
The Hershey Co. has sued a Colorado marijuana edibles maker, claiming it makes four pot-infused candies that too closely resemble iconic products of the chocolate maker. According to CNBC, the trademark infringement lawsuit alleges that TinctureBelle’s Ganja Joy, Hasheath, Hashees and Dabby Patty mimic Hershey’s Almond Joy, Heath, Reese’s peanut butter cups and peppermint patty candies, respectively. The edibles are sold in Colorado’s legal pot shops and medical marijuana dispensaries. Hershey’s says that the products are packaged in a way that will confuse consumers, especially children.
“Fault in our Stars” wins box office
“The Fault in our Stars”, the much-anticipated adaptation of author John Green’s best-selling love story, has become the star of the summer movie season collecting $48.2 million in the US and Canada during its opening weekend. The Wall Street Journal reports that the weekend’s other new movie, “Edge of Tomorrow” starring Tom Cruise, brought in only $29.1 million. If the “Edge of Tomorrow” brings in less than $100 million domestically, it will have to be a mega-hit internationally to remain profitable. The Cruise move was stronger internationally, bringing in $111 million overseas. The “Fault in our Stars” is a movie about two teenagers who fall in love after meeting in a cancer-support group. After bringing auditoriums of teenage girls to wracking sobs, the movie has been compared to 1970’s “Love Story”.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.