Foodbeveragetobacco
Japanese food & beverage company acquires Brazil beer maker Schincariol for US$ 2.6 billion. We posted in October 2009 that “it doesn’t make sense to think about beer/soft drinks without thinking about FMCG companies – especially food companies”. Interestingly, the theme of developed-world companies seeking the growth of Latin America and Asia was also clear in HSBC’s announcement yesterday that it would fire some 30,000 employees in Europe & the US and hire about 15,000 in LatAm & Asia. We hope managers are keeping this in mind: “what price growth”?
Judging by the recent troubles in Belgium and the article at Valor (in portuguese), the love-hate relationship with InBev in Belgium has gone to hell. And there’s the “socialism vs. capitalism” conflict in Europe again. If it weren’t for the image deterioration risk – and it seems that they’re handling it by going as far as they can, but no further – the union representative’s words would be music to shareholders’ ears.
Kraft’s all-out effort to acquire Cadbury involved a “side deal” in which Nestlé bought Kraft’s frozen pizza division. One company had cash on hand and served as “white knight”, the other had a pressing need and none other than Warren Buffett applying pressure. We think it’s safe to assume that Nestlé got a sweet deal…
Read more about Nestlé benefits from Kraft’s resolve to buy Cadbury
Short comments on Global Beverages motivated by the Femsa beer unit sale talks and (much earlier) the Kraft/ Cadbury imbroglio. Beer and soft drinks make sense together, as does beer + soft drinks and food.
