New Mondelez CEO’s honeymoon may be short 2 Aug 2017 The $66 bln snack purveyor named Irene Rosenfeld’s replacement, reaching outside its ranks for frozen-food executive Dirk Van de Put. It’s an orderly succession others would do well to emulate, but the new boss may still walk into an M&A fight.
Fancy fast food makers eye China’s dining upgrade 1 Aug 2017 Changing consumer appetites in the world's largest fast food market are attracting attention from premium brands like Shake Shack – possibly at the expense of incumbents like McDonald's. The opportunity looks tasty, but competition and quality control could give them heartburn.
Nestlé is behind in consumer goods bake-off 27 Jul 2017 In a slow sales environment, global food giants need a new growth recipe. Danone and Unilever are both buying higher-growth companies and using fashionable cost cutting philosophies to improve profitability. Bigger rival Nestlé is trying too, but less convincingly.
Ceconomy plays to German retail stereotype 26 Jul 2017 As befits a country known for thrifty shoppers, the newly listed electronics retailer has bought cheaply into Fnac Darty. While Ceconomy could probably afford a big premium to take over its French rival, it will take just a 24 pct stake – enough to keep rival bidders at bay.
Chipotle’s yuck overwhelms financial yum 25 Jul 2017 The $10 bln burrito chain delivered healthy financial results that exceeded expectations. It won't be enough to restore confidence, however, after a new suspected norovirus outbreak and video surfaced of rodents at one location. More radical change at the top may be necessary.
B&M is unimaginative punt on Brexit Britain 24 Jul 2017 The discount retailer has been named as a potential 4.4 bln pound target for Wal-Mart’s Asda. With incomes tightening, UK shoppers will want cheaper goods. Yet Asda could as easily soup up its existing offering or copy rivals Tesco and Sainsbury’s with a more ambitious deal.
Unilever is half way there on Kraft challenge 20 Jul 2017 The Marmite maker has cut costs faster than expected, reducing ad spend and paying less to its suppliers. Its 20 pct operating margin goal looks reachable. Yet with U.S. rival Kraft Heinz free to reprise its hostile bid next month, volume growth is too low for comfort.
Let venture capitalists subsidize your life 19 Jul 2017 Frustrated by an inability to invest in unicorns? Try another strategy. VCs and other investors lose money funding vendors of meal kits, car rides, music, data storage, and even household necessities. Here’s how to live well off Silicon Valley’s obsession with the future.
McCormick may struggle to digest $4.2 bln deal 19 Jul 2017 The $12 bln spice vendor is paying a fat 20 times EBITDA for the mustard and hot-sauce business of Reckitt Benckiser. With modest synergies in prospect, McCormick will need strong growth to pay down debt. Investors have reason to question the acquisition’s aftertaste.
Carrefour unit shows way to Brazil IPO revival 19 Jul 2017 The French supermarket chain’s local unit raised $1.6 bln in the country’s biggest stock offering in four years. Rising deal flow suggests growing confidence Latin America’s largest economy is getting back on track. But the recovery’s pace is tepid, and sensible pricing is key.
Reckitt shows bigger rivals how it’s done 19 Jul 2017 The UK company sold its French’s Mustard unit to U.S. food group McCormick for $4.2 bln, a spicy 7.4 times sales – even though there’s no recovery story and limited synergies. With buyers this hungry, less efficient peers Unilever and Nestlé ought to emulate Reckitt’s recipe.
Mayo board’s exodus sets spicy governance example 18 Jul 2017 Hampton Creek may have used dodgy methods to boost sales of its eggless mayonnaise. Now most of the Silicon Valley startup’s directors have quit after they clashed with the co-founder and CEO. It’s a last resort, but boards at Theranos and Uber, for example, might have tried it.
Campbell Soup deal is mmm mmm meh 7 Jul 2017 The canned-cream-of-mushroom-to-Goldfish-crackers maker is buying organic-focused Pacific Foods for $700 mln. Like other big grocery brands, Campbell finds itself squeezed by such rivals. At more than three times sales, it's a steep price to pay to try and get healthier.
Danone could be next serving for hungry activists 5 Jul 2017 Low margins and poor investor returns mean the French maker of Activia yoghurt is a logical target. While an earlier campaign by U.S. activist Nelson Peltz had modest success, Third Point’s new stake in Nestlé and President Macron’s pro-business agenda argue for a fresh look.
Ocado has a delivery problem to fix 5 Jul 2017 The UK online grocer’s pre-tax profit fell in the first half and net debt is rising. Its big dream of selling cutting-edge technology to other retailers generates less than 10 percent of revenue. Rapid delivery is imperative at a time when Amazon is prowling the aisles.
Stonyfield deal whipped up by U.S. yogurt frenzy 3 Jul 2017 France's Lactalis is paying 20 times EBITDA for Danone's yogurt brand, or $875 mln. While American demand has propelled upstarts like Chobani to multibillion-dollar valuations, growth has slowed. It may be hard for the old-school label to woo new consumers.
Nestlé can ignore all Dan Loeb’s ideas bar one 3 Jul 2017 Of the four demands activist Third Point put to the Swiss giant’s board, just one is worth pursuing. Share buybacks, selling divisions and a sale of Nestlé’s L’Oreal stake wouldn’t obviously juice up the share price. Old-fashioned margin improvement holds the most promise.
Rocket cleans its plate in Delivery Hero IPO 30 Jun 2017 Floating its food delivery offspring for 1 bln euros is a much needed success for the German tech investor. It sold the maximum number of shares at the top end of the price range. The only snag is that there’s not a great amount left on the table for outside investors.
Viewsroom: Blue Apron’s debut leaves bad taste 29 Jun 2017 The meal-kit delivery firm had an unappetizing IPO, barely opening above its much-reduced price of $10 a share. Investors are starting to wise up to fluffy concoctions with little meat. The more discerning environment will make it difficult for half-baked companies with high risk.
Blue Apron cut suggests investors have discernment 28 Jun 2017 After feasting on Snap's nutrition-free IPO, it's healthy to see potential owners forcing the meal-kit maker's price down a third. Blue Apron's numbers were unappetizing even before Amazon's Whole Foods deal. Palates with a more refined taste for risk may find it digestible.