Food & Beverages

Dutch grocer can afford $7 bln U.S. shopping spree

20 Feb 2020

Ahold Delhaize, the $28 bln owner of Stop & Shop supermarkets, churned out cash after another strong quarter. The success suggests it could hoover up smaller U.S. players. Several grocers might be an option, though Ahold might have to compromise on its preferences.

Grubhub has food-fight edge on Uber Eats, DoorDash

19 Feb 2020

Brutal competition stripped the $4.8 bln outfit of its position as the big cheese of meal delivery and drove it into the red. But Grubhub has cooked up deals with a core group of restaurants that are more profitable than the usual fare. It’s a tastier business than rivals have.

Campari serves up flat dealmaking cocktail

19 Feb 2020

The $11 bln Aperol maker is adopting a Dutch loyalty share plan to give the Garavoglia family more clout. They could pursue bigger targets without losing control. Yet competition for good brands will be fierce, and the risk is that the governance changes deter potential partners.

Virus could spur buyout appetite for Chinese food

17 Feb 2020

McDonald’s and Haidilao have closed stores as the epidemic spreads. They can weather the storm, but other big local chains are running low on cash. Until now, China’s $717 bln restaurant sector and private equity have remained wary of each other. That may be about to change.

Hong Kong bankers drop-kicked while they’re down

14 Feb 2020

The city’s World Rugby Sevens leg has been postponed six months because of the coronavirus. Sponsor HSBC and its rivals typically schmooze clients and cut loose at the big event. Its absence in the April diary will be a grim reminder of the tough year ahead in Asian finance.

Kraft Heinz keeps riding a slow train to nowhere

13 Feb 2020

Sales at the $34 bln food and drinks peddler continue to decline as its $29 bln debt load looms. The company needs more cash, but with asset values declining, divesting businesses like peers will be tough. It keeps on shelling out its coveted dividend. That may be next to go.

Nestlé revamp might require looser purse strings

13 Feb 2020

The Aero maker’s organic sales rose a decent 3.5% in 2019 as rivals struggle for growth. The next step could be acquisitions. CEO Mark Schneider has raised $15 bln selling units since 2018 and could dip into $20 bln of planned buybacks. Finding a bargain may be tricky, though.

Incoming Heineken boss has a tricky first few sips

12 Feb 2020

Jean-Francois van Boxmeer is leaving the world’s second biggest brewer after 15 years as CEO. His legacy is a firm adept at selling pricier beers in fast growth markets like Vietnam and Mexico. With both troubled, new boss Dolf van den Brink’s issue now is whether to change tack.

Carlsberg premium rating’s days are numbered

4 Feb 2020

The Danish brewer’s Chinese exposure means investors value it more highly than peers. But with the coronavirus shutting nightclubs and half of restaurants in the $22 bln group’s biggest market, that will change. Boss Cees ‘t Hart needs a plan B.

Private equity can sweeten Unilever’s tea business

30 Jan 2020

The consumer giant is weighing a full or partial sale of slow-growing brands such as Lipton and PG Tips, which represent 6% of sales. Paying down debt is not a priority. CEO Alan Jope may be better off teaming up with a buyout fund, as Nestlé did with its ice cream joint venture.

Remy Cointreau’s woes are weighty but temporary

24 Jan 2020

The spirits maker is relatively more exposed to Hong Kong and China, so protests hit sales harder. The coronavirus and U.S. trade war fallout add extra pressure. But with demand for pricey cognac on the up, Remy still deserves a premium to Diageo and Pernod Ricard.

Sainsbury’s new CEO will need outsider’s mindset

22 Jan 2020

The UK grocer’s operations director, Simon Roberts, will succeed Mike Coupe in June. The new chief executive’s three decades of experience in retail will be useful. But he may have to rewrite his predecessor’s plans if he wants to deliver better returns for shareholders.

French demos poor excuse for Casino earnings miss

17 Jan 2020

The retailer’s shares slumped after it said trading profit in France rose just 5% in 2019 – half the previous guidance. On a call with analysts Chief Financial Officer David Lubek blamed recent pensions protests. The unconvincing explanation hints at bigger problems.

Nestlé needs backup in war on plastic

16 Jan 2020

The KitKat maker will invest $2 bln to sell more grub in recycled packaging. Yet even that will only help cut its use of new plastics by a third. For the scheme to work, CEO Mark Schneider needs a market for second-hand wrapping to take off, and other food groups to take a hit.

Albertsons IPO would call on Cerberus’ tamer side

14 Jan 2020

The buyout firm may reprise plans to list the U.S. grocery chain after at least two previous tries. It’s not a bad moment to try and sell a retailer. But Cerberus is known for its tough approach to deals. After 14 years holding on to Albertsons, it may be necessary to soften up.

UK grocery war will be fought on more than prices

9 Jan 2020

Tesco’s local sales barely rose over the festive period. Like other big peers, the 25 bln pound company lost market share to discounters such as Lidl. Improving online services and stocking sought-after premium goods may do more to halt the rot than selling products more cheaply.

Grubhub jump-starts race for food-delivery M&A

8 Jan 2020

Competition from cash-burning rivals like Uber has eroded the $5 billion meal delivery firm’s value. An October letter by the CEO correctly spelled out the need to consolidate. Now Grubhub is mulling a sale. Regulatory problems may await. So it’s best to be the first to merge.

Beyond Meat readies for a difficult second course

3 Jan 2020

The meatless burger maker was a capital markets star in 2019, and sports triple-digit revenue growth. But it also bears the risks of uncertain demand, dependence on retailers and fierce rivals. Founder Ethan Brown could learn from another once-racy consumer brand: Under Armour.

UK $7 bln food fight’s final course: indigestion

20 Dec 2019

Takeaway.com’s Jitse Groen upped his all-share bid for Just Eat, almost certainly seeing off rival cash bidder Prosus. Yet the likely return on his splurge looks low. And investors accepting his offer are betting that the new group will trade on an overcooked valuation multiple.

Africa’s Alibaba looks more lemon than unicorn

19 Dec 2019

Jumia’s post-IPO limp could be life-threatening. The continent’s first billion-dollar tech firm has just enough cash to make it to 2021. But with losses widening due to high delivery costs and short-sellers questioning online transaction numbers, raising more money will be tough.