FoodBev Media’s Post

Here are some key lessons I picked up from this FT Article. All pointing to the need navigate the challenges of doing business in politically volatile environments. Curious to hear others thoughts on these or others you may find? 1. Stay Updated on Geopolitical Tensions: The external political environment can have a profound effect on business operations. Example: After Russia's invasion of Ukraine, there was a change in how foreign businesses were treated, leading to seizures like that of Carlsberg's Baltika Breweries. 2. Maintain Relationships with Local Authorities: Even if relations with a host country become strained, maintaining open channels of communication can be crucial. Example: Despite the seizure of Baltika Breweries, Carlsberg was still looking to engage with Russian authorities about the unit's future. 3. Prepare for Unexpected Takeovers: In volatile political climates, companies should have contingency plans for unexpected takeovers or changes in control. Example: Carlsberg was suddenly confronted with the appointment of Taimuraz Bolloev, a close ally of Putin, as the director of Baltika Breweries. 4. Be Transparent and Address Accusations Promptly: Addressing accusations or negative press promptly can protect the brand's reputation. Example: Putin's claim that Carlsberg pressured employees to hold certain political opinions was quickly refuted by Carlsberg's CEO, demonstrating the need to counter false narratives swiftly. 5. Consider the Timing of Divestment Carefully: Exiting a market should be done strategically, keeping in mind both business and human resource implications. Example: While some companies that left Russia early after the Ukraine invasion faced fewer restrictions, Carlsberg's CEO didn't regret their timing, pointing out that an earlier exit would have led to immediate nationalisation and potential unemployment for their staff. 6. Monitor Financial Health Amidst Crises: Despite geopolitical or local challenges, maintaining a healthy financial status and communicating this to stakeholders is key. Example: Carlsberg announced a significant share buyback program following better-than-expected profit growth, signaling resilience and a strong financial position. 7. Plan for Leadership Transitions: In uncertain times, leadership transitions should be well-planned to ensure business continuity and stakeholder confidence. Example: The article noted the impending departure of Carlsberg's CEO and his replacement, which is crucial information for stakeholders.

Food Execs Signal a Strong Appetite For M&A in 2024. Major food industry players like Mondelēz International and General Mills are gearing up for a surge in M&A activity this year. Despite the potential for high asking prices to hinder some deals, executives remain optimistic and proactive. Dirk Van de Put, CEO of Mondelēz, emphasized the importance of building trust and familiarity with potential targets before finalizing any deals. This signals a strategic shift towards smaller, more focused acquisitions within specific categories, such as snacking and better-for-you products. The industry seems poised for an eventful year ahead, with companies seeking to capitalize on emerging consumer trends and preferences. Read the full article here: https://bit.ly/3xlcf3C #FlavorWiki #MergersAndAcquisitions #FoodIndustry #BusinessStrategy #ConsumerTrends

Regardless of the rapid growth of spirits during the COVID-19 pandemic, everything has begun to slow down and normalize. Despite of economic situations, alcohol is something people tend to keep consuming. There is a common label for stocks called “defensive stocks,” often referring to those stocks that have proven steady growth and income to investors without correlation to the economic state. Food, beverages, hygiene, and gasoline are some of these essentials that people are always in need of.   With commodity prices experiencing an anticipated decline, European analysts are now favoring a much higher margin for beer.   Investors wanting to take a bet have predicted Anheuser-Busch InBev SA to be the most favorable due to the risk-reward in terms of valuation. However, one of the world’s richest people has decided to invest his money in another brew company. Earlier in June, Bill Gates decided to invest $940 million in the European beer maker Heineken. Regardless of it sounding like an extremely large quantity, it is only 1% of Bill Gates reported net worth. With commodity prices taking the decline that is expected, large profits could be found within the brew industry.  #internationalwealthmanagement #stockmarket #investments #independence #RIA For additional information, please visit the article “Charts That Caught My Eye” published on July 25, 2023 by Katy Huberty from Morgan Stanley.  “The preceding is presented as information and is not intended to be an investment recommendation or investment advice. Investors should consult with a registered investment adviser prior to undertaking any investment strategy to ensure it is suitable. Investment in securities involves risk and may lead to a loss of capital.”