Conagra food deal could leave heartburn 22 Jun 2018 The $15 bln owner of Hebrew National and Reddi-wip could tie up with smaller rival Pinnacle after hedge fund Jana has come calling. Bulking up is one way to fight slow growth as consumers shift from processed fare. But justifying a deal requires cost cuts which may be a stretch.
Starbucks plots a skinny-latte future 20 Jun 2018 The coffee chain is serving slowing sales in the U.S. and China, and a lukewarm valuation. Boss Kevin Johnson is using his tech background to attract customers, but still faces venti-sized challenges. Starbucks is shaking up the menu. It could also consider slimming down faster.
DSM extracts vigorous returns from healthy planet 20 Jun 2018 The Dutch company which once mined coal now makes food supplements and fibres. New targets suggest sustainable businesses can deliver high single-digit EBITDA growth. Though investors’ expectations are already high, up to 3 bln euros for acquisitions promises a further boost.
Judges supplement U.S. defences on China trade 15 Jun 2018 The Supreme Court said courts shouldn’t take foreign governments’ claims about their own laws at face value. The underlying case, over vitamin price-fixing, rumbles on. This decision attacks an inconsistency Beijing has exploited in arguing firms are just following orders.
Hotpot IPO may offer a tasty dip 6 Jun 2018 One of China’s top hotpot chains is eyeing a $700 mln debut in Hong Kong. It has dealt adeptly with hygiene scandals and is a splash with local consumers, growing blisteringly fast. A push to take its Sichuan cuisine to smaller cities is also something promising for investors to munch on.
Pret A Manger is new pawn in global coffee wars 29 May 2018 JAB is acquiring the UK food outlet for $2 billion. After spending roughly $30 bln on coffee and food chains over the past two years, the German conglomerate is a growing threat to larger rivals Nestle and Starbucks. An agile and ambitious model gives it a good shot at success.
Latest M&S overhaul lacks a clear price tag 23 May 2018 The UK retailer will close 100 stores in an attempt to reverse falling like-for-like food and clothing sales. The revamp, sped up by new Chairman Archie Norman, set the group back half a billion pounds last year. With few details about future costs, investors can shop elsewhere.
Ocado investment case requires heavy guesswork 17 May 2018 The UK retailer’s shares rose 45 pct after U.S. grocer Kroger agreed to use its online-delivery technology and take a 5 pct stake. The deal solves Ocado’s cash flow problems. But a valuation of almost four times sales is toppy given scant detail on its international partnerships.
Walmart wages dangerously big online war in India 9 May 2018 Even as an e-commerce push at home stumbles, the mega-retailer is plowing $16 bln into Flipkart. It pits Walmart against Amazon in a huge unprofitable market, and also challenges Alibaba, which backs Paytm Mall. After missteps in China, this will be a make-or-break overseas deal.
Scent makers’ $7 bln M&A splash-on has funny smell 7 May 2018 IFF is touting cost cuts worth almost double the premium it’s paying for Frutarom. The deal also sprays the buyer with a healthy dose of products made with natural ingredients. But IFF’s investment return looks low. That may be why investors are turning their noses up at it.
Sainsbury’s shows need for new antitrust approach 2 May 2018 The grocer, which is buying Asda for 7.3 bln pounds, wants UK competition authorities to vet retail mergers in a new way. The rise of discount rivals and online sales means it has a point. A revamp of the metrics used to make sure shoppers have enough choice looks inevitable.
Sainsbury’s tries to succeed where Walmart flopped 30 Apr 2018 The UK grocer is buying the U.S. giant’s Asda subsidiary for 7.3 billion pounds in cash and stock. Even after passing on some cost savings to shoppers, Sainsbury’s could make a double-digit return on investment. Unless demands from competition authorities eat into the benefits.
Sainsbury’s and Walmart test UK merger taboo 28 Apr 2018 Britain’s second- and third-largest grocers plan to merge, with Asda’s U.S. parent as the junior partner. Joining forces is a logical response to the threat from Amazon and rival Tesco’s tie-up with wholesaler Booker. Still, it’s an audacious challenge to competition authorities.
P&G drug deal needs vitamin shot to persuade Peltz 19 Apr 2018 The U.S. consumer giant is paying 3.4 bln euros for the consumer arm of Germany’s Merck. For it to make sense P&G will have to crank up sales of Seven Seas vitamins while cutting out costs. Board member Nelson Peltz’s criticism of past acquisitions further raises the stakes.
Nestlé and Unilever switch focus to shopping lists 19 Apr 2018 The consumer giants reported strong sales growth in the first quarter; a welcome change after two years of sluggish demand. With share prices flatlining, though, a further shake-up of their brands is likely. There are growing signs of where both companies are looking to buy.
Danone pasteurised debt gives novel way to go green 18 Apr 2018 Banks led by BNP Paribas will charge the French dairy group a lower margin on a 2 billion euro credit line if it hits social and environmental targets. Perversely, lenders would gain if Danone drags its feet. But shareholders now have a clear incentive to do the right thing.
Savory European fare feeds China’s M&A cravings 18 Apr 2018 Property developer Kam Fung may buy Spanish meat producer Incarlopsa, valuing it at 1.2 bln euros. Combining bricks and ham offers no clear benefits, and the price looks rich. But Beijing isn't guiding against food investing, and the Trump era forces a change of deal direction.
Starbucks’ anti-racism coffee break sets example 17 Apr 2018 After the arrest of two black men at a Philadelphia shop the $84 bln chain will shut some 8,000 U.S. outlets for an afternoon of racial-bias education. The swift response, perhaps costing $20 mln in lost latte sales, backs up Starbucks’ social goals and offers a lesson to others.
Meituan steers onto collision course with Alibaba 16 Apr 2018 China's $30 bln delivery outfit wants to be an all-in-one consumer services app. That pits it against Jack Ma's e-commerce giant, now contesting Meituan in food takeaway and bicycle sharing. Ties with deep-pocketed Tencent could make the underdog more than a nuisance.
Tesco’s turnaround may bring forward regime change 11 Apr 2018 Three years after an accounting scandal and price war, the grocer is improving margins and cutting debt. It’s the least shorted of all British supermarket stocks. Boss Dave Lewis’ revamp looks within reach. The question for investors is whether he’ll stick around to finish it.