Food & Beverages

Capital Calls: Data falsehoods

26 Jan 2023

Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.

Capital Calls: Activism, Bond spat, Airline M&A

18 Jan 2023

Concise views on global finance: Aggressive shareholder campaigns picked up in 2022, but activism is becoming an overcrowded strategy. Meanwhile, M&A machine Melrose takes on a fight that might not be worth winning, and German airline Lufthansa eyes a stake in Italy’s ITA.

Starbucks will go grande on workforce-lite future

4 Jan 2023

The $120 bln latte purveyor is fighting off unions as workers seek better benefits and higher wages. In 2023, it will throw a few concessions. That will tide over employees long enough for it to streamline coffee-making. It’s a playbook for those looking to trim their workforce.

Conscious consumerism will be left on the shelf

29 Dec 2022

Shoppers have been forking out for organic and plant-based food for health, environmental or other reasons. Squeezed incomes will test their ethical commitment. Throw in higher input costs, and 2023 looks an unappetising year for fake burger purveyor Beyond Meat and its rivals.

Capital Calls: Satellites deal, EU gas price cap

16 Dec 2022

Concise views on global finance: Private equity firm Advent is paying a 129% premium for Maxar, indicating that the volatile, costly satellite construction business could soar away from public markets; the EU is edging towards a controversial cap for gas future contracts.

Capital Calls: Danske’s money-laundering slap

14 Dec 2022

Concise views on global finance: The Danish bank’s $2 bln penalty for processing potentially illicit payments pales in comparison with BNP Paribas’ $9 bln hit in 2014, even though the suspicious money flows may have been larger.

Capital Calls: Nuclear fusion, U.S. inflation

13 Dec 2022

Concise views on global finance: The scientific breakthrough in potentially limitless power is exciting, but to make it commercially viable will be equally challenging; Consumer prices rose 0.1% in November, and there could be more good news to come once shelter data catches up.

Danish $22 bln enzyme M&A is costly bet on growth

12 Dec 2022

Novozymes will absorb smaller domestic rival Chr. Hansen. The 38% premium dwarfs expected synergies from the deal. And Novo Holdings, the biggest shareholder in both groups, will retain majority voting rights. Novozymes investors look to be paying too much for future growth.

Capital Calls: Rio Tinto, Grocery delivery M&A

9 Dec 2022

Concise views on global finance: After a shambolic process, the $118 bln miner has succeeded in buying out the 49% of Turquoise Hill Resources it doesn’t own; Turkish grocery delivery player Getir gobbles up German rival Gorillas for $1.2 bln.

Consumer spending anomalies are the new norm

29 Nov 2022

High inflation and glum sentiment are changing how people use their money. In this edition of The Exchange podcast, Brookings Institution economist Wendy Edelberg explains what shoppers are loath to give up during times of duress and why strange patterns will persist.

Capital Calls: Funky debt shock

29 Nov 2022

Concise views on global finance: Germany property group Aroundtown won’t be the last to flout bond market convention on hybrid debt.

Oatly’s best turnaround recipe is dollops of cash

25 Nov 2022

Shares in the $950 mln faux-milk maker are down 80% this year, and revenue growth is slowing. CEO Toni Petersson will struggle to stop burning cash, and has ruled out selling the company. That means a looming capital hike may have to be much bigger than he currently thinks.

Capital Calls: Disney’s Netflix problem

8 Nov 2022

Concise views on global finance: The Magic Kingdom’s shares tanked on Tuesday after it reported widening losses in its streaming service division, but it can overcome the challenges.

Capital Calls: Starbucks waits stubbornly in China

4 Nov 2022

Concise views on global finance: The $100 billion coffee chain surprised investors with a solid quarter despite persistent sluggish results in the People’s Republic.

China’s top brewer buys the dip on premium liquor

27 Oct 2022

State-backed China Resources Beer is bagging a bargain, paying $1.7 bln for control of the country's fifth-largest baijiu maker - one of the largest such transactions on record. Given soft demand and tax hike risks, more deals may follow. Local politics will complicate them.

Energy crisis gives beermakers a lasting hangover

26 Oct 2022

Heineken’s shares fell 10% after reporting weaker-than-expected sales. Inflation is eroding punters’ disposable income, making it harder for brewers to raise prices like in previous crises. Soaring costs for fuel and wheat, which bite next year, pose a further threat to margins.

A decade after split, Mondelez eats Kraft’s lunch

19 Oct 2022

The two food companies were once housed under Kraft’s brand. After a breakup 10 years ago, Mondelez bought smaller food businesses and stayed the course. Kraft plunged into a $80 bln deal with Heinz, and spent years integrating. Returns show big mergers don’t always pay off.

Capital Calls: Soy sauce activism

12 Oct 2022

Concise views on global finance: Foshan Haitian, China’s largest producer of cooking’s brown gold, loses $8 bln in value after consumers complain about ingredients.

Beyond Meat makes a tasty takeover target

5 Oct 2022

The plant-based burger company has lost nearly 80% of its value this year along with some senior executives. A more experienced owner, such as Kerry, would be in position to help improve distribution and trim manufacturing costs. It’s only the timing that is tough for buyers.

Cheerios can eat VCs for breakfast

28 Sep 2022

General Mills’s investment in food platform GrubMarket looks speculative. But manufacturers from United Airlines to General Motors have made similar bets. The cereal company doesn’t have to answer to capital providers like VCs do. With valuations falling, it’s not a bad idea.