Food & Beverages

War on cow farts is stinky but necessary job

24 Mar 2023

Cattle’s digestion is a big driver of harmful gas emissions. To curb them, New Zealand is taxing farmers and Europe may shrink livestock numbers. Both steps have angered harvesters and may inflate food prices. The noise will teach consumers to treat beef like fossil fuels.

John Lewis needs a breakup more than a rescue

23 Mar 2023

The UK employee-owned retailer wants to raise $2.5 bln to improve its ailing stores. But that could leave a new investor owning nearly half the company, undermining its mutual status. Merging its grocer Waitrose with rival M&S would bring in cash and forge a more viable player.

Bayer’s sunk boss leaves high water mark

21 Mar 2023

In one of his last acts before bowing to activist pressure, Werner Baumann is pledging the $60 bln drugs-to-seeds company will slash rice’s H2O needs by 25%. Leaving aside his legacy as the architect of the Monsanto deal, his ambition is worth emulating.

Capital Calls: FedEx delivers, for now

17 Mar 2023

Concise views on global finance: Shares in the delivery company shot up over 10% on Friday, as cost-cutting measures pay off. Those benefits could easily dwindle.

Starbucks’ union brouhaha risks Schultz’s legacy

14 Mar 2023

Employees have organized and U.S. courts found that the $115 bln latte maker broke labor laws. But operating costs may go up by just $23 mln, or 0.2%, as a result of the current unions. What’s more at risk is Howard Schultz’s legacy and the company’s worker-friendly reputation.

Capital Calls: Carlsberg CEO exit

7 Mar 2023

Concise views on global finance: Asia will be a key battleground for the $21 bln Danish brewer’s next boss.

Supersized restaurant valuation gaps due to shrink

21 Feb 2023

As fears of an economic slump persist, consumers may swap Chipotle and its peers for cheaper fare served up by the likes of Taco Bell. Higher labor and ingredient costs are squeezing all eateries, but the premium investors pay for ones higher on the food chain looks overcooked.

Subway’s turnaround to-do list is a foot long

17 Feb 2023

The sandwich maker’s global store count is almost as big as McDonald’s, yet as it seeks new owners, its mooted $10 bln valuation pales in comparison. It doesn't help that Subway's U.S. shops each pull in only an eighth as much in sales as their golden-arched rival’s.

Cost surge leaves grocers crying in the aisles

16 Feb 2023

Producers like Unilever and Nestlé are raising prices by as much as 10% to offset more expensive inputs. That is hurting supermarkets like Kroger and Tesco, which face falling margins and consumer anger. Investors can benefit by backing the suppliers and ditching the shopkeepers.

Capital Calls: TikTok’s Beltway visit

30 Jan 2023

Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.

Capital Calls: AI out-buzzes the blockchain

27 Jan 2023

Concise views on global finance: Digital publishing outfit BuzzFeed’s stock surges in part because it’s using AI to help create content. But investors’ excitement is likely to be short-lived.

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.