French iced tea feud will inflame grocer wars 14 Sep 2023 Carrefour is warning customers that suppliers like Unilever are raising prices on drinks and other goods by shrinking packages. The move will keep the government on side in its war against inflation. But smarter shoppers may hunt for bargains and go to discounters Lidl and Aldi.
Grocers learn lessons of ‘greedflation’ drama 12 Sep 2023 Food-price rises are easing, which is good news for supermarkets that stand accused of profiting from consumer pain. In this Exchange podcast, Ahold Delhaize CEO Frans Muller explains why demand for own-brand goods gives the Dutch group an upper hand in supplier negotiations.
Smucker takes big fat chance on anti-obesity drugs 11 Sep 2023 The peanut butter and jelly company is paying an unhealthy $5.6 bln to buy Twinkies maker Hostess. Boss Mark Smucker makes no bones about doubling down on sweet snacks. As Ozempic and other treatments threaten demand, it’s a strategy that would work if it weren’t so expensive.
Twinkies maker will give food brands a sugar high 1 Sep 2023 Sweet-treat purveyor Hostess is mulling a sale to a conglomerate seven years after private equity firm Apollo took it public for $2.3 bln. At its current valuation, and as the pandemic sugar rush fades, there’s not much cream left for the next buyer to squeeze.
Instacart’s mixed bag has valuation opportunities 28 Aug 2023 The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.
Tupperware preserves lessons for Mark Zuckerberg 25 Aug 2023 The iconic food-storage company narrowly avoided collapse after becoming a meme stock. Ironically, viral buzz, often from stay-at-home moms, has been its secret sauce, just as it is for the Facebook founder’s $780 bln empire. Fickle influencers also can spoil the party.
Roark scores sandwich deal better than $5 footlong 24 Aug 2023 Family-owned Subway is settling for a $10 bln price in its sale to the buyout firm. It values the chain at a lower multiple than peers and other deals, including Roark’s Dunkin’ purchase. With IPO markets opening and terms protecting buyers, there’s plenty to nibble on.
High food prices put populism on India’s table 22 Aug 2023 The cost of onions and tomatoes are soaring ahead of state elections, ramping up pressure for government relief measures. Modi’s fiscal prudence has helped tame inflation and supports his appeal to global investors. The latest crisis could push everyone out of their comfort zone.
CFOs are stepping into a rapidly revolving door 14 Aug 2023 From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.
Black Sea wheat war is sideshow for grain deal 9 Aug 2023 Russia is bombing Ukraine’s Danube ports while Kyiv hits its enemy’s ships in the Black Sea. Bumper harvests can cushion the shock on global wheat prices. But it would be in the two warring countries’ interest to strike a new food transport pact to allow their lucrative exports.
Bubble tea will test limits of China’s consumers 8 Aug 2023 Half a dozen boba-drink makers including Mixue Bingcheng are looking to list abroad. Profit margins are low in the $20 bln sector. But as shoppers reduce higher-end spending, the cheap-and-cheerful brews can thrive – even if Beijing holds back on much-needed stimulus.
Campbell’s $3 bln Rao’s deal could use long simmer 7 Aug 2023 The tomato soup maker is spooning out too much for the upscale pasta sauce’s owner, Sovos. Implied returns barely cover the cost of capital, and the rationale is heavily salted with corporate gibberish. Long-running food trends, however, should help it taste better in time.
Adland consumer-goods boon has limited shelf-life 4 Aug 2023 Food and beverage giants like PepsiCo are ramping up marketing amid soaring sales. That’s a fillip for WPP and peers, which have seen revenue from tech clients stumble. The risk is that, with inflation falling, consumer goods’ momentum slows before Big Tech gets back on its feet.
Capital Calls: Carlyle, UK SPAC deal, Beauty marks 2 Aug 2023 Concise views on global finance: The buyout shop’s fee challenge comes into sharper relief for boss Harvey Schwartz; banker Michael Klein aims to use his latest shell company to buy a British investment firm for $1.6 bln; and $7 bln cosmetics maker e.l.f. is looking glamorous.
Capital Calls: Sequoia, Heineken, Moneyball 31 Jul 2023 Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.
Unilever new broom’s best sweep is towards Asia 25 Jul 2023 The $137 bln Dove shampoo maker hiked prices without losing many sales in the first half. Yet falling European volumes and limited scope for structural tinkering make it hard for new CEO Hein Schumacher to boost margins. His best hope is to bulk up in his strongest region.
Egypt’s food tightrope has petrodollar safety net 24 Jul 2023 The collapse of the Russia-Ukraine grain deal is a big problem for the world’s top importer of wheat. Egypt’s battered economy will struggle as food prices spike. A $400 mln lifeline from the UAE, flush with oil cash, is one of leader Abdel Fattah al-Sisi’s few crumbs of comfort.
Ireland becomes guinea pig for booze clampdown 13 Jul 2023 Drinks like Guinness and Smirnoff vodka will feature cancer warning labels by 2026. It’s a bold move that will be watched closely by the US and Europe. If it’s a success and is replicated, rosy forecasts of alcohol sales soaring to $2 trln by 2030 may be revised.
Czech sphinx’s Casino bet trumps French insiders 5 Jul 2023 The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.
Swire’s Coca-Cola sale gives investors sugar rush 29 Jun 2023 Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.