Food & Beverages

Global brands set too much store in China recovery

13 May 2022

Western companies like Estée Lauder and Remy Cointreau remain hopeful about the country even though lockdowns have hit revenue. Yet continued mass testing due to Beijing’s zero-Covid push will weigh on demand. Excessive optimism risks delaying a much-needed diversification drive.

Capital Calls: AB InBev

5 May 2022

Concise views on global finance: Anheuser-Busch InBev’s revenue grew 11% in the first quarter compared to last year, but rising prices are a particular headache for the debt-laden brewer.

SlimFast maker could be tasty swig for Nestlé

4 May 2022

An activist wants Irish protein powder seller Glanbia to break up. Listing its consumer unit in the U.S. could double its 3 bln euro value, but would take time and carries risk. That opens the door to a cash-rich buyer like the Swiss giant, which is bulking up its health lines.

Inflation exposes consumer groups’ portfolio duds

29 Apr 2022

Companies like Danone and Nestlé had some success in flogging more stuff while hiking prices last quarter. Water and healthcare enjoyed a post-Covid boost. But groups peddling inflation-proof wares, such as pet care, look better prepared for sustained high prices.

Just Eat investors are stuck with its founder

27 Apr 2022

Some shareholders want to oust the Dutch takeaway group’s finance chief and supervisory board. Yet they have no obvious replacement for CEO Jitse Groen, architect of its disastrous U.S. expansion. It exposes the limits of investors’ ability to challenge powerful entrepreneurs.

Capital Calls: GM electrifies executives’ pay

27 Apr 2022

Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.

Capital Calls: THG’s lowball bids

21 Apr 2022

Concise views on global finance: Britain’s 1.4 bln pound lipstick-to-protein-shake maker THG rejects “numerous” bids as it warns of higher costs.

Just Eat Takeaway faces humiliating U.S. exit

20 Apr 2022

The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.

Capital Calls: KKR and Australia, Danone

20 Apr 2022

Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.

Biden may pay big price for surging grocery bills

13 Apr 2022

The U.S. president is trying to mitigate the pain of soaring gas costs. But he has fewer tools to address dearer food. Grocery prices rose 10% in March from a year ago, with meat jumping 15% and milk up 13%. That might add up to an expensive midterm loss for Democrats.

Capital Calls: Thoma Bravo plays favorite PE tune

13 Apr 2022

Concise views on global finance: The private equity firm sells cybersecurity company Barracuda Networks to KKR.

China’s “bulletproof” coffee IPO is full of holes

12 Apr 2022

Star Plus Legend banks on the founder's pop-star son, Jay Chou, hawking butter-infused, or bulletproof, java and other diet fads. Beijing's crackdown on celebrity influence, however, threatens $57 mln of revenue. Using consumers as a sales force raises another red flag.

Christine Lagarde’s inflation excuses wear thin

1 Apr 2022

Euro zone prices rose at a record annual rate of 7.5% in March, almost as much as in the United States where the Fed has started hiking rates. There’s more going on than just surging energy costs. It’s getting harder for the European Central Bank boss not to follow Jerome Powell.

Carl Icahn is attempting to rewrite his legacy

30 Mar 2022

From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.

American pigs also need pandemic readiness

28 Mar 2022

African swine fever is in the western hemisphere for the first time in 40 years. Unlike, say, in China, U.S. mainland hog farmers and bacon lovers benefit from a zero-ASF reality for now. But far more than the $23 bln of annual economic output is at stake if the virus gets in.

Petrol forecourts can shift to fuel-free future

28 Mar 2022

Despite a push to phase out gas-guzzlers, Britain’s Motor Fuel Group may fetch 5 bln pounds. Selling pricey coffee to drivers charging electric cars offers relatively zippy returns. But beside the threat from home chargers, retailers are muscling in with the same idea.

Instacart’s painful price cut may not be enough

25 Mar 2022

The grocery delivery service firm slashed its valuation by nearly 40% to $24 bln. That’s partly a reflection of peers’ market prices. But based on sales, it’s still valued twice as high as DoorDash. With competition growing from Amazon and Walmart, a further cut may be in store.

Capital Calls: Electric vehicles

17 Mar 2022

Concise views on global finance: Tesla and BYD price hikes show that EV makers need to push harder to slim down designs and jettison expensive materials.

Starbucks CEO do-over points to two labor problems

16 Mar 2022

Howard Schultz is back for the third time as CEO, at least until the coffee chain finds a new one. As employees grow restive, drafting in a benevolent patriarch looks strategic. The lack of an internal successor, though, suggests unions aren’t Starbucks' only workforce challenge.

India’s food super-app hits new gluttonous heights

14 Mar 2022

Food delivery group Swiggy’s ramp up of its rapid grocery service is locking in higher-spending users, giving the Prosus-backed firm an edge over Zomato. But the tech rout and ugly economics of speedy deliveries suggest a $10 bln valuation is better served up in private markets.