Kraft Heinz fail leaves Buffett and 3G well fed 22 Feb 2019 Even after the Velveeta maker’s shares lost more than a quarter of their value, the investors who built it from their 2013 Heinz acquisition have made almost a 50 percent profit. No such luck for Kraft’s original investors. Over three years, they have barely broken even.
Kraft Heinz is desperate for a fresh variety 21 Feb 2019 An earnings miss, a $15 bln writedown and an SEC subpoena sent the ketchup maker’s stock plunging over 20 pct after hours Thursday. It’s a sign CEO Bernardo Hees’s cost-cutting strategy has hit a dead end. Owners 3G and Berkshire Hathaway need to find a new recipe for growth.
Viewsroom: Brexit breakups 21 Feb 2019 Foreign carmakers are closing some UK plants as lawmakers defect from both the Labour and ruling Tory parties. How will this affect the looming deadline to quit the EU? Plus: Vegan diets are more than a fad.
Veganism may prove a more durable diet fad 19 Feb 2019 Climate change and concern for animal welfare are prompting more consumers to shun meat. As with the low-carb trend of the early 2000s, companies are scrambling to keep up: vegan sausage rolls helped boost British baker Greggs’ sales. The shift is more than a flash in the pan.
Heineken sets premium bar high for rival AB InBev 13 Feb 2019 The world’s two mega-brewers are aggressively wooing customers to pay up for higher-quality, and craftier, suds. The Dutch brewer’s full-year results suggest it’s managing the shift well despite - or perhaps because of - the increased heft of its $129 bln competitor.
Just Eat could prove a tasty M&A morsel 11 Feb 2019 The 4.9 bln pound UK food-delivery group is leaderless and faces an activist investor. It could keep investing in its delivery services to fend off Uber, but peers like Takeaway.com and Delivery Hero are doing the same. Just Eat’s cut-price valuation could force the board’s hand.
Holding: Boards miss message about personal email 5 Feb 2019 Until recently, directors and officers could chat on individual accounts with near impunity. Now courts are forcing bosses at Uber, Facebook, Papa John's and elsewhere to cough up private and often incriminating texts. Think twice before sending that smiley-face emoticon.
Starboard gets generous slice of Papa John’s 4 Feb 2019 The hedge fund is investing $200 mln and taking two board seats in the struggling pizza chain. The price is unambitious and it could ink a return of 6 percent annually. Turnarounds aren’t easy, and Papa John’s needs help. But Starboard is being well paid for its expertise.
KFC is finger lickin’ in a less appetising China 1 Feb 2019 Mainland appetite for fried chicken helped Yum China turn a fourth-quarter profit and pushed same-store sales up 2 pct, beating forecasts. It's still expanding fast too. That suggests a resilient bet on Chinese consumers: even as budgets tighten, cheap eats stay on the menu.
Asahi gives fuller meaning to beer premiumisation 28 Jan 2019 The Japanese brewer is adding iconic London Pride to Peroni and Grolsch in its cooler. Paying a sudsy 24 times EBITDA for Fuller’s beer signifies the need for upscale and craft ales to keep up with liquor rivals. Cheap money should help make the deal go down easier for Asahi.
Pernod Ricard takes baby step towards Elliott 24 Jan 2019 The French spirits maker has named a lead independent director. The increased focus on corporate governance is a welcome start and one of the demands of the activist investor. More radical changes and cost cuts will be needed to close its operating margin gap with rival Diageo.
Patisserie Valerie has a way out of collapse 23 Jan 2019 The cake chain called in administrators KPMG, but buyers have expressed interest. To make the numbers stack up, the acquirer would likely wipe out most of the unsecured creditors, including chairman Luke Johnson. If this happens, the battered baker could yet have a future.
JAB departure is sign to halt deal binge 15 Jan 2019 Chairman Bart Becht unexpectedly retired from the Krispy Kreme owner after swallowing several chunky acquisitions. Rising debt and the declining value of investments like Coty raise questions about JAB’s model. The remaining partners need a break before returning to the table.
AB InBev’s Asia sale needs breathalyser test 14 Jan 2019 The Belgian brewer is said to be mulling an IPO of its Asian unit. The region is a fast-growing jewel in the drinks giant’s crown, yet it faces stiff competition in China, and still struggles in India and Southeast Asia. The mooted $70 bln valuation will be tough to keep down.
Constellation finds pipe dreams and debt don’t mix 9 Jan 2019 Higher costs and slower shipments hit the Modelo brewer’s earnings. The real driver of value ought to be its 38 pct stake in weed grower Canopy. But valuing its future potential is nigh impossible – whereas the debt Constellation used to fund its cannabis punt is all too real.
Starbucks will start brewing a venti Chinese deal 3 Jan 2019 The $80 bln coffee chain is targeting big mainland expansion, with some 6,000 stores by 2022. Such bold plans will run up against stiffer competition and trade-war-related pressure on U.S. companies. Starbucks would be smart to find local backers the way McDonald’s and Yum did.
German takeaway truce delivers tasty value treat 21 Dec 2018 Delivery Hero is selling its German business to rival Takeaway.com for 930 mln euros. As with Uber's capitulation to Didi in China's car-share wars, it means an end to cutthroat competition in another gig-economy market - and relief for both companies' investors.
Approach of peak chicken brings vat meat closer 12 Dec 2018 Today’s bird weighs up to five times as much as 60 years ago, putting it on track to be the world’s protein of choice. Yet the rate of growth is slowing because of the fowl’s physical limits. That’s a recipe for lab-grown alternatives, just as regulators clarify the rules.
Pernod Ricard served a shot of Diageo by Elliott 12 Dec 2018 The French booze group lags its rival on some counts, such as operating margins, but has bested it on others, notably share-price performance. Narrowing the gap on profitability, and improving corporate governance, as the activist urges, are worthy and achievable objectives.
Activism anxiety will grip French establishment 12 Dec 2018 Between the state and raiders like Vincent Bolloré, France is no stranger to meddling investors. But this year some blue-chips will face cage rattling. Pernod is just the start. The likes of Saint-Gobain, Danone, Renault - and even Bolloré’s Vivendi - are no longer off-limits.