Food & Beverages

Grubhub’s best hope is a chastened SoftBank

29 Oct 2019

The food-delivery service’s shares crashed 40% as it admitted that competitive pressure is crimping expansion and margins. Grubhub is stuck in an irrational fight – unless SoftBank boss Masayoshi Son, who backs rivals Uber Eats and DoorDash, starts focusing on profit over growth.

India’s pricey truffles leave a bitter aftertaste

25 Oct 2019

Mumbai-listed ITC has unveiled the world’s costliest chocolate. It’s a bonbon-shaped reminder of India’s growing millionaire club. Overall wealth is increasing more slowly, though. With pocketbook protests heating up globally, it’s a bad time for that chasm to widen further.

Soggy pizza burns Chinese firm’s overseas strategy

23 Oct 2019

Buyout shop Hony cleaned up by acquiring state-backed companies before paying $1.6 bln for PizzaExpress in 2014, the same year it invested in Silicon Valley and Hollywood. The UK chain is in trouble as are other deals abroad, including WeWork. It can be hard straying from home.

Naspers spinoff wades into UK food delivery fight

22 Oct 2019

Newly listed Prosus slapped down a 4.9 bln pound order for Just Eat, beating rival Takeaway.com’s all-share bid. Though the UK delivery group rejected the offer, its $120 bln suitor has deep pockets. Rivals like Uber Eats and Deliveroo have a new competitor to worry about.

Trump’s booze tariffs may cause extended hangover

3 Oct 2019

Washington slapped levies on $7.5 bln of European imports including Scottish whisky and French wine in return for aircraft subsidies. That’s weaker than feared: Less than 5% of Diageo’s sales are affected, Jefferies reckons. But trade tensions could prompt more trips to the bar.

Hong Kong’s IPO debutants rely on helping hands

24 Sep 2019

AB InBev raised $5 bln through a relaunched float of its Asia unit, but only after pre-selling stock and pricing it low. There’s appetite for listings in the city despite ongoing protests, but at a discount and with cornerstone support. Followers may need to take the same tack.

Viewsroom: Not your mother’s oil shock

19 Sep 2019

Saudi Arabia is quickly repairing the damage drones inflicted on its oil industry. But the fallout has implications for everything from security to U.S. shale drillers to climate change-driven alternative energy. Plus: Why are AB InBev and ESR restarting Hong Kong listing plans?

Pig crisis gives China a shot at transparency

18 Sep 2019

African swine fever has driven local pork prices up by about 50% in a year. Inflation remains muted regardless, prompting some speculation that officials may be massaging the figures. Other factors make that unlikely, but it's a rare opportunity for Beijing to open up – a little.

AB InBev returns to Hong Kong with a soberer pitch

18 Sep 2019

The Belgian brewer’s Asia unit has relaunched its failed IPO with a lower $4.8 bln target, offering a better growth story at a similar valuation. CEO Carlos Brito may fetch more for the business than he originally wanted, too. Flourishing in a rocky market will be the tough part.

Dairy deal Down Under unlocks China prize

17 Sep 2019

State-backed Mengniu wants to buy Bellamy’s, a maker of infant formula, for some $980 mln. The premium looks frothy, and such tie-ups have soured before. But if local ties mean licences and an Aussie brand lures wealthy buyers, shareholders are right to bet on success.

Hong Kong’s revived IPOs play to tougher crowd

16 Sep 2019

AB InBev and ESR are restarting float plans cancelled during violent protests. Both may have better sales pitches, but ongoing unrest in the city and economic headwinds could still dampen demand. That they are pushing ahead anyway suggests they fear next year will be worse.

New Remy Cointreau CEO’s glass may start too full

12 Sep 2019

Eric Vallat is returning to run the 7 bln euro cognac maker. His predecessor’s strategy of charging more for fancier tipples still has legs. But after five years outperforming peers, trade conflicts that disrupt major markets could bring challenges.

Just Eat M&A bump may have a long delivery time

3 Sep 2019

A top investor in the UK food-delivery group says it will vote against Dutch peer Takeaway.com’s all-share bid, now worth 5.1 bln pounds. A higher price could be needed to seal the deal. But with no rival bidder in sight, Takeaway CEO Jitse Groen can wait until the last minute.

Meituan Dianping gets better at multitasking

21 Aug 2019

The $50 bln delivery-to-ride-hailing giant’s takeaway unit is expected to post its first profitable quarter on Friday, as it gets better at juggling multiple businesses. It has scaled down a costly bike sharing venture, while a push into groceries and maps plays to its strengths.

Li Ka-shing raises fresh glass to diversification

19 Aug 2019

Hong Kong’s richest man is buying the Greene King pub chain for $5.6 bln including debt. Most of his empire’s sales are abroad already. But given the deal injects new capital into the UK, it’s still a boon for Brexit Britain and a minor thumbs-down for his troubled home turf.

Carlsberg can relax with a brew in second half

15 Aug 2019

Unlike larger peers AB InBev and Heineken, the Danish brewer’s recently increased year-end targets look easy to reach. Still, the end of a cost-cutting programme may bring slower gains in profitability. After strong share price gains, the beer maker’s valuation has enough fizz.

Luckin Coffee waters down its strategy

14 Aug 2019

Starbucks' money-losing Chinese rival burned more cash in its first quarter since its IPO as marketing costs popped. It’s diversifying into tea, vending machines and the Middle East, suggesting less confidence in its original plan. But investors are still on a caffeine high.

Moutai investors channel their inner Carl Icahn

13 Aug 2019

Scrappy shareholders challenged the $180 bln Chinese distiller, echoing the U.S. activist’s tilts at titans such as Apple. State-backed Kweichow Moutai will sidestep a vote and cap related-party deals. There’s more work to be done, however, on Beijing-linked corporate governance.

Kraft Heinz can’t get by on anticipation alone

8 Aug 2019

The ketchup maker’s earnings plunged 51% in the first half after $1.2 bln in impairment charges. Organic net sales have been falling since the company’s 2015 merger. New chief Miguel Patricio promises a strategic review by 2020. A 14% stock drop suggests investors aren’t waiting.

Kraft Heinz’s new boss needs to give a fresh start

7 Aug 2019

Sales at the $37 bln Velveeta maker have flatlined since its 2015 merger, an SEC accounting probe has delayed results for months and a fresh brand write-down may be looming. CEO Miguel Patricio needs to prove he’s more than another 3G cost-cutter with no flair for growth.