Food & Beverages

Remy Cointreau’s woes are weighty but temporary

24 January 2020

The spirits maker is relatively more exposed to Hong Kong and China, so protests hit sales harder. The coronavirus and U.S. trade war fallout add extra pressure. But with demand for pricey cognac on the up, Remy still deserves a premium to Diageo and Pernod Ricard.

Sainsbury’s new CEO will need outsider’s mindset

22 January 2020

The UK grocer’s operations director, Simon Roberts, will succeed Mike Coupe in June. The new chief executive’s three decades of experience in retail will be useful. But he may have to rewrite his predecessor’s plans if he wants to deliver better returns for shareholders.

French demos poor excuse for Casino earnings miss

17 January 2020

The retailer’s shares slumped after it said trading profit in France rose just 5% in 2019 – half the previous guidance. On a call with analysts Chief Financial Officer David Lubek blamed recent pensions protests. The unconvincing explanation hints at bigger problems.

Nestlé needs backup in war on plastic

16 January 2020

The KitKat maker will invest $2 bln to sell more grub in recycled packaging. Yet even that will only help cut its use of new plastics by a third. For the scheme to work, CEO Mark Schneider needs a market for second-hand wrapping to take off, and other food groups to take a hit.

Albertsons IPO would call on Cerberus’ tamer side

14 January 2020

The buyout firm may reprise plans to list the U.S. grocery chain after at least two previous tries. It’s not a bad moment to try and sell a retailer. But Cerberus is known for its tough approach to deals. After 14 years holding on to Albertsons, it may be necessary to soften up.

UK grocery war will be fought on more than prices

9 January 2020

Tesco’s local sales barely rose over the festive period. Like other big peers, the 25 bln pound company lost market share to discounters such as Lidl. Improving online services and stocking sought-after premium goods may do more to halt the rot than selling products more cheaply.

Grubhub jump-starts race for food-delivery M&A

8 January 2020

Competition from cash-burning rivals like Uber has eroded the $5 billion meal delivery firm’s value. An October letter by the CEO correctly spelled out the need to consolidate. Now Grubhub is mulling a sale. Regulatory problems may await. So it’s best to be the first to merge.

Beyond Meat readies for a difficult second course

3 January 2020

The meatless burger maker was a capital markets star in 2019, and sports triple-digit revenue growth. But it also bears the risks of uncertain demand, dependence on retailers and fierce rivals. Founder Ethan Brown could learn from another once-racy consumer brand: Under Armour.

UK $7 bln food fight’s final course: indigestion

20 December 2019

Takeaway.com’s Jitse Groen upped his all-share bid for Just Eat, almost certainly seeing off rival cash bidder Prosus. Yet the likely return on his splurge looks low. And investors accepting his offer are betting that the new group will trade on an overcooked valuation multiple.

Africa’s Alibaba looks more lemon than unicorn

19 December 2019

Jumia’s post-IPO limp could be life-threatening. The continent’s first billion-dollar tech firm has just enough cash to make it to 2021. But with losses widening due to high delivery costs and short-sellers questioning online transaction numbers, raising more money will be tough.

Chinese bottled water IPO offers up a muddy glass

18 December 2019

Market-leader Nongfu Spring could raise more than $1 bln in Hong Kong. Mainland households are drinking more of the bottled stuff as incomes rise. That thirst, though, has brought competitors, and may also prompt a much-needed tightening of environmental and consumer rules.

DuPont’s latest reinvention risks deal fatigue

16 December 2019

The $26 bln sale of its nutrition unit looks smart on paper. Yet DuPont has been reworking itself for four years, with no real boost for shareholders. Buyer IFF is still digesting another purchase. And closing is over a year away. Even the right deal can be too much of a grind.

DuPont comes out smelling of roses in $45 bln deal

16 December 2019

Executive Chairman Ed Breen is merging his nutrition and biosciences business into International Flavors & Fragrances. He has secured a premium valuation, cash sweetener and a tax-free transfer for DuPont shareholders. IFF gets little besides the dubious benefits of scale.

Delivery Hero’s $4 bln order corners kimchi market

13 December 2019

The German company is buying South Korean food delivery rival Woowa. The price is a big increase from a $2.6 billion valuation a year ago, but the target enjoys hearty growth and healthy profitability. Joining forces in the country makes sense – provided regulators allow it.

AB InBev’s Oz M&A party leaves antitrust headache

12 December 2019

The world’s biggest brewer’s $11 bln sale of its Australian unit to Asahi has been challenged by the country’s watchdog. Its tough stance on beer and cider competition may hurt boss Carlos Brito’s plan to cut debt. The Corona-maker has other options, albeit less appetising ones.

Haagen-Dazs cash may melt in Nestlé’s pocket

11 December 2019

The Swiss giant is selling its U.S. ice cream unit to a joint venture with buyout firm PAI for $4 bln. A big dollop of debt gives the $312 bln group a taste of private equity returns. After his second big disposal this year, CEO Mark Schneider might be tempted to splash out.

Just Eat offer is taster for Christmas food fight

9 December 2019

Internet investor Prosus sweetened its cash bid for the UK food delivery company to $6.5 bln. That’s tastier than rival Takeaway.com’s all-share proposal, but still well below Just Eat’s market value. Shareholders are expecting a few more helpings before the end of the year.

Tesco leaves Asia with a full cart

9 December 2019

Britain's biggest grocer may sell its business in Thailand and Malaysia. Thai peer Central Retail should list at a rich valuation, making it a good time to exit before regional economies cool further. The likes of prior owner CP Group could put $9 bln in Tesco’s pocket.

ThaiBev is tempting Budweiser with a Saigon brew

3 December 2019

Tycoon Charoen Sirivadhanabhakdi may spin beer assets out of his Singapore-listed group, including an attractive Vietnamese pint. An IPO, at a mooted $10 bln valuation, could unlock value. The real prize will be a synergy-creating deal with AB InBev's newly hived off Asian arm.

Packaging sale can cure AB InBev’s hangover faster

28 November 2019

The $133 billion brewer’s U.S. bottle and can production unit is worth up to $6 bln. A sale of even a minority stake can bring net debt below 2 times EBITDA a year earlier in 2022. Soothing investor fears over indebtedness is worth having to rely on another company for vessels.