Beverages

Capital Calls: Pfizer, ConocoPhillips

4 May 2021

Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.

Kweichow Moutai distills a governance discount

29 Apr 2021

The $396 bln Chinese baijiu maker’s bottom line rose just 6.6% in the first quarter, far slower than sales, while rivals boosted profitability. Unusually high tax payments are to blame, as local officials milk Moutai. The deteriorating trust could erode further value.

Oatly’s IPO health depends heavily on China

20 Apr 2021

A partnership with Starbucks in the People’s Republic boosted the Swedish oat milk maker’s sales and profile. Major investor China Resources should help with future growth. But the state-backed group’s involvement is also a risk for buyers of its mooted $10 bln U.S. listing.

Next Danone CEO can serve up faux-milk spinoff

20 Apr 2021

The $50 bln Activia maker is searching for a new boss to lead its turnaround. Listing its Alpro unit would be a tasty way to tap into investor demand for dairy substitutes. Even at half the sales multiple that rival Oatly is seeking in an IPO, the unit could be worth $11 bln.

Capital Calls: Volvo IPO, Walgreens, Saudi Arabia

31 Mar 2021

Concise views on global finance in the Covid-19 era: Geely’s mooted $20 bln valuation for its Swedish brand still looks ambitious; Amazon can't match the transatlantic pharmacy chain's in-store clinics; Mohammed bin Salman grabs private cash to pay for a switch away from oil.

Capital Calls: Sports versus the Trump slump

26 Mar 2021

Concise views on global finance in the Covid-19 era: Political news startup Axios may merge with sports site The Athletic.

Danone’s purpose will survive chairman’s departure

22 Mar 2021

Emmanuel Faber’s sustainability credentials did not prevent the yoghurt maker from ousting him. But fears the group will disavow its ESG ideals are misplaced. The standards are embedded in the French company’s operations and legal status. Besides, investors still support them.

Capital Calls: Bank M&A, Wine trades

19 Mar 2021

Concise views on global finance in the Covid-19 era: Sabadell’s decision to keep its UK unit nixes hopes of a deal with BBVA; U.S. vintner Duckhorn’s IPO ups pressure on Treasury Wine.

JDE Peet’s spilt milk has lessons for IPO hopefuls

9 Mar 2021

Shares in the $19 bln JAB-backed coffee group dived after weak 2021 guidance. Rivals Illy and Unilever, which may spin off its tea arm, will shudder at the L’OR maker trading below its May IPO. More marketing spends and premium drinks could set them apart in any future listings.

White supremacy dies hard on the grocery shelf

5 Mar 2021

New Orleans craft beer Dixie will soon shed its name for a less racially divisive marque. It’s a big risk for a small company. But if a Southern staple can jettison a racially insensitive brand, what’s taking $60 bln giant Colgate, maker of “Black person toothpaste,” so long?

Bubble tea IPO can avoid bitter aftertaste

4 Mar 2021

Nayuki is planning to list in Hong Kong. Demand for its brews is growing quickly, though Covid-19 was a drag. It could be worth $2.4 bln based on where peers trade. Investors may be wary after the Luckin Coffee saga, but smart expansion and cost control would sweeten the pot.

Coupang’s next delivery: better disclosures

2 Mar 2021

South Korea's e-commerce darling is seeking a $50 bln valuation. It boasts heady growth and hefty losses. Metrics such as fulfillment costs, reported by peers like Amazon, are missing from its prospectus, though. Scant detail on new bets also makes the IPO math hard to justify.

Evergrande contagion tests Beijing’s generosity

26 Feb 2021

China’s $10 bln retailer Suning.com threw a financial lifeline to the troubled property developer. Its founder is now selling a controlling stake as the embattled group faces $5 bln of debt due this year. A government bailout, which may be imminent, would send the wrong message.

Pandemic speeds AB InBev’s necessary revamp

25 Feb 2021

More drinking at home and higher raw materials costs will pressure the $100 bln brewer’s margins in 2021. After years of zero-based budgets, it needs looser purse strings to revive sales. But with $83 bln of debt, its valuation discount to less profitable rivals will persist.

Capital Calls: Petrobras CEO, Kohl’s

22 Feb 2021

Concise views on global finance in the Covid-19 era: Brazilian President Jair Bolsonaro nominates a former general to replace the oil group's market-friendly boss, tanking the shares; and U.S. department store Kohl’s has some unhappy shareholders.

India Insight: Soy sauce flavours global finance

22 Feb 2021

Century-old Kikkoman recently served its signature condiment to Mumbaikars as part of a rollout campaign. This latest overseas expansion evokes its post-war U.S. strategy. Despite rampant protectionism, the Japanese company offers a glimpse of the next wave of foreign investment.

Danone CEO upsets activist’s Nestlé-fication hopes

19 Feb 2021

Artisan wants the $47 bln yoghurt maker to dump food and water laggards and prioritise higher-margin lines. A focus on medical nutrition echoes the health science push of the Swiss giant, which has outperformed under pressure from Dan Loeb. But boss Emmanuel Faber is in the way.

Capital Calls: Tribune, Shopify

17 Feb 2021

Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.

Capital Calls: Jay vs. Larry

10 Feb 2021

Concise views on global finance in the Covid-19 era: Jerome Powell takes on Larry Summers in the inflation debate.

Thai beer float needs market fizz for top value

8 Feb 2021

Thai Beverage’s move to float 20% of its brewing business has strong echoes of the 2019 IPO of Budweiser’s Asia unit. To reach a mooted $10 bln equity value, it will need to match a bubbly valuation too. But it’s less profitable and Singapore listings aren’t known for froth.