Consumer Products and Services

Consumer groups’ health drive comes at a cost

4 Dec 2017

Germany’s Merck has invited bids for its $4.8 billion Seven Seas vitamins unit. With Pfizer also selling its over-the-counter business, Nestlé and rival consumer giants see opportunities to use their sharper marketing skills. But the health craze comes with pumped-up valuations.

Ramen IPO may be worth slurping up

1 Dec 2017

Japan's Nissin is taking public its Greater China business at a valuation of about HK$4.1 bln, or $525 mln. Broader demand is falling, but the company is tapping into millennial interest in posher packaged carbs. Compared to where rivals trade, these noodles could be tasty.

Daily Mail finally succumbs to media malaise

30 Nov 2017

The right-wing tabloid’s parent said revenue in its media unit will shrink in the year to next September, after growing 1 pct previously. The same affliction has already hit rival groups. A turbulent time for web publishers also raises doubts about newly-profitable MailOnline.

Unilever buys more time for HQ beauty parade

28 Nov 2017

The Dove soap maker will postpone a decision on locating its head office in London or Rotterdam. It avoids becoming a lightning rod for discontented voters for now. Sitting on its hands also gives the UK government time to offer up goodies that match or beat Dutch perks.

Big Food should resist organic Thanksgiving feast

23 Nov 2017

Natural-foods businesses have grown faster than processed purveyors of late. That makes $4.3 bln organic producer Hain a tempting target for Nestlé or others. But high valuations, changing consumer tastes and the looming threat of Amazon warrant moderation over M&A indulgence.

P&G’s battle with Peltz is practically poetic

22 Nov 2017

The consumer giant fights on with Peltz, backed by hubris and nothing much else. Insularity remains, causing new corporate stains - as the activist readies fresh welts.

Wal-Mart flexes its muscle in Amazon fight

16 Nov 2017

The $268 bln retailer increased its third-quarter revenue as more people visited its stores. Online, the firm kicked out an impressive 50 percent increase in sales. Even grocery sales improved. The Bentonville, Arkansas giant is worth keeping a close eye on in Seattle.

P&G proxy fiasco is black mark on CEO David Taylor

15 Nov 2017

Five weeks after the Tide and Pampers maker triumphantly declared victory in keeping Nelson Peltz off its board of directors, an independent arbiter says the activist won. It's hard to conjure up a better illustration of P&G's insularity than its handling of the whole affair.

Nestlé makes grown-up changes to infant business

15 Nov 2017

The $260 bln KitKat maker is splitting up its global baby-food unit. Regional differences make that sensible. Competition is a factor, too. Nestlé is also the third big food-and-beverage group to shake things up in a month – a sign of traditional consumer-goods firms’ struggles.

TalkTalk investors reconnect with bleak reality

15 Nov 2017

The UK broadband provider’s shares fell 13 pct after it cut its dividend and said EBITDA would be at the low end of expectations. Yet the news is no surprise given founder Charles Dunstone’s plan to invest. TalkTalk’s valuation was hard to square with its challenged business.

Vodafone is doing just fine without Liberty

14 Nov 2017

The mobile operator upped its forecast for organic EBITDA growth to 10 pct this financial year. Vodafone is cutting costs, raising prices and adding customers. Fibre-broadband growth plans in Germany and Britain, meanwhile, make a deal with John Malone or anyone else less urgent.

Online lending defaults could soon go viral

13 Nov 2017

Peer-to-peer loans in the United States are going bad at double-digit rates, eerily like subprime mortgages a decade ago. Although the sector is small, the trend coincides with rising bank credit-card losses. These are classic late-cycle signs of stress among American consumers.

Shopping mall operators turn buy signal into sell

13 Nov 2017

Brookfield’s offer to take property investor GGP private, valuing it at $22 bln, looks cheap or pessimistic. It’s probably both. The prognosis for U.S. real estate overall is poor, and in a sector where prices aren’t very transparent, a lowball bid for GGP would deepen the gloom.

Hasbro Mattel bid would put Barbie in the corner

13 Nov 2017

Troubled $5 bln toymaker Mattel would struggle to rebut the logic of an offer from its stronger rival. Kids have moved on from dolls, and parents from toy stores. The two companies are traditional enemies, but Disney Princess and American Girl now have dangerous common foes.

Burberry’s risky new look rules out missteps

9 Nov 2017

CEO Marco Gobbetti’s plans to take the UK brand upmarket mean no sales or operating margin growth until 2020. Investors who lopped 1 bln pounds off Burberry’s market value will now be unforgiving. Only perfect execution and the right new designer can prevent a further slide.

SSE and Innogy subtly unplug from UK households

8 Nov 2017

The British energy group is merging its retail unit with its German rival’s struggling UK arm. The new separately listed company should have lower costs and a better chance of turning around Innogy’s loss-making business. But tougher regulation could eat into the benefits.

Pfizer health bid could give Reckitt indigestion

6 Nov 2017

The maker of Gaviscon may bid for the U.S. pharma group’s consumer unit. The $15 billion or more price tag would stretch Reckitt’s balance sheet. Tough markets and the hangover from CEO Rakesh Kapoor’s last acquisition may make investors less keen to swallow another bold deal.

Wall Street gets reminder IPOs are no child’s play

3 Nov 2017

Goldman Sachs, JPMorgan and BofA presided over a 41 pct drop in pop-culture dollmaker Funko’s shares, the worst first-day showing in 17 years. Pharma firm Allena fell 29 pct. Faddish, highly leveraged and speculative firms can find a buyer – if bankers price them right first.

Alibaba splurges to impress China’s store owners

2 Nov 2017

Sales are soaring at Jack Ma's $477 bln e-commerce giant. But it is investing heavily in experimental supermarkets and malls that show off its payments, logistics and marketing prowess to others. It's a costly way to keep Alibaba’s technology and services revenue growing.

Placing new wagers may sustain Macau’s hot streak

1 Nov 2017

High-rollers flocking to the tables helped gaming revenue jump 22 pct last quarter to $8.3 bln. Everyday punters are a smarter bet, though, for Sands, Wynn and other casinos. Despite stiffer competition for such customers, their larger numbers and fatter margins improve the odds.