Food & Beverages

Rapid grocery delivery will keep investors waiting

19 October 2021

Loss-making startups from Getir to Deliveroo are ferrying booze and nibbles to homes in under half an hour. Economies of scale will eventually help, although most operators will at best break even. Until delivery robots come along, shareholders will be subsidising lazy living.

Carrefour’s domestic shopping aisle looks bare

11 October 2021

A tie-up between the $15 bln French grocer and rival Auchan fell apart amid a valuation dispute. Concerns over competition and jobs complicate local mergers, while a failed Canadian takeover showed foreign buyers are unwelcome. Carrefour has little choice but to expand abroad.

Capital Calls: Green investors, ASOS, Renren

11 October 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

Review: PepsiCo CEO memoir leaves work unfinished

8 October 2021

In “My Life in Full”, former boss Indra Nooyi describes fending off activists and making big acquisitions at the soda giant. She traces her path from southern India to hobnobbing with world leaders with humility. Her vision of an ethical consumer group looks far off, though.

Capital Calls: Pet retail scrap, Chubb, Czech IPO

8 October 2021

Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.

Britain’s grocery LBO boom invites risky price war

5 October 2021

CD&R paid $10 bln for Morrisons, months after rival Asda also fell to private equity. Supermarket chains already face thin margins and brutal competition. But with more of the sector now loaded with debt, rivals like Aldi may be emboldened to slash prices and grab market share.

Morrisons losers will check out UK’s Sainsbury’s

2 October 2021

CD&R won an auction for Britain’s fourth biggest supermarket with a 7 billion pound bid, edging out a consortium led by SoftBank’s Fortress by just 1 pence per share. The winner could be overpaying, making rival grocer Sainsbury’s look more attractive as a fallback option.

EQT $3.9 bln pet bid typifies PE growth obsession

27 September 2021

The Swedish buyout firm topped Hellman & Friedman’s offer for online dog-food seller Zooplus. An absence of debt funding and limited scope for cost cuts mean the numbers only work if sales grow at a greyhound-worthy 15%. A possible counteroffer would stretch things even further.

IPO investors get the Toast without the jam

22 September 2021

The $20 bln restaurant booking group priced its offering above the target range amid strong demand for market debutants. Investors are shrugging off wider concerns including a possible economic slowdown in China. Yet even if the stocks pop, IPOs are trailing the broader market.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 September 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Kweichow Moutai will take longer to sober up

16 September 2021

After a stock rally as fiery as its liquor, the Chinese distiller has lost some $200 bln of market value since February. The industry is facing fresh regulatory scrutiny, which could keep prices flat. A new state-picked chairman also builds a case against the top-shelf valuation.

Capital Calls: Microsoft’s buyback, Railway M&A

15 September 2021

Concise views on global finance: the software giant’s $60 bln stock repurchase plan is smaller than it sounds; meanwhile, a tangled takeover battle for train operator Kansas City Southern takes a messy new track.

DSM rejig needs stronger growth flavour

14 September 2021

The 31 bln euro food ingredients maker is looking to sell its industrial materials unit. It’s an overdue step that will give the shares only a modest bump. If the Dutch group can grow its sales more quickly, a Givaudan-style valuation and sweeter gains could follow.

Capital Calls: Amazon’s wage rise

14 September 2021

Concise views on global finance: The e-commerce giant’s salary strategy could catch on.

Morrisons has a nuclear way to keep suitors honest

9 September 2021

The battle for the UK grocery chain looks set to end in an auction. The big danger is that Fortress or CD&R bid too much and then break pledges in areas like employee rights. The board has a way to make these promises legally binding, but the risk is both bidders walk away.

Capital Calls: U.S. jobs, $7 bln tax settlement

3 September 2021

Concise views on global finance: Slow U.S. job growth signals caution for the Fed; meanwhile, a giant deal between hedge fund executives and the IRS gives legs to President Biden's tax plans.

Capital Calls: New York City is on climate notice

2 September 2021

Concise views on global finance: Cities with a higher number of wealthier residents will be able to combat climate related events.

Australia’s Chinese trade glass is only half full

31 August 2021

Punitive tariffs cost vintners Down Under access to one of their most lucrative markets. Treasury Wine’s results at least suggest there’s demand elsewhere for premium brands. Producers of cotton and other commodities will struggle to replace sales at similar margins.

Capital Calls: Pennies matter to dollar stores

26 August 2021

Concise views on global finance: Low-margin U.S. retailers are suffering from supply-chain cost inflation, a direct hit to their business model.

Capital Calls: Delta Air Lines’ vaccine stick

25 August 2021

Concise views on global finance: The U.S. carrier will charge unvaccinated stateside employees $200 per month towards healthcare. Adding some push to the pull of incentives makes sense.