Food & Beverages

Russian shoppers weaken case for companies to stay

11 Mar 2022

Adidas and Unilever are among those cutting back in the country. They make way for locals such as retailer Magnit and Asian consumer giants that stick around to gain market share. The effect of sanctions on disposable incomes, however, makes the financial logic less compelling.

McDonald’s closure marks ending of Russian era

10 Mar 2022

In 1990, Pierre Briancon witnessed the opening of the fast-food chain’s first restaurant in Moscow. It was the surest sign the Soviet Union was dead and its economy reforming. Similarly, McDonald’s closing its 850 Russian outlets this week symbolises the country’s isolation.

Russian wheat squeeze sows seeds of global unrest

9 Mar 2022

Prices of the grain soared to record highs following Moscow’s invasion of Ukraine, a major producer. A previous spike in 2007 led to riots in Africa and Asia while pushing up subsidy costs. This time major importers like Egypt already have low reserves, spelling greater trouble.

Meituan sums up struggle to solve Beijing riddles

2 Mar 2022

The food-delivery giant lost $28 bln in market value after regulators suggested last month that merchant charges should be cut. State media later downplayed the guidance, but now the company is lowering some fees. It’s a classic case of why investing in Chinese tech is so hard.

Budweiser’s foam will be hard for ThaiBev to brew

24 Feb 2022

AB InBev’s Asian spinoff grew 2021 net profit by 76%, helped by premium pricing and a recovery in volume. The results bolster the case for its Bangkok-based rival to revive a beer IPO plan. The valuation, however, should be more sobering than Bud’s 36 times expected earnings.

Capital Calls: Macy’s activist wins despite rebuff

23 Feb 2022

Concise views on global finance: Though the retailer rebuffed Jana Partners’ efforts to separate its e-commerce business, refocusing investors likely delivered a healthy return for the pushy shareholder.

7-Eleven clash shapes up to be Mt. Fuji moment

22 Feb 2022

Emboldened by its success in Japan, normally discreet ValueAct is publicly chiding Seven & i’s structure and governance. The $44 bln retailer has dug in after previously fending off Dan Loeb. Winning over local fund managers would help a bubbling flow of pushy investing to erupt.

Reckitt baby food is problem child best kept home

17 Feb 2022

Offloading the sluggish Enfamil unit would boost the Nurofen maker’s growth. But rivals Nestlé or Abbott would face regulatory hurdles, while a buyout group would probably pay less than the unit’s 5.4 bln pound book value. CEO Laxman Narasimhan is better off holding on.

Chinese e-commerce IPO hawks an Alibaba antithesis

17 Feb 2022

Huitongda mainly sells electronics and fertiliser to wholesalers in rural areas. It's a low-margin and simple business compared to the expansive shopping empire run by its large backer. Amid the tech rout, the $3 bln company's Hong Kong stock sale ticks some of the right boxes.

Capital Calls: ABB’s car chargers, Airport M&A

10 Feb 2022

Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.

Unilever’s Plan B invites unflattering comparisons

10 Feb 2022

After a failed 50 bln pound bid for GSK’s consumer arm, CEO Alan Jope intends to focus on more promising brands in personal care and beauty. That unit’s revenue grew 4% last year, lagging glossier rivals like L’Oréal. Higher sales will also come at the expense of lower margins.

Yum China’s strategic recipe adds too much spice

10 Feb 2022

The KFC and Pizza Hut owner plans to open as many as 1,200 new stores across the country despite a 93% fall in quarterly profit. Starbucks is similarly confident. Both may be underestimating the extent of consumer weakness. Hotpot chain Haidilao provides a cautionary tale.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.

Capital Calls: Antitrust game of chicken

31 Jan 2022

Concise views on global finance: President Joe Biden’s administration is hypersensitive to mergers that reduce competition. Sectors that have also experienced inflation may be top of the hit list – like poultry production.

Capital Calls: Blackstone, German chips, Guy Hands

27 Jan 2022

Concise views on global finance: The $140 bln group braces for falling asset values and rising interest rates; Berlin sends the wrong signal by ignoring a 4.4 bln euro offer for wafer maker Siltronic; Britain seeks to reverse the financier’s lucrative 1996 housing deal.

Pushy 7-Eleven investors are welcome inconvenience

27 Jan 2022

The Japanese owner of the Slurpee-selling chain is under growing pressure to spin off struggling units and overhaul the board. There’s a risk of a frustrating battle like the one dragging out at Toshiba. A more receptive approach, however, could deliver Olympus-like results.

Peltz’s Unilever fight is easy; winning is harder

24 Jan 2022

The investor who took on Procter & Gamble has bought a stake in its European rival. Sluggish growth and CEO Alan Jope’s failed bid for GSK’s consumer arm give Unilever shareholders more reason to welcome an activist. Reshaping the company to boost performance requires more work.

Just Eat Takeaway’s best U.S. call is late dropoff

21 Jan 2022

The food delivery group paid $7.3 bln for Grubhub last year, but investors now attach little value to its American business. CEO Jitse Groen could sell it or spin it off, but only by recognising a big loss. Waiting for the unit’s prospects to improve might be a better plan.

U.S. relisting for Luckin would be hard to swallow

21 Jan 2022

China’s would-be challenger to Starbucks may be plotting a market comeback after $300 mln in fake sales got it booted from Nasdaq. It has restructured and is moving towards profitability, but otherwise is covered with red flags. Even floating on a local bourse would be ambitious.

GSK consumer fiasco leaves Unilever vulnerable

19 Jan 2022

The Dove maker ruled out raising its 50 bln pound bid for the pharma group’s toothpaste unit. Investors will be relieved CEO Alan Jope isn’t overpaying. But he’s now stuck with a food portfolio he’s clearly not happy with. His rash strategy will increase pressure for a breakup.