Consumer Staples

Costco is expanding its same-day delivery network through new and broadened partnerships with DoorDash and Uber as it looks to grow e-commerce sales and compete with retailers like Walmart and Target. DoorDash announced that Costco members can now order groceries, dry goods, household essentials and other products through the DoorDash app for fast delivery from their local store, extending an existing relationship between the companies in Australia, New Zealand, Sweden, Iceland and Puerto Rico. Uber announced a major expansion of its Costco partnership to deliver products in 47 states, up from 17 states, with nearly 600 Costco locations now available on the Uber Eats app for on-demand and scheduled delivery. Costco is also available on Uber Eats in Canada, Mexico, Japan, Taiwan, France and Spain. The expansion of food and grocery delivery platforms into retail delivery underscores the rapid evolution of the parcel delivery market, where online sales now represent 16.5% of total retail sales and are growing at about 10% per year, according to the U.S. Census Bureau, while alternative carriers now make up about 8.5% of the parcel freight market, up from 2.6% of parcel volume in 2021, according to The Colography Group.

The Coca-Cola Company plans to invest $10 billion in U.S. infrastructure from 2026 through 2030 to reinforce its manufacturing, distribution, and bottling network in one of its most important markets. The commitment is system-wide and therefore includes investments by Coca-Cola's bottling partners, rather than representing $10 billion of Coca-Cola's own capital expenditure, and Coca-Cola's own 2026 capital expenditure is expected to be substantially smaller. The company's 2025 10-K showed North American unit-case volume fell 1% while price/mix increased revenue by 5%, but Coca-Cola reported 4% North American unit-case volume growth in the first quarter of 2026, led by Trademark Coca-Cola and water, sports, coffee and tea. Coca-Cola subsequently raised its 2026 organic revenue-growth outlook to approximately 5% and comparable EPS growth to 9%-10%. Coca-Cola has also faced higher aluminum and PET costs, which management said were above expectations in 2026, and the value of the investment will depend on whether the spending produces measurable volume, productivity, and margin gains.

Target confirmed on Sept. 15 that it will hold its latest Target Circle Deal Days on Oct. 6-7, a two-day sale rewarding members of the free Target Circle loyalty program. The event offers 40% off thousands of items spanning apparel, kitchen gadgets, home decor, toys, beauty and tech, with early access beginning Oct. 5 for members of the paid Target Circle 360 tier. Highlights include 40% off select family clothing from brands like Cat & Jack and Goodfellow, up to 40% off Dyson vacuums and holiday decor, 30% off Threshold furniture, up to 65% off Vera Bradley, and 30% off select skincare, haircare and cosmetics. New members who join between Sept. 27 and Oct. 5 get 15% off their first purchase, those who sign up for an annual Circle 360 membership between Sept. 27 and Oct. 10 receive $50 in Target Circle Rewards, and shoppers approved for a Target Circle Card in that window can earn $75 in rewards. The push follows second-quarter results showing net sales up 5.3% year over year to $26.5 billion and comparable sales up 3.8%, though Bank of America analyst Christopher Nardone said he remains wary about the durability of the comp-sales trend.

Costco is expected to declare a record special dividend later this year, a possibility that could be signaled when the warehouse club operator reports its fiscal fourth-quarter results on Sept. 24. The company has already reported net sales rose 11.3% to $93.9 billion for the 16 weeks of the fiscal period that ended late last month, fueled largely by a 10.7% jump in comps at its stateside stores. Costco has delivered 22 straight years of dividend hikes, but its 0.7% yield has been overshadowed by special distributions declared every two or three years: $15 a share on Dec. 27, 2023, $10 on Dec. 1, 2020, $7 on May 8, 2017, $5 on Feb. 5, 2015, and $7 on Dec. 6, 2012. With three years now elapsed since the last payout, the article argues a substantial one-time dividend is likely before the end of this year, though the last two December payouts were declared in November and December rather than at the earnings report itself. Any language during the Sept. 24 earnings call suggesting the cash Costco has been stockpiling since 2023 is growing would be a dead giveaway.

Target reported second-quarter fiscal 2026 results that beat the Zacks Consensus Estimate on both the top and bottom lines, prompting management to raise its full-year sales and earnings outlook. Adjusted earnings came in at $4.11 per share, up from $2.05 a year earlier and above the consensus estimate of $2.30, with the quarter including tariff refund benefits of $1.65 per share; excluding those refunds, earnings per share rose 20% year over year to $2.46. Net sales reached $26,539 million, surpassing the consensus estimate of $26,129 million and rising 5.3% from $25,211 million, while comparable sales increased 3.8% against a decline of 1.9% in the year-ago quarter. Gross margin expanded 470 basis points to 33.7%, including a 370-basis-point benefit from $994 million of tariff refunds, and operating income soared 94.4% to $2,560 million. For fiscal 2026, Target now expects net sales growth of around 5%, an operating income margin rate of about 6%, and adjusted earnings per share of $9.90 to $10.90, a range that includes the second-quarter tariff refund benefits but excludes any potential future refunds.

Target is rated Zacks Rank #2 (Buy), with the consensus estimate for the current quarter rising 8.5% over the last 30 days to $2.05 per share, a year-over-year change of +15.2%. The consensus earnings estimate of $10.43 for the current fiscal year indicates a year-over-year change of +37.8% and has changed +5% over the last 30 days, while the next fiscal year's consensus estimate of $9.38 indicates a change of -10% and has changed +4.2% over the past month. For the current quarter, the consensus sales estimate of $26.32 billion indicates a year-over-year change of +4.2%, and for the current and next fiscal years, $109.81 billion and $113.24 billion estimates indicate +4.8% and +3.1% changes, respectively. Target reported revenues of $26.54 billion in the last reported quarter, a year-over-year change of +5.3%, with EPS of $2.46 versus $2.05 a year ago, beating the Zacks Consensus Estimate of $26.13 billion by a revenue surprise of +1.57% and an EPS surprise of +6.96%. The company beat consensus EPS estimates in each of the trailing four quarters and topped consensus revenue estimates two times over this period, and it is graded B on the Zacks Value Style Score, indicating it is trading at a discount to its peers.

The Board of Directors of Philip Morris International Inc. has increased the company's regular quarterly dividend by 8.8% to an annualized rate of $6.40 per share. The new quarterly dividend of $1.60 per share, up from $1.47 per share, is payable on October 26, 2026, to shareholders of record as of October 2, 2026, with the ex-dividend date also set for October 2, 2026. PMI has increased its annual dividend every year since becoming a public company in 2008, representing a total increase of 248%, or a compound annual growth rate of 7.2%.

Analysts raised their fair value estimate for Target from about US$133.84 to roughly US$162.76, an increase of around 22%, following a wave of higher price targets across Wall Street after Q2 results. Wells Fargo, UBS, Guggenheim, DA Davidson, and Gordon Haskett lifted their price targets into the US$175 to US$200 range, citing improved comps and a turnaround in store traffic and merchandising, while RBC Capital, Telsey Advisory, and Jefferies pointed to Target's merchandising reset and category strength in Food, Beauty, and Baby. Oppenheimer, Mizuho, and Wolfe Research emphasized management changes, a cultural shift toward faster execution, and store remodels as signs the recovery is gaining traction beyond a single quarter. On the cautious side, BofA, Barclays, and Deutsche Bank kept more conservative ratings even after raising targets, flagging apparel and home as execution risks, and Roth Capital and Piper Sandler cited decelerating trends in some categories, slower high-margin ad revenue, and lagging digital growth versus Amazon and Walmart. The revised fair value estimate assumes revenue growth of roughly 3.37%, up from about 2.97%, a profit margin of about 3.83% versus roughly 3.59%, a future P/E multiple of roughly 20.0x versus about 18.0x, and a discount rate of roughly 7.38% versus about 7.34%.

Asahi Beer announced on the 18th that, in line with the liquor tax revision on October 1, it will convert its flagship third-category beer product Clear Asahi into beer. The product will be renamed Clear Asahi Draft, with canned versions going on sale on October 27. The company has not disclosed the selling price, but the price is expected to rise by a few yen from the current market price of around 198 yen for a 350-milliliter can. Commercial kegs will be switched over sequentially from October 6 onward. The malt ratio has been increased to bring it closer to the satisfying taste of draft beer, and a proprietary brewing method was used to achieve a clear flavor free of off-notes.

Asahi Beer announced on the 18th that, in line with the liquor tax revision on October 1, it will convert its flagship third-category beer product Clear Asahi into beer. The product will be renamed Clear Asahi Draft, with canned versions going on sale on October 27. The company has not disclosed the selling price, but the price is expected to rise by a few yen from the current market price of around 198 yen for a 350-milliliter can. Kegs for commercial use will be switched over sequentially from October 6 onward. The malt ratio has been increased to bring it closer to the satisfying taste of draft beer, and a proprietary brewing method was used to achieve a clear flavor free of off-tastes.

Ingredion declared a quarterly dividend of $0.83 per share, a 1.2% increase from its prior dividend of $0.82. The dividend carries a forward yield of 3.35% and is payable October 20 to shareholders of record as of October 1, which is also the ex-dividend date.

Kiatnakin Phatra Securities, or KKPS, has maintained its Buy rating on Carabao Group, or CBG, and kept its target price at 70 baht, viewing the branch expansion of CJ MORE under CJ Express Group, a CBG affiliate, as a long-term positive that will add distribution channels and support sales growth. Satien Satiantamma, Chief Executive Officer of CJ Express Group, said CJ MORE targets sales of 80 billion baht in 2026 and 100 billion baht in 2027, with plans to expand from about 2,100 branches currently to 2,500 branches by 2027 and to 5,000 branches by 2029. It expects to list on the stock exchange through an initial public offering, or IPO, in 2029. The research team estimates that, if other factors remain unchanged and CJ meets its sales target of 100 billion baht while expanding to 3,200 branches, CBG's domestic energy drink sales would reach about 9.4 billion baht, 3.8% above its previous estimate, and CBG's profit in 2027 is expected to set a new record high, surpassing its previous peak of 3.5 billion baht in 2020. CBG's energy drinks account for about 2.5% of sales within CJ, while CBG's domestic energy drink sales grew continuously from 2023 to 2025, with sales through CJ stores posting average annual growth of 31% and sales through traditional trade channels growing an average of 10%.

Krungsri Securities assesses that the government is likely to extend the measure increasing the credit limit on the state welfare card for another two months, in October through November. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, disclosed that after the government is likely to approve the Thai Chai Thai Plus measure, which is expected to be submitted for Cabinet approval on September 22, low-income earners under the state welfare card program must also be assisted, by topping up funds for purchasing consumer goods through Thong Fah shops, maintaining the increased limit at 1,000 baht per person per month, up from the normal level of 300 baht per person per month, continuing the original measure that raised the limit to this level from June through September. This is seen as positive for TNP, which is a shop that directly participates in the program, as well as for KK MOTHER, with revenue from the program accounting for 8-10% of total revenue, and it makes the outlook for the fourth quarter of 2026 more positive. Initially, SSSG for the fourth quarter of 2026 is estimated at around -2% year-on-year, and 2026 profit is estimated at 204 million baht, down 4% year-on-year. There is still upside risk of around 10% from better-than-expected SSSG, with 2026 SSSG estimated at +3% year-on-year against the assumption set at -3% year-on-year, where every 1% increase in SSSG affects 2026 profit by around 1.5%. In the short term, third-quarter 2026 profit is expected to grow the strongest at 15% year-on-year and 1% quarter-on-quarter to 55 million baht, from an expected SSSG of +13% year-on-year after benefiting from the measure for a full quarter, including the opening of eight new branches during the fourth quarter of 2025 through the third quarter of 2026, leading revenue to be expected to rise 23% year-on-year and 5% quarter-on-quarter. Although gross margin is expected to weaken from product mix, with essential goods carrying low margin, the stock is attractive on valuation, trading at a 2026 forecast PER of 11.2 times, below the sector average of 14 times, and it has a strong financial position as net cash. Recommend Buy with a 2027 target price of 3.88 baht, based on a PER of 14 times, close to the sector average.

Colgate-Palmolive's board declared a quarterly cash dividend of US$0.53 per common share, payable on November 13, 2026, to shareholders of record on October 20, 2026, extending a dividend record that has remained uninterrupted since 1895. The dividend affirmation coincides with the company intensifying efforts to revive its North America business through greater support for premium toothpaste innovations and higher advertising investment, following a tough second quarter. Management's plan to boost spending on premium oral care and brand support is the key near-term swing factor, as investors weigh whether that outlay can offset category softness and input cost pressure without further squeezing margins. Colgate-Palmolive's narrative projects $23.1 billion revenue and $3.4 billion earnings by 2029, requiring 3.2% yearly revenue growth and about a $1.4 billion earnings increase from $2.0 billion today. Four fair value estimates from the Simply Wall St Community span roughly US$86 to US$128 per share.

Coca-Cola Co. plans to invest $10 billion in U.S. infrastructure from 2026 through 2030, expanding its production and distribution network with new or expanded production, distribution and office facilities in California, Colorado, Indiana, Alabama, Michigan, Minnesota, Florida and New York. The $10 billion figure covers the broader Coca-Cola system rather than the company's own capital spending, with the lion's share representing plans by its bottling partners to invest at the local level in manufacturing, distribution and sales, Coca-Cola President and CFO John Murphy told Fortune. Murphy said the investment is a growth strategy rather than a response to tariffs, noting the Coca-Cola system already keeps 98 cents of every dollar spent on its beverages within the U.S. economy. The announcement follows second-quarter revenue of $13.4 billion, up 7% year over year, adjusted earnings of 97 cents per share, and a raised full-year comparable EPS growth forecast of 9% to 10%, up from 8% to 9%, with organic revenue growth seen at about 5%. Coca-Cola said its U.S. system contributed $85 billion to U.S. gross domestic product in 2025, supported nearly 1 million jobs and spent approximately $37 billion with American suppliers, figures from an independent study commissioned by the company.

United Natural Foods reported fiscal fourth-quarter adjusted earnings per share of $0.69, beating analyst expectations, while revenue of $7.64 billion came in below consensus. The grocery wholesaler guided for fiscal 2027 net sales of $31.2 billion to $31.8 billion, a return to growth after full-year fiscal 2026 sales declined 2% to $31.2 billion. Full-year adjusted EBITDA rose 27% to $701 million and free cash flow hit a record $323 million, with net debt falling by $295 million and net leverage improving to 2.2 times. Fourth-quarter natural-products sales increased 6.6% even as conventional-products sales declined 8.6%, and management guided fiscal 2027 adjusted EPS to $3.00 to $3.50 versus $2.65 previously. The fiscal 2027 revenue outlook implies growth of only about 0.2% to 2.1% and falls below the $31.95 billion analyst estimate.

The analyst at KGI Securities (Thailand) Public Company Limited has raised its investment rating on Thailand's beverage sector to "Outperform" from "Neutral," viewing the recent share price decline as an opportunity to re-accumulate, since pressure from higher raw material costs following the escalation of the US-Iran conflict and the third-quarter low season are only short-term factors. The sector's total profit in the second half of 2026 will grow both from the first half and from the same period a year earlier, led by CBG, while third-quarter core profit will still grow year on year on revenue growth and good cost control at OSP and ICHI, despite the weak seasonal factors and higher costs for aluminium, PET resin and gas. Every 10% increase in key raw material costs could cut 2026 profit by roughly 2-6% for every stock in the sector. Nevertheless, fourth-quarter profit should re-accelerate from the previous quarter and from a year earlier, driven by lower raw material costs and better festive-season demand, before margins recover and return closer to normal in the first half of 2027. CBG is the top pick for the fourth quarter, followed by OSP and ICHI, in that order.

Mother Marketing Public Company Limited, or MOTHER, a retail and wholesale consumer goods operator under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, expects revenue in the fourth quarter of 2026 to grow steadily in line with its targets, driven by the year-end tourism high season. Managing Director Ekapong Chokchaiwittat said the Krabi Provincial Office of Tourism and Sports forecasts that more than 5.2 million tourists will visit in 2026, generating more than 100 billion baht in revenue, with at least 20 billion baht expected to circulate during the year-end high season in particular. This will significantly boost sales at each branch in tourism areas. Meanwhile, in late November, airlines from the Scandinavian countries are preparing to launch new direct routes to Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights per week. Ekapong said this will provide additional support to stimulate the local economy and help MOTHER's revenue expand in line with its operational plans.

KCG Corporation, or KCG, announced its first-half 2026 operating results with a net profit of 276.8 million baht, up 25.2%, driven by efficient management of production costs and expenses despite challenging macroeconomic factors. Chief Executive Officer Dumrongchai Wipawattanakul expressed confidence that profit will continue to grow in the second half. Meanwhile, Sermsang Power Corporation, or SSP, reported a net profit attributable to shareholders of 325.1 million baht and electricity sales revenue of 1,572.1 million baht, following revenue recognition from the Leo 2 solar farm and increased power generation from SPN's repowering. Warut Thammawaranukup noted that business trends in the second half will grow prominently, with plans to sell power from two community waste-to-energy plants by year-end, and expressed confidence that power generation volume will more than double by 2028. Separately, Demco, or DEMCO, reported a first-half 2026 net profit of 30.2 million baht, up 519.4% from the same period last year. Chief Executive Officer Nattapong Korom said the current backlog stands at 2,699 million baht, to be gradually recognized as revenue within 2028, while the company pursues new business investment opportunities. Northeast Rubber, or NER, received an AGM Checklist assessment for 2026 at the excellent level of a full 100 points for the third consecutive year, and Starflex, or SFLEX, received an AGM Checklist score for 2026 in the 90–99 range, or the 4 gold-star level.

High Tide Inc. reported record fiscal third-quarter revenue of C$198.8 million on September 14, up 33% year over year, while operating income rose 133% to C$8.7 million for the quarter ended July 31, 2026. Despite that profit growth, net cash provided by operating activities slipped to C$10.1 million from C$10.7 million a year earlier, as working capital absorbed C$1.8 million compared with a C$2.4 million release a year earlier, an approximately C$4.2 million unfavorable swing. Operating cash flow before changes in non-cash working capital rose 44% to C$11.9 million, and for the first nine months operating cash flow reached C$20.4 million versus C$19.6 million a year earlier. The company opened four Canadian stores and acquired four more during the quarter, and its German medical-cannabis subsidiary Remexian generated C$38.2 million in revenue, up from C$31.6 million sequentially, distributing 10.2 tonnes, a 35% sequential increase. High Tide also reported C$7.0 million in company-defined non-IFRS free cash flow, down from C$7.7 million a year earlier, while quarterly same-store sales at Canna Cabana were flat.

PepsiCo announced that its Board of Directors has elected Joaquin Duato as an independent member, effective December 1, 2026. Duato, 64, will also serve on the Board's Audit Committee. He currently serves as Chairman and Chief Executive Officer of Johnson & Johnson, having been CEO since 2022 and Chairman since 2023, and previously held roles including Vice Chairman of the Executive Committee and Worldwide Chairman, Pharmaceuticals after joining the company in 1989. PepsiCo Chairman and CEO Ramon Laguarta said Duato's broad leadership experience will be an important asset as PepsiCo evolves its portfolio and invests in growth opportunities. Robert C. Pohlad, Chair of the Board's Nominating and Corporate Governance Committee, said Duato's expertise in overseeing a large global organization in highly regulated markets will strengthen the Board's oversight.

Interparfums, Inc. and Marquee Brands announced a 20-year extension of Interparfums' exclusive worldwide license agreement for Roberto Cavalli and Just Cavalli fragrances, carrying the partnership through December 31, 2046. The deal covers continued creation, development and distribution of the fragrances globally, operated by Interparfums Italia Srl, the company's wholly owned Italian subsidiary based in Florence with its seat of management in Paris. Interparfums Chairman and Chief Executive Officer Jean Madar said the extension reflects the strength of Roberto Cavalli and the partnership with Marquee Brands, noting that in three years managing the license the brand has become one of the fastest-growing in the company's portfolio, with the 2025 launch of Serpentine exceeding expectations. Marquee Brands Chief Executive Officer Heath Golden said Interparfums has proven an exceptional steward of Roberto Cavalli fragrances and that extending the partnership across decades reflects the long-term role fragrance will play in the brand's global growth strategy. Interparfums has operated in the global fragrance business since 1982 and manages European operations through its 72% owned subsidiary Interparfums SA and United States operations through wholly owned subsidiaries in the United States and Italy.

Costco Wholesale Corp. is widening its same-day delivery reach through DoorDash and Uber Eats as its membership growth slows. DoorDash is rolling out same-day delivery from Costco warehouses nationwide, just a day after Uber Eats expanded its own Costco service to 48 states. Costco had 82.9 million members as of June, yet membership growth was down 4% year-over-year, a concern because membership fees supply the company with high-margin recurring revenue and foster consumer loyalty. Costco's net sales for fiscal 2026 were $297.3 billion, up 10% from the prior year, but its stock is up only around 4% this year, compared with a gain of more than 10% for the S&P 500. The delivery partnerships could be especially crucial for younger consumers, a group Costco has struggled to attract and retain, and the next test is whether the expanded digital footprint can translate into faster membership growth.

Mother Marketing Public Company Limited, or MOTHER, which operates retail and wholesale consumer goods businesses under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga, and Surat Thani provinces, expects its fourth-quarter 2026 results to grow on the back of the year-end high season. Managing Director Ekapong Chokchaiwittat said the launch of new direct flight routes by Scandinavian airlines will provide an additional boost to the local economy. The Krabi Provincial Office of Tourism and Sports forecasts that more than 5.2 million tourists will visit Krabi in 2026, generating more than 100 billion baht in revenue, with the year-end high season alone expected to see at least 20 billion baht in circulation as part of that full-year figure. This is expected to significantly increase sales at each branch in tourist areas. Meanwhile, in late November, Finnair will launch a direct Helsinki-Krabi route and Scandinavian Airlines will launch a direct Copenhagen-Krabi route, operating two flights per week.

Generac struck a deal with Amazon to supply backup power generators for its data centers, with initial deliveries expected to total $2.4 billion between 2027 and 2028, and also granted Amazon the right to buy up to $340 million worth of its stock. Generac shares soared 19% on the news, while Amazon's stock moved 1.3% higher. Fluence Energy shares tumbled 14% after the battery storage maker cut its full-year guidance, now expecting $2.4 billion in revenue for 2026 versus its prior guidance of $2.9 billion to $3.1 billion, and anticipating a loss of $200 million before interest, taxes, depreciation and amortization, more than its previous guidance range of $30 million loss to $10 million EBITDA. Workday rose 5% after CNBC's David Faber reported that efforts to gain financing for a bid to take the cloud-based human resources software platform private are continuing, citing unidentified sources. Tower Semiconductor rose almost 9% after agreeing with privately-held New Photonics to a high-volume shipment of laser-integrated optical engines designed to meet growing demand for high-bandwidth, energy-efficient optical interconnects in AI infrastructure, and Vital Farms climbed 9% after Axios said the Austin, Texas-based pasture-raised egg and butter producer is exploring strategic alternatives, including privatization.

Coca-Cola has committed $10 billion to expand U.S. production, distribution, and office facilities through 2030. The long-term spending plan comes as the shares have climbed 10.68% over 90 days and 27.13% year to date off a recent close of $87.87, with a 1 year total shareholder return of 34.56% and 3 and 5 year total shareholder returns of 63.92% and 87.91%. The most followed narrative pegs Coca-Cola's fair value at $94.70, framing the U.S. buildout as part of a wider earnings story, with the ramp-up of U.S. fairlife capacity in 2026 and strong international value-added dairy performance cited as drivers. Simply Wall St's model suggests the stock trades about 5.4% below its estimated fair value, though it changes hands at a P/E of 26.4x versus 16.8x for the global beverage group and a 24.7x fair ratio. Risks include reliance on carbonated soft drinks facing health and regulatory pressure, along with input cost swings.

Performance Food Group reported second-quarter revenues of $18.03 billion, up 6.4% year on year but falling 0.5% short of analysts' expectations, with full-year revenue guidance meeting estimates and EPS in line. The stock is down 20.1% since reporting and trades at $91.06. Among the 137 consumer discretionary stocks tracked, group revenues beat consensus by 2.7% while next-quarter revenue guidance came in line, and share prices are down 8.1% on average since the latest results. Smith & Wesson posted the sector's best quarter with revenues of $112.6 million, up 32.3% year on year and 14.1% above expectations, while Matthews was the weakest, with revenues of $246 million, down 29.6% and 7% below estimates. Latham reported revenues of $197.5 million, up 14.4% and 4.8% above expectations, and H&R Block reported revenues of $1.14 billion, up 3% and 2.5% above expectations.

German distiller Berentzen-Gruppe has confirmed it is in talks over a potential sale of the business to US spirits giant Sazerac. In a stock-exchange filing on 16 September, the Frankfurt-listed company said it was negotiating a "voluntary public takeover offer" for all its outstanding shares, and that it would keep the capital markets and the public informed in line with legal requirements. A spokesperson for Sazerac, which owns Buffalo Trace, Southern Comfort and Fireball, declined to comment on market speculation or specific acquisition opportunities. Based in Haselünne in north-west Germany, Berentzen owns brands including Puschkin vodka, Tres Países rum and its namesake fruit-based spirits, and also markets soft drinks. In 2025 the company booked a 10.4% fall in revenue to €162.9m, or $186.8m, while EBIT dropped 19.8% to €8.5m; in the first half of this year revenue fell 11.1% to €71m and EBIT slumped 82.4% to €0.6m, which CEO Oliver Schwegmann attributed to the end of a private-label Bourbon supply contract, ongoing weakness in the German market and soft consumer spending. The move marks the latest M&A target for Sazerac, which in August signed a deal to acquire UK spirits business Au Vodka, completed this week, after fellow US spirits group Brown-Forman rejected an unsolicited takeover proposal from Sazerac in July.