Food & Beverages

Unilever’s inflation struggle is a mixed basket

22 Jul 2021

Higher costs squeezed the $155 bln Marmite maker’s profitability in the first half, forcing CEO Alan Jope to dump his goal of higher operating margins. Hefty marketing spend gives Unilever scope to raise prices faster. But investors are placing a bigger discount on future growth.

Capital Calls: Chinese hacking, Tencent

19 Jul 2021

Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.

Capital Calls: Online fashion retail

15 Jul 2021

Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.

Capital Calls: China’s bank reserves

9 Jul 2021

Concise views on global finance: Beijing released more cash into its financial system as growth slows.

Fortress’ vows to Morrisons look flimsy and finite

6 Jul 2021

A consortium led by the private equity group secured the British grocer’s support for an $8.7 bln takeover by pledging to treat suppliers well and not sell real estate. Yet its promises are not legally binding and expire in a year. The target’s board should have pushed for more.

Capital Calls: JEDI’s demise, Toyota’s weird world

6 Jul 2021

Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.

Morrisons feeding frenzy raises multiple dilemmas

5 Jul 2021

Apollo may become the third bidder for the UK grocer. Investors are hoping for more than the $8.7 bln agreed offer by Fortress. Rivals will have to pay up while potentially agreeing to tricky conditions. If the deal turns hostile the board – and shareholders – will be in a bind.

Capital Calls: Teneo manages its own crisis

29 Jun 2021

Concise views on global finance: Declan Kelly, the PR firm’s chair and CEO, has quit after allegations of drunken behavior. Bad behavior is an underappreciated risk in people businesses.

What a bucket of chicken wings might tell the Fed

25 Jun 2021

U.S. poultry prices are on a tear. Wings are the priciest of all. There are reasons of supply, like feedstock inflation and labor shortages, and of demand. Some may be transitory, as the central bank hopes. But it’s more complex than just going back to pre-Covid times.

Capital Calls: Schwarzman’s double tax speak

23 Jun 2021

Concise views on global finance: The founder of Blackstone has a love-hate relationship with capital gains changes.

Tea chain IPO steeped with exuberance

23 Jun 2021

Nayuki's market debut should reflect the popularity of the beverage’s modern boba twist. The Chinese company could be valued at $4.4 bln, on a higher multiple of sales than Starbucks. Keeping the kettle hot without getting burned by expansion costs, however, will be a tough brew.

Capital Calls: GameStop is a SPAC now

22 Jun 2021

Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.

Capital Calls: Netflix, Flackless SPAC

21 Jun 2021

Concise views on global finance: The streaming service strikes an agreement with Steven Spielberg’s Amblin Partners; Helicopter-taxi company Blade’s phony spokesperson speaks poorly to investors.

Buyout shoppers can spend more on Morrisons

21 Jun 2021

The British grocer rejected an $8 bln bid from Clayton, Dubilier & Rice. The 30% premium looks juicy, but the private equity firm will earn a decent return if Morrisons just delivers expected sales and margins. Extra cost savings or property sales would justify a bigger trolley.

Capital Calls: HSBC, MRNA scramble, Cable project

18 Jun 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

Australia’s big boozy spinoff gauges ESG’s S value

17 Jun 2021

Grocery chain Woolworths is in the final stages of demerging its liquor shops, pubs and poker machines. Independence should help the Endeavour arm, perhaps worth A$13 bln, grow faster. How shareholders respond will help distill attitudes on the tricky social aspects of investing.

Just Eat Takeaway risks heartburn with U.S. deal

16 Jun 2021

The Dutch food delivery group has swallowed Grubhub, its second big bite in just over a year. At 3 times expected 2023 sales, the $19 bln company is valued well below rival DoorDash. Boss Jitse Groen has repeatedly bested European competitors, but investors fear indigestion.

Del Monte’s slicing and dicing gets fresh twist

16 Jun 2021

An $800 mln IPO of the Philippines unit carries on a fruity M&A obsession that stretches back at least to KKR’s 1989 buyout of RJR Nabisco. Many segments of the brand’s multiple deals have gone sour. Maybe extracting more juice from pushing pineapples to China will be sweeter.

Capital Calls: Biden’s Big Corn battle

11 Jun 2021

Concise views on global finance: The U.S. president is caught between oil refiners and farmers in biofuel mandate.

Mondelez can be the bad bank of junk food

9 Jun 2021

The $89 bln Oreos maker is selling its stake in soda firm Keurig Dr Pepper while eyeing more wholesome food. Rivals like Nestlé are also under pressure to dump sweets, suggesting these shunned assets will get cheaper. The smart move might be to go against the healthy-eating tide.