Martinne's Feed
Feb 20, 2013

Heinz deal a “call to action” for Campbell Soup

BOCA RATON, Florida (Reuters) – The planned $23 billion acquisition of H.J. Heinz Co (HNZ.N: Quote, Profile, Research, Stock Buzz) by Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) and 3G Capital is leading rival Campbell Soup Co (CPB.N: Quote, Profile, Research, Stock Buzz) to take a closer look at its own cost structure, the soup company’s chief executive told Reuters on Wednesday.

3G is run by investors who bought Burger King Worldwide Inc (BKW.N: Quote, Profile, Research, Stock Buzz) and helped engineer the formation of Anheuser Busch InBev (ABI.BR: Quote, Profile, Research, Stock Buzz). They are known for cutting costs and running very efficient businesses, and Campbell CEO Denise Morrison does not want to stand pat.

Feb 20, 2013

SABMiller CEO’s successor to get less boost from deals

, Feb 20 (Reuters) – One of the biggest
challenges facing the incoming chief executive of SABMiller Plc
will be continuing to grow the business as strongly in a
world with fewer acquisitions to make, according to its outgoing
chief executive.

With the global beer industry undergoing a wave of
consolidation over the last two decades, brewers can no longer
count on much of a boost from mergers and acquisitions – deals
that helped transition SABMiller from a regional South African
brewer to the world’s second-biggest, with over 200 brands
ranging from Miller Lite to Peroni to Grolsch.

Feb 15, 2013

Kraft Foods revenue hurt by Oscar Mayer share loss

Feb 15 (Reuters) – Kraft Foods Group Inc said on
Friday it expects to report a 10.7 percent decline in
fourth-quarter revenue, saying it failed to adequately tailor
some products, particularly its Oscar Mayer lunch meat, to meet
consumer demand for lower-priced foods.

The news from Kraft comes on the heels of disappointing
results from Mondelez International, which used to be
combined with Kraft before the companies split late last year.

Feb 15, 2013

Campbell Soup profit beats Street; sales rise 10 percent

Feb 15 (Reuters) – Campbell Soup reported a
higher-than-expected quarterly profit on Friday as gains in its
soup and snacks businesses offset a decline in its drinks unit.

The company, which also sells V8 juices, Pepperidge Farm
cookies and Prego pasta sauces, said U.S. soup sales rose 1
percent from the year-earlier period. Sales rose 7 percent for
snacks and fell 3 percent for U.S. beverages.

Feb 15, 2013

Buffett, Brazil’s 3G team up for $23 billion Heinz buyout

By Ben Berkowitz and Martinne Geller

(Reuters) – Warren Buffett and Brazilian financier Jorge Paulo Lemann are teaming up to buy ketchup maker H.J. Heinz Co for $23.2 billion, in what could be the first step of a wave of mergers for the food and beverage industry.

Analysts and people close to the deal said Heinz could be a good starting point to consolidate similar staple food companies, particularly given the larger ambitions of Lemann’s private equity firm 3G Capital.

Feb 14, 2013

Burger King’s Brazilian owner at heart of all-American Heinz deal

By Olivia Oran and Martinne Geller

(Reuters) – At the heart of the $23 billion buyout of iconic American company H.J. Heinz Co is a low profile Brazilian group founded by a banker-turned-beer magnate.

3G Capital, which teamed up with Warren Buffett’s Berkshire Hathaway Inc for the deal, has aggressively eyed U.S. consumer companies over the last several years.

Feb 14, 2013

Buffett pulls off fresh blockbuster with $23 billion Heinz deal

By Ben Berkowitz and Martinne Geller

(Reuters) – Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G’s ambitions in the food industry with Buffett’s hunt for growth.

Including debt assumption, Heinz valued the transaction, which it called the largest in its industry’s history, at $28 billion. Berkshire and 3G will pay $72.50 per share, a 19 percent premium to the stock’s previous all-time high.

Feb 14, 2013

Oreo maker Mondelez results weaker-than-expected; shares fall

Feb 13 (Reuters) – Mondelez International Inc
reported weaker-than-expected revenue for the second time in its
two quarters as an independent company, and its shares fell 3.7
percent in afterhours trade.

The company, which makes Trident gum, Oreo cookies and
Cadbury chocolate, saw revenue rise 3.7 percent excluding any
impact from acquisitions, divestitures and other things. That is
slightly weaker than its forecast calling for mid-single-digit
growth, which the company said would have been at least 4
percent.

Feb 12, 2013

Harris Teeter exploring options: sources

By Martinne Geller and Olivia Oran

(Reuters) – Harris Teeter Supermarkets Inc (HTSI.N: Quote, Profile, Research, Stock Buzz) is exploring strategic options including a possible sale, two sources familiar with the matter said on Tuesday.

The company, which has a market capitalization of over $1.8 billion, is being advised by JP Morgan, said the sources, who declined to be named because the process is confidential.

Feb 12, 2013

Coca-Cola revenue misses Street view; shares slip

By Martinne Geller

(Reuters) – Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) reported fourth-quarter revenue slightly below analysts’ estimates, hurt by a weaker-than-expected performance in Europe.

The world’s largest soft drink maker, with brands such as Sprite, Fanta and Minute Maid, on Tuesday said revenue rose 4 percent to $11.46 billion. Analysts were expecting $11.53 billion, according to Thomson Reuters I/B/E/S.