New boss is a start, but Nestle's recovery story has big hurdles ahead
How does a benchmark consumer staples giant like Nestle S.A. (OTC:NSRGF, VTX:NESN) reset the agenda and return to growth after a period of losing market share to global competitors like Unilever and Danone (OTCQX:DANOY)?
Danone: There Is Some Upside Left
Danone is undergoing a transformation with positive results, showing potential for a 13-16% annualized RoR. Danone remains an underperforming stock with a 2x variance compared to the market. Despite challenges, Danone is viewed as attractive with a 3.5%+ yield from dairy operations.
Lifeway Foods: Growth Opportunities And Support From Danone Make It A Buy
Lifeway Foods sells kefir, a trending milk-based drink with beneficial properties for intestinal health, with potential for international growth. Lifeway's growth trend is driven by health consciousness, offering a variety of fermented dairy products appealing to health enthusiasts and showing higher growth than competitors. Danone's ownership of 24% of Lifeway creates a symbiotic relationship, with potential for an acquisition.
