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Tag: drinks

  • Pepsi Stock Gets Rocked by Weight-Loss Drug Fears. Earnings Could Make Shares a Buy.

    Pepsi Stock Gets Rocked by Weight-Loss Drug Fears. Earnings Could Make Shares a Buy.

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    Consumer-staples stocks have gotten hit hard in recent weeks, and hasn’t escaped the carnage. With the steady-Eddie beverage and snack giant set to report earnings on Oct. 10, its stock could be ready to pop.

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  • Micron, Peloton, GameStop, Workday, Nike, CarMax, and More Stock Market Movers

    Micron, Peloton, GameStop, Workday, Nike, CarMax, and More Stock Market Movers

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  • Diageo Backs FY 2024 Views Despite Persistent Cost Pressures

    Diageo Backs FY 2024 Views Despite Persistent Cost Pressures

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    By Michael Susin

    Diageo said expectations for fiscal 2024 remain unchanged despite warning of persistent continuing cost pressures and macroeconomic challenges.

    The liquor maker–which owns Johnnie Walker whisky and Tanqueray gin–on Thursday said it expects a gradual improvement on both organic net sales and operating profit growth from the first half of the fiscal year ending June 30 and then an acceleration in the second half, given softer comparators.

    Diageo said it is well-positioned to deliver its 2023-25 guidance for organic net sales growth of 5% to 7% a year and organic operating profit growth of 6% to 9% a year.

    “I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities,” Chief Executive Debra Crew said.

    The company changed its reporting and dividend currency to U.S. dollar from the pound at the start of fiscal 2024.

    Write to Michael Susin at michael.susin@wsj.com

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  • Howard Schultz steps down from Starbucks board of directors

    Howard Schultz steps down from Starbucks board of directors

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    Starbucks Corp. on Wednesday said former Chief Executive Howard Schultz is stepping down from its board of directors, capping a nearly 40-year career during which the company grew from a handful of stores in Seattle into a global coffee chain.

    Schultz’s retirement from the board, which ends his involvement in the company’s leadership, took effect Wednesday and was part of a planned transition, the coffee chain said. Schultz stepped down as Starbucks
    SBUX,
    +0.72%

    chief executive in March.

    The company on Wednesday also said that it had elected Wei Zhang to its board of directors, effective Oct. 1. Zhang was most recently a senior adviser to Chinese e-commerce giant Alibaba Group
    BABA,
    -0.75%

    and also held leadership positions at News Corp China and CNBC China.

    Shares of Starbucks were down 0.7% after hours on Wednesday.

    Starbucks said Schultz “will now turn his attention with his wife, Sheri, to focus on a range of philanthropic and entrepreneurial investments to create greater opportunity, accessible to all.” The company noted that the two were co-founders of the Schultz Family Foundation in 1996, and of the emes project.

    Although he was not technically the founder of the coffee chain, Schultz became the modern face of it. Schultz joined Starbucks in 1982 as its director of operations and marketing. After a brief hiatus from the company, he returned in 1987 as chief executive and bought the business with backing from local investors, according to a biography on the Starbucks website. The chain went public in 1992.

    As the chain’s footprint expanded beyond the U.S., Schultz stepped down from the CEO role in 2000 but returned in 2008. He retired from Starbucks in 2018, then came back as interim chief executive and board member last year.

    Over those years, Starbucks has banked on China for international growth — even as that country’s economy remains turbulent following the postpandemic reopening. It also added food and cold and customizable drinks to its menus and built out its mobile-ordering infrastructure.

    The company has branded itself as a progressive employer and a supporter of social justice. But over the past two years, the company, and Schultz in particular, have faced criticism over the handling of employees who were trying to unionize. Union members have accused the chain of unfair labor practices, retaliation for organizing and delaying contract negotiations, leading to deeper scrutiny from lawmakers.

    “We hope this is an opportunity for Starbucks to change course and leave their union-busting behind them,” Starbucks Workers United, the union representing those workers, said Wednesday in a tweet.

    Still, even as inflation has eaten into consumer savings, Schultz said coffee has remained an “affordable luxury” for many customers. And Starbucks management said that younger, loyal consumers and customizable drinks would help sustain demand.

    According to a filing on Wednesday, Schultz will still be connected to the company in other ways. Starbucks said it would amend Schultz’s retirement agreement from 2018 and continue to provide him and his spouse with security services.

    “The security services will be provided for a period of 10 years and will be evaluated on an annual basis,” the filing said. “In recognition of Mr. Schultz’s leadership as the company’s founder and chairman emeritus, the company will also provide Mr. Schultz with the reimbursement of his monthly healthcare insurance premiums.”

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  • C3.ai, GameStop, UiPath, ChargePoint, Yext, BlackBerry, and More Stock Market Movers

    C3.ai, GameStop, UiPath, ChargePoint, Yext, BlackBerry, and More Stock Market Movers

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  • Pernod Ricard to Launch EUR800 Mln Buyback After Rise in Profit, Sales — Update

    Pernod Ricard to Launch EUR800 Mln Buyback After Rise in Profit, Sales — Update

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    By Maitane Sardon

    Pernod Ricard plans to buy back up to EUR800 million ($874 million) in shares in fiscal 2024 after the company reported an increase in sales and profit for fiscal 2023.

    The French drinks group said Thursday that organic sales for the year ended June 30 grew 13% on a reported basis to EUR12.14 billion, while net profit for the year rose to EUR2.28 billion from EUR2.03 billion in fiscal 2022.

    Analysts had expected sales of EUR12.16 billion and net profit of EUR2.4 billion, according to a FactSet-compiled poll.

    For the fourth quarter, sales rose to EUR2.63 billion from EUR2.30 billion a year earlier.

    The company said sales in all regions increased thanks to pricing, with all spirits categories delivering strong growth.

    Looking ahead, the company backed its fiscal 2023-25 medium-term financial target, including reaching the upper end of between 4% and 7% of net sales growth and a 50 to 60-basis-point increase in operating margin.

    It proposed a dividend of EUR4.70, an increase of 14% compared with fiscal year 2022.

    Write to Maitane Sardon at maitane.sardon@wsj.com

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  • Heineken is the latest Western corporate giant to exit Russia

    Heineken is the latest Western corporate giant to exit Russia

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    Beer giant Heineken N.V. is the latest Western company to exit Russia, announcing Friday the sale of its Russian operations to Arnest Group for one euro.

    Under the terms of the deal, all of Heineken’s
    HEIA,
    +0.77%

    remaining assets, including seven breweries in Russia, will transfer to the new owners, the beer giant said in a statement. The Russian Arnest Group has also taken over responsibility for Heineken’s 1,800 employees in Russia.

    Heineken began the process of exiting Russia in March 2022, following that country’s invasion of Ukraine. The company said it expects to incur a total cumulative loss of €300 million ($324.1 million) as a result of its exit.

    “We have now completed our exit from Russia. Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia,” Heineken CEO Dolf van den Brink said in a statement. “While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner.”

    Related: Unilever CEO vows to look at Russian operations with ‘fresh eyes’ as pressure to exit the country mounts

    A number of major Western corporations, including U.S. giants Apple Inc.
    AAPL,
    +1.26%
    ,
     Alphabet Inc. 
    GOOGL,
    +0.08%

    GOOG,
    +0.21%
    ,
     Amazon.com Inc.
    AMZN,
    +1.08%
    ,
     International Business Machines  Corp. 
    IBM,
    +1.25%

    and McDonald’s Corp. 
    MCD,
    +0.79%
    ,
    have left Russia in response to Moscow’s February 2022 invasion of Ukraine.

    Earlier this week, DP Eurasia, the master franchiser of the Domino’s Pizza Inc.
    DPZ,
    +0.49%

    brand in Turkey, Russia, Azerbaijan and Georgia, also announced its exit from Russia.

    But Heineken is “no hero,” according to Mark Dixon, the founder of the Moral Rating Agency, an organization set up after the invasion of Ukraine to examine whether companies were carrying out their promises of exiting Russia. “It failed to leave Russia for a year and a half,” he told MarketWatch via email. “The explanation that it took longer than expected doesn’t hold water, because of course it’s difficult to find a buyer if you remain so long a pariah state.”

    The Ukraine Solidarity Project said that Heineken’s move should increase the pressure on companies that remain in Russia, such as consumer-goods giant Unilever PLC
    ULVR,
    +0.44%
    .
    “The point here is that major companies, like @Heineken, are and have taken loses of hundreds of millions and billions in leaving the Russian market. It is possible,” the Ukraine Solidarity Project tweeted Friday. “We’re sure @Unilever can do it, too.”

    Related: WeWork, Carl’s Jr., Unilever and Shell among companies slammed by Yale over operations in Russia

    The Ukraine Solidarity Project recently launched a high-profile campaign urging Unilever to get out of Russia, using images of Ukrainian veterans injured in the war with Russia. Last month, activists from the Ukraine Solidarity Project held up a giant poster featuring the veterans outside Unilever’s London headquarters.

    The Moral Rating Agency has also reiterated its calls for Unilever to end its Russian operations. 

    “We have always said we would keep our position in Russia under close review,” a Unilever spokesperson told MarketWatch earlier this month. The spokesperson also directed MarketWatch to a statement on the war in Ukraine that the company released in February 2023.

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  • U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings

    U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings

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    U.S. banks and regional banks fell across the board on Tuesday, after S&P Global Ratings downgraded five smaller players after a review of risk related to funding, liquidity and asset quality with a focus on office commercial real estate.

    Adding to the gloom, Republic First Bancorp. Inc.’s stock
    FRBK,
    -41.90%

    tanked by 39%, after Nasdaq told the company that its stock would be delisted on Wednesday, after it failed to file its annual report in time.

    S&P’s move comes just days after Fitch Ratings analyst Christopher Wolfe reduced his operating environment score for U.S. banks to aa- from aa due to the unknown path of interest rate hikes and regulatory changes facing the sector.

    And Moody’s Investors Service just two weeks ago upset investors when it downgraded some lenders and said it was reviewing ratings on bigger banks, including Bank of New York Mellon
    BK,
    -1.71%
    ,
    State Street
    STT,
    -1.59%

    and Northern Trust
    NTRS,
    -1.73%
    .

    For more, see: Bank asset quality, weaker profits spark Moody’s reviews and downgrades as it weighs potential 2024 recession

    The S&P 500 Financials Sector has fallen for seven consecutive days, and is on pace for its longest losing streak since April 7, 2022, when it also fell for seven straight trading days.

    Individual bank names are also performing poorly, with Goldman Sachs Group Inc.
    GS,
    -0.94%

    and Citigroup Inc.
    C,
    -1.68%

    down for 10 of the past 11 days and Charles Schwab Corp.
    SCHW,
    -4.84%

    down 11 straight days.

    Goldman alone has fallen for seven straight days for a total loss of 6.3%. It’s the longest losing streak since Feb. 28, 2020, when it also fell for seven straight days as the pandemic was taking hold.

    The KBW Nasdaq Regional Banking Index
    KBWR
    is down for 11 straight days. and the KBW Nasdaq Bank Index
    BKX
    is down for seven straight days.

    S&P downgraded Associated Banc. Corp. 
    ASB,
    -4.20%
    ,
     Comerica Inc.
    CMA,
    -3.82%
    ,
     KeyCorp
    KEY,
    -3.58%
    ,
     UMB Financial Corp. 
    UMBF,
    -2.42%

    % and Valley National Bancorp. 
    VLY,
    -4.19%

    by one notch and said the outlook on all five is stable.

    Read also: More challenges await U.S. banks but analysts think the worst may be over for the year

    The rating agency affirmed ratings on Zions Bancorp
    ZION,
    -4.17%

     and maintained a negative outlook, meaning it could downgrade them again in the near-term. And it affirmed ratings and a stable outlook on Synovus Financial Corp. 
    SNV,
    -3.37%

     and Truist Financial Corp. 
    TFC,
    -1.36%

     “We reviewed these 10 banks because we identified them as having potential risks in multiple areas that could make them less resilient than similarly rated peers ,” S&P said in a statement.

    “For instance, some that have seen greater deterioration in funding—-as indicated by sharply higher costs or substantial dependence on wholesale funding and brokered deposits—-may also have below-peer profitability, high unrealized losses on their assets, or meaningful exposure to CRE.”

    The steep rise in interest rates orchestrated by the Federal Reserve over the past year has raised deposit costs as banks are now competing for savers seeking higher returns and that’s forced some to pay up on deposits and discourage their clients from heading to other institutions and instruments.

    The sector has been skittish this year following the collapse of Silicon Valley Bank and other lenders that led to a run on deposits at a number of regional lenders.

    However, S&P said about 90% of the banks it rates have stable outlooks and just 10% have negative ones. None have positive outlooks.

    The widespread stable outlooks shows that stability in the U.S. banking sector has improved significantly in recent months.

    S&P is expecting FDIC-backed banks in aggregate to earn a relatively healthy ROE of about 11% in 2023.

    KeyCorp. and Comerica both fell more than 3% on the news. Of the two, KeyCorp. has more outstanding debt and its 10-year bonds widened by about 5 to 10 basis points, according to data solutions provider BondCliq Media Services.

    As the following chart shows, the bonds have seen better selling on Wednesday with buyers emerging around midmorning.


    KeyBank net customer flow (intraday). Source: BondCliQ Media Services

    The next chart shows customer flow over the last 10 days.


    Most active KeyBank issues with net customer flow (last 10 days). Source: BondCliQ Media Services

    The next chart shows the outstanding debt of the downgraded banks, with KeyCorp. clearly the leader with almost $16 billion of bonds.


    Outstanding S&P downgraded banks debt USD by maturity bucket. Source: BondCliQ Media Services

    Don’t miss: Capital One confirms roughly $900 million sale of office loans as property sector wobbles

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  • Starbucks’ Pumpkin Spice Latte Turns 20: How It Was Invented | Entrepreneur

    Starbucks’ Pumpkin Spice Latte Turns 20: How It Was Invented | Entrepreneur

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    The fall season and Pumpkin Spice Lattes go hand-in-hand, all thanks to Starbucks‘ signature autumn beverage.

    Starbucks’ most popular seasonal drink (with 600 million PSL sold in two decades, per CNN) is celebrating 20 years of the Pumpkin Spice Lattes this fall. However, Starbucks never imagined the beverage would become such a staple following its launch in 2003 after its humble beginnings.

    After seeing success with peppermint and mocha seasonal beverages during the 2002 holiday season, Peter Dukes, one of the original co-creators of the PSL, recalled to Fox Business how the idea for the now-staple drink came to be when a group of Starbucks employees experimented with a slice of pumpkin pie and a shot of espresso to think up a pumpkin-favored drink.

    RELATED: Basic or Not, Pumpkin Spice Lattes Are Shattering Records at Starbucks and Are More Popular Than Ever

    Screengrab courtesy of Fox News | Peter Dukes talking about the creation of the Pumpkin Spice Latte.

    “Literally, we took some espresso, just poured it on the pumpkin pie, and then tasted it,” Dukes’ said of their process.

    The taste test led to the creation of the pumpkin spice latte syrup that mimics the richness of pumpkin pie.

    RELATED: Say Hello to the ‘Iced Pumpkin Cream Chai Tea Latte’: Starbucks New Fall Menu Leaked Online

    The launch was a hit, and “Pumpkin Spice” has since become a household name ever since, something its creators never expected.

    “If you asked anybody in that room if pumpkin spice was going to become an entire industry … nobody would have guessed that,” Duke told the outlet. “It’s been kind of cool to see it take off.”

    Since the launch of the PSL, the pumpkin spice industry at large has generated $511 million as of 2019, per CNBC.

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    Sam Silverman

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  • Anheuser Busch InBev to cut jobs after Bud Light boycott

    Anheuser Busch InBev to cut jobs after Bud Light boycott

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    Anheuser-Busch InBev is planning to cut jobs in the U.S. after a sharp deterioration in sales following a boycott that’s still impacting Bud Light.

    The industry publication Brewbound said the company was going to cut 2% of its U.S. workforce, where it employs 19,000. The company told the publication that front-line workers, including warehouse staff and field reps, will not be impacted. The company did not specifically identify slumping Bud Light sales as the cause of the layoffs.

    Bud Light sales have tumbled after the company’s ill-fated social media promotion with Dylan Mulvaney.

    Citing Nielsen U.S. beer data, analysts at Bank of America said volumes at the brewer tumbled by 15.3% year-over-year in the four weeks ending July 15, compared to the 2.7% decline for the broader U.S. beer category.

    Bud Light sales over that same time period skidded 29.8%, and Budweiser volumes skidded 14%. In contrast, Coors Light sales rose 17% in the last four weeks, Miller Lite volumes rose by 12.5% and Yuengling sales surged 38%.

    Anheuser-Busch InBev’s U.S.-listed shares
    BUD,
    +0.22%

    have dropped 2% this year. In its home market of Belgium, shares
    ABI,
    +0.97%

    rose 0.6% on Thursday.

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  • Bud Light sales are still falling, but investors get it at this point. Here’s what Morgan Stanley says they might be missing.

    Bud Light sales are still falling, but investors get it at this point. Here’s what Morgan Stanley says they might be missing.

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    Bud Light sales are still falling, as the impact of a boycott against the beer continues to stick. But Morgan Stanley analysts on Thursday said that impact was already reflected into shares of its parent company, Anheuser-Busch InBev, and that AB-InBev’s global footprint and the falling costs of beer ingredients would help sales and margins up ahead even if struggles in the U.S. spill over into next year.

    Morgan Stanley assumed coverage of AB-InBev
    BUD,
    +0.51%

    with an overweight rating, a step up from its prior equal-weight rating. The firm bumped its price target on the stock higher, to $68.50 from $64. Shares of AB-InBev were up 0.4% on Thursday.

    The analysts also said that AB-InBev’s second-quarter results, set for Aug. 2, could be a clarifying moment for investors.

    “While investors are currently sitting on the sidelines, waiting for the company to fully quantify the impact of the Bud Light situation, we see upcoming H1 results as likely timing for such clarification,” the analysts said in a research note.

    “We think ABI shares now price in the U.S. Bud Light challenges, which have stabilised, but not the gross margin recovery and de-leveraging upside into next year,” they added later.

    The conservative-led boycott against Bud Light began in April, after the brand briefly partnered with Dylan Mulvaney, a trans influencer. That anti-trans anger has translated into weeks of sharp declines, generally above 20%, for Bud Light sales. Mulvaney said Bud Light never reached out to her, despite what she said was “more bullying and transphobia than I could have ever imagined” as a result of the partnership and calls for a boycott.

    The fall-off has spread to some of other AB-InBev’s other beer brands, and benefited its rivals. Modelo Especial has recently dethroned Bud Light as the best-selling beer in the U.S.. Constellation Brands Inc.
    STZ,
    +0.47%

    sells Modelo beer in the U.S., after a deal a decade ago to acquire Grupo Modelo’s U.S. beer business from AB-InBev.

    Still, the Morgan Stanley analysts emphasized Anheuser-Busch’s worldwide reach, and said that even a 13.5% drop in U.S. yearly sales — broadly, where things stand in the U.S. now — would only mean a 4% drop for the company’s sales overall. And they said double-digit growth expected elsewhere, in regions like South America and the Asia-Pacific, would drive organic sales growth of 6% for the company overall in its fiscal 2023. They also said a “wind-back” on commodity costs and sales incentives to U.S. beer sellers would help margins up ahead.

    Still, they didn’t expect much of a break for sales trends in the U.S. They said they expected the 13.5% drop in U.S. sales to ease to a 12% drop in AB-InBev’s fiscal 2024.

    Overall, however, the analysts were upbeat on beer sales and profits for next year. Falling ingredient costs would help brewers overall. A pandemic-era jump in U.S. demand for spirits — or hard liquor like gin, Scotch and vodka — had now “normalized,” they said.

    Shares of Anhueser-Busch InBev are down 1.4% so far this year. By comparison, the S&P 500 Index
    SPX,
    -0.68%

    is up 18.9% over that period.

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  • Here’s how many Diet Cokes you’d have to drink daily to get too much aspartame

    Here’s how many Diet Cokes you’d have to drink daily to get too much aspartame

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    A leading global health body has declared that the artificial sweetener aspartame, commonly used as an ingredient in diet soda, chewing gum and vitamins, may cause cancer.

    But the World Health Organization’s report late Thursday also noted that people would have to be exposed to extreme amounts of aspartame — whether through diet, occupational exposure or other means — to be at risk.

    So how much aspartame is too much?

    It’s safe to consume up to 40 milligrams of aspartame per kilogram, or 2.2 pounds, of body weight per day, a WHO and Food and Agriculture Organizations joint committee of experts on food additives said. So, a person who weighs 154 pounds would need to drink nine to 14 cans of, say, Diet Pepsi or Diet Coke per day to exceed that level, assuming there are 200 to 300 milligrams of aspartame in each can.

    “We’re not advising consumers to stop consuming [aspartame] altogether,” said WHO’s nutrition director, Dr. Francesco Branca. “We’re just advising a bit of moderation.”

    The Food and Drug Administration has an even higher daily aspartame-exposure limit: 50 milligrams per kilo of body weight.

    Even heavy aspartame users — Donald Trump, the former U.S. president, for example, drank a reported 12 cans of Diet Coke a day in his White House years — would struggle to consume that much of the sweetener in an average day.

    But consumers should also note that a food being labeled “safe” is not equivalent to its being healthy. There has been plenty of research to suggest that sipping too many sweetened beverages, including diet drinks with artificial sweeteners, may be linked to health problems and elevated risk of death.

    Aspartame is used in products that millions of people use every day, including Diet Coke and Diet Pepsi, Pepsi Zero Sugar and Coca-Cola Zero Sugar, the Mars Wrigley chewing gum Extra and some Snapple drinks, as well as some protein drinks, among thousands of others, by the Calorie Control Council’s count.

    Aspartame was developed beginning in the mid-1960s by Skokie, Ill.–based G.D. Searle & Co., now a Pfizer
    PFE,
    +0.72%

    subsidiary, which branded the sweetener NutraSweet. It secured ultimate FDA approval, after initial hiccups, for use in dry goods and then in carbonated soft drinks in 1981 and 1983, according to the Calorie Control Council.

    The organization that this week labeled aspartame possibly carcinogenic was the World Health Organization’s cancer-research arm, the International Agency for Research on Cancer. The IARC said its aspartame declaration is based on “limited evidence” of cancer in humans, specifically a type of liver cancer called hepatocellular carcinoma.

    What should consumers do with this aspartame news? “At least when it comes to beverages, our message is your best choice is to drink water or an unsweetened beverage,” said Dr. Peter Lurie, executive director of the Center for Science in the Public Interest, which previously nominated aspartame for IARC review.

    More aspartame news on MarketWatch:

    What is aspartame, and is it bad for you? Here’s what health experts say

    Aspartame is possibly carcinogenic, according to WHO’s cancer-research agency

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  • Here’s how many Diet Cokes you’d have to drink daily to get too much aspartame

    Here’s how many Diet Cokes you’d have to drink daily to get too much aspartame

    [ad_1]

    A leading global health body has declared that the artificial sweetener aspartame, commonly used as an ingredient in diet soda, chewing gum and vitamins, may cause cancer.

    But the World Health Organization’s report late Thursday also noted that people would have to be exposed to extreme amounts of aspartame — whether through diet, occupational exposure or other means — to be at risk.

    So how much aspartame is too much?

    It’s safe to consume up to 40 milligrams of aspartame per kilogram, or 2.2 pounds, of body weight per day, a WHO and Food and Agriculture Organizations joint committee of experts on food additives said. So, a person who weighs 154 pounds would need to drink nine to 14 cans of, say, Diet Pepsi or Diet Coke per day to exceed that level, assuming there are 200 to 300 milligrams of aspartame in each can.

    “We’re not advising consumers to stop consuming [aspartame] altogether,” said WHO’s nutrition director, Dr. Francesco Branca. “We’re just advising a bit of moderation.”

    The Food and Drug Administration has an even higher daily aspartame-exposure limit: 50 milligrams per kilo of body weight.

    Even heavy aspartame users — Donald Trump, the former U.S. president, for example, drank a reported 12 cans of Diet Coke a day in his White House years — would struggle to consume that much of the sweetener in an average day.

    But consumers should also note that a food being labeled “safe” is not equivalent to its being healthy. There has been plenty of research to suggest that sipping too many sweetened beverages, including diet drinks with artificial sweeteners, may be linked to health problems and elevated risk of death.

    Aspartame is used in products that millions of people use every day, including Diet Coke and Diet Pepsi, Pepsi Zero Sugar and Coca-Cola Zero Sugar, the Mars Wrigley chewing gum Extra and some Snapple drinks, as well as some protein drinks, among thousands of others, by the Calorie Control Council’s count.

    Aspartame was developed beginning in the mid-1960s by Skokie, Ill.–based G.D. Searle & Co., now a Pfizer
    PFE,
    +0.72%

    subsidiary, which branded the sweetener NutraSweet. It secured ultimate FDA approval, after initial hiccups, for use in dry goods and then in carbonated soft drinks in 1981 and 1983, according to the Calorie Control Council.

    The organization that this week labeled aspartame possibly carcinogenic was the World Health Organization’s cancer-research arm, the International Agency for Research on Cancer. The IARC said its aspartame declaration is based on “limited evidence” of cancer in humans, specifically a type of liver cancer called hepatocellular carcinoma.

    What should consumers do with this aspartame news? “At least when it comes to beverages, our message is your best choice is to drink water or an unsweetened beverage,” said Dr. Peter Lurie, executive director of the Center for Science in the Public Interest, which previously nominated aspartame for IARC review.

    More aspartame news on MarketWatch:

    What is aspartame, and is it bad for you? Here’s what health experts say

    Aspartame is possibly carcinogenic, according to WHO’s cancer-research agency

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  • Consumers are shopping in more stores than ever before to save money

    Consumers are shopping in more stores than ever before to save money

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    Consumers are still showing signs of being highly sensitive to inflationary pressures and are shopping around to maximize their budgets, according to PepsiCo Inc. Chief Executive Ramon Laguarta.

     ‘We’re seeing consumers shopping in more stores than before. They’re looking for better deals. They’re starting to look for optimization. They are going to channels that have better perceived value.’


    — Ramon Laguarta, CEO, PepsiCo Inc.

    Laguarta told analysts on the company’s second-quarter earnings call on Tuesday that consumers are buying more in dollar stores or buying more in bulk or at wholesale clubs.

    “So every segment of the consumer is making adjustments,” he said, according to a FactSet transcript.

    Still, PepsiCo
    PEP,
    +1.89%

    saw better elasticities in the three-month period, he said, referring to consumers’ sensitivity and response to higher prices.

    Like many consumer companies, the snacks and beverages giant has been raising prices to combat its own higher costs in the current inflationary period. But, “we’ve been able to raise prices and consumers stay within our brands,’ he said.

    See: U.S. inflation slows again, CPI shows, as Fed weighs another rate hike

    One supportive factor is low unemployment, said Laguarta. Unemployment is currently low in developed and developing markets and is trending at a record low in Mexico and certain Asian markets, he said.

     “So we’re seeing overall very good consumer behavior, especially when it refers to our categories, and that’s why we raised guidance on our top line and because of the first factor we raised guidance on the bottom line as well,” he said.

    See also: ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    PepsiCo earlier posted better-than-expected earnings for the latest quarter and raised its fiscal 2023 guidance.

    Some of PepsiCo’s more popular brands, including Lay’s, Doritos, Cheetos, and Ruffles, generated double-digit net revenue growth, along with smaller, emerging brands aimed at consumers seeking healthier choices, such as PopCorners, SunChips, Bare, and Off The Eaten Path, said the company.

    The stock was up about 1% Thursday and has gained 2.4% in the year to date, while the S&P 500
    SPX,
    +0.65%

    has gained 16%.

    For more, see: PepsiCo’s stock gains after beating estimates in latest quarter and raising guidance again

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  • Constellation Beer Sales Get a Lift From Bud Light’s Trouble. Why the Stock Is Falling.

    Constellation Beer Sales Get a Lift From Bud Light’s Trouble. Why the Stock Is Falling.

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    Constellation Brands‘ earnings beat Wall Street’s expectations as the company reported strong beer sales for the latest quarter on Friday. The stock fell anyway.


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  • This Bud’s for investors. Buy the stock even if Bud Light sales never recover, says analyst.

    This Bud’s for investors. Buy the stock even if Bud Light sales never recover, says analyst.

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    The summer haze settling over stocks doesn’t look ready to budge Thursday, with the S&P 500 index
    SPX,
    -0.52%

    in the throes of its longest losing streak since May.

    On the bright side, the index is looking at a 6% gain for the June quarter, whose end is just a few days away.

    In other corners of the market, the quarter has been less forgiving. Consumer staples, those things you can’t live without, have lost over 1%, perhaps reflecting the tougher economic times we are living in. Within that sector, though, is beer and one name that has indeed had a quartarius horriblis.

    Anheuser-Busch InBev’s
    ABI,
    +1.82%

    BUD,
    -0.05%

    U.S.-listed shares are down about 15%, as Bud Light sales have tumbled following consumer backlash to a social-media campaign featuring trans activist Dylan Mulvaney in April.

    But our call of the day from Deutsche Bank says it’s time to buy this unloved stock, even if those Bud Light sales never recover. A team of analysts led by Mitch Collett have upgraded Anheuser-Busch shares to buy from hold and lifted their price target to €60 euros from €59 euros (they didn’t offer an ADR price target).

    Recent underperformance of the stock “implies a permanent reduction in ABI’s U.S. business. Our proprietary survey data suggests these headwinds are likely to fade even if we do not expect the U.S. business ever to fully recover from its current challenges,” said Collett.

    The analysts pointed to recent Nielson data that showed ABI’s U.S. business currently down 12%, with Bud Light sales off 24% and the rest of its portfolio down 7%. But an analysis of distribution data shows ABI itself isn’t “losing shelf presence” as sales velocity is the primary driver of the decline, which bodes well if consumer sentiment improves, said Deutsche Bank.

    Those declines are about a 12% headwind to ABI’s annual net income, which is in line with European underperformance seen by the stock, added Collett and the team.

    Read: Bud Light dethroned as top-selling beer by Modelo, as boycott cuts into sales

    Deutsche Bank conducted its own survey that showed 24% of Bud Light consumers are no longer buying that brand, with 18% buying less, but 21% buying more and 37% buying the same amount. Those findings are largely consistent with Nielson;s, said the analysts.

    Deutsche Bank’s own survey also showed that 42% of Bud Light drinkers expect to be buying Bud Light again in three to six months, versus 29% who see that as unlikely. And 50% expect that battered beer’s reputation will recover in time, versus 30% who says it won’t. “We believe this bodes well for the brand, recapturing some of its lost share,” said Collett and the team.

    Analysts at RBC Capital also recently pushed back on the selloff for the stock, saying the hit to the shares and forecasts for the stock are “excessive,” as they don’t see Bud Light’s troubles hurting AB InBev outside the U.S.. They said AB InBev is a “nerve-racking buying opportunity.”

    Ahead of Thursday’s open, U.S.-listed Bud shares were up about 1.3%, tracking gains from its Belgian shares.

    The markets

    U.S. stock index futures
    ES00,
    -0.25%

    YM00,
    -0.27%

    NQ00,
    -0.31%

    are drifting lower, with bond yields
    TMUBMUSD02Y,
    4.730%

    TMUBMUSD10Y,
    3.743%

    on the rise and oil prices
    CL.1,
    -1.82%

    also weaker. The Norwegian krone
    USDNOK,
    -0.80%

    is up 1.5% against the dollar after the country’s central bank hiked interest rates 50 basis points. Switzerland also hiked rates, but the Swiss franc is steady
    USDCHF,
    +0.12%
    .
    The British pound
    GBPUSD,

    is higher after the Bank of England also hiked interest rates by 50 basis points. The Turkish lira was falling slightly after the central bank, under new management, hiked interest rate to 15% from 8.5%, against forecasts for a hike to 20%.

    China markets were closed for a holiday, with losses elsewhere, such as Japan
    NIK,
    -0.92%

    and Australia
    XJO,
    -1.63%
    .

    For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

    The buzz

    Federal Reserve Chair Jerome Powell’s second day of testimony on Capitol Hill kicks off at 10 a.m. Eastern. On Wednesday, he said higher interest rates should be expected , but didn’t offer any clues on timing. U.S. weekly jobless benefit claims and current account data are due at 8:30 a.,m. ET, with leading indicators also at 10 a.m., alongside a speech from Cleveland Fed President Loretta Mester. Richmond Fed President Tom Barkin will speak at 4:30 p.m.

    The Bank of England will announce an interest-rate decision at 7 a.m. ET and after worse-than-expected inflation data on Wednesday, a 50 basis-point hike hasn’t been ruled out.

    Darden Restaurants
    DRI,
    +0.36%

    will report ahead of the open, with Smith & Wesson
    SWBI,
    +0.52%

    due after the close.

    Tesla stock
    TSLA,
    -5.46%

    is down 2% in premarket trading on the heels of the EV maker’s worst loss in two months.

    Joining recent actions by other big stakeholders cashing in on big gains for Nvidia
    NVDA,
    -1.74%
    ,
    a board member just sold $51 million in stock.

    Best of the web

    Amazon allegedly duped people into subscribing to Prime and made it nearly impossible to cancel. Here’s how the feds say they did it.

    The Biden administration is reportedly exploring whether it can mount a campaign against Chinese tech giants like Alibaba and Huawei.

    A giant drilling machine is moving Stockholm toward an emissions-free future

    Wife of missing Titanic exploring sub pilot Stockton Rush is reportedly a descendant of two first-class passengers who died on the ship.

    The tickers

    These were the top searched tickers on MarketWatch as of 6 a.m. :

    Ticker

    Security name

    TSLA,
    -5.46%
    Tesla

    MULN,
    +24.24%
    Mullen Automotive

    NVDA,
    -1.74%
    Nvidia

    AMC,
    -1.31%
    AMC Entertainment

    APE,
    -2.30%
    AMC Entertainment preferred holdings

    NIO,
    -2.99%
    Nio

    PLTR,
    -7.28%
    Palantir Technologies

    MANU,
    +1.11%
    Manchester United

    SPCE,
    -4.99%
    Virgin Galactic Holdings

    AAPL,
    -0.57%
    Apple

    Random reads

    Are Elon Musk and Mark Zuckerberg ready for a cage match?

    It’s summertime. Let your kids get bored.

    Tokyo streets now offer the chance to snuggle an alpaca

    Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

    Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.

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  • Bud Light is No Longer Top-Selling Beer in U.S.

    Bud Light is No Longer Top-Selling Beer in U.S.

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    Bud Light has lost its status as the top-selling beer in the U.S.


    Rick Diamond/Getty Images

    Modelo Especial has quietly overtaken


    Anheuser-Busch InBev


    Bud Light as the nation’s top-selling beer, punctuating the impact of a boycott that followed the brand’s controversial promotion by a transgender activist.

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  • Diageo PLC Names Debra Crew Chief Executive Officer

    Diageo PLC Names Debra Crew Chief Executive Officer

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    By Joe Hoppe

    Diageo said Friday that interim Chief Executive Officer Debra Crew has been appointed CEO, effective as of Thursday.

    The London-based maker of Johnnie Walker Scotch whisky, Guinness stout and Smirnoff vodka had named Crew interim CEO on Monday, ahead of her planned joining date as CEO in July 1.

    On Wednesday, Diageo said that longtime chief executive, Ivan Menezes, died after a short illness. He was 63.

    Crew first joined the liquor giant as a nonexecutive director in 2019 before stepping down from the board the following year to lead the company’s business in North America, its largest market. She was promoted to chief operating officer in October 2022.

    Write to Joe Hoppe at joseph.hoppe@wsj.com

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  • It’s 5 a.m. Somewhere

    It’s 5 a.m. Somewhere

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    JFK Terminal 8—It is 9:22 a.m., and I am learning about consumer protections from a food-safety inspector who is on her second Bloody Mary. There is nothing quite like alcohol to facilitate an expansive conversation: I should encourage young people, she tells me, to consider careers in food safety. She’s on her way back from a work trip, and I learn that she always drinks Bloody Marys when she travels, which is often, but never drinks them at home. We move on to other topics: reincarnation, ExxonMobil, karma, the state of labor unions. The only thing that seemed to be off limits was her full name (her job, she said, prevents her from speaking to the media).

    We’re sitting in the New York Sports Bar across from Gate 10, which is next to Solstice Sunglasses and a vending machine selling ready-to-eat salads in plastic mason jars. In the corner, two blond women drank white wine. A passing traveler pops her head in: Does the bar serve French fries? The bartender says no, they don’t start serving French fries until 10:30. It is too early for French fries. But it is not too early for white wine.

    By the time security spit me out into JFK Terminal 8 at 7:02 a.m., the bars were already slinging drinks. At least four bars had patrons, including O’Neal’s Restaurant (a “cozy wood-paneled pub,” according to the JFK directory) and Bobby Van’s Grill (“elegant ambiance and upscale menu”). At JFK, alcohol service can begin at 6 a.m., the same time bars open at LAX. That’s hardly early for major airports. At MSP, outside Minneapolis, opening time was once also 6 a.m. but is now 4 a.m.; at Tokyo Narita Airport and London’s Heathrow, there are no restrictions. Early-morning drinking at airports is not just accepted but pervasive, Kenneth Sher, a University of Missouri expert on alcohol habits, told me. The internet has noticed, too. “What’s with all these people drinking pints in the airport at 6am?” wondered a Redditor in one of the many threads devoted to the topic.

    Outside the airport, this is not how drinking works—or at least, not how it works in public. Morning drinking, with few exceptions (brunch, tailgating), tends to be “a sign of pretty severe alcohol dependence,” Sher said. Legally, it is discouraged: Non-airport bars in New York State are not allowed to start serving alcohol until 8 a.m. (10 a.m. on Sundays), and most hold out until at least the early afternoon, if not happy hour, Andrew Rigie of the New York City Hospitality Alliance, told me. But in the airport, the normal rules of drinking do not apply. “I’m not judging,” the bartender at Bobby Van’s Grill said, pouring vodka into a flute of orange juice. “It’s 5 o’clock somewhere.”

    I’d woken up at 4 a.m. to get to the airport, and by the time I met the food inspector, five hours later, I would have believed it was any time you told me. I was hopped up on adrenaline—feeling glamorous and vaguely ill—even though I had accomplished nothing. Mostly, travel is standing in different types of lines. I waited for people to look at my ticket. I waited for different people to inspect my shoes. None of this especially made me want alcohol, even though the idea of drinking at the airport felt romantic, in a novelistic sort of way.

    At Bobby Van’s, perhaps the most dignified dining option in Terminal 8, I ate lukewarm potatoes next to a sad-eyed man drinking coffee and red wine. Mostly, the terminal was quiet. How Do I Live played, which seemed like a reasonable question. I watched a man in a zip-up cardigan eat eggs.

    What are any of us doing here, sipping early-morning drinks at the airport Bobby Van’s? I am here because I am trying to answer that question. Other people have other reasons. You can, by observation and experience, put together a basic taxonomy of airport-drinking types. There is the solo business traveler with time to kill and no particular interest in working. There is the festive couple for whom airport drinks signal the beginning of vacation, and their corollary, the festive group of friends. And then there is the anxious traveler, motivated less by excitement than by ambient terror of being in a pressurized metal tube at 36,000 feet.

    For a place where everyone is watching clocks, there is no real sense of time at an airport. “If you look out, all you see is the tarmac, a few airplanes,” says Michael Sayette, an alcohol researcher at the University of Pittsburgh. There are very few cues that you shouldn’t drink, and maybe it is actually happy hour for you. “You’ve got people coming in from all over the world who are on different times,” he points out. “It really is 5 p.m. where they woke up.” The airport perhaps is best understood as what French anthropologist Marc Augé has called a “non-place:” a blip in space and time. “A person entering the space of non-place is relieved of his usual determinants,” he wrote in his book on the subject. “He becomes no more than what he does or experiences in the role of passenger.” It is perversely freeing, if lightly dehumanizing, to be alone in the airport.

    Once you pass security—the transition, in the language of the business, between “landside” and “airside”—you assume another version of yourself. Landside, you are still anchored in your normal life, which is to say that you can come and go and hang out with your family and carry as many ounces of water as you want. Airside, you have assumed a new identity. You have become a traveler. You have no legible context and no obvious history. Are you a person who orders cocktails on a weekday morning? Who’s to say? You belong to the airport now.

    So does everybody else there. There is a sense of solidarity: As fellow travelers, we are all indefinitely trapped in the same timeless, placeless boat. Why not drink? “It’s exciting for people to take an activity that is normally very, very regulated, time-wise, and then be embedded in a space where everything’s okay,” Edward Slingerland, the author of Drunk: How We Sipped, Danced, and Stumbled Our Way to Civilization, told me. Alcohol signals the transition from one set of rules to another. “We use this, on a small scale, at the end of the workday, to transition to leisure time at home,” he suggests. “Drinking in airports is just kind of a bigger version of that. It’s a way of transitioning from our normal everyday lives to whatever unusual thing we’re off to.”

    From the bartender at New York Sports Bar, I learn that women drink white wine and men order whiskey. I learn that back in Terminal 4, where she worked until recently, she’d go through five or six bottles of prosecco every morning shift. Luckily, for the travelers, JFK has no shortage of drinking opportunities, also including but not limited to Tigín Irish Pub, Soy & Sake Asian Eats, Blue Point Brewery, and Buffalo Wild Wings. And that’s not counting the multitude of private lounges, where elite passengers (or those with certain credit cards) are treated to an oasis of snacks and free-flowing booze. The American Express Centurion Lounge in Terminal 4, in fact, has three distinct bars, including a Prohibition-inspired speakeasy with drinks curated by a James Beard Award–winning mixologist.

    None of this is an accident. The modern airport produces a captive, thirsty audience. Airports were once permeable by design, says Janet Bednarek, a historian of airports at the University of Dayton. Bars and shops and restaurants were open to everyone, and “airports depended upon non-travelers to spend money,” she told me. Then 9/11 happened, airports locked down, security tightened, and once you were airside, you’d passed a point of no return. For airports, Bednarek said, that provedt to be a business opportunity rather than a problem: People were now getting to the airport hours early, and they had to do something to pass the time, whether it was shopping or eating or lounging at the bar. “Airports are looking for any way they can to generate revenue,” Henry Harteveldt, a travel-industry analyst, told me. Airports charge airlines huge fees, and still, pre-pandemic, retail concessions accounted for approximately 30 percent of airports’ total revenue, according to data from the Airports Council International.

    Here is the thing about the airport, though: Nobody has control. You cannot control the people sitting next to you, or their children, or the security line, or the prepackaged sandwich options at CIBO Express. And most of all, you cannot control when the plane comes, or whether it comes, or how long it is delayed. More than 20 percent of arrival flights in the U.S. in the first three months of this year were delayed, more than the same stretch in any year since 2014. And that’s not even considering the epic meltdowns that can leave travelers stranded for days. “In a way, alcohol may be crucial for air travel, because it allows you to relax into passive helplessness,” said Slingerland, who was in an airport when we spoke. “I’ve been on, like, 10 flights in the last week and a half, and every single one of them was delayed.” Alcohol, he explains, turns down your brain’s ability to focus, suppress distractions, delay gratification, and do all the things you need to do to succeed in your daily life as a functional adult. But you are not a functional adult in the airport. You are a giant suitcase-wielding baby.

    There is, perhaps, a darker read. “I think 80 percent of what you’re seeing is people who, in their normal lives, would never drink in the morning,” Slingerland said. But that leaves a good number of people whose regular behavior is presumably on display at 7 a.m. No one at JFK seemed all that bothered by the white wine and whiskey passengers were sipping so early in the day, but it’s hard to not see it as yet another sign of what everyone keeps saying: Americans drink too much.

    “Drinking is acceptable in all sorts of other places it didn’t used to be,” wrote The Atlantic’s Kate Julian in 2021. “Salons and boutiques dole out cheap cava in plastic cups. Movie theaters serve alcohol, Starbucks serves alcohol, zoos serve alcohol.” A study published last year traced one in five deaths of people ages 20 and 49 to booze. Another paper found that one in eight American adults drank in a way that met the criteria for alcohol use disorder, a figure that seems to have worsened during the pandemic. And drunken passengers cause problems. Although all-hours drinking is useful for airports, airlines have been less thrilled. “It’s completely unfair,” a Ryanair executive said in a statement arguing for stricter policies in 2017, “that airports can profit from the unlimited sale of alcohol to passengers and leave the airlines to deal with the safety consequences.”

    Alcohol in the airport, I had thought, isn’t like alcohol in the world outside. But perhaps airport drinking isn’t different at all. It still facilitates transition from one state to another—only literally. It still provides the illusion of easing the low-grade misery of life. And it still fosters camaraderie. I thought about the food-safety inspector, whom I’d talked with for most of an hour and surely will never see again. Our conversation had been lovely, I thought. Why don’t I talk to people more? This is the weird duality of alcohol: It can simultaneously blunt and enhance the world. In the airport, you desperately need both.

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    Rachel Sugar

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  • This Easy Hack May Be The Key To Better Brain Health & Energy

    This Easy Hack May Be The Key To Better Brain Health & Energy

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    Beverage goblins, unite.

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    Jamie Schneider

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