Food & Beverages

Roark scores sandwich deal better than $5 footlong

24 Aug 2023

Family-owned Subway is settling for a $10 bln price in its sale to the buyout firm. It values the chain at a lower multiple than peers and other deals, including Roark’s Dunkin’ purchase. With IPO markets opening and terms protecting buyers, there’s plenty to nibble on.

High food prices put populism on India’s table

22 Aug 2023

The cost of onions and tomatoes are soaring ahead of state elections, ramping up pressure for government relief measures. Modi’s fiscal prudence has helped tame inflation and supports his appeal to global investors. The latest crisis could push everyone out of their comfort zone.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Black Sea wheat war is sideshow for grain deal

9 Aug 2023

Russia is bombing Ukraine’s Danube ports while Kyiv hits its enemy’s ships in the Black Sea. Bumper harvests can cushion the shock on global wheat prices. But it would be in the two warring countries’ interest to strike a new food transport pact to allow their lucrative exports.

Bubble tea will test limits of China’s consumers

8 Aug 2023

Half a dozen boba-drink makers including Mixue Bingcheng are looking to list abroad. Profit margins are low in the $20 bln sector. But as shoppers reduce higher-end spending, the cheap-and-cheerful brews can thrive – even if Beijing holds back on much-needed stimulus.

Campbell’s $3 bln Rao’s deal could use long simmer

7 Aug 2023

The tomato soup maker is spooning out too much for the upscale pasta sauce’s owner, Sovos. Implied returns barely cover the cost of capital, and the rationale is heavily salted with corporate gibberish. Long-running food trends, however, should help it taste better in time.

Adland consumer-goods boon has limited shelf-life

4 Aug 2023

Food and beverage giants like PepsiCo are ramping up marketing amid soaring sales. That’s a fillip for WPP and peers, which have seen revenue from tech clients stumble. The risk is that, with inflation falling, consumer goods’ momentum slows before Big Tech gets back on its feet.

Capital Calls: Carlyle, UK SPAC deal, Beauty marks

2 Aug 2023

Concise views on global finance: The buyout shop’s fee challenge comes into sharper relief for boss Harvey Schwartz; banker Michael Klein aims to use his latest shell company to buy a British investment firm for $1.6 bln; and $7 bln cosmetics maker e.l.f. is looking glamorous.

Capital Calls: Sequoia, Heineken, Moneyball

31 Jul 2023

Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.

Unilever new broom’s best sweep is towards Asia

25 Jul 2023

The $137 bln Dove shampoo maker hiked prices without losing many sales in the first half. Yet falling European volumes and limited scope for structural tinkering make it hard for new CEO Hein Schumacher to boost margins. His best hope is to bulk up in his strongest region.

Egypt’s food tightrope has petrodollar safety net

24 Jul 2023

The collapse of the Russia-Ukraine grain deal is a big problem for the world’s top importer of wheat. Egypt’s battered economy will struggle as food prices spike. A $400 mln lifeline from the UAE, flush with oil cash, is one of leader Abdel Fattah al-Sisi’s few crumbs of comfort.

Ireland becomes guinea pig for booze clampdown

13 Jul 2023

Drinks like Guinness and Smirnoff vodka will feature cancer warning labels by 2026. It’s a bold move that will be watched closely by the US and Europe. If it’s a success and is replicated, rosy forecasts of alcohol sales soaring to $2 trln by 2030 may be revised.

Czech sphinx’s Casino bet trumps French insiders

5 Jul 2023

The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.

Swire’s Coca-Cola sale gives investors sugar rush

29 Jun 2023

Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.

Capital Calls: Virgin Galactic

16 Jun 2023

Concise views on global finance: Shares of Richard Branson’s space tourism company rocketed 30% higher on news it would launch its first commercial flight in two weeks. The customer demand required alongside competition from Elon Musk and Jeff Bezos make the valuation a moonshot.

Diageo’s Ivan Menezes was all-round exception

7 Jun 2023

The CEO of the $94 bln drinks giant, who has died at 63, defied corporate stereotype. He helped engineer a successful merger of equals, delivered index-beating returns while promoting diversity, and seamlessly stepped aside after a decade. It’s a record others should aspire to.

Mediterranean chain Cava caters to starved market

5 Jun 2023

The falafel and hummus eatery is aiming for an IPO valuation of up to $2.2 bln, 70% higher than a private assessment in 2021. The company’s fast growth will be tantalizing despite a lack of profit. After a long dry spell for new equity issuance, though, it’s easy to overindulge.

Syngenta’s bumper IPO will test Chinese appetite

1 Jun 2023

The seeds-to-pesticides group is planning a $9 bln stock market float in Shanghai this year. In this Viewsroom podcast, Breakingviews columnists explain how investors need to get comfortable with its high debt levels and use of toxic chemicals that could hurt its valuation.

Syngenta’s IPO is more relief than triumph

30 May 2023

The agritech giant’s $9 bln listing looks ripe. State players will handhold it to the bell and proceeds will help cut debt from its parent’s costly 2017 buy. Sadly, the poster child of China’s acquisitions abroad has few to inspire, and not many foreign investors are invited.

Glencore’s Bunge redux may yield Teck benefits

26 May 2023

The Swiss commodity giant could merge the agri-trader it part-owns with its $14 bln US-listed peer. A Bunge deal would be oddly timed, and Glencore has other ways to raise cash. But the bid may offer a way to spur Glencore’s share price as it mulls a new offer for Canada’s Teck.