Food & Beverages

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.

China tea IPO bubbles up on skinny consumers

28 Sep 2022

A $900 mln float by Mixue Bingcheng would be one of the mainland’s biggest this year. It implies a Starbucks-like valuation for a franchise serving less affluent customers and boasting four times the outlets. As the economy stalls, spending habits are shifting in its direction.

Alan Jope exit is easiest step of Unilever revival

26 Sep 2022

Shares in the $111 bln Dove maker rose after it said its CEO would leave by end-2023. A botched bid for GSK’s personal health arm hit Jope’s credibility. But even with a new broom Unilever will struggle to pull off a big deal, and selling lower-growth units looks harder to do.

Capital Calls: Costco membership

23 Sep 2022

Concise views on global finance: The $216 bln retailer known for hooking shoppers with subscriptions has a high valuation for a business that, now, has many competitors.

Grocers’ crisis defences look shaky

13 Sep 2022

Morrisons lost its top-four UK position to Aldi, while Ocado’s online sales are under pressure. Competition from discounters means supermarkets have less scope to raise prices and protect margins than in past slowdowns. The bleak outlook has yet to reach stock valuations.

Starbucks CEO brings warm skills to hot problems

2 Sep 2022

The $98 bln coffee chain named Reckitt boss Laxman Narasimhan as its next leader. He’s expected to deliver more and faster Frappuccinos with a restless workforce and rising costs. Narasimhan’s track record is promising. But with Howard Schultz still around, he is under the gun.