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Shares of Kraft Heinz are struggling after an SEC filing revealed that 3G Capital, the company's second-largest shareholder, had sold more than 25 million shares. Yahoo Finance’s Myles Udland, Jen Rogers and Brian Sozzi discuss on The Final Round.
Kraft Heinz's second largest investor, 3G Capital Partners disclosed it has sold 25.1 million shares. That brings the firm's stake down about 9%.
3G Capital is downsizing its stake in Kraft Heinz. Yahoo Finance's Julie Hyman, Adam Shapiro, Rick Newman, Sibile Marcellus and Jared Blikre discuss.
Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. Kraft Heinz Co (NASDAQ: KHC) saw two directors buying some shares last week. Also note a large sale of shares this past week by a beneficial owner.
Moody's Investors Service ("Moody's") today assigned A3 ratings to 500 million of 0.875% senior unsecured Rule 144A notes due 2031 being offered by Mondelez International Holdings Netherlands BV ("MIHN"), an intermediate holding company wholly owned by Mondelez International, Inc. ("Mondelez", Baa1). The new MIHN notes will be guaranteed by Mondelez. Ratings of Mondelez, including its Baa1 senior unsecured and Prime-2 commercial paper ratings are unaffected.
(Bloomberg) -- At consumer-goods companies across the developed world -- from Anheuser-Busch InBev NV to Kraft Heinz Co. -- established brands such as Budweiser beer and Oscar Mayer hot dogs are being pummeled by cooler upstarts. The same is happening in the spirits industry.Brands like Pernod Ricard SA’s Chivas Regal Scotch whisky and Diageo Plc’s Smirnoff vodka find it increasingly hard to compete for shelf space behind the bar or in trendy liquor stores. Drinkers now tend to favor small-batch alcohol, often promoted as locally made or less industrialized than mass-market products.Pernod Ricard’s strategy? If you can’t beat them, buy them -- especially U.S. whiskey brands.Chief Executive Officer Alexandre Ricard, grandson of the company’s founder, has made it one of the most acquisitive businesses in the industry since taking the helm four years ago. He announced his latest deal last month -- a $233 million tender offer for Castle Brands, owner of Jefferson’s bourbon -- and shows no signs of stopping there.“The acquisition strategy is leveraging booming categories and reinforcing must-win, key strategic markets like the U.S. -- and all the American whiskeys check both boxes,” said Ricard, 47, who worked on mergers and acquisitions during a previous career in banking at Morgan Stanley.Ricard’s focus on niche, high-end brands moves the company away from the decades-long, debt-fueled consolidation of Big Alcohol spearheaded by his predecessors -- the very strategy that led to the combination of Pernod and Ricard in 1970. The company has been a more regular buyer than others in the industry, including nearest rival Diageo, whose landmark deal of recent years was a $1 billion takeover of George Clooney’s Casamigos tequila in 2017.Bouncing BackBuying upstarts helped Paris-based Pernod Ricard bounce back from an unsuccessful bid two years ago for Utah-based High West Distillery. The French company saw High West as a way back into American whiskey after selling Wild Turkey to Davide Campari-Milano SpA in 2009. The companies failed to agree on a price, and High West was eventually sold to Constellation Brands Inc.Pernod Ricard then compensated with a series of bolt-on purchases -- Kentucky’s Rabbit Hole bourbon, TX whiskey in Texas and West Virginia’s Smooth Ambler. Ricard also can’t get enough small-batch gin: He’s acquired Monkey 47 in Germany, Amazzoni in Brazil, Ungava in Canada and Malfy in Italy. In Mexico, he bought Avion tequila and Del Maguey mezcal.To shine a spotlight on their performance, Pernod Ricard lumped the acquired businesses into a new division. Its revenue grew 12% last year, exceeding the 7% gain at Pernod Ricard’s mainstream arm that includes Jameson Irish whiskey, albeit from a much smaller base. Last year, the new unit accounted for 280 million euros ($310 million) in sales, or 0.5% of the company’s total.Pernod Ricard began the smaller-is-better takeover spree before Paul Singer’s Elliott Management Corp. bought a stake in the company late last year. Yet it goes some way toward addressing the hedge fund’s complaints about stagnating growth at brands such as Absolut in the U.S.Absolut StagnatesAbsolut has lagged since its 1980s heyday, when the vodka collaborated with artist Andy Warhol on campaigns. It sold $864 million worth of vodka in the U.S. last year, down from $1.1 billion in 2014, according to industry data tracker IWSR. Niche brands have a lot more runway. Monkey 47’s gin sales jumped 10-fold in the same period, to just under $10 million in 2018.Still, the newcomers haven’t yet shown they can convert their cachet into numbers that will move the needle at a company like Pernod Ricard, which has about 9 billion euros in annual sales. Some competitors prefer to buy brands that will drive big and immediate gains in revenue, an example being Campari’s $760 million deal to acquire Grand Marnier.Laurence Whyatt, an analyst at Barclays, asked Ricard on an August conference call whether the niche products were distracting management from bigger revenue streams, such as Havana Club rum or Martell cognac. The CEO told him not to worry, saying there was a “full focus” on the brands that drive most of the income.Pernod Ricard can afford to bet on small liquor brands. Last month, the company reported its strongest annual earnings growth in seven years, while its debt-to-profit ratio is the lowest in recent memory. It’s also sold off laggards including Domecq brandies and Paddy Irish whiskey to make way for promising newcomers. There may be more to come, with the wine assets said to be earmarked for sale.Small-scale acquisitions make sense strategically because Ricard is adding products to key growth categories, such as gin and North American whiskey, said Ed Mundy, an analyst at Jefferies.“There’s probably less impetus and opportunity for large-scale M&A than in the past,” Mundy said.To contact the reporter on this story: Thomas Buckley in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Anne PollakFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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Kraft Heinz stock was edging up on Wednesday, a day after the shares were hit on news that 3G Capital Partners sold a chunk of its stake. Guggenheim is still skeptical.
One NYC reader event to start: join DD’s James Fontanella-Khan and Arash Massoudi on October 2 for a discussion with top M&A experts on how US national security took over dealmaking. The evening reception, at the FT’s New York office, is in high demand so please register your interest here and we will notify you within the week if you have been allocated a place.
Private-equity firm 3G Capital Partners sold 25 million shares but will keep a substantial stake, which may not sit well with shareholders who are worried new Kraft Heinz management will be hampered in its turnaround efforts.
Shares of Kraft Heinz Co. slumped 4.2% in midday trading, enough to pace decliners among its consumer staples peers group, after the food and beverage company's second-largest shareholder cut its stake by more than 9%. In a Form 4 filing with the Securities and Exchange Commission, Kraft Heinz disclosed that private-equity firm 3G Capital sold 25.1 million Kraft Heinz shares on Monday at a price of $28.44, which values the shares sold at $712.95 million. That left 3G with a 245.03-million-share stake, or 20.1%, of the shares outstanding. 3G's stake is second to Warren Buffett's Berkshire Hathaway Inc.'s 325.6-million-share stake as of June 30, which is 26.7% of the shares outstanding. 3G and Berkshire orchestrated the creation of Kraft Heinz when Kraft Foods Group Inc. and H.J. Heinz Co. agreed in March 2015 to merge. Kraft Heinz's stock has tumbled 34.1% year to date, while the SPDR Consumer Staples Select Sector ETF has rallied 19.7% and the Dow Jones Industrial Average has climbed 15.8%.
In a filing with the U.S. Securities and Exchange Commission on Monday, 3G Global Food Holdings disclosed that it sold 25.1 million shares at $28.44 per share, lower than Kraft Heinz's Monday's close of $29.62. The $712.95 million stock sale brings 3G Capital's stake down to 20.1% from 22.14%, and it continues to be the second largest shareholder behind Warren Buffett's Berkshire Hathaway Inc . "The sale was driven by periodic liquidity windows by 3G investors in the 3G fund that holds Kraft Heinz stock," said Kraft's spokesman, adding that the Brazilian private equity firm has no current plan or intention to sell any additional shares.
Wall Street was set to open slightly lower on Tuesday as investors stayed away from making big bets ahead of the Federal Reserve's two-day policy meeting, where it is widely expected to cut interest rates. The Fed concludes its policy meeting on Wednesday, facing a host of global growth worries including a prolonged U.S.-China trade war into which the weekend bombings on Saudi Arabia's oil refinery have thrown an oil price shock. Traders currently see a 65.8% chance of a quarter percentage point cut from the Fed this week, down from 88.8% on Friday, according to CME's FedWatch.
Stock futures: The stock market and Apple showed resilience as crude oil prices soared Monday. Shopify, Funko and Kraft Heinz fell late on stock-sale buzz.
Can a piece of toast be a bagel? Can a waffle be a bagel? Introducing “Bagel That,” a revolutionary new tool that helps cream cheese lovers punch holes in the middle of anything, instantly turning it into a bagel.
Investing.com – Wall Street ticked lower on Tuesday as stronger-than-expected industrial production and manufacturing output figures put another dent in hopes for a rate cut from the Federal Reserve, whose regular policy meeting kicks off later.
Stocks end in positive territory Tuesday as investors proceed with caution as the Federal Reserve's two-day rate-setting meeting kicks off.