Thursday, 16 February 2017
As Walmart continues its e-commerce shopping spree with yet another acquisition, legendary investor Warren Buffett has sold almost all of his shares in the retail giant. Has he lost faith in the leading US retailer? And what does this mean for traditional retail? Also, German discounter Lidl will open its first US stores sooner than expected. Have a great day, and if you enjoy this edition, please share.
Nestlé is slowing down
The world's largest food company Nestlé has posted revenue growth of 3.2 per cent for 2016 - the slowest rate in at least a decade. And for 2017 its new CEO Mark Schneider has equally sobering news: The company expects revenue to rise 2 to 4 per cent on an organic basis and the trading operating margin to be stable excluding currency swings - missing its long-term targets again.
Danone tightens its belt
The French dairy giant's like-for-like sales increased 2.9 per cent to € 21.9 billion in 2016 - the slowest pace in nearly 20 years. Against this backdrop the yogurt maker has announced to cut 1 billion euros in costs within three years. The company wants to boost its business with the acquisition of US organic food group WhiteWave which is to close in the first quarter.
Source Great British Foods at IFE 2017
IFE 2017 (The International Food & Drink Event) takes place 19-22 March at ExCeL London. The UK's biggest food & drink event will be packed with innovative food & drink products from 1,350 suppliers. IFE is divided into 9 easy to navigate sections, including a Great British & Irish foods section. Find inspiration for your retail shelves at the show - get your free trade ticket at
Profits & losses
Australian retail giant Wesfarmers, which owns DIY chain Homebase and has just launched Bunnings in the UK, has revealed a loss of GBP 28 million for its UK business. The company says that the half-year losses were due to slashing prices and restructuring +++ Russian retailer Dixy Group, on the other hand, says that its private-label Baby Boom Brand, which sells products such as diapers and napkins, has increased sales in the segment by 30% in six months.
Lidl to arrive early
The German discounter, which runs over 10,000 stores in Europe, will open its first stores in the US this summer. The company was originally not expected to launch until late 2017 or 2018. Lidl now plans to open 100 stores in the country within a year.
Kraft Heinz beats expectations
Cutting costs seems to pay off for the world's fifth-largest food and beverage company. For its fourth quarter the maker of Heinz ketchup has reported a higher-than-expected adjusted profit. Comparable sales growth came in at 1.6 per cent. The company which merged in 2015 is controlled by Brazilian private-equity firm 3G Capital known for running a tight ship.
New activist investor for P&G
After weeks of speculations the firm of activist investor Nelson Peltz has revealed itself as new major shareholder of Procter & Gamble. The news send its shares to a two-year high. According to insiders, Trian currently holds more than $3 billion of P&G's stock.
ASIA & AUSTRALIA
Would you like a car with that, madam?
In a push to bring new and innovative brands to the shop floor, Australian department store Myer has partnered with electric car maker Tesla and is launching a mini showroom at its Melbourne CBD store that will display a brand-new Tesla Model X worth A$ 115,000.