Campbell lukewarm sale pitch is begging for a cook 30 Aug 2018 The $12 bln soup and snack company plans to sell its fresh and international food brands, and step up cost cuts on stagnant core brands. It’s leaving the door open for a sale, but that’s unlikely to appease activists like Dan Loeb. A focused auction would be a better approach.
Yum China will struggle to get a fancier takeout 29 Aug 2018 The U.S.-listed KFC operator has rejected a buyout bid worth nearly $18 bln from a group led by Hillhouse. The deal already builds in supersized prospects and a hefty debt burden. A sweetened offer, given hints of weaker spending ahead, would be demanding.
Pepsi’s fizzy water deal may have flat aftertaste 20 Aug 2018 As CEO Indra Nooyi departs, the drinks giant is buying SodaStream for $3.2 bln. Diversifying into the high-growth carbonated water market has strategic logic, and Pepsi has cash. But new boss Ramon Laguarta will need sparkling revenue growth to make a decent return.
Carlsberg’s drinking game victory looks temporary 16 Aug 2018 The Danish brewer’s second-quarter sales grew a better-than-expected 7.6 pct. The World Cup turned its big Russian business from a drag into a boon. While Carlsberg now trades at a premium to Heineken and AB InBev, less exposure to emerging markets means the bump is temporary.
Nooyi leaves Pepsi wondering what might have been 6 Aug 2018 The $166 bln food-and-drink giant’s CEO is leaving after 12 years. She successfully fended off activists seeking a breakup as returns underperformed Coke. Though Pepsi has had a good run more recently, her successor Ramon Laguarta will need to reconsider the conglomerate.
Campbell is an indigestible meal for all but Kraft 3 Aug 2018 Dan Loeb is pushing for a sale of the $13 bln soup maker. Campbell’s pretzel deal larded it with debt so an LBO won’t work. The $72 bln food giant with a penchant for cost cuts may be solo at the table. But heirs holding 42 pct of shares won’t roll over without a hearty payout.
Heineken beats honourable retreat from China 3 Aug 2018 The Dutch giant is handing its business in the People’s Republic to CR Beer and taking a $3.1 bln stake in the country’s top brewer. Focusing on other countries makes sense. Influencing the future of its brand in the world’s largest beer market, however, will be more challenging.
China’s Starbucks-wannabe has a weak brew 30 Jul 2018 Luckin Coffee says it's worth $1 bln after raising money from Singapore’s GIC and others. It’s growing fast and wants to woo consumers away from its dominant rival. Yet an emphasis on takeaways and sub-prime locations means the startup is not shaping up as a threat.
UNFI mixes organic food and financial steroids 26 Jul 2018 The natural-food distributor is paying $2.9 billion for grocery wholesaler Supervalu – a clear attempt to bulk up in response to Amazon’s foray into food retail. UNFI is getting a good deal thanks to generous cost cuts, but the amount of debt it is taking on makes this risky.
Papa John’s poison-crust defense is justified 23 Jul 2018 The U.S. pizza chain has adopted a mechanism that would dilute ousted founder and largest shareholder John Schnatter if he tries to gain creeping control. It will keep other bidders away too. Such measures often aren’t helpful, but in this case they offer needed breathing space.
Alibaba’s $2 bln food sale hints at indigestion 17 Jul 2018 The e-commerce firm is raising new funds from outside investors for its meal delivery arm Ele.me, media reports. This comes just three months after Alibaba took full control of the unit. Rival Meituan's mooted $4 bln Hong Kong flotation might be giving Jack Ma stomach jitters.
Rotten food is least of UK grocers’ Brexit worries 11 Jul 2018 British supermarket operators worry that failure to reach a deal with the EU would see goods stuck at the border. More serious is the prospect of tariffs on imports from the bloc. That would leave them scrambling to protect thin margins and their market share from foreign rivals.
Smucker sells inconvenient Doughboy 10 Jul 2018 The jam maker is shedding Pillsbury and other baking brands for $375 million because of soft sales. It sees a brighter future in snacks, coffee and pet food. But as PepsiCo’s Frito-Lay unit shows, consumers aren’t shunning unhealthy foods, just those that require a little effort.
Premier Foods CEO heave looks like M&A appetiser 10 Jul 2018 Activist Oasis has upped its stake in the maker of OXO cubes to oust boss Gavin Darby. Its plan to sell Batchelors soup could cut borrowing and loosen top investor Nissin’s grip, making the rest a takeover target. It’s a more appealing prospect than low growth and high debt.
Dan Loeb hits limits of “constructivism” on Nestlé 2 Jul 2018 A year after disclosing a stake, the activist investor called on the Swiss giant to shake up its business and board. Though his ideas make sense, progress has been slow and the stock has lagged. He could take a more muscular approach, but only if other shareholders go along.
Chobani swaps TPG for something sweeter 28 Jun 2018 The buyout firm exacted a high price for helping the yogurt-maker out in 2014. Now Chobani has found a Canadian pension fund to help show TPG the exit. Chobani’s value may have increased by more than 50 pct in four years. Private equity may have been unpalatable, but it worked.
Premier Foods’ Japanese flavour has turned stale 28 Jun 2018 Top shareholder Nissin’s stake in the Mr Kipling maker has fared poorly, but a beneficial commercial deal ensures its support. With activist Oasis pushing for CEO Gavin Darby’s ouster, it’s time for the Tokyo-based company to start thinking like an investor.
Conagra boss finally gets his Hungry-Man and more 27 Jun 2018 With an agreed $10.9 bln purchase of Pinnacle, Sean Connolly seals the deal on a takeover of the motley crew of slow-growth grocery goods he has pursued since 2014, when he ran Hillshire. But it’s a high price and ambitious cost cuts don’t cover the premium he’s paying.
Diageo could use a chaser as it runs up China tab 26 Jun 2018 The British booze giant wants to spend some $900 mln to own a majority of Sichuan Swellfun. A rally in baijiu stocks means Diageo is buying high again. Absolute control offers defensive value, but a broader strategy will be equally important against $150 bln Kweichow Moutai.
Jack-of-all-apps Meituan masters few for IPO 25 Jun 2018 The unprofitable Chinese tech firm revealed in its Hong Kong debut plans that food delivery, travel and a handful of other areas account for over 90 pct of revenue. To justify a possible $60 bln valuation, investors will have to believe it can succeed in more cutthroat markets.