Weekly "Focus" and Spring has Sprung

Of course, winter weather has returned to Toronto now that Spring is officially here and I wouldn’t be surprised if we had snow next month (I attended the first ever Toronto Blue Jays game in the snow on April 7, 1977). Given the weather, maybe it’s too early to even think of summer treats like ice cream (actually, it’s never too early). Tom’s Dairy Freeze opened this week, recognized in the west end of Toronto for their colourful soft serve cones.

 

 

As well, Unilever (UL), the UK/Dutch consumer products company announced this week that they were planning to spin off their ice cream business, which includes Ben & Jerry’s, famous for their iconic flavours such as Cherry Garcia and Chunky Monkey. The move was well received by shareholders who saw a 3% lift in the value of their shares. However, it’s generally been a tough go for Unilever shareholders who have seen no growth in their share values over the past 5 years. In comparison, Proctor & Gamble (PG), the US consumer products company has been a much better performer, significantly outperforming its UK competitor. PG’s outperformance suggests the daily need for diapers and razor blades is a better friend to long-term investors.

 

Unilever (blue) vs. Proctor & Gamble (green) – Past 5 Years

Source: FactSet

 

This week’s "Focus" from our economics team is attached.

 

Have a great weekend,

 

Brad

Senior Portfolio Manager and Senior Investment Advisor