Food & Beverages

Pig crisis gives China a shot at transparency

18 September 2019

African swine fever has driven local pork prices up by about 50% in a year. Inflation remains muted regardless, prompting some speculation that officials may be massaging the figures. Other factors make that unlikely, but it's a rare opportunity for Beijing to open up – a little.

AB InBev returns to Hong Kong with a soberer pitch

18 September 2019

The Belgian brewer’s Asia unit has relaunched its failed IPO with a lower $4.8 bln target, offering a better growth story at a similar valuation. CEO Carlos Brito may fetch more for the business than he originally wanted, too. Flourishing in a rocky market will be the tough part.

Dairy deal Down Under unlocks China prize

17 September 2019

State-backed Mengniu wants to buy Bellamy’s, a maker of infant formula, for some $980 mln. The premium looks frothy, and such tie-ups have soured before. But if local ties mean licences and an Aussie brand lures wealthy buyers, shareholders are right to bet on success.

Hong Kong’s revived IPOs play to tougher crowd

16 September 2019

AB InBev and ESR are restarting float plans cancelled during violent protests. Both may have better sales pitches, but ongoing unrest in the city and economic headwinds could still dampen demand. That they are pushing ahead anyway suggests they fear next year will be worse.

New Remy Cointreau CEO’s glass may start too full

12 September 2019

Eric Vallat is returning to run the 7 bln euro cognac maker. His predecessor’s strategy of charging more for fancier tipples still has legs. But after five years outperforming peers, trade conflicts that disrupt major markets could bring challenges.

Just Eat M&A bump may have a long delivery time

3 September 2019

A top investor in the UK food-delivery group says it will vote against Dutch peer Takeaway.com’s all-share bid, now worth 5.1 bln pounds. A higher price could be needed to seal the deal. But with no rival bidder in sight, Takeaway CEO Jitse Groen can wait until the last minute.

Meituan Dianping gets better at multitasking

21 August 2019

The $50 bln delivery-to-ride-hailing giant’s takeaway unit is expected to post its first profitable quarter on Friday, as it gets better at juggling multiple businesses. It has scaled down a costly bike sharing venture, while a push into groceries and maps plays to its strengths.

Li Ka-shing raises fresh glass to diversification

19 August 2019

Hong Kong’s richest man is buying the Greene King pub chain for $5.6 bln including debt. Most of his empire’s sales are abroad already. But given the deal injects new capital into the UK, it’s still a boon for Brexit Britain and a minor thumbs-down for his troubled home turf.

Carlsberg can relax with a brew in second half

15 August 2019

Unlike larger peers AB InBev and Heineken, the Danish brewer’s recently increased year-end targets look easy to reach. Still, the end of a cost-cutting programme may bring slower gains in profitability. After strong share price gains, the beer maker’s valuation has enough fizz.

Luckin Coffee waters down its strategy

14 August 2019

Starbucks' money-losing Chinese rival burned more cash in its first quarter since its IPO as marketing costs popped. It’s diversifying into tea, vending machines and the Middle East, suggesting less confidence in its original plan. But investors are still on a caffeine high.

Moutai investors channel their inner Carl Icahn

13 August 2019

Scrappy shareholders challenged the $180 bln Chinese distiller, echoing the U.S. activist’s tilts at titans such as Apple. State-backed Kweichow Moutai will sidestep a vote and cap related-party deals. There’s more work to be done, however, on Beijing-linked corporate governance.

Kraft Heinz can’t get by on anticipation alone

8 August 2019

The ketchup maker’s earnings plunged 51% in the first half after $1.2 bln in impairment charges. Organic net sales have been falling since the company’s 2015 merger. New chief Miguel Patricio promises a strategic review by 2020. A 14% stock drop suggests investors aren’t waiting.

Kraft Heinz’s new boss needs to give a fresh start

7 August 2019

Sales at the $37 bln Velveeta maker have flatlined since its 2015 merger, an SEC accounting probe has delayed results for months and a fresh brand write-down may be looming. CEO Miguel Patricio needs to prove he’s more than another 3G cost-cutter with no flair for growth.

Kirin’s Japanese makeover is only half pretty

7 August 2019

The Japanese brewer is buying 30% of cosmetics and kale juice maker Fancl for $1.2 bln. Diversifying away from booze makes sense; rivals are doing it too. But paying a multiple of almost 40 times earnings, over twice the buyer’s own, for a minority stake is not a good look.

KKR gets a biscuit LBO do-over Down Under

2 August 2019

The private equity fund that invented the cookie buyout is acquiring Campbell's Australian snacks unit for $2.2 bln. It’s less audacious than the $25 bln RJR Nabisco deal 30 years ago. But if KKR can scrape out decent growth and profitability, this one may prove tastier.

Viewsroom: Is Beyond Meat worth a bite?

1 August 2019

The meatless-burger maker is the best-performing IPO of the year by far. Now insiders are selling stock early as the company deals with rising competition, regulations and even a potential pea shortage. Plus: Using wine goggles to look at Western firms’ joint ventures in China.

Beyond Meat backers take the money while it’s hot

30 July 2019

The meatless-burger maker's CEO and other insiders are selling shares early. That looks like a signal that the near-800% jump in the stock since May's IPO is overcooked. Since Beyond Meat is still serving lashings of revenue growth, investors are unlikely to pay much heed.

Just Eat satisfies hunger for takeaway Dutch CEO

29 July 2019

The leaderless UK food delivery group is selling to rival Takeaway.com in a 5 billion pound all-share deal. Just Eat gains a new boss and ally in the battle against Uber and Deliveroo. The Dutch company, meanwhile, uses its highly-valued equity to join the UK food fight.

Heineken outlook only stacks up after a few pints

29 July 2019

The $62 bln brewer saw first-half operating profit rise only 0.3% year-on-year, but still assumes mid-single digit growth in 2019. Higher prices used to offset changing drinking trends. They will need to once again for CEO Jean-François van Boxmeer to avoid a new year hangover.

Nestlé’s recipe is good enough to keep Loeb sweet

26 July 2019

The $309 bln maker of Nespresso reported strong first-half organic sales growth. Higher commodity prices make for a trickier second half but CEO Mark Schneider is doing enough to keep activist Third Point happy. That reduces pressure to sell the company’s prized L’Oréal stake.