Nestle came under investor scrutiny last week after its sales missed analyst expectations – with China a central factor. Elsewhere, we looked at the international strategy of one of China’s largest food makers – Bright Food – in the wake of its acquisition of Italian olive oil firm Salov. And we spoke to the president of US investment firm BBX Capital after six acquisitions in the US confectionery sector in a year. Click on the headlines for more.
On the money: Why Nestle is relaxed about the China “drag”Nestle’s sales for the first nine months of 2014 have missed analyst expectations and the investment community pointed to China as a key factor. However, the world’s largest food manufacturer, while noting the short-term challenges it sees in the market, is upbeat about its prospects.
BRICs and beyond: How Bright Food is furthering its international strategyState-backed Chinese food giant Bright Food Co continued to make progress with its “go global, bring in” ambition when it acquired a majority stake in Italian olive oil manufacturer Salov Group last week. The move is typical of Bright’s international strategy as the group continues to further its agenda to grow globally and bring overseas brands to Chinese consumers. Katy Askew reports.
M&A Watch: Emmi shareholders should consider saleFor several years Glenboden has opined that Emmi is a divestment candidate in denial – within a broader European dairy context. The recent debacle with Italian unit Trentinalatte confirms that growth through acquisition is not something the Swiss group is always successful at. Would Emmi’s shareholders consider a liquidity event that would make them a participant in European dairy consolidation, plus earn them lots of money?
just the answer: Jarett Levan on BBX Capital’s foray into confectionerySince December last year, US investment firm BBX Capital has – quite literally – been like a kid a in candy store. Via wholly-owned subsidiary BBX Sweet Holdings, it has made six acquisitions in the US confectionery sector, which include Helen Grace Chocolates, Anastasia Confections and – the latest purchase – Toffee Box. Hannah Abdulla catches up with company president Jarett Levan to find out what BBX’s game is.
In the spotlight: Will Danone return to growth in fresh dairy?Danone has faced myriad issues at its fresh dairies business. The group has been squeezed by weak consumer sentiment in its largest markets, on the one hand, and rising input prices, on the other. Management believes that a focus on improving its mix in developed markets will boost its profit profile. All the while it has been positioning itself to drive the top line in emerging markets. But these efforts are yet to show themselves in the unit’s results. Could Danone’s fresh dairy business be preparing to turn a corner? Katy Askew reports.
Chiquita rebuffs sweetened Cutrale, Safra bidThe board of Chiquita Brands International has once again rejected takeover advances from Cutrale Group and Safra Group, insisting their improved offer is still not in the best interests of shareholders.
Unilever steps up investment in Thailand to support growthUnilever will invest THB8bn (US$246.6m) to grow its business in Thailand – and the ASEAN region – as part of a three-year investment plan for the market.
ConAgra takes popcorn, condiments to Brazil in Cargill dealConAgra Foods is launching its Act II popcorn product and its Hunt’s line of condiments in Brazil under an agreement with Cargill.
Consuming issues: Paying the price for eating healthilyResearch suggesting the price gap between healthier and less healthy foods is widening will have been greeted with concern by public health experts and policymakers. Food companies should be worried too but, Ben Cooper argues, they should also be encouraged by the direction this research may take the debate.
Analysis: Why French retail deals could hit suppliersAgainst a backdrop of weak consumer confidence and falling prices, four of France’s leading four retailers have, in two deals, decided to team up on purchasing. And the country’s food manufacturers are not happy.