Food & Beverages

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.

Instacart’s fast growth isn’t fast enough

23 Aug 2022

The grocery delivery service is expanding into advertising and offering services to rivals, as boss Fidji Simo preps to potentially go public. Yet even with double digital revenue growth it only looks to be worth around $11 bln, far less than a private valuation a few months ago.

Capital Calls: Food fight

23 Aug 2022

Concise views on global finance: Retailers like E-Mart are cutting food prices amid surging costs, risking a sector-wide race to the bottom.

Capital Calls: Cineworld needed AMC’s apes

19 Aug 2022

Concise views on global finance: The U.K.-based cinema chain is preparing for bankruptcy, according to the Wall Street Journal, while similarly debt-beleaguered AMC is still standing – an object lesson in the power of becoming a favorite of retail traders.

Japan’s sober youth gives its brewers a headache

19 Aug 2022

A decline in drinking among the country’s young has driven the national tax agency to try to boost alcohol’s popularity. No wonder Asahi boss Atsushi Katsuki is eyeing the U.S. market. Yet previous overseas adventures by Japanese booze giants make for a sobering read.

Capital Calls: Walmart whiplash

16 Aug 2022

Concise views on global finance: The U.S. mega-retailer revised its profit forecast yet again, just weeks after sounding the alarm.

Wine IPO is a very rich toast to affluent India

12 Aug 2022

The country’s largest producer Sula has plenty to cheer but more competition from Australia and sluggish growth are some reasons not to pop the cork at 86 times earnings. With a growing crowd of massively overpriced stocks targeting India’s wealthy, investors can be picky.

Food delivery’s next gig is software-as-a-service

10 Aug 2022

As demand for takeaways slows, $28 bln DoorDash and rivals are searching for new sources of revenue. One option is to sell their tech to food retailers. But that assumes others can make a bigger success of a business model that has struggled for profitability.

Capital Calls: Amazon deal, Beyond Meat

5 Aug 2022

Concise views on global finance: Amazon’s latest purchase to buy iRobot rolls over FTC Chair Lina Khan, a critic of the company’s expansion. Meanwhile, the founder of the plant protein company envies another meat substitute, SPAM.

Capital Calls: Heineken’s post-Covid bounce

1 Aug 2022

Concise views on global finance: Beer drinkers are quaffing more than before the pandemic, despite higher prices. But the Dutch brewer’s decision to scrap its 2023 operating profit margin target suggests it can’t entirely escape rising costs.

Capital Calls: Chevron rewards investors

29 Jul 2022

Concise views on global finance: The oil firm’s disciplined spending means it has been able to dramatically ramp up its buyback plan.

Walmart inflation alarm, Unilever’s pricey remedy

28 Jul 2022

America’s largest private employer’s market value fell $35 bln amid a profit warning. In this Viewsroom podcast, Breakingviews columnists discuss how customers shifting to low-margin food is a harbinger for rivals. Also, the Dove maker is pushing quality versus quantity sales.

McDonald’s serves nuggets of inflationary insight

26 Jul 2022

Same-store sales rose nearly 10% in the second quarter. Rising menu prices have also yet to deter customers, suggesting the Golden Arches has still managed to hang on to recession-proof qualities. If customers keep trading down, however, that balance will be harder to strike.

Walmart’s pain will be problem shared widely

26 Jul 2022

The giant grocer lost about 10%, or $35 bln, of its market value after saying it would need to slash prices as customers rethink how to spend. The decline suggests more than just a fallow year. If the mighty retailer didn’t see this coming, there’s scant hope for smaller peers.

Global food crisis demands urgent Western response

25 Jul 2022

Russia’s invasion of Ukraine has pushed up food and energy costs around the globe. The most urgent problems are in poorer countries, write William Rhodes and Stuart Mackintosh. Rich nations offered insufficient help for Covid-19. International bodies can do better this time.

China’s “new retail” hype meets old retail reality

13 Jul 2022

Alibaba’s high-tech Freshippo grocery chain lowered its targeted valuation by 40% as investors shy away from trendy online-to-offline retail plays. Shares in traditional supermarket chains are outperforming as e-commerce brands tank. It’s a lesson in the limits of disruption.