StockCall Review on Mead Johnson and Unilever NV: Changing Product Mix a Way Forward For The Industry

 StockCall Review on Mead Johnson and Unilever NV: Changing Product Mix a Way
                           Forward For The Industry

PR Newswire

LONDON, February 21, 2013

LONDON, February 21, 2013 /PRNewswire/ --

Processed and packaged Goods industry is one of the largest Manufacturing
Industries in the USA. After experiencing a slowdown in growth during the
recession, the industry is picking up pace again. But as with all the
industries post-economic turbulent this industry too faces its own sets of
challenges. Innovation, research and development focused on better quality
foods, greater convenience and cheaper products have become a necessity for
survival. StockCall analysts initiated preliminary technical research on Mead
Johnson Nutrition Company (NYSE:MJN) and Unilever NV (NYSE:UN). These free
reports are accessible by signing today at http://www.stockcall.com/register

Rejection of Processed Foods Challenge

As demand for better quality foods, increased taste and cheaper goods are on
the rise, innovation and trimming of existing product mix is becoming a
necessity for this industry. There has been an increased demand for healthy
foods with rejection of processed foods, which pose the biggest challenge.
Companies like Mead Johnson Nutrition benefit by being focused on a single
segment of customers as with the Mead pediatric nutrition, whereas companies
like Unilever benefit from diversified business opportunities and operations
in vast geographical area. The latter is now repositioning itself across
markets as a leader for personal and home-care rather than processed food
brands.

Disinvestment of Global Skippy

Unilever has recently completed the sale of its Global Skippy Business to
Hormel Foods Corporation (except for its Chinese Operation which are pending
approval) as a part of its new strategic plans to concentrate on faster
growing health and beauty products. The Food business of Unilever has been on
a slow growth path and its contribution to its revenues falling. Register now
to download the free research on Unilever NV at
http://www.StockCall.com/UN022113.pdf 

The company is looking to prune some non-core brands. The company is now
likely to focus more on its personal care and home care brands along with
higher growth food brands like Knorr which are contributing more towards the
company's revenue. This sale can also be seen as a conscious move by Unilever
to position itself more as a personal care company than a food company as its
food business revenues have been declining over the past two years. The deal
is worth $700 million in cash.

Mead Johnson's Unique Position

Mead Johnson recently reported its fourth quarter and full year results. It
reported a rise of 6% in net sales to $3,901.3 million. Net earnings were
$2.95 diluted per share, a rise of 19% from last year. The company is better
positioned than its peers in the market due to its unique positioning as a
Pediatric Nutrition Focused Company. The free technical analysis on Mead
Johnson Nutrition Company is available by signing up at
http://www.StockCall.com/MJN022113.pdf 

The company enjoys high profit margins especially from its infant formula
products. Mead sells its products under the Enfamil HA, Enfamil A+ and Enfalac
A+, Enfamil Gentlease, Enfamil ProSobee, Enfamil LactoFree, Enfamil AR,
Enfamil Premium and Enfamil Premium Newborn, Enfamil Comfort, Nutramigen
LIPIL, Nutramigen AA, Pregestimil, Enfamil Premature, Enfacare, Sustagen KID,
Cal-C-Tose, Alacta, ChocoMilk, and Lactum brand names. Mead Johnson Nutrition
markets its portfolio of approximately 70 products to mothers, health-care
professionals and retailers in 50 countries with the Asian, North American,
Latin American and European regions.

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