Food & Beverages

Bankers hit the bottle for Asia deal inspiration

5 Jul 2022

Thai Beverage is spinning off its beers business in Singapore while the Manila-based owner of Whyte & Mackay whisky plans a secondary listing. Rising home consumption can be a comforting tipple amid global uncertainty. Well-priced boozy deals could crack open the wider market.

Kraft has secret sauce in UK grocer food fight

4 Jul 2022

Supermarkets like Tesco are dropping the U.S. food giant’s wares after “unjustifiable” price hikes. That earns brownie points from shoppers and shunts politicians’ gaze to Kraft’s beefier margins. But less choice on the shelves may push business to cut-price rivals like Aldi.

Unilever ice cream mess is only partly cleaned up

30 Jun 2022

The $116 bln group has sold its Israeli Ben & Jerry’s business after the ice cream maker halted sales in the occupied Palestinian territories. Unilever gets to extricate itself from a no-win situation. Yet the hipster dessert’s ongoing autonomy means the two may clash elsewhere.

Capital Calls: Chinese fishermen, UK’s Jupiter

28 Jun 2022

Concise views on global finance: Joe Biden goes after the People’s Republic’s commercial fishing fleet; the fund manager’s new chief executive has an even tougher task than his predecessor.

India’s Zomato gorges on a deal in lean times

27 Jun 2022

As tech companies tighten their belts, half the country’s food-delivery duopoly is paying $570 mln for grocery outfit Blinkit. SoftBank and other sellers swap a down round for a safety net. Using richly valued stock should make it more palatable for the buyer’s shareholders.

Capital Calls: Spirit dogfight costs more each day

21 Jun 2022

Concise views on global finance: Hostile suitor JetBlue bumped up its offer for the budget airline. The bidding war with rival Frontier Airlines is getting more expensive, even as the cost of corporate debt – and thus the burden for the winning suitor – keeps rising.

Plant-based food stocks lack sustainable finance

10 Jun 2022

Shares in faux-milk maker Oatly and plant-based burger purveyor Beyond Meat have tumbled this year. Despite flimsy gross margins, both still trade at a premium to bigger food rivals. Without a plan to cut costs, they will struggle to attract buyers or survive on their own.

Starbucks has talked itself into a China corner

8 Jun 2022

The $91 bln coffee maker’s “second home market” routinely disappoints, and lockdowns aren’t helping. At this point, it’s not obvious a spinoff would create value. The better path would be to slow expansion and focus on profit, but it’d be a tough move after overselling growth.

Guest view: Global hunger fight means no biofuel

6 Jun 2022

Food supplies have shifted rapidly from surplus to shortage. Sarasin’s Henry Boucher argues Western governments have a way to stop prices spiralling further. It entails prioritising food over fuel, and scrapping states’ biofuel mandates.

Capital Calls: JetBlue makes winning Spirit hurt

6 Jun 2022

Concise views on global finance: The hostile bidder has offered cash up-front for Spirit shareholders, which could force current suitor Frontier to make costly concessions.

Capital Calls: Microsoft micromanages tech jitters

2 Jun 2022

Concise views on global finance: A 1% revenue shortfall because of a strong dollar normally isn’t that important. Microsoft’s warning reflects how nervous tech investors have become.

DSM stocks up on ingredients trend with Swiss deal

31 May 2022

The $29 bln Dutch producer of food supplements is swallowing family-owned Firmenich for shares and 3.5 bln euros in cash. That boosts its appeal with consumer groups seeking to manipulate taste, smell and texture. By making concessions on governance, DSM has got a decent price.

AB InBev’s low-alcohol miss has sobering effect

27 May 2022

The world’s biggest brewer wants 20% of its beer volume in 2025 to contain little or no alcohol. Hitting the booze-free target requires unlikely growth of 30% a year. That puts a dampener on CEO Michel Doukeris’s do-gooder vibes, as well as his sales and margin potential.

Icahn squanders golden chance to shape McDonald’s

25 May 2022

The activist’s campaign to shake up the chain’s board with two directors over claims of the mistreatment of pregnant pigs is likely to fail. ESG issues can usher in change as Exxon can attest. But Icahn’s focus is too narrow, and McDonald’s board – and business – could use help.

Capital Calls: Airbnb, Prudential, Glencore

25 May 2022

Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.

Capital Calls: Richemont’s China fears, THG offer

20 May 2022

Concise views on global finance: Shares in the Cartier owner shed 13% after caution about a rebound in the People’s Republic added to subpar full-year results and slow progress on the YOOX Net-a-Porter sale; the UK online retailer rejected one bid, yet higher ones look unlikely.

Egypt’s hunger pangs are like 2011, but worse

19 May 2022

A decade ago the soaring cost of bread helped unseat Cairo’s long-term ruler, Hosni Mubarak. In 2022 food prices are rising faster, and Egypt’s population and debt are bigger. The more prices rise, the trickier the tradeoff between enraging financial and domestic constituencies.

Bulking up in baby food is far from child’s play

17 May 2022

Reckitt and Nestlé’s U.S. sales of infant formula food are surging after market leader Abbott recalled its lines on safety fears. It looks an ideal time for Reckitt especially to flog a weak business line. Unfortunately, state regulations mean its market share gains may not last.

Western companies have 50 bad ways to leave Russia

16 May 2022

Multinationals can sell out like McDonald’s, shut down like Zara owner Inditex or shrink operations like Nestlé. Hopes of finding a Chinese or Indian buyer may prompt some to drag their heels. But the threat of forced nationalisation gives others an incentive to hurry.

India stands between world and food riots

16 May 2022

A ban on wheat exports is a messy but partial U-turn on India’s pledge to feed the world with its grains. The move protects consumers at home at the expense of farmers. Globally, it will exacerbate food security woes and shift the focus onto the country’s critical rice exports.