Consumer Products and Services

Pepsi has long way to go to win Ozempic challenge

10 Oct 2023

The $222 bln maker of Mountain Dew and Cheetos increased operating profit 14% after its seventh consecutive quarter of jacking up prices by at least 10%. Volume is slumping, however, and anti-obesity drugs are just starting to make their mark. Growth is bound to get tougher.

India’s consumers are surprisingly fragile

5 Oct 2023

Despite near-8% economic growth, weak demand is prompting Unilever and Nestle’s local units to launch multiple low-priced packs of soap and noodles. More official handouts, like an extension to a free food scheme, will be something for companies to both cheer and worry about.

Elon Musk’s X is a black hole of value

3 Oct 2023

Boss Linda Yaccarino is set to present her plans for the social network to bankers holding $13 bln of debt used to buy it. But X may be worth as little as $8 bln. Lead lender Morgan Stanley may have to pick up the pieces just as X threatens to consume whatever value is left.

Meta’s EU subscription looks suspiciously pricey

3 Oct 2023

The Instagram owner may allow Europeans to pay $14 a month to avoid ads. It’s hard to see many users signing up, and the price is far higher than Meta’s regional revenue per user. Regulators and courts, which effectively pushed for this outcome, may get a phantom solution.

Visa takes charge of one risk as another grows

28 Sep 2023

The payments network devised a way for banks such as JPMorgan to gradually offload their collective 20% stake, worth about $96 bln. It would help avoid a mad dash to the exit. With credit card usage, and possibly fees, rising, however, fresh legal and regulatory concerns abound.

Amazon has a poor man’s monopoly

27 Sep 2023

Trustbusters sued the $1.3 trln retailer over how it restricts merchants on its site. But it has lost ground to rivals like Walmart thanks to bad M&A and retail losses. Amazon gets the worst of two worlds: strong enough to worry regulators, vulnerable enough to concern investors.

Coty’s listing treatment is just cosmetic

26 Sep 2023

The $10 bln US-traded beauty firm is going against the tide with a dual listing in Paris. That may give it more visibility with European investors and the funds will cut its debt. But it won’t reduce the risk of its luxury clients boosting their own cosmetic and perfume arms.

Listing duo offers followers a cautious playbook

21 Sep 2023

Chip designer Arm and grocery delivery company Instacart have secured relatively successful stock launches, offering hope of a wider reopening of the IPO market. In this Viewsroom podcast, Breakingviews columnists explain how cornerstone investors and lowly valuations helped.

IPO candidates are trying to flip the FOMO script

18 Sep 2023

Arm’s IPO investors got a 25% return on the first day. Instacart began its roadshow with a low number, only to bump it up. Klaviyo just lifted its price range. Companies and their bankers are finally getting an open window. Creating envy over big debuts will help it stay open.

Capital Calls: Deliveroo

14 Sep 2023

Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.

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.

Apple investors grow fat on iPhone’s thinning buzz

12 Sep 2023

The tech giant’s latest handset, to be unveiled Tuesday, may offer incremental improvements. Sharper pictures and faster charging won’t spur many upgrades. The $2.8 trln group’s main innovation is persuading investors to pay a higher multiple for slower-growing revenue.

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.

Samsonite’s baggage is heavy with geopolitics

12 Sep 2023

Of all the global companies listed in Hong Kong mulling full or partial exits from the city, the $5 bln luggage maker has the least financial motive to move but is “evaluating” venues nonetheless. It hints at the growing pressure on multinationals to plan for extreme scenarios.

Instacart offers IPO investors a free lunch

11 Sep 2023

The grocery-delivery service is seeking a $9 bln valuation, a fifth below its last internal benchmark. Growth and high retailer concentration are risks, but its advertising business is getting unfairly short shrift. The company’s steep post-Covid discount is priced to move.

Barbie’s a boss but not a business model

5 Sep 2023

Warner Bros says the doll-based movie, its biggest ever at $1.4 bln, will boost cash flow and help pay down debt. The contribution is welcome amid a costly writers’ strike. Relying on old brands has a patchy track record, however, partly because they’re up against more new faces.

Capital Calls: Burning Man, Intel/Tower

5 Sep 2023

Concise views on global finance: The festival’s mud-soaked disaster reveals tensions between libertarian ideals and providing infrastructure in a warming world; the $155 bln chip giant’s partnership with its former acquisition target salvages some of the benefits of a tie-up.

Twinkies maker will give food brands a sugar high

1 Sep 2023

Sweet-treat purveyor Hostess is mulling a sale to a conglomerate seven years after private equity firm Apollo took it public for $2.3 bln. At its current valuation, and as the pandemic sugar rush fades, there’s not much cream left for the next buyer to squeeze.

US retailers lace up for battle on two fronts

25 Aug 2023

Shares in retailers like Foot Locker and Macy's have tumbled this week after unveiling dim outlooks. Price-conscious consumers are part of the problem, but others, like Dick’s Sporting Goods, are also citing theft. Both are big issues, and neither looks to be improving.

AI frenzy’s feedback loop stuffs Nvidia

23 Aug 2023

The $1.2 trln semiconductor designer’s second-quarter revenue doubled. Tech giants’ valuations are soaring on AI hype, so naturally companies are pouring money into it, including by buying Nvidia's chips. As long as investors quack for more, Jensen Huang's firm gets fed.