TPG follows Turkish raki feat with Myanmar whisky 13 Oct 2017 The buyout firm has sold out of Myanmar’s largest spirits company in a $1 bln deal. As it did in Turkey, TPG again bought small, scaled up and sold to a big corporate buyer. Making deals in places like Yangon is an acquired taste – but can yield potent returns.
HelloFresh IPO belongs in the deep-freeze 10 Oct 2017 The German meal-kit service is planning a float before proving it can turn a profit. That’s premature. The flame-out of U.S. rival Blue Apron’s IPO in June offers an unhappy precedent. Both firms could go stale if Amazon or traditional retailers launch an assault on the sector.
Nestlé can pre-empt Dan Loeb with refreshed board 3 Oct 2017 The Kit Kat maker’s directors are light on consumer and digital expertise. Half of them are Swiss, a market worth just 2 percent of sales. Nestlé’s latest revamp plans are far from radical, and the activist may next seek boardroom changes. The company could beat him to it.
Amazon European shopping talk is wishful thinking 28 Sep 2017 Supermarkets Carrefour and Sainsbury have been floated as potential targets following the e-commerce giant’s $13.7 bln purchase of Whole Foods. But CEO Jeff Bezos already owns the one grocer he really needs. Bid speculation only obscures the broader competitive pressures.
Nestlé turnaround plan is bravely boring 26 Sep 2017 Under activist pressure, Europe’s largest food group is aiming to boost profitability. But the newish CEO isn’t inclined to flashy moves like a sale of the L’Oréal stake or a big acquisition. That’s praiseworthy in a way, but it will disappoint Nestlé’s more impatient investors.
Nestlé’s L’Oréal stake is ready for a makeover 22 Sep 2017 The head of French cosmetic group’s founding family, Liliane Bettencourt, has died, reviving the debate about the Nescafé owner’s 23 pct stake. The best solution is to offload it. The challenge for Nestlé boss Ulf Mark Schneider is how to distribute 24 billion euros of value.
Post serves unappetizing $1.5 bln breakfast combo 19 Sep 2017 The Grape-Nuts-to-Weetabix maker has ordered up a side of sausage and home fries by agreeing to buy Bob Evans. Post shares have been on a roll, but it's paying a hefty 15 times EBITDA, before trimming any fat. An estimated return of 5 pct is no way to start an investor's day.
Asian bid for Pret A Manger won’t cut the mustard 18 Sep 2017 Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.
Blue Bottle gives Nestlé little more than a buzz 14 Sep 2017 The Swiss food giant is buying control of the hipster coffee chain at a high-octane $700 mln valuation. It's a premium upgrade for the Nescafé maker, which is also offloading its U.S. candy arm. It may prove challenging, though, for such a niche brand to jolt the bottom line.
Chinese web grocer’s IPO requires a strong stomach 14 Sep 2017 Food giant COFCO wants to raise up to $600 mln floating an online supermarket. Sales are growing as web shoppers splurge on fresh produce. But the group is investing heavily in logistics. Throw in a costly price war with Alibaba and others, and investor appetite may be lacking.
JBS takes shareholders on zany rollercoaster ride 11 Sep 2017 The scandal-plagued Brazilian meatpacker raised a much-needed $1 bln by selling a poultry business to Pilgrim’s Pride. That gave investors a bit of a high after the low provided by the unraveling of the controlling family’s corruption plea deal. More stomach-churning lies ahead.
Carrefour’s ills demand Tesco-like revamp and more 31 Aug 2017 The French supermarket said full-year operating profit could fall 12 percent, partly due to stiff competition at home. The grocer’s new CEO faces even more challenges than Tesco’s Dave Lewis did three years ago. Domestic market share is shrinking and its online offering is weak.
Consumer giants’ disclosure is near sell-by date 25 Aug 2017 Firms that make food and personal-care products are pouring money into startups and young brands. Unilever, the most acquisitive, has made 15 such deals since 2014. Yet they don’t give investors enough information to judge their dealmaking nous. It could be their loss.
WPP underestimates pinch from corporate austerity 23 Aug 2017 The ad group cut its 2017 net sales guidance, blaming lower spending by consumer-goods giants which make up about a third of revenue. Boss Martin Sorrell reckons this will reverse. The danger is that zero-based budgeting and shareholder activism make frugality the new normal.
McDonald’s ain’t loving the local Indian recipe 22 Aug 2017 The U.S. burger chain is taking the nuclear option, shutting 169 stores as a spat with a partner boils over. It's one reason McDonald's has fallen behind rivals in a huge potential market. Partnerships are always vulnerable but India's byzantine legal system raises the stakes.
Unilever can butter up price for margarine unit 18 Aug 2017 Private equity consortiums are reported to be circling the Anglo-Dutch giant’s spreads business. A bidding war and the rich price paid for Reckitt’s food brands may help Unilever pocket more money. But unappetising returns await any buyer who pays more than 7 billion pounds.
Danone can stomach new activist investor 15 Aug 2017 Hedge fund Corvex’s reported stake in the yoghurt maker may be small, but it puts pressure on management to meet its new margin target. Danone was once shielded from a Pepsi bid by the French state. If new investors bring good ideas and discipline, such defences won’t be needed.
Blue Apron cooks up insipid post-IPO stew 10 Aug 2017 In its first results since its market debut, the meal-kit company delivered slower revenue growth and a bigger loss. Operational challenges and mounting competition are costing Blue Apron customers. Even after an Amazon-sparked 40 pct selloff, it's surprising investors can digest any of this gruel.
McDonald’s boldly supersizes its China strategy 9 Aug 2017 The burger chain will nearly double its mainland presence in five years, aided by new partners CITIC and Carlyle. McDonald’s is considerably smaller than market leader Yum. So breakneck growth makes sense – provided it can avoid slip-ups on food safety and quality control.
Cox: Japanese beer could use some home-brew 7 Aug 2017 Sapporo just acquired San Francisco's Anchor Steam, a godfather of American craft ale. Kirin already bought a stake in Brooklyn while Asahi took over Peroni and Grolsch. All three are profit laggards. Overseas shopping diverts from a more pressing matter: consolidation in Japan.