Food & Beverages

Meal delivery crowd is ripe for M&A takeout

12 July 2019

Americans are ordering more food at home, but too many well-funded companies are fighting to deliver it. Small firms like Postmates should sell. The likes of Uber or DoorDash can afford to pay a premium to keep it out of the hands of rivals, and increase their odds of survival.

Budweiser’s IPO swagger turns into a drunk stumble

12 July 2019

AB InBev delayed pricing a $9.8 bln listing of its Asia unit, hinting at poor demand for the year’s biggest float. Boss Carlos Brito and his bankers didn’t leave room for manoeuvre, setting a punchy price range and shunning cornerstone investors. The result is an early hangover.

Muji wannabe’s $1 bln IPO tests power of mimicry

5 July 2019

Miniso, brash Chinese rival of the minimalist chain, is considering a listing. The Tencent-backed seller of toys and gadgets cultivates a Japanese feel. The challenge will be to convince investors that its valuation belongs with slick Tokyo peers, not pile-em-high 100-yen shops.

Elliott pounced on the wrong booze company

4 July 2019

The activist made a 1 bln euro bet on Pernod Ricard in December, arguing the French spirits group could be more profitable and better run. The Absolut maker’s shares have bounced 17% since. That’s about par with the market. But its arch-rival Diageo has done even better.

Budweiser serves up a pricey pint in Hong Kong

2 July 2019

AB InBev values its Asian unit at up to $65 bln, or about 20 times EBITDA. That’s close to multiples of rivals in fast-growing emerging markets like China, but half the business is in slower, more mature ones. The IPO will seem less giddy if Carlos Brito pours on M&A next.

Jeff Bezos adds fasting to meal-delivery menu

11 June 2019

He’s closing Amazon Restaurants after it failed to get much business. That leaves the likes of Grubhub, Uber and DoorDash trying to dominate a capital-hungry market with ever decreasing margins. Leaving them at the table looks like the smart move.

Beyond Meat gets extra fire from being rare

7 June 2019

The meatless-burger maker reported first-quarter numbers only a hair better than it already estimated yet the stock, which had already quadrupled since its IPO a month ago, surged more than 15%. A $7 bln valuation is too hot – but then it’s the only item of its kind on the menu.

U.S. food-delivery rivals risk capital destruction

30 May 2019

Using the internet to turn people’s laziness and hunger into a business sounds like a sure win for Silicon Valley. Uber, Grubhub, DoorDash and others are feasting on meal-delivery cravings. But sector valuations may overstate the market opportunity, at least in the United States.

Iceland butcher hopes for a killing by moving out

29 May 2019

High-tech abattoir-maker Marel, Iceland’s biggest company, is raising up to 390 mln euros through a secondary listing in Amsterdam. Opening up to global investors should help the 3 bln euro group expand. The big risk is climate-change pressure putting the knife into meat-eating.

Chinese booze behemoth distills a sobering reality

24 May 2019

Kweichow Moutai’s state-owned parent may be planning to sell liquor directly through a separate unit. It could help usurp some $6 bln of value from shareholders, Breakingviews estimates. For new and growing MSCI index investors, it’s a stark reminder of China’s governance risks.

Meituan Dianping delivers sweet-and-sour to Uber

23 May 2019

Getting bigger enabled the $40 bln Chinese company to cut its operating loss by charging restaurants for ads and fees to tote meals. Intensifying competition with Alibaba, however, will eat into cash. Uber can expect similar trouble as it squares off with Amazon-backed Deliveroo.

Pret’s veggie buyout more appetising than it looks

22 May 2019

The ubiquitous sandwich chain has gobbled up loss-making rival Eat. Taking on nearly 100 extra stores when rivals are struggling to survive sounds reckless. But using the outlets to roll out its vegetarian offering is an established way to boost sales.

Luckin investors are short America, long lunacy

17 May 2019

An unprofitable Chinese coffee chain that didn’t exist two years ago was valued at $6 bln within minutes of its New York IPO. Luckin is well placed if frosty Sino-American relations ping back on U.S. rival Starbucks. Beyond that, the debut is every bit as irrational as it sounds.

Amazon-Uber food fight means empty bellies for all

17 May 2019

The web giant is backing a $575 mln investment in Deliveroo, which ferries meals to time-poor urbanites. It means the UK-based group can continue its assault on rival Uber Eats in Europe. Thin margins and deep-pocketed investors are the perfect ingredients for perpetual losses.

Budweiser’s Hong Kong IPO may pop open more M&A

10 May 2019

AB InBev has filed documents to float its Asian business. It will fetch a higher valuation multiple than its parent, and could be worth some $60 bln, helping to pay down some debt. The shares also give deal junkie boss Carlos Brito a currency to shop for more.

Uber has recipes to avoid delivery indigestion

9 May 2019

The ride-hailing giant hopes a $795 bln global takeout market can offset slowing growth in its core business. For now, generous incentives are gobbling profit. But the likes of Europe's Takeaway.com suggest there are ingredients for success, starting with market dominance.

AB InBev’s debt belly needs more than fizzy growth

7 May 2019

Pricier beer helped the brewer’s first-quarter sales rise faster than expected. Yet AB InBev still has an unsightly debt pile and is battling falling volumes in key regions. An IPO of its Asian operations sooner rather than later would help investors breathe more easily.

China’s Luckin Coffee roasts a rich IPO

7 May 2019

The chain is seeking to raise up to $590 mln as it races to overtake Starbucks. Luckin is growing fast, but burning cash to do so. Although its strategy diverges from that of its Seattle rival, on a comparative revenue-per-store basis the implied $4 bln valuation is high.

Beyond Meat IPO flips into FOMO territory

2 May 2019

The plant-based burger firm’s stock almost tripled on its market debut. The desire for food that’s tasty, green and ethical is real, and investors are clamoring for a bite. But such big first-day pops are often driven by a fear of missing out that longer-term returns cannot sate.

Beyond Meat’s green IPO could still burn buyers

30 April 2019

The plant-based burger maker is seeking a $1.5 bln valuation after raising its IPO target price by 20 pct. The eco-friendly business has developed a following among consumers. But with former investor Tyson entering the alternative-meat space, investors may have tastier options.