Nestlé tackles growth deficiencies with Atrium bid 5 Dec 2017 Buying the diet-supplement group for $2.3 billion gives the KitKat maker a tonic for sluggish sales. An entrepreneurial management team will stick around to run it. A 16.4 times EBITDA multiple brings lively returns to seller Permira, but without Nestlé overdoing the dosage.
Ramen IPO may be worth slurping up 1 Dec 2017 Japan's Nissin is taking public its Greater China business at a valuation of about HK$4.1 bln, or $525 mln. Broader demand is falling, but the company is tapping into millennial interest in posher packaged carbs. Compared to where rivals trade, these noodles could be tasty.
Global giants see Vietnam through beer goggles 1 Dec 2017 The young, hops-happy country is in the sights of big brewers like Asahi and AB InBev. Global growth is as dull as a flat pint. But the presence of entrenched interests, tech-like multiples and the mixed experience of early players should give pause.
Chipotle wraps succession up in rotten governance 29 Nov 2017 The embattled burrito chain’s founder Steve Ells is stepping down as CEO but becoming executive chairman. That puts too many bosses in the kitchen and may hamper the new chief’s ability to stir in much-needed new ingredients. It’s a maneuver other companies have come to regret.
Unilever buys more time for HQ beauty parade 28 Nov 2017 The Dove soap maker will postpone a decision on locating its head office in London or Rotterdam. It avoids becoming a lightning rod for discontented voters for now. Sitting on its hands also gives the UK government time to offer up goodies that match or beat Dutch perks.
Ocado gets dubious halo as Europe’s Amazon bulwark 28 Nov 2017 The online retailer’s shares jumped by a fifth after it signed a deal to develop Casino’s digital offering. Investors are pricing in more agreements as European grocers react to the U.S. tech giant edging onto their turf. Ocado’s track record suggests they may be disappointed.
Big Food should resist organic Thanksgiving feast 23 Nov 2017 Natural-foods businesses have grown faster than processed purveyors of late. That makes $4.3 bln organic producer Hain a tempting target for Nestlé or others. But high valuations, changing consumer tastes and the looming threat of Amazon warrant moderation over M&A indulgence.
HelloFresh barely clears low hurdles 21 Nov 2017 The German meal-kit service delivered soaring revenues and better margins for its first results as a listed company. Shares are down 2 percent since flotation. That is hardly a runaway success but better than shelved listings in Britain and U.S. rival Blue Apron’s public mauling.
Alibaba deal guides grocers to checkout 20 Nov 2017 The e-commerce goliath is buying over a third of Chinese supermarket owner Sun Art for $2.9 bln. It underscores how food marks a pivotal retail battleground. And for Alibaba to secure the stake at a 24 pct discount suggests its brick-and-mortar rivals see the writing on the wall.
Hummus maker offers cautionary tale of IPO greed 10 Nov 2017 Bakkavor pulled its UK listing only to return a week later with a lower price. After a string of disappointing initial public offerings, the message has finally sunk in that restraint is of the essence. Flip-flopping, though, will leave an unappealing aftertaste.
M&S swaps comfort food for tougher diet 8 Nov 2017 The UK retailer will speed up closures of its clothes stores, aiming to move sales online. A fresh urgency addressing changing consumer habits bears the hallmark of Archie Norman, the new chairman. That’s all the more important with the usually reliable food business going off.
Constellation Brands takes the party up a notch 30 Oct 2017 The Svedka vodka and Corona beer maker's mission is to "elevate life with every glass raised." By purchasing 9.9 percent of Canada's Canopy Growth for C$245 mln it can add tokes of marijuana to that vision. It's telling to see big booze beat big tobacco to the fiesta.
AB InBev grows bigger without getting better 26 Oct 2017 A year after acquiring SABMiller, the world’s No.1 brewer said cost savings from the deal will be higher than expected. Bulking up allows the Belgian company to buy on better terms. Yet it looks worryingly weak at persuading consumers to drink more of its beer.
Beefed up sales keep McDonald’s afloat 24 Oct 2017 Flouting food trends has paid off for CEO Steve Easterbrook. Serving core customers the classics delivered same-store sales growth, in spite of Hurricanes Harvey and Irma. The broader industry, which expects a 2.2 pct decline in comparable sales, will feel the bad weather.
China’s mouldy cheese ban leaves lingering stink 23 Oct 2017 Authorities have called off a blockage on imports of Brie, Roquefort and the like. Food safety fears threaten China’s growing appetite for dairy and other foreign fare. The risk of such reactions from a maturing market will require investors to have a strong stomach.
Meituan orders up help to be China’s next web star 20 Oct 2017 The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.
Tootsie Roll bet could leave return cavity 18 Oct 2017 Hedge fund Spruce Point reckons the secretive confectionary firm may be worth half its $2 bln value. The short seller may have a point. But Tootsie Roll’s future rests on the health of octogenarian CEO and major shareholder Ellen Gordon. Betting against candy in general is safer.
Danone’s chair-CEO blend leaves sour taste 18 Oct 2017 Boss Emmanuel Faber is taking on both roles three years after the yoghurt maker split them. Yet shareholders are increasingly unhappy with such poor corporate governance at French companies. And with an activist to contend with, the board’s decision looks complacent.
Private equity margarine bet needs activist backup 18 Oct 2017 Buyout firms may pay up to 7 billion euros for Unilever’s spreads unit. The new owners will need to stem falling sales as shoppers shun artificial produce. Acquiring other brands from food companies under pressure from uppity shareholders could be one way of boosting returns.
Danone has to work to milk turnaround tale 17 Oct 2017 Strong third-quarter sales lifted the French yogurt maker’s shares to record highs. Rebounding Chinese demand will help make the most of a strong portfolio of brands. But cost cuts and making a success of its WhiteWave acquisition are key ingredients for an even richer valuation.