Food & Beverages

Chinese bottled water IPO offers up a muddy glass

18 Dec 2019

Market-leader Nongfu Spring could raise more than $1 bln in Hong Kong. Mainland households are drinking more of the bottled stuff as incomes rise. That thirst, though, has brought competitors, and may also prompt a much-needed tightening of environmental and consumer rules.

DuPont’s latest reinvention risks deal fatigue

16 Dec 2019

The $26 bln sale of its nutrition unit looks smart on paper. Yet DuPont has been reworking itself for four years, with no real boost for shareholders. Buyer IFF is still digesting another purchase. And closing is over a year away. Even the right deal can be too much of a grind.

DuPont comes out smelling of roses in $45 bln deal

16 Dec 2019

Executive Chairman Ed Breen is merging his nutrition and biosciences business into International Flavors & Fragrances. He has secured a premium valuation, cash sweetener and a tax-free transfer for DuPont shareholders. IFF gets little besides the dubious benefits of scale.

Delivery Hero’s $4 bln order corners kimchi market

13 Dec 2019

The German company is buying South Korean food delivery rival Woowa. The price is a big increase from a $2.6 billion valuation a year ago, but the target enjoys hearty growth and healthy profitability. Joining forces in the country makes sense – provided regulators allow it.

AB InBev’s Oz M&A party leaves antitrust headache

12 Dec 2019

The world’s biggest brewer’s $11 bln sale of its Australian unit to Asahi has been challenged by the country’s watchdog. Its tough stance on beer and cider competition may hurt boss Carlos Brito’s plan to cut debt. The Corona-maker has other options, albeit less appetising ones.

Haagen-Dazs cash may melt in Nestlé’s pocket

11 Dec 2019

The Swiss giant is selling its U.S. ice cream unit to a joint venture with buyout firm PAI for $4 bln. A big dollop of debt gives the $312 bln group a taste of private equity returns. After his second big disposal this year, CEO Mark Schneider might be tempted to splash out.

Just Eat offer is taster for Christmas food fight

9 Dec 2019

Internet investor Prosus sweetened its cash bid for the UK food delivery company to $6.5 bln. That’s tastier than rival Takeaway.com’s all-share proposal, but still well below Just Eat’s market value. Shareholders are expecting a few more helpings before the end of the year.

Tesco leaves Asia with a full cart

9 Dec 2019

Britain's biggest grocer may sell its business in Thailand and Malaysia. Thai peer Central Retail should list at a rich valuation, making it a good time to exit before regional economies cool further. The likes of prior owner CP Group could put $9 bln in Tesco’s pocket.

ThaiBev is tempting Budweiser with a Saigon brew

3 Dec 2019

Tycoon Charoen Sirivadhanabhakdi may spin beer assets out of his Singapore-listed group, including an attractive Vietnamese pint. An IPO, at a mooted $10 bln valuation, could unlock value. The real prize will be a synergy-creating deal with AB InBev's newly hived off Asian arm.

Packaging sale can cure AB InBev’s hangover faster

28 Nov 2019

The $133 billion brewer’s U.S. bottle and can production unit is worth up to $6 bln. A sale of even a minority stake can bring net debt below 2 times EBITDA a year earlier in 2022. Soothing investor fears over indebtedness is worth having to rely on another company for vessels.

Meituan Dianping profit recipe lacks secret sauce

22 Nov 2019

China’s $68 bln food-delivery company had its second consecutive quarter in the black. Good weather and restaurant ad revenue helped. As global rivals have found, though, the ingredients for sustainable profit are elusive. It’s not clear yet Meituan has sourced them either.

Just Eat M&A takeout is best served with cash

15 Nov 2019

Investors in the $6 bln group have an all-share offer from peer Takeaway.com and a higher cash bid from tech giant Prosus. Taking the money means quitting the fast-growing food-delivery sector before it has matured. Since profit margins are falling, that may be a good thing.

How Big Milk failed to see writing on the carton

15 Nov 2019

The bankruptcy of Dean Foods, America’s biggest milk processor, stems from falling demand and retailers like Walmart aggressively pushing their own cheaper brands. Yet the company’s poor decisions helped curdle its finances, and may now leave hundreds of farmers in the lurch.

Chinese buyout shop grabs for last UK pizza crust

14 Nov 2019

Hony Capital paid 900 mln pounds for PizzaExpress in 2014. Now it’s facing a wipeout as the restaurant chain falters. Snapping up unsecured bonds might boost its bargaining power in debt talks, but its hand looks weak. The firm’s best hope is that nobody wants a messy default.

Viewsroom: When the CEO breaks the rules

7 Nov 2019

McDonald’s has provided a map for other firms after ousting boss Steve Easterbrook over a consensual relationship with an employee. Elsewhere, Aramco’s IPO and Fiat Chrysler’s merger with Peugeot. Plus: Breaking Japan’s love of hard cash.

McDonald’s CEO ouster sends clear #MeToo message

4 Nov 2019

The $144 bln fast-food chain replaced CEO Steve Easterbrook after he broke rules by having a consensual relationship with an employee. A simple policy, applied at the top, is one way to let everyone know that worse behavior – like harassment of subordinates – is out of bounds.

Consumer giants’ housekeeping turns into hard work

1 Nov 2019

Big groups slimmed down by selling businesses from margarine to beer. But now Pernod Ricard is cooling on a sale of its wine brands, while Nestlé is taking a while to offload its cooked meats unit. Unrealistic price expectations and pumped-up valuations are partly to blame.

Viewsroom: LVMH wants more sparkle

31 Oct 2019

The $200 bln luxury conglomerate is making a $14.5 bln bid for Tiffany. The iconic brand known for putting its bling in blue boxes would be wise to accept the proposal. Plus: Venezuela’s leadership saga and a surreal debt drama collide. And: the world’s most expensive chocolate.

Beyond Meat’s post-lockup slump is just a taster

30 Oct 2019

The vegan-burger maker’s stock fell 22% as a block on insiders’ share sales was lifted. It’s still far above its IPO price, and revenue is rocketing. But it’s a reminder of a simple truth: more supply tends to mean lower prices. Rivals are getting wise to meatless meat’s appeal.

Just Eat bidders distracted by messy sideshow

29 Oct 2019

Prosus and Takeaway.com are competing to buy the UK food delivery group. Now a Just Eat shareholder has accused the former of orchestrating a sale of shares in the latter to depress the value of its bid. The war of words won’t deflect investors from demanding a better offer.