Food & Beverages

Carlsberg soft-drink deal packs an appealing punch

8 Jul 2024

The $18 bln brewer is scooping up J2O-maker Britvic for $4.2 bln. The Danish buyer’s shares have slumped since deal talks started, but investors’ nervousness is overdone. Expanding into non-alcoholic drinks makes sense, and the returns seem reasonable despite a fizzy deal price.

India’s consumer market is large but demanding

2 Jul 2024

Consumption is not a bright spot in the South Asian country, with growth half the pace of GDP. In this Exchange podcast, former Nestlé India board member Rama Bijapurkar explains why international companies need to stick their elbows out to tap the low-earning masses.

 

Britvic can swerve Carlsberg dilution

21 Jun 2024

The soft drinks maker rebuffed a $4 bln cash deal from the Danish beer giant. Carlsberg wants to boost its no-alcohol business, so may yet return with a more generous offer. But Britvic’s cocktail of geographic expansion and low-sugar drinks means it can also grow on its own.

Tate & Lyle’s sour M&A may have nicer aftertaste

20 Jun 2024

The $3.2 bln food company is paying $1.8 bln for US-based ingredient business CP Kelco. An unappetising-looking return may be one reason why Tate & Lyle shares lurched down. But the deal makes strategic sense, and there may yet be a path to sweeter numbers.

Moderna stock is lone omen of bird flu pandemic

17 Jun 2024

The $56 bln Covid vaccine maker’s stock is up 40% since March after an avian flu outbreak. A new jab might be worth trillions for society. The uncertainty about another pestilence, however, means its value to Moderna is probably less than what investors have already gained.

Big Macs are pricing out American shoppers

23 May 2024

The driving force of the world’s largest economy, US consumers, may be buckling under higher costs on everything from lattes to burgers. In this Viewsroom podcast, Breakingviews columnists debate whether Main Street stalwarts like Starbucks or McDonald’s face a reckoning.

JAB’s Buffett impression is a work in progress

22 May 2024

The private European conglomerate, whose $50 bln portfolio includes Pret A Manger and Panera Bread, hired an executive for an insurance push. It makes sense as a funding source, as investors from Warren Buffett to KKR and Apollo proved. The snag is JAB’s patchy investment record.

China’s graft probe heightens food security worry

22 May 2024

A probe into the agricultural minister spotlights Beijing's self-sufficiency concerns. Worsening geopolitics and trade tensions are spurring China to diversify imports, boost crop output and increase stockpiles. All of these will reshape global supply chains.

Nestle’s royalty rebuke is a sign of the times

20 May 2024

Shareholders rejected a proposal by the food giant’s Indian unit to hike fees paid to its $280 bln Swiss parent. Scrutiny over payments to foreign affiliates for brands and know-how will grow. Domestic owners are increasingly assertive. New Delhi will be watching closely too.

Hotpot IPO looks too mild without China spice

17 May 2024

Singapore-based Super Hi has distanced itself from its Chinese roots ahead of a $50 mln US offering. That's prudent, given scrutiny on companies like Shein and ByteDance. Yet without support from former parent Haidilao, the firm may struggle to stand apart from larger peers.

Oscar Mayer offers peek at how M&A sausage is made

16 May 2024

Kraft Heinz may offload the hot-dog and bologna maker as it refocuses on faster-growing fare in its pantry. The 140-year-old brand, potentially worth some $5 bln, already has been processed and repackaged by multiple owners. It’s largely a tale of changing financial tastes.

China tests EU resolve on export trade fight

14 May 2024

France’s Emmanuel Macron got little to show from President Xi Jinping’s European tour this month. In this Exchange podcast, MERICS expert Grzegorz Stec explains the difficulty of managing ties with Beijing and why balancing risk and business opportunity is so tricky.

Swiggy IPO serves next dish in Indian food wars

9 May 2024

The Prosus-backed delivery app is readying a $1 bln float after its private-market price tag hit $13 bln. Heady growth and its rival's rich valuation will help. But Zomato's stronger financial health ups pressure for unprofitable Swiggy to manage costs amid a looming price war.

Unilever and Nestlé offer two flavours of India

2 May 2024

Weak rural demand ate into earnings at the $63 bln local unit of the Dove soap maker. By contrast, its smaller and more-richly valued Swiss rival grew profit thanks to a larger share of urban customers. The divergent fortunes point to the limits of the Indian consumer’s wallet.

US antitrust push invites creative dealmaking

4 Apr 2024

Policymakers and trustbusters are eyeing new restrictions on mergers and acquisitions. In this Viewsroom podcast, Breakingviews columnists unpack some imaginative workarounds being used by companies ranging from Big Tech to fast food.

Ben & Jerry’s rocky ESG road bucks vanilla trends

4 Apr 2024

The purpose-driven ice cream brand is being scooped out of Unilever as corporate activism increasingly invites controversy. And yet the maker of flavors like Empower Mint has grown faster than its parent. Social values, especially when authentic, can mix well with financial aims.

McDonut is a happy meal without M&A mess

26 Mar 2024

Krispy Kreme will sell donuts at McDonald’s, sending shares in the pastry maker up 25%. That cuts costs to build stores, akin to synergies, while the $200 bln burger chain takes on little risk. In a world with high rates and harsh trustbusters, it’s a smart twist on dealmaking.

Unilever’s sweet exit comes with sour aftertaste

19 Mar 2024

The $126 bln consumer giant is splitting off its unit that makes Cornetto ice cream. Doing so cuts exposure to food, and may boost sales growth. But Unilever investors are bearing the costs of the split, and their company remains big in the edible version of stranded assets.

Stolen razors are least of US drugstores’ concerns

1 Mar 2024

Walgreens and CVS have locked up items from deodorant to toothpaste. But a hyper-focus on theft is a reflection of drugstores’ more dire straits. Online competition, labor issues, and inflation are cutting into margins. Larceny is just the thing that pharmacies can control.

DSM’s China de-risking plan hinges on booster shot

15 Feb 2024

Shares in the $30 bln Dutch firm surged 14% on plans to hive off its unit that makes vitamins for cattle. DSM is right to steer away from a business hurt by Chinese competition. But management needs it to recover to justify investors’ enthusiasm.