Beverages

The sober case for China’s national spirit

29 Mar 2017

Kweichow Moutai's market value has soared to a heady $70 bln, putting the liquor firm almost on par with Britain’s Diageo. Investors are toasting the baijiu distiller for riding out China's anti-corruption drive. High valuations are offset by fast growth and fat margins.

Enough with Hong Kong market’s dark alleys

24 Mar 2017

Hong Kong is plagued by puzzling share gyrations. On Friday a $5 bln stock crashed 90 pct in minutes. HKEX boss Charles Li reportedly says his market is no casino, even if a few "gangsters" lurk in dark corners. Such complacency will do nothing to reassure investors.

Heineken’s taste for volatile growth faces a test

15 Feb 2017

The Dutch brewer reassured investors by promising to further improve operating margins in 2017. Its confidence owes much to a foothold in rapidly growing beer markets. But increased economic risks and competition in countries like Mexico and Vietnam threaten its optimistic glow.

Carlsberg boss grapples with stubbornly flat pint

8 Feb 2017

The Danish brewer’s full-year results show Cees ‘t Hart’s turnaround plan is helping profit margins. He also closed a valuation gap with Heineken and beat AB InBev on investor return since taking over. But Carlsberg’s presence in tough markets caps how much more can be done.

Jose Cuervo IPO can drink to weak peso

7 Feb 2017

The U.S. election outcome put the Mexican tequila maker's stock float on ice. It's now back at a mooted valuation of over $5 bln with a Singaporean investor ready to take a shot. New tariffs in Jose Cuervo's biggest market are a threat, but a cheap currency may be just the tonic.

Heineken’s Dutch courage on Brazil looks merited

20 Jan 2017

The brewer may buy Kirin's Brazil unit for a mooted $872 million. The deal would give the company a 20 percent share of a difficult market, still well behind dominant AB InBev. The target is loss-making, but Heineken has reason to believe it can do a better job.

Heineken’s UK pub binge not as retro as it looks

14 Dec 2016

The Dutch group has offered 390 mln pounds for Punch Taverns in a bid to triple its holdings of British drinking houses. Though most brewers got out of the business long ago, pubs are a petri dish to try out new products. A rival bidder may force Heineken to pay more, though.

Heineken’s challenge is to keep glass half full

1 Aug 2016

The Dutch brewer's operating profit was strong, thanks to stellar Asian growth. But first-half revenue fell short of expectations. Headaches in Africa show that its reliance on emerging markets comes with a snakebite of currency, macroeconomic and geopolitical hazards.

LVMH results showcase benefits of mixed luxury bag

26 Jul 2016

A pop in demand for champagne and cognac boosted sales of the fancy French conglomerate in the first half and offset declines at its core fashion division. As travel fears and lower demand for designer goods bite, LVMH's diversity allows it to hold its own better than rivals.