Beverages

Diageo investors seem braced for a beerier future

30 Jan 2024

The $78 bln drinks giant’s sales of spirits fell in the second half of 2023, but Guinness held up. If investors thought Diageo could hit its sales targets, it would be worth more. One takeaway is that they think more of its future revenue could come from less highly valued beer.

Capital Calls: Intel

26 Jan 2024

Concise views on global finance: A 67% rise for the chipmaker’s stock over the past year implied problems have melted away. The company’s warning that first-quarter earnings would fall 60% short of expectations is not the last reality check.

Capital Calls: UK real estate merger

11 Jan 2024

Concise views on global finance: LondonMetric’s all-share move for domestic peer LXi isn’t a bargain, but creates a 4 bln pound landlord with benefits for both sides.

Capital Calls: Cognac, Euro zone inflation

5 Jan 2024

Concise views on global finance: China’s new brandy probe may not be French drinks giants’ main headache; new euro area inflation figures sit all the more awkwardly with the ECB’s refusal to consider rate cuts.

Diageo’s Latin American pain risks spreading

10 Nov 2023

Shares in the spirit company fell 16% on a profit warning. Cash-strapped customers are buying cheaper tequila and whisky and switching to beer. But with interest rates at their current high levels, depressed demand could soon hit Diageo’s larger markets and rivals as well.

French iced tea feud will inflame grocer wars

14 Sep 2023

Carrefour is warning customers that suppliers like Unilever are raising prices on drinks and other goods by shrinking packages. The move will keep the government on side in its war against inflation. But smarter shoppers may hunt for bargains and go to discounters Lidl and Aldi.

Grocers learn lessons of ‘greedflation’ drama

12 Sep 2023

Food-price rises are easing, which is good news for supermarkets that stand accused of profiting from consumer pain. In this Exchange podcast, Ahold Delhaize CEO Frans Muller explains why demand for own-brand goods gives the Dutch group an upper hand in supplier negotiations.

Reese Witherspoon tries to make deal stars align

6 Sep 2023

The “Wild” actor is selling 70% of her Draper James clothing line, two years after Blackstone backed a buyout of her media firm. George Clooney and Dr. Dre showcase the allure of celeb brands, but ones involving Jessica Simpson and Jessica Alba turned fame to financial shame.

Instacart’s mixed bag has valuation opportunities

28 Aug 2023

The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.

Adland consumer-goods boon has limited shelf-life

4 Aug 2023

Food and beverage giants like PepsiCo are ramping up marketing amid soaring sales. That’s a fillip for WPP and peers, which have seen revenue from tech clients stumble. The risk is that, with inflation falling, consumer goods’ momentum slows before Big Tech gets back on its feet.

Capital Calls: Carlyle, UK SPAC deal, Beauty marks

2 Aug 2023

Concise views on global finance: The buyout shop’s fee challenge comes into sharper relief for boss Harvey Schwartz; banker Michael Klein aims to use his latest shell company to buy a British investment firm for $1.6 bln; and $7 bln cosmetics maker e.l.f. is looking glamorous.

Capital Calls: Sequoia, Heineken, Moneyball

31 Jul 2023

Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.

Unilever new broom’s best sweep is towards Asia

25 Jul 2023

The $137 bln Dove shampoo maker hiked prices without losing many sales in the first half. Yet falling European volumes and limited scope for structural tinkering make it hard for new CEO Hein Schumacher to boost margins. His best hope is to bulk up in his strongest region.

Ireland becomes guinea pig for booze clampdown

13 Jul 2023

Drinks like Guinness and Smirnoff vodka will feature cancer warning labels by 2026. It’s a bold move that will be watched closely by the US and Europe. If it’s a success and is replicated, rosy forecasts of alcohol sales soaring to $2 trln by 2030 may be revised.

Diageo’s Ivan Menezes was all-round exception

7 Jun 2023

The CEO of the $94 bln drinks giant, who has died at 63, defied corporate stereotype. He helped engineer a successful merger of equals, delivered index-beating returns while promoting diversity, and seamlessly stepped aside after a decade. It’s a record others should aspire to.

‘Greedflation’ loosens its grip on food retailers

24 May 2023

Suppliers like Unilever and Kraft Heinz are easing inflation-busting price rises that hit grocers hard. That will benefit profit margins at the likes of Kroger and Carrefour. Their next challenge will be convincing cash-strapped consumers to pay, and buy, more in supermarkets.

Capital Calls: Syngenta IPO delay

28 Mar 2023

Concise views on global finance: The Shanghai Stock Exchange has canceled a hearing to review the agrichemicals group's listing plans, leaving investors fearing the worst in China.

Capital Calls: FedEx delivers, for now

17 Mar 2023

Concise views on global finance: Shares in the delivery company shot up over 10% on Friday, as cost-cutting measures pay off. Those benefits could easily dwindle.

Cost surge leaves grocers crying in the aisles

16 Feb 2023

Producers like Unilever and Nestlé are raising prices by as much as 10% to offset more expensive inputs. That is hurting supermarkets like Kroger and Tesco, which face falling margins and consumer anger. Investors can benefit by backing the suppliers and ditching the shopkeepers.

Capital Calls: Data falsehoods

26 Jan 2023

Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.