Food & Beverages

Meituan Dianping drives itself to distraction

12 Mar 2019

The $42 bln Chinese super-app operator grew fourth-quarter sales by a robust 89 pct. Meituan’s entire valuation is reflected in the strength of its food delivery unit against Alibaba-owned Ele.me. That raises fresh questions about costly ride-hailing and bike-sharing diversions.

Cox: Unilever can’t help but mull a Kraft pounce

7 Mar 2019

The tables have turned since the Cheez Whiz maker bid for its rival. At $40 bln Kraft is worth a quarter of its erstwhile prey. Unilever can afford a deal, export its culture and reap synergies. But Kraft’s portfolio may be a poison pill unless used as a prelude to exiting food.

Kraft Heinz new recipe could start with the board

6 Mar 2019

The $40 bln ketchup maker’s board is stocked with representatives of its main shareholders and has plenty of consumer expertise. But Kraft Heinz has missed a trick. Its rivals have more flavor from other industries. Having disappointed investors, there’s room for fresh insights.

Just Eat’s final course looks unappetising

6 Mar 2019

The UK takeaway group’s sales are soaring and it has a lead in its home market. The problem is that Uber and Deliveroo are eating its lunch. Just Eat can sell assets like the Brazil unit, but investors would be left with a group with no head chef and better-funded competitors.

Goudet exit shows AB InBev model’s last dregs

6 Mar 2019

Chair Olivier Goudet is leaving the brewer because of conflicts with his role at JAB. Both groups share a taste for buying assets, and cutting costs. Yet the tension with JAB’s Snapple or Dr Pepper brands shows the strategy’s limits, and AB InBev’s need to go beyond alcohol.

LVMH-Pernod bid talk makes for watery cocktail

4 Mar 2019

Ever since activist Elliott showed up at Pernod, Paris has been awash in speculation that LVMH covets the $46 bln spirits group. Adding booze brands like Absolut to its portfolio would dilute LVMH’s luxury profile. Bernard Arnault’s public disavowal of a deal is believable.

AB InBev sets itself an easy target

28 Feb 2019

The Corona brewer pleased investors by unveiling healthy revenue growth and plans to cut net debt to below four times EBITDA by end-2020. The goal is feasible even without a mooted IPO of its Asia unit. Just as well since the company can ill afford big cuts in its marketing spend.

Hadas: The CEO guide to corporate old age

27 Feb 2019

So far this century, real revenue at big U.S.-listed companies is up only about half as much as domestic GDP. Last week’s Kraft Heinz writedown suggests that both bosses and shareholders often harbour unrealistic hopes of doing better. Lower expectations would help everyone.

3G’s special sauce runs out of financial flavor

25 Feb 2019

The Brazilian investment firm’s private equity-style penchant for buying companies, larding on debt and slashing costs can work to a point. But without good strategy, management and a plan for an exit, it can cause problems like those now besetting Kraft Heinz.

Uber’s Indian takeout will feed future rivals

25 Feb 2019

The ride-hailing giant may swap its local food delivery business for a stake in $3.3 bln rival Swiggy. Checking out of Uber Eats's fastest-growing market will cut losses ahead of a global IPO. It would also prioritise short-term gain over efforts to keep new competitors at bay.

Kraft Heinz fail leaves Buffett and 3G well fed

22 Feb 2019

Even after the Velveeta maker’s shares lost more than a quarter of their value, the investors who built it from their 2013 Heinz acquisition have made almost a 50 percent profit. No such luck for Kraft’s original investors. Over three years, they have barely broken even.

Kraft Heinz is desperate for a fresh variety

21 Feb 2019

An earnings miss, a $15 bln writedown and an SEC subpoena sent the ketchup maker’s stock plunging over 20 pct after hours Thursday. It’s a sign CEO Bernardo Hees’s cost-cutting strategy has hit a dead end. Owners 3G and Berkshire Hathaway need to find a new recipe for growth.

Viewsroom: Brexit breakups

21 Feb 2019

Foreign carmakers are closing some UK plants as lawmakers defect from both the Labour and ruling Tory parties. How will this affect the looming deadline to quit the EU? Plus: Vegan diets are more than a fad.

Veganism may prove a more durable diet fad

19 Feb 2019

Climate change and concern for animal welfare are prompting more consumers to shun meat. As with the low-carb trend of the early 2000s, companies are scrambling to keep up: vegan sausage rolls helped boost British baker Greggs’ sales. The shift is more than a flash in the pan.

Heineken sets premium bar high for rival AB InBev

13 Feb 2019

The world’s two mega-brewers are aggressively wooing customers to pay up for higher-quality, and craftier, suds. The Dutch brewer’s full-year results suggest it’s managing the shift well despite - or perhaps because of - the increased heft of its $129 bln competitor.

Just Eat could prove a tasty M&A morsel

11 Feb 2019

The 4.9 bln pound UK food-delivery group is leaderless and faces an activist investor. It could keep investing in its delivery services to fend off Uber, but peers like Takeaway.com and Delivery Hero are doing the same. Just Eat’s cut-price valuation could force the board’s hand.

Holding: Boards miss message about personal email

5 Feb 2019

Until recently, directors and officers could chat on individual accounts with near impunity. Now courts are forcing bosses at Uber, Facebook, Papa John's and elsewhere to cough up private and often incriminating texts. Think twice before sending that smiley-face emoticon.

Starboard gets generous slice of Papa John’s

4 Feb 2019

The hedge fund is investing $200 mln and taking two board seats in the struggling pizza chain. The price is unambitious and it could ink a return of 6 percent annually. Turnarounds aren’t easy, and Papa John’s needs help. But Starboard is being well paid for its expertise.

KFC is finger lickin’ in a less appetising China

1 Feb 2019

Mainland appetite for fried chicken helped Yum China turn a fourth-quarter profit and pushed same-store sales up 2 pct, beating forecasts. It's still expanding fast too. That suggests a resilient bet on Chinese consumers: even as budgets tighten, cheap eats stay on the menu.

Asahi gives fuller meaning to beer premiumisation

28 Jan 2019

The Japanese brewer is adding iconic London Pride to Peroni and Grolsch in its cooler. Paying a sudsy 24 times EBITDA for Fuller’s beer signifies the need for upscale and craft ales to keep up with liquor rivals. Cheap money should help make the deal go down easier for Asahi.