Consumer Products and Services

Peter Thiel chooses better-fitting bubble in L.A.

15 Feb 2018

The conservative tech billionaire may be ditching lefty San Francisco, frustrated by its cultural homogeneity. His fortune and fame owe much to Facebook, which has helped add virtual segregation to real-world social sorting. In a sense, he’s a victim of his own investing success.

Nestlé’s tepid year poses bigger questions

15 Feb 2018

Lacklustre 2017 sales have focused investors on issues the Swiss group would rather avoid. Not renewing a shareholder agreement with L'Oréal suggests a rethink of its stake is underway. But the future of sugary brands and a push into health supplements need clearer explanation.

Danone’s Yakult sale points to a healthier future

14 Feb 2018

The dairy giant is selling most of its stake in Japan’s Yakult and will rake in roughly 1.4 billion euros. The value of the investment that it made in 2003 has nearly quadrupled. The proceeds will help the company meet its debt-reduction goal. The capital discipline is welcome.

GNC’s China pill could prove poisonous

14 Feb 2018

The struggling U.S. vitamin vendor is selling a 40 pct stake to Harbin Pharmaceutical. That should help open the door to a big market. The price is steep, though. Convertible shares come with nearly half the board, giving GNC's partner the muscle to block any future rescue deals.

LBO firm needs tough love for American Greetings

13 Feb 2018

Clayton, Dubilier & Rice is buying a majority of the card maker. The founding Weiss family, which took it private in 2013, has failed to grow earnings as consumers go digital. It’s not yet a Valentine’s Day Massacre, but a lack of sentiment will be needed to spark a turnaround.

Tesco has to decide which investors to annoy

13 Feb 2018

Activist fund Sandell wants the UK supermarket group to up its 3.9 billion pound bid for Booker. A high hurdle for approval means a small minority can derail the deal. But if Tesco sweetens the offer, it will anger shareholders like Schroders who already think the price too rich.

Luxury companies’ largesse is born of necessity

13 Feb 2018

Kering is joining LVMH in hiking dividends. A 30 percent jump in its cash payout comes on top of the Puma stake that Gucci’s parent is handing over to shareholders. With valuations high and cash piling up, lavish generosity is needed to keep hard-to-please investors happy.

Heineken’s number two status brings marginal costs

12 Feb 2018

The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.

China’s prank video app is common man’s unicorn

12 Feb 2018

Kuaishou is closing in on an $18 bln valuation, just behind WeWork. The Tencent-backed startup caters to viewers who enjoy watching people stuff fireworks in their pants. Competition is fierce, and censorship intense. This fuse could burn quickly.

Newell proxy combatants share flawed strategy

9 Feb 2018

Starboard wants to replace the Elmer’s-to-Rubbermaid group’s board with a slate led by former managers of Jarden, which it bought two years ago. Newell has failed to hit targets, but Jarden’s rollup model was running out of gas too. A breakup would be a better activist ambition.

Viewsroom: The Fed’s belated Wells Fargo beating

8 Feb 2018

Chair Janet Yellen forbids the $2 trln lender from growing bigger - on her last day in the job, and 17 months after Wells’ fake-accounts scandal hit. Meanwhile, fellow financial watchdog CFPB seems to be giving hacked Equifax a free pass. Plus: how Nintendo made a comeback.

Tesco pay showdown contains a wider warning

8 Feb 2018

A claim that female shop workers should get the same wage as male warehouse staff could cost the UK grocer up to 4 billion pounds. It’s a lesser-known twist on equal pay. While retailers Asda and Sainsbury’s face similar legal challenges, all sectors may be exposed.

Yum China looks appetising despite iffy pizza

8 Feb 2018

The mainland operator of KFC grew revenue 8 pct last year and boosted operating profit by 23 pct. Pizza Hut is a work in progress, but shows signs of improvement. Overall, Yum’s spinoff strategy has delivered a straightforward and affordable bet on Chinese consumer appetite.

Wanda thriller casts Jack Ma in supporting role

6 Feb 2018

The troubled conglomerate is selling a $750 mln stake in its Chinese cinema chain to Alibaba. Dalian Wanda improves its financial picture and maybe its chances to add production to theatres.  Ma, whose company just wrote down its studio investment, gets a shot to play hero.

Airshow buoyancy masks turbulence ahead

6 Feb 2018

Aviation bosses gathering in Singapore may want a serving of scepticism alongside the champagne. Rising oil prices, creaking infrastructure and too many seats will limit the gains from a regional boom in cheap flights. Full-service carriers could also hit air pockets.

CFPB scores too low on Equifax transparency

5 Feb 2018

The consumer-finance watchdog is dialing back its probe of the $15 bln U.S. credit-scoring firm’s massive data breach last year. Trump’s CFPB head says the regulator has gone too far in the past. Perhaps – but if protecting vital data isn’t its remit, he needs to explain what is.

San Miguel serves up an enticing spread

5 Feb 2018

The conglomerate run by Filipino billionaire Ramon Ang is uniting beer, liquor and food using a complex share swap. San Miguel Pure Foods, a maker of liver paste and other fare, trades below the implied $9.1 bln valuation. There are reasons to think that financial gap will close.

Ola puts SoftBank in back seat with overseas drive

5 Feb 2018

The Indian ride-hailing outfit wants a slice of the action in Australia. The intrusion into one of Uber’s strongholds will irk SoftBank, which is a big investor in both firms. The Japanese group’s minority stakes clearly are not enough to stop fights between taxi startups.

Airbnb wisely tidies up before guests arrive

1 Feb 2018

The home-rental app ruled out going public in 2018 after its finance chief abruptly quit. With positive cash flows, boss Brian Chesky doesn’t need to rush. The naming of a chief operating officer also shows Airbnb has learned from some of its Silicon Valley peers’ mistakes.

Unilever success hinges on quick house-cleaning

1 Feb 2018

The Dove soap owner is on track to meet sales and profit targets that it set after rejecting Kraft Heinz’s $143 billion bid. Its next big tasks are to pick a new head office and the next CEO. Getting both out of the way quickly will allow the company to focus on taking on rivals.