Food & Beverages

Unilever can still avoid Danone’s fate

14 Jan 2022

The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.

Covid-19 victory lap leaves Beijing exhausted

14 Jan 2022

China gloated over its pandemic control and took advantage of economic stability to launch risky crackdowns on tech and property. Now mini-outbreaks are prompting fresh lockdowns as an export boom looks set to slow. In 2022, malaise could prove harder to manage than disease.

Ingredients will be the M&A flavour of the year

23 Dec 2021

Health and plant-conscious buyers are giving a new boost to additives that give products smell, taste, or extra nutrition. Companies like $39 bln DSM and $20 bln Kerry have reorganised to focus on the trend. Consumer giants demanding a fuller service will drive consolidation.

Consumer giants will be in “plastivist” crosshairs

22 Dec 2021

Expected to double by 2030, plastic pollution will create financial risks for companies like Coca-Cola and PepsiCo as countries introduce more single-use bans and taxes. Emboldened by the defeat of Exxon over reducing its carbon footprint, activists will target consumer giants.

Delivery Hero U-turn shows bleaker times for tech

22 Dec 2021

The $28 bln food delivery group is leaving the German market after less than a year. However embarrassing, the move looks rational given the country’s cutthroat competition. Rising interest rates and more volatile markets mean loss-making companies need to keep investors sweet.

Capital Calls: Hedge fund fine

22 Dec 2021

Concise views on global finance: Britain’s FCA fines BlueCrest Capital 41 mln pounds, a third of the fund’s U.S. penalty.

Big Meat will channel VW-Tesla in alt-protein war

20 Dec 2021

Elon Musk stole a march on automakers, forcing them to play catchup on electric cars. A similar dynamic could play out in real and plant-based meat. The likes of Impossible Foods have a Tesla-like lead, but old hands like Tyson and JBS can use M&A to play tortoise to their hare.

The Exchange: Top chef who turned his back on meat

14 Dec 2021

Daniel Humm’s Eleven Madison Park in New York garnered three Michelin stars and was voted the world’s best restaurant in 2017. But after the pandemic, the marathoning Swiss transplant pivoted his kitchen entirely towards plant-based cuisine. He tells Rob Cox why.

EU gig economy faces lengthy fight with Brussels

9 Dec 2021

Draft rules would reclassify up to 4 mln of the bloc’s freelancers as employees. That will raise costs and dent demand for firms relying on the self-employed. Ride-hailing and food-delivery groups can tweak business models or argue in court. The winner won’t be clear for years.

Transatlantic food delivery value gap will narrow

3 Dec 2021

DoorDash and Just Eat Takeaway have similar revenue and growth prospects, but the $57 bln U.S. firm is worth four times as much as its Dutch rival. Better profitability and an earlier move into groceries helps explain the gap. DoorDash’s push into Europe suggests it won’t last.

Capital Calls: Moderna’s $40 bln shot gain

29 Nov 2021

Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.

Capital Calls: Remy Cointreau, African petrol

25 Nov 2021

Concise views on global finance: With profits soaring, the cognac maker will face mounting pressure for M&A; commodity trader Vitol buys out minority shareholders in London-listed fuel distributor Vivo.

Chobani founder seeks frothy IPO cream

24 Nov 2021

An Oatly-like valuation for the Greek-yogurt maker could make boss Hamdi Ulukaya’s stake worth $8 bln. Valued like Danone, he would be worth about a quarter of that. A valuation closer to the latter is reasonable, but Ulukaya can’t be blamed for reaching for a yogurt substitute.

Monster fizz and Corona would make icky cocktail

22 Nov 2021

The $47 bln energy drink maker may be in talks to merge with Constellation Brands, which sells beer and wine. Both have reason to try a new tipple, but savings would be scant given differences in distribution. And a more sprawling business may command a valuation discount.

Capital Calls: Biden’s deficit, Austria lockdown

19 Nov 2021

Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.

Capital Calls: SEC turns tables on vote advice

18 Nov 2021

Concise views on global finance: The U.S. watchdog wants to reverse Trump-era rules restricting firms that advise investors how to vote on corporate matters.

Elliott seeks hidden tech treasure in dull grocer

17 Nov 2021

Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.

Capital Calls: Stadium naming, Diageo, Evolution

17 Nov 2021

Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.

FX risks dilute appeal of Heineken’s Africa tipple

15 Nov 2021

The Dutch brewer is buying South Africa’s Distell for $3 bln and taking over Namibia Breweries. With modest cost savings, CEO Dolf van den Brink can make a spirited return. But he’ll have to flog more Amarula liquor beyond the continent to ease the headache of wobbly currencies.

Sweetgreen IPO is flavored with star power

10 Nov 2021

The Naomi Osaka-backed upstart touches all the food fads: online ordering and appeal to the health-and-time conscious. But it is asking for a premium valuation compared to established fast food companies like Chipotle as a result. Osaka can’t compensate for salads’ lack of spice.