Consumer Products and Services

Sony’s success may delay further disentangling web

31 Oct 2017

The Japanese group riding high on Spider-Man is also thriving in games, chips and music. It now expects annual operating profit to hit a record $5.6 bln. That's testament to a long overhaul, but also increases a temptation to stay in areas like phones, TVs and financial services.

Constellation Brands takes the party up a notch

30 Oct 2017

The Svedka vodka and Corona beer maker's mission is to "elevate life with every glass raised." By purchasing 9.9 percent of Canada's Canopy Growth for C$245 mln it can add tokes of marijuana to that vision. It's telling to see big booze beat big tobacco to the fiesta.

Generational shift augurs holiday blues for Mattel

26 Oct 2017

The toymaker’s shares tumbled after it posted a 13 pct quarterly sales drop and suspended the dividend. Toys R Us’ bankruptcy hurt Barbie and Hot Wheels, but American Girl, which sells direct to consumers, suffered even more. Digital kids are the nightmare of Christmas present.

AB InBev grows bigger without getting better

26 Oct 2017

A year after acquiring SABMiller, the world’s No.1 brewer said cost savings from the deal will be higher than expected. Bulking up allows the Belgian company to buy on better terms. Yet it looks worryingly weak at persuading consumers to drink more of its beer.

Banks score hollow victory in class-action win

25 Oct 2017

The U.S. Senate killed a rule allowing groups of consumers to sue financial firms and card issuers. Forced arbitration clauses caused uproars in the Equifax hack and Wells Fargo fake-accounts mess. The shrinking political target on Wall Street’s back is set to grow again.

Whirlpool and Sears engage in war of weaklings

24 Oct 2017

The appliance maker will no longer supply the retailer with most of its brands after a price-hike request was denied. Whirlpool cited higher costs and growing competition. Sears is struggling to keep its business alive and out of bankruptcy. Neither has the upper hand.

China’s mouldy cheese ban leaves lingering stink

23 Oct 2017

Authorities have called off a blockage on imports of Brie, Roquefort and the like. Food safety fears threaten China’s growing appetite for dairy and other foreign fare. The risk of such reactions from a maturing market will require investors to have a strong stomach.

P&G’s ho-hum quarter a gut check for management

20 Oct 2017

The $230 bln diapers-to-soap conglomerate contorted to keep Nelson Peltz off its board. Though it modestly beat quarterly earnings expectations, its underlying issues haven’t changed. Boss David Taylor is under pressure to make headway with full accountability for any stumbles.

Consumer goods makers poised for the big purge

19 Oct 2017

Nestlé, P&G and their peers are pumped far above their long-term valuations. Collectively, the biggest 10 would lose almost $350 bln of market value if history reasserted itself. A squadron of activists offer support, but Unilever’s earnings wobble hints at brittle share prices.

Unilever struggle gives hope to predators

19 Oct 2017

The consumer giant that fended off Kraft Heinz earlier this year reported weak third-quarter sales. Growth in developed markets is slow and consumers are fickle. CEO Paul Polman is sprucing up brands, but the more pedestrian Unilever’s performance, the more vulnerable it becomes.

Publicis pick-up the exception to ad land gloom

19 Oct 2017

The French group reported higher revenue, defying rivals WPP and Havas which binned growth targets this summer. That’s cold comfort for advertising bulls. Publicis seems to be taking a bigger share of a still-challenged market. Past underperformance makes it a poor barometer.

Revamped Reckitt has yet to clean up its act

18 Oct 2017

A restructuring is eclipsing the Dettol-to-Durex maker’s poor third quarter results. Parking brands that are more exposed to competition in a separate unit is smart but makes the company costlier to run. Nor does that address the sales problems caused by shifting consumer habits.

Private equity margarine bet needs activist backup

18 Oct 2017

Buyout firms may pay up to 7 billion euros for Unilever’s spreads unit. The new owners will need to stem falling sales as shoppers shun artificial produce. Acquiring other brands from food companies under pressure from uppity shareholders could be one way of boosting returns.

Danone has to work to milk turnaround tale

17 Oct 2017

Strong third-quarter sales lifted the French yogurt maker’s shares to record highs. Rebounding Chinese demand will help make the most of a strong portfolio of brands. But cost cuts and making a success of its WhiteWave acquisition are key ingredients for an even richer valuation.

Fast Retailing tailors a bright future in Asia

13 Oct 2017

Full-year results from the $32 bln fashion retailer behind Uniqlo show it is back on track overseas. Fast Retailing is growing rapidly across Asia, has staunched U.S. losses, and has bold plans for China. After earlier missteps, this Japanese group is going global in fine style.

Viewsroom: Activists keep the fight alive

12 Oct 2017

Nelson Peltz narrowly lost his acrimonious bid for a P&G board seat. Honeywell’s decision to spin off two small units was less than Dan Loeb lobbied for. These are temporary setbacks. Past experience and their financial firepower make shareholder activists a powerful force.

UK energy cap is bad economics and poor politics

12 Oct 2017

Prime Minister Theresa May wants to limit the most commonly used gas and electricity tariffs until 2020. Other EU countries show government meddling does consumers more harm than good. As a response to the Labour Party’s threat of nationalisation, it’s too little, too late.

Pfizer and Glaxo may find romance over the counter

10 Oct 2017

The $215 bln U.S. drugmaker is preparing to detach its consumer-goods unit, and its British rival is a logical owner. Folding the Advil maker into GlaxoSmithKline’s existing venture with Novartis would be logical, provided CEO Emma Walmsley can whip the business into shape.

P&G scores hollow victory over Nelson Peltz

10 Oct 2017

The $234 bln toiletries firm says the activist has lost his fight for a board seat. Peltz says the vote is too close to call. Either way, the narrow margin should be a wake-up call for P&G’s insular leaders, even if change comes hard for them. Expect Peltz to stick around.

IKEA digital surrender raises flicker of IPO hope

10 Oct 2017

The Swedish furniture firm has grown through its warren-like stores and without needing external capital. Yet it now plans to sell through websites like Amazon to reach new customers. With competitive pressures growing, IKEA might also revisit its aversion to selling stock.