Food & Beverages

Capital Calls: Google, Twitter, Swedish grocer

10 Nov 2021

Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.

DoorDash’s $8 bln bite supersizes its ambitions

9 Nov 2021

The $64 bln food delivery giant's acquisition of Finnish rival Wolt gives it a foothold in the hypercompetitive European market. The deal looks expensive, and won't obviously boost DoorDash's profit, but it serves up more of what investors are greedy for: growth.

Capital Calls: Couch-potato habits help Roblox

9 Nov 2021

Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.

Black Rifle Coffee and SPACs are a logical blend

4 Nov 2021

The veteran-focused coffee roaster is going public by merging with a blank-check company at a reasonable $1.7 bln valuation. It’s fast growing with an ESG flavor, but unhelpful brand associations might put a regular IPO off limits. It’s the kind of thing SPACs were designed for.

Capital Calls: KKR, Ferrari, HelloFresh

2 Nov 2021

Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.  

Unilever’s tea makes for a tasty buyout brew

2 Nov 2021

The Dove maker is selling brands like PG Tips and Pukka, worth perhaps 4 bln pounds. Bringing sales to a proper boil could give private equity giants like Carlyle or Advent an invigorating 19% return. CEO Alan Jope’s struggling personal care lines may not hit the same sweet spot.

Coke dons extra armor in fight against Pepsi

1 Nov 2021

The soda company is leveling the playing field by buying the rest of sports drinks maker BodyArmor that it doesn’t already own for $5.6 bln. The fast-growing brand helps Coke grow in a category dominated by PepsiCo’s Gatorade, just as beverage sales are picking up again.

Capital Calls: Aussie climate plan stumbles

28 Oct 2021

Concise views on global finance: The federal government won’t sign a pledge to reduce methane emissions.

Capital Calls: McDonald’s, GM, Worldline

27 Oct 2021

Concise views on global finance: The $177 bln fast-food chain boosted sales by making it easier to get burgers and nuggets; supply shortages are exacerbating the carmaker’s heavy investment bill; shares in the French payments group tumbled despite ambitious growth targets.

Rapid grocery delivery will keep investors waiting

19 Oct 2021

Loss-making startups from Getir to Deliveroo are ferrying booze and nibbles to homes in under half an hour. Economies of scale will eventually help, although most operators will at best break even. Until delivery robots come along, shareholders will be subsidising lazy living.

Carrefour’s domestic shopping aisle looks bare

11 Oct 2021

A tie-up between the $15 bln French grocer and rival Auchan fell apart amid a valuation dispute. Concerns over competition and jobs complicate local mergers, while a failed Canadian takeover showed foreign buyers are unwelcome. Carrefour has little choice but to expand abroad.

Capital Calls: Green investors, ASOS, Renren

11 Oct 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

Review: PepsiCo CEO memoir leaves work unfinished

8 Oct 2021

In “My Life in Full”, former boss Indra Nooyi describes fending off activists and making big acquisitions at the soda giant. She traces her path from southern India to hobnobbing with world leaders with humility. Her vision of an ethical consumer group looks far off, though.

Capital Calls: Pet retail scrap, Chubb, Czech IPO

8 Oct 2021

Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.

Britain’s grocery LBO boom invites risky price war

5 Oct 2021

CD&R paid $10 bln for Morrisons, months after rival Asda also fell to private equity. Supermarket chains already face thin margins and brutal competition. But with more of the sector now loaded with debt, rivals like Aldi may be emboldened to slash prices and grab market share.

Morrisons losers will check out UK’s Sainsbury’s

2 Oct 2021

CD&R won an auction for Britain’s fourth biggest supermarket with a 7 billion pound bid, edging out a consortium led by SoftBank’s Fortress by just 1 pence per share. The winner could be overpaying, making rival grocer Sainsbury’s look more attractive as a fallback option.

EQT $3.9 bln pet bid typifies PE growth obsession

27 Sep 2021

The Swedish buyout firm topped Hellman & Friedman’s offer for online dog-food seller Zooplus. An absence of debt funding and limited scope for cost cuts mean the numbers only work if sales grow at a greyhound-worthy 15%. A possible counteroffer would stretch things even further.

IPO investors get the Toast without the jam

22 Sep 2021

The $20 bln restaurant booking group priced its offering above the target range amid strong demand for market debutants. Investors are shrugging off wider concerns including a possible economic slowdown in China. Yet even if the stocks pop, IPOs are trailing the broader market.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 Sep 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Kweichow Moutai will take longer to sober up

16 Sep 2021

After a stock rally as fiery as its liquor, the Chinese distiller has lost some $200 bln of market value since February. The industry is facing fresh regulatory scrutiny, which could keep prices flat. A new state-picked chairman also builds a case against the top-shelf valuation.