Food & Beverages

Kirin’s Japanese makeover is only half pretty

7 Aug 2019

The Japanese brewer is buying 30% of cosmetics and kale juice maker Fancl for $1.2 bln. Diversifying away from booze makes sense; rivals are doing it too. But paying a multiple of almost 40 times earnings, over twice the buyer’s own, for a minority stake is not a good look.

KKR gets a biscuit LBO do-over Down Under

2 Aug 2019

The private equity fund that invented the cookie buyout is acquiring Campbell's Australian snacks unit for $2.2 bln. It’s less audacious than the $25 bln RJR Nabisco deal 30 years ago. But if KKR can scrape out decent growth and profitability, this one may prove tastier.

Viewsroom: Is Beyond Meat worth a bite?

1 Aug 2019

The meatless-burger maker is the best-performing IPO of the year by far. Now insiders are selling stock early as the company deals with rising competition, regulations and even a potential pea shortage. Plus: Using wine goggles to look at Western firms’ joint ventures in China.

Beyond Meat backers take the money while it’s hot

30 Jul 2019

The meatless-burger maker's CEO and other insiders are selling shares early. That looks like a signal that the near-800% jump in the stock since May's IPO is overcooked. Since Beyond Meat is still serving lashings of revenue growth, investors are unlikely to pay much heed.

Just Eat satisfies hunger for takeaway Dutch CEO

29 Jul 2019

The leaderless UK food delivery group is selling to rival Takeaway.com in a 5 billion pound all-share deal. Just Eat gains a new boss and ally in the battle against Uber and Deliveroo. The Dutch company, meanwhile, uses its highly-valued equity to join the UK food fight.

Heineken outlook only stacks up after a few pints

29 Jul 2019

The $62 bln brewer saw first-half operating profit rise only 0.3% year-on-year, but still assumes mid-single digit growth in 2019. Higher prices used to offset changing drinking trends. They will need to once again for CEO Jean-François van Boxmeer to avoid a new year hangover.

Nestlé’s recipe is good enough to keep Loeb sweet

26 Jul 2019

The $309 bln maker of Nespresso reported strong first-half organic sales growth. Higher commodity prices make for a trickier second half but CEO Mark Schneider is doing enough to keep activist Third Point happy. That reduces pressure to sell the company’s prized L’Oréal stake.

AB InBev’s deal machine goes into smart reverse

19 Jul 2019

The brewer’s sale of its Aussie unit to Asahi for $11 bln will cut debt. The Japanese are paying a valuation less than AB InBev wanted from its botched Asia IPO but probably more than investors ascribed to the unit. It keeps the door open for boss Carlos Brito to try again.

Viewsroom: AB InBev’s stubborn financial beer gut

18 Jul 2019

The $150 bln brewer of suds like Budweiser and Stella has scrapped its Asia unit’s Hong Kong float. CEO Carlos Brito now needs new ways to reduce the company’s debt. And as the second pulled IPO in weeks amid civil unrest, it puts the city’s financial hub under a spotlight.

2017’s worst IPO tries on some 2019 flavoring

16 Jul 2019

Blue Apron’s battered shares rose over 50% after it agreed to put Beyond Meat’s plant-based burgers on its meal-kit menus. Other firms have juiced their stock with cannabis or crypto ventures, but the effect usually fades. This one promises a similarly disappointing aftertaste.

Meal delivery crowd is ripe for M&A takeout

12 Jul 2019

Americans are ordering more food at home, but too many well-funded companies are fighting to deliver it. Small firms like Postmates should sell. The likes of Uber or DoorDash can afford to pay a premium to keep it out of the hands of rivals, and increase their odds of survival.

Budweiser’s IPO swagger turns into a drunk stumble

12 Jul 2019

AB InBev delayed pricing a $9.8 bln listing of its Asia unit, hinting at poor demand for the year’s biggest float. Boss Carlos Brito and his bankers didn’t leave room for manoeuvre, setting a punchy price range and shunning cornerstone investors. The result is an early hangover.

Muji wannabe’s $1 bln IPO tests power of mimicry

5 Jul 2019

Miniso, brash Chinese rival of the minimalist chain, is considering a listing. The Tencent-backed seller of toys and gadgets cultivates a Japanese feel. The challenge will be to convince investors that its valuation belongs with slick Tokyo peers, not pile-em-high 100-yen shops.

Elliott pounced on the wrong booze company

4 Jul 2019

The activist made a 1 bln euro bet on Pernod Ricard in December, arguing the French spirits group could be more profitable and better run. The Absolut maker’s shares have bounced 17% since. That’s about par with the market. But its arch-rival Diageo has done even better.

Budweiser serves up a pricey pint in Hong Kong

2 Jul 2019

AB InBev values its Asian unit at up to $65 bln, or about 20 times EBITDA. That’s close to multiples of rivals in fast-growing emerging markets like China, but half the business is in slower, more mature ones. The IPO will seem less giddy if Carlos Brito pours on M&A next.

Jeff Bezos adds fasting to meal-delivery menu

11 Jun 2019

He’s closing Amazon Restaurants after it failed to get much business. That leaves the likes of Grubhub, Uber and DoorDash trying to dominate a capital-hungry market with ever decreasing margins. Leaving them at the table looks like the smart move.

Beyond Meat gets extra fire from being rare

7 Jun 2019

The meatless-burger maker reported first-quarter numbers only a hair better than it already estimated yet the stock, which had already quadrupled since its IPO a month ago, surged more than 15%. A $7 bln valuation is too hot – but then it’s the only item of its kind on the menu.

U.S. food-delivery rivals risk capital destruction

30 May 2019

Using the internet to turn people’s laziness and hunger into a business sounds like a sure win for Silicon Valley. Uber, Grubhub, DoorDash and others are feasting on meal-delivery cravings. But sector valuations may overstate the market opportunity, at least in the United States.

Iceland butcher hopes for a killing by moving out

29 May 2019

High-tech abattoir-maker Marel, Iceland’s biggest company, is raising up to 390 mln euros through a secondary listing in Amsterdam. Opening up to global investors should help the 3 bln euro group expand. The big risk is climate-change pressure putting the knife into meat-eating.

Chinese booze behemoth distills a sobering reality

24 May 2019

Kweichow Moutai’s state-owned parent may be planning to sell liquor directly through a separate unit. It could help usurp some $6 bln of value from shareholders, Breakingviews estimates. For new and growing MSCI index investors, it’s a stark reminder of China’s governance risks.