Consumer Products and Services

Tesco returns to neglected retail basics

18 Nov 2016

The UK supermarket will plough most of its planned cost savings into shielding consumers from inflation, effectively continuing a price war. Yet Tesco also says it can double its operating margin. That hinges in part on a tricky strategy: persuading shoppers to buy pricier goods.

Estee Lauder pays $1.5 bln for fountain of youth

15 Nov 2016

The 70-year-old cosmetics maker hopes to goose up sales with the acquisition of millennial-friendly brand Too Faced. At 5.4 times sales, the price is rich compared to Lauder's own valuation. But it stacks up against similar forays by L'Oreal. That explains smiling investors.

Reynolds can get more of what BAT’s smoking

15 Nov 2016

The U.S. tobacco maker rejected an offer from its biggest shareholder that values the whole company at $76 bln. A new government at home gives Reynolds a smidgeon of extra negotiating heft. The case for a deal, meanwhile, remains as bewitching as the evil weed itself.

Amazon is trying to deliver everything to everyone

26 Oct 2016

The near $400 bln internet giant's efforts in gadget production, online video, shipping logistics and even bricks-and-mortar stores may smack of hubris. But there's a method to the ambition. Feedback loops mean it may be easier for Amazon to crack multiple markets at once.

Under Armour succumbs to all-powerful fads

25 Oct 2016

The $13 bln athletic-wear maker's shares tumbled after it warned of slowing U.S. growth and are now down 60 pct this year. Rivals from Lululemon to Nike to Gap give consumers a dizzying array of similar choices. Under Armour is learning the hard way about fashion's fickle ways.

Web-shy Germany has an edge in grocery wars

19 Oct 2016

Europe's three key food markets are challenged. Carrefour reported 0.1 pct nine-month sales growth in France, while profit margins have halved for UK grocers in five years. For now, the unique structure of Germany's grocery sector, and its qualms about online, provide a buffer.

Hershey shakeup is chance to melt independence

17 Oct 2016

Fresh from spurning a $25 bln bid from Mondelez, the U.S. confectioner's CEO and lead director are leaving. The board of the controlling Hershey Trust also faces upheaval imposed by local officials. Willy Wonka-like, the chocolate factory just might try some pure imagination.

Tesco recovery plan stacks up

5 Oct 2016

Excellent first-half results have given the UK grocer confidence to raise its ambitions for future operating margins. Three straight quarters of sales growth in the face of stiff competition and plans for more cost savings give investors every reason to buy the turnaround story.

Pepsi fizz suggests soda siege only just bubbling

29 Sep 2016

The $156 bln beverage and snacks titan generated better-than-expected sales and profit thanks to higher ad spending and lower-calorie drinks. Creeping health concerns and soda taxes threaten to shake up industry finances. In the meantime, Pepsi is trying to stay ahead of trouble.

Sports Direct does leg two of governance triathlon

23 Sep 2016

The UK retailer's CEO will be replaced by owner Mike Ashley, its second big concession to investors in a week. That will satisfy calls for the powerful founder to be held accountable. Shareholders might rather have seen the chairman go, but the move shows the group is changing.

Unilever scrubs up venture capitalist credentials

20 Sep 2016

The $136 bln Dove soap maker is buying green products firm Seventh Generation, talking with Jessica Alba's company and acquired Dollar Shave. Assimilating fast-growing niche brands with entrepreneurial cultures isn't easy. Unilever's Ben & Jerry's experience gives it a leg up.

Gauging luxury demand now more art than science

14 Sep 2016

Watch-maker Richemont said first-half operating profit will be down 45 percent, with sales poor in all regions. Bag-maker Hermes is to scrap sales targets. With global GDP still to grow by 2.4 percent this year, brands can't just blame weak economies.

Samsung’s handset fires singe its brand

12 Sep 2016

The tech giant is speeding up a recall of Galaxy Note 7 phones, after reports of fires and explosions, while airlines have banned in-air use. Samsung shares have fallen sharply. The immediate financial hit looks manageable but the reputational damage could be worse.

Minority investors should check the returns policy

7 Sep 2016

Sports Direct's shareholders are being trampled by a strong entrepreneur with a 55 pct stake. Italian luxury brand Prada has a similar issue: entrenched founders whose strategy isn’t working. Big shareholders can benefit companies, but other investors end up stuck if things sour.

Hershey’s kiss-off sets a new bar

31 Aug 2016

The U.S. confectioner snubbed a $25 bln offer from Oreo maker Mondelez, arguing it is worth more. That puts pressure on boss John Bilbrey to get the stock up at least to the bid price if not to where it said it would entertain talks. Otherwise, Hershey may become more vulnerable.

Jimmy Choo works hard to get just an inch

25 Aug 2016

The luxury shoemaker’s sales grew 9.2 percent in the first half and operating profitability improved. Its shares still trade at a discount to peers, hit by Brexit worries and exposure to one product. Despite good growth prospects, investors remain reluctant to toe the line.

Post-Brexit UK consumers are oddly rational

18 Aug 2016

Flagging confidence didn’t stop Britons from spending a month after their vote to leave the EU. Consumers may be blind to the recession threat. Or they may be anticipating that a slumping pound will push up the price of imported goods, and pre-empting higher inflation.

Nestle’s rich valuation needs recipe to match

18 Aug 2016

The Swiss kibble-to-Kit Kat maker, like its peers, trades on a high multiple of earnings because of its defensive qualities. Generating cash is a formula Nestle has down, but creating growth to justify consumer goods companies' lofty share prices calls for disruptive thinking.

Carlsberg barely livens up a lousy party

17 Aug 2016

The Danish brewer missed first-half sales and operating profit expectations. Its cost-cutting strategy is starting to bear fruit in better profit margins. But even a perfectly executed turnaround risks being watered down by exposure to some of the world’s trickiest beer markets.

Unilever finds new ways to banish grubbiness

16 Aug 2016

The consumer goods giant is buying Blueair, a posh Swedish air purifier that is big in China and Japan. It follows a $1 billion purchase of subscription service Dollar Shave Club. On one hand, both are strategic shifts; on the other, they’re just creative takes on cleanliness.