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McCormick investors choke on Unilever foods buyout
McCormick & Company Inc shares fell after it announced the acquisition of Unilever plc's foods business in a cash and shares deal to create a company worth about US$65 billion (A$94.4 billion). McCormick will pay $15.7 billion in cash and $29.1 billion in shares, giving Unilever shareholders 55.1% of the combined company, Unilever 9.9% and McCormick shareholders the balance. The companies said the merged business would have leading brands including McCormick flavours and seasoning, Knorr meal bases and Hellmann’s mayonnaise and high potential brands including Cholula hot sauces and Maille and Frank’s condiments. “The combination of Unilever’s Foods business with McCormick will create a global flavour powerhouse anchored in a portfolio of iconic brands across herbs, spices, seasonings, cooking aids, sauces and condiments,” they said in a media release. London-based Unilever said the transition would position it as a leading pure-play home and personal care (HPC) company. Chief Executive Officer Fernando Fernandez said the transaction was another decisive step in sharpening its portfolio and accelerating its strategy towards high-growth categories. “We are unlocking trapped value through a growth-led separation of
Food
Sysco pays price for US$29bn restaurant deal bill
Sysco shares plunged after it announced the acquisition of Jetro Restaurant Depot in a US$29 billion (A$42.3 billion) deal to increase its access to independent restaurants in the United States. Sysco (NYSE: SYY) shares closed $12.50 (15.28%) lower at $69.30, capitalising the largest food distributor in the U.S. at $33.19 billion. Sysco said it would acquire the family-owned restaurant and food service provider for $21.6 billion in cash, funded by debt and 91.5 million Sysco shares. The acquisition will allow Sysco to build a close relationship with customers that turn to Jetro for supplies in the higher margin $60 billion to $70 billion per year ‘cash-and-carry wholesale’ channel. “We’re thrilled to combine two industry leaders to create a preeminent multi-channel food service distribution platform,” Sysco Chair and Chief Executive Officer Kevin Hourican said in a news release. He said Sysco and Jetro Restaurant Depot would give independent restaurants better access to more affordable, fresh food products and deliver more choice and convenience. Jetro would benefit from access to Sysco’s foodservice supply chain and logistics capabilities, and Sysco would benefit from new ways to serve local customers. The co
Food
Pernod Ricard merger talk lifts Brown-Forman spirits
Brown-Forman Corp stock jumped on reports it had held preliminary merger discussions with Pernod Ricard as the alcoholic beverages sector responds to the challenges of rising costs and falling demand. Brown-Forman Class B shares (NYSE: BF.B) closed US$2.26 (9.63%) higher at $25.74 on Thursday (Friday AEDT) after media outlets reported the two companies had talked about combining their businesses. This capitalised the American company that makes Jack Daniel’s whiskey at US$11.88 billion (A$17.2 billion), but earlier in the session the share price was up as much as 21%. However, shares in Pernod Record ended €3.64 (5.73%) lower at €59.94, capitalising the world’s second largest spirits producer at €15.25 billion (US$17.53 billion), due to worries about the cost and risks of such a large acquisition. The talks were first disclosed in this article by Bloomberg, which cited an anonymous source familiar with the matter. A merger makes strategic sense in that although the French company’s spirits portfolio includes Jameson Irish whiskey, Ballantine's and Chivas Regal Scotch whiskey and Absolut vodka it has relatively little exposure to American whiskey. Although a deal is not certain, the talks reflect a move toward con
Food
Campbell's earnings miss on low snack sales, shares fall
Food company Campbell’s fell below estimates last quarter as snack sales dropped, sending its shares down 7.1%. Net sales declined 5% year-over-year to US$2.56 billion in the quarter to 1 February, 1.63% below Zacks consensus estimates. Earnings per share were $0.51, down from $0.74 one year ago and missing estimates of $0.57. “Our core Meals & Beverages portfolio delivered in-market consumption growth in the second quarter, highlighted by the Rao’s brand surpassing $1 billion in trailing twelve-month net sales. Overall results, however, fell short of our expectations due to weaker-than-expected performance in Snacks and storm-related shipment disruptions,” said Campbell’s CEO Mick Beekhuizen. “To stabilise Snacks, we are taking decisive action, focused on sharpening our value, new product innovation and in-market execution. We are also accelerating cost saving initiatives to mitigate cost headwinds and support continued investment in our brands.” Meals & Beverages sales were $1.65 billion, falling from $1.68 billion one year ago. Snack sales dropped to $914 million, from $1.01 billion. The decrease in snack sales was largely driven by declining chips and pretzels sales, as well as supply constraints, the company sa
Food
The Founders: Staying energised the natural way
After years of working in law, Mark Curry noticed a need for a more calming and healthy alternative to energy drinks to keep busy people awake. This was how his business, Savvy Beverages, turned from a personal project to a booming business. Savvy Beverages specialises in nootropic beverages, which are a kind of functional drink filled with vitamins and superfoods to boost brain function, boost productivity and improve mental clarity without the crash of traditional energy drinks.A booming industryWhen he first started, Curry says Savvy Beverages was the only product of its kind in Australia. The nootropics trend was already gaining traction in the U.S. in Silicon Valley in 2016. “When I used to pitch in 2018 and 19, the thing I was talking about in terms of the functional food and beverage space was quite small as opposed to now,” he tells Azzet. “Now, things have blown up dramatically.” The global functional beverage market size was valued at US$175.5 billion in 2022 and expected to reach $339.6 billion in 2030. In Australia alone, the industry was worth around $17 billion in 2023 and expected to rise to $34.7 billion by 2030. While many people still aren’t aware of nootropics, Curry says it is an industry t

Food
Kraft Heinz pauses split, says issues are 'fixable'
Kraft Heinz has paused its plan to separate into two companies and will instead invest US$600 million into reviving its United States growth, saying many of its difficulties are “fixable”. The foods company announced the split in September, with one business focused on grocery products and the other on condiments. Kraft Heinz will invest into marketing, research and development, and select pricing, it said today. “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control,” said Kraft Heinz CEO Steve Cahillane. Cahillane became CEO last month. “My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.” The company had planned to complete the separation in the second half of 2026. Kraft Foods and the H.J. Heinz Company originally merged in 2015. Kraft Heinz’s sales fell by 3.5% year-over-year last quarter to $6.35 billion, it said today. This was below Zacks estimates of $6.42 bi
Food
Heineken to cut 6000 jobs; beer market faces downturn
Heineken has announced it will be axing up to 6000 jobs, as the beer market continues to struggle in "challenging market conditions". The brewing giant, which produces Heineken, Amstel and Tiger beers, said the cuts would come over the next two years, across brewing and white-collar roles. The cuts will equate to around 7% of its 87,000 workers worldwide. The latest earnings report saw that Heineken had a tough 2025, with total beer volumes declining 2.4% over the course of the year, and with a lower profit growth now forecast for the year ahead. "We remain prudent in our near-term expectations for beer market conditions," said Chief Executive Dolf van den Brink, who announced his resignation from his role with Heineken in January, and will step down in May.
Food
Coca-Cola revenues fall short; boosts key markets
Coca-Cola reported lower-than-expected quarterly revenues for the first time in five years. For the fourth quarter of 2025, the food and beverage company reported revenue growth of 2% to US$11.82 billion, but fell short of Wall Street’s $12.03 billion expectations. . Despite this, demand for its drinks in North America and Latin America is beginning to show improvements. Its volume in North America increased 1% and 2% in Latin America. However, when excluding transaction gains and other one-time items, Coke earned 58 cents per share, surpassing expectations of 56 cents per share. The company also reported net income attributable to shareholders of $2.27 billion, or 53 cents per share, up from last year’s $2.2 billion or 51 cents per share. Coke chairman and CEO, James Quincy, said the company’s performance in 2025 created strong momentum for 2026. “Looking ahead, we will focus on executing our strategy even better and positioning our system for long-term success,” he said. For the full year 2026, the company expects to deliver organic revenue growth of 4% to 5% Similar to rival PepsiCo, demand for Coke’s drinks has declined due to budget-conscious shoppers trying to save more on their grocery bills and di
Food
PepsiCo beats estimates, will cut prices
PepsiCo beat earnings and revenue estimates last quarter, and plans to lower prices this year to boost its growth. Revenue was up 5.6% to US$29.34 billion, and above LSEG estimates of $28.97 billion. Earnings per share rose 11% to $2.26, besting estimates of $2.24. “PepsiCo’s fourth quarter results reflected a sequential acceleration in reported and organic revenue growth, with improvements in both the North America and International businesses. Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter,” said PepsiCo CEO Ramon Laguarta. “For fiscal 2026, we aim to accelerate growth by restaging large, global brands, introducing an expansive set of product innovation in emerging and functional spaces, and offering sharper value to address consumer affordability dynamics. We also aim to deliver a record year of productivity savings which will help fund investments to accelerate growth.” The company said it will cut prices on some products from brands like Lay’s, Tostito’s, Dorito’s, and Cheetos, and will relaunch brands like Gatorade and Quaker later in the year. Price cuts of as much as 15% have begun rolling out this week ah