Cem Karakas

Andrew Holland, CEO, Avendus Public Markets Alternate Strategies, remains optimistic about infrastructure, premiumization in the beverages industry, electronic manufacturing, and hospitality sectors for the next 2-3 years. In this episode of Markets & Economy, he highlights the potential growth in the FMCG sector attributed to increased rural spending, although this growth is still in its early stages. Further, he believes that the IT sector will remain in the spotlight due to anticipated interest rate cuts this year, which is expected to provide a substantial boost to the industry. Watch here👉https://lnkd.in/dtfniwyV #Markets #Economy #Infrastructure #Manufacturing #Hospitality #FMCG #IT #FED #InterestRates #Outlook

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TDR To Become Asda’s Majority Owner After Agreeing To Buy Zuber’s Stake It has been confirmed today that private equity firm TDR Capital will acquire Zuber Issa’s shares in Asda. His brother Mohsin will remain a co-owner of the supermarket they bought along with TDR in 2021. Set to be completed Q3 2024. TDR will then own 67.5% of Asda, Mohsin (22.5%) and Walmart (10%). The transaction further dismantles the business relationship between Zuber and Mohsin, at a time when Asda is losing market share. Mohsin denied rumours of a fallout with his brother, saying on the BBC that the pair “get on exceptionally well”. Commenting on today’s news, Gary Lindsay and Tom Mitchell, Managing Partners of TDR Capital, said: “By combining our investment and sector expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda … As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.” Asda’s Chairman, Stuart Rose, commented: “On behalf of the Board, I welcome TDR’s increased investment in Asda – which is a clear sign of its commitment to the business … The Board and shareholders continue to put in place the building blocks to position Asda for long-term success, and that is good news for colleagues, customers, suppliers and other business partners.” Meanwhile, Mohsin said: “Today’s announcement further underlines my own and TDR’s confidence both in Asda and the UK consumer market. As a shareholder group, we are excited about the growth journey we are on … I also want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.” Zuber concluded: “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.” NamNews Implications: * This means more of a PE influence on how Asda is run… * i.e. see The Implications of Private Equity Takeover of a Mult (Link in comments below) * And why not reassess your retailer handling by business model? – See Tailoring Major Customer Management by Business Model (Vive la Difference?) (Link in comments below) #PrivateEquity

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A very good article in ft.com regarding the recent share price💲performance of the leading global alcohol 🍸 🍷 🥂 companies. Purveyors of alcoholic beverages have clearly had a terrible time of late. Shares in Diageo, Campari, Pernod Ricard and Rémy Cointreau are down between 20 and 40 per cent in the past 12 months. There is no shortage of good reasons. Diageo’s stumble is in part home-grown, given its stocking troubles in Latin America. Rémy Cointreau and Pernod Ricard have been hit by fears that China might impose tariffs on brandy. Most worrisome of all for companies across the sector is the fact that the US — the world’s most lucrative alcohol market — has gone into reverse, with spirit volumes down 3.3 per cent in 2023. However all this looks overly despondent. Despite current wobbles, selling alcoholic drinks remains a good business. When the Covid-era hangover finally clears, this will be a sector in which annual volumes grow by perhaps a couple of percentage points a year, prices rise and consumers increasingly choose premium drinks. We can all say cheers 🍸 to this! **this aricle is not investment advice** #alcohol #beverages #ft #financialtimes Lars Jensen Paul Villis Michel Aubanel Gilles Halotel Carol Dunne Jean Noel Ortal Jean-Philippe Delforge Kristof König Linda Chatton Stephen Rannekleiv Jim Watson Bourcard Nesin Francois Sonneville Virginia Traldi David Deeley Brian Short William Lynch Thomas Hahlin Ahlinder Sheelagh Pentony

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The latest data for the UK low & no alcohol market is game-changing! While the UK's overall alcohol market is facing a decline, the low/no segment is absolutely 𝙗𝙤𝙤𝙢𝙞𝙣𝙜! 🚀 According to the yesterdays IWSR report: 📈 No/low-alcohol volumes grew by 47% from 2022 to 2023! 𝗬𝗲𝘀 - 𝟰𝟳%!! 🔮 Forecasted +19% CAGR from 2023 to 2028. 💷 Adding £800m in value by 2028. As the UK's largest low & no retailer, DRYDRINKER LTD is excited to confirm that we are seeing the same trends with a 30% YoY growth this year. In a recent survey of our customers, the number one motivation for drinking low & no alcohol was to live a healthier lifestyle - and I don't see this motivation changing anytime soon! 🍻 Link to article in the comments.

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👓 Exciting insights from a recent report reveal significant growth opportunities in the plant-based protein market. Despite 54% of consumers being put off plant-based products by concerns over taste and 42% by texture, an impressive 91% of consumers report satisfaction after trying plant-based products. To expand this market further, improving taste and texture, enhancing product placement in stores, and implementing educational initiatives are crucial. For more details on growth in the plant-based space read the full report from Dig Insights and Upsiide: https://lnkd.in/eePGUSXU #plantbased #innovation #consumertrends #cibusnexum

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Is the industry looking for cheaper coffee? "A notificable shift is underway as some of the smaller-sized specialty #coffeetraders are gradually moving away from their traditional focus on niche specialty lots towards more standardised, #commercialofferings. This transformation marks a significant departure from the bespoke, high-quality approach that has long defined the specialty coffee industry. Instead, these traders are now embracing a more commercial strategy that aims to compete more effectively against larger multinationals and specialty coffee traders with superior #cashflow and #creditlines." In this article, Sarah Eleanor Charles spoke with David Paparelli, CEO of M-Cultivo, about how traders adapt to market dynamics, shifts, and new economic realities. https://lnkd.in/eTwdGbf3

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Poll Insights: Key Executive Roles in Driving Industry Innovation Last week, we asked our network which executive role is most crucial for driving innovation in response to changing consumer trends within the food and ingredients sector. The results are insightful and reflect the strategic priorities that are top of mind for industry leaders. Here’s how the votes were cast: Chief Innovation Officer: 44% Marketing Director: 32% Product Development Lead: 19% Chief Sustainability Officer: 5% Analysis of Results: The Chief Innovation Officer emerged as the clear leader, chosen by nearly half of the respondents. This highlights the growing recognition of the need for dedicated leadership focused squarely on innovation as a driving force for adapting to and capitalizing on new consumer trends. The Marketing Director also received a significant portion of the vote, underscoring the importance of market-driven strategies and the role of marketing in communicating innovative product benefits to consumers. Interestingly, while the Product Development Lead plays a direct role in creating new products, it seems the strategic influence of innovation and marketing leadership is viewed as even more crucial in steering companies through evolving market landscapes. The Chief Sustainability Officer received the fewest votes, suggesting that while sustainability is important, it may currently be seen as a less direct driver of innovation in response to consumer trends in our sector. Strategic Takeaways: These results suggest a strong emphasis on roles that can navigate rapidly changing market dynamics and consumer preferences, highlighting the necessity for strategic vision and effective market engagement in leadership positions. Thank you to everyone who participated. As we continue to adapt and innovate, let’s keep the conversation going. What strategies have you found effective in integrating these key roles into your business operations? Share your thoughts and let’s discuss further!

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We bang on about how important taste is in food and drinks and so it's great to see Waitrose & Partners getting on board with lots of sampling opportunities. In store there've been opportunities to sample many of their own label products, as well as #wine #beer and #nonalcoholic options. Today, not for the first time, there was a food truck outside handing out Beyond Meat burgers. Yes please! It was delicious 😋 With so many brands and products to choose from getting consumers to TASTE your product is a great way to cut through. Realise your brand’s potential. Talk to Hummingbird Insights. #foodandbeverage #plantbased #marketresearch #insights

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Really interesting Panel session yesterday at the Food Matters Live event on Spotlight on ultra-processed foods (‘UPF’). The key takeaways for me were: 📗 No legal definition or technical guidance of UPF so not surprising that everyone in the food industry is confused and consumers are feeling anxious. 🍕 Looking at all the criticism of UPF this does not really go any further than what we already know about nutritional benefit. So UPFs high in sugar, saturated fat and salt and with low nutritional benefit should be best avoided or eaten sparingly but that does not mean that all UPF will be HFSS. To be clear - HFSS and UPF are not the same. 🍞 Not all UPFs should be demonised – some foods have been reformulated to improve their nutritional benefit and indeed the food industry is working hard through processes to introduce more digestible fibre into everyday staples such as bread. 😀 UPF play an important role in special diets such as dairy free and gluten free. 🏋‍♀️ The food we give to critically ill or elderly patients and the food eaten by supreme athletes is often ultra-processed and these foods provide an important function. 🔔 UPF have a role in sustainability and many food processes are being introduced with attention to environmental impact. 📣 The government has no plans in food strategy to focus on UPF as it is nutritional profiling that is the key to resolving the obesity crisis and diverting our attention to UPF may be diluting the message or a distraction. So thanks to the Panel of Lauren Woodley, Natalie Rouse, Natascha Gaut, and Amy Glass RNutr for your insight and clarification and I hope that I have transposed the key messages correctly and this post goes some way to helping people gain a greater understanding of UPF.

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A positive outlook from the IWSR: https://lnkd.in/ekZss23X   The beverages market has had a challenging time over the past two years, but with overall growth set to return in 2025, there's every opportunity for the sector to get back on track. Great to read that Rosé is seen as a growth category with its drinkability and more fun image. At Encirc Beverages, we're super optimistic about the next few years and the plans set out in our #VividVision strategy. For me, it's about rethinking how the industry works, collaborating across the sector and supply chain, and providing the quality customer service consumers need to make sure our vision a reality! #Sustainability #EncircBeverages #SupplyChain

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A few weeks ago I warned that the UK was running the risk of becoming "the dirty man of Europe" due to the lack of progress on implementing Deposit Return Schemes. So today I am delighted to be able to eat my own words and say that the Governments of England, Wales, Scotland and Northern Ireland have taken a massive step forwards with their joint policy statement on DRS. The statement provides much needed clarity, pragmatic guidance around key aspects of interoperability and a sensible timeline for delivery. The only niggle is that all nations still need to align fully over the materials in scope - but hopefully that will be resolved quickly. At which point, industry can roll up its collective sleeves and start the difficult task of making DRS a reality. And if you want proof of what can be achieved, take a visit to the Republic of Ireland, which I did with colleagues last week. There you will see for yourself how consumers are embracing this new recycling behaviour and how smart retailers have ensured they turn DRS into a key footfall driver into their stores. Tens of millions of containers have been returned. And the scheme has only just started.... #DRS #circulareconomy #recycling #packaging The statement can be found here in case you have missed it: https://lnkd.in/d3zgxTWg

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Britvic, a UK-based soft-drinks supplier, has rejected two takeover bids from Carlsberg Group. Carlsberg's latest offer, sent on June 11, was around £3.2 billion ($3.9 billion) for Britvic, or 1,250 pence per share. Britvic stated that the second proposal undervalues the company and its future prospects. Carlsberg, one of the world's largest brewers, believes that a deal would allow them to capture long-term growth opportunities from Britvic's leading brands in the beverage market. Carlsberg's acquisition aligns with their growth strategy to expand beyond beer. Carlsberg markets its own soft drinks, while Britvic handles PepsiCo's beverages in the UK and Ireland. Carlsberg takes a disciplined approach to evaluating acquisitions and will only proceed with a transaction that is strategically and financially attractive. If an offer is made, it is likely to be in cash and fully debt financed. The second offer for Britvic represented an implied enterprise value multiple of over 13 times Britvic's adjusted EBITDA. It also marked a premium of 29% to Britvic's closing price prior to press speculation. Both parties have stated that there is no certainty another offer will be made. In the first half of fiscal year 2024, Britvic reported a 10.9% increase in revenue, a 15.3% increase in EBIT, and a 10.1% rise in profit after tax. The company's revenue primarily comes from its business in Great Britain, accounting for 68% of its revenue. Britvic also operates in other markets, such as France and Brazil. Carlsberg's business in the UK focuses on its Carlsberg Marston's Brewing Co. unit, which is a joint venture with Marston's, with Carlsberg owning a majority share. https://lnkd.in/esRCum6m

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Innovation, Big Brands, and Retail: A Call for Change The fresh soup category is currently dominated by one major player: Hain Daniels Group which owns the three largest brands—New Covent Garden, Yorkshire Provender, and Cully and Sully. A quick glance at the shelves of a major retailer reveals that these brands occupy a staggering 63% of the facings, despite competition laws suggesting a maximum of 40%. This overwhelming presence of a single conglomerate stifles innovation and hampers the growth of the category. When retailers prioritise the big money offered by dominant brands over the diverse and passionate offerings of challenger brands, the entire category suffers. Fresh soup is just one example of this issue. Challenger brands bring unique flavours, creativity, and a deep commitment to their customers. These are brands born out of passion and a relentless drive to offer something better. They sacrifice a lot to bring their products to market, and they care deeply about taste and quality. However, without retailer support, these innovative brands struggle to get the shelf space they deserve. The issue extends beyond fresh soup. Numerous other categories face similar challenges, where one big brand dominates the market, leaving little room for smaller, innovative competitors. Retailers have a crucial role to play in fostering a competitive and dynamic marketplace. By supporting challenger brands, they not only encourage innovation but also provide consumers with a wider array of choices, cross category purchases and ultimately growing the category with better products. It's time for a change. Let's support the passionate entrepreneurs who bring fresh ideas and flavours to our shelves. Innovation thrives in diversity, and the retail sector must reflect this. Let's advocate for fair competition and the growth of challenger brands for the benefit of all. I’d be interested to hear other sectors experience…. #Innovation #Retail #BigBrands #FreshSoup #ChallengerBrands #FairCompetition #ConsumerChoice #Entrepreneurship THE HAIN DANIELS GROUP LIMITED

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An end may be in sight for the capital crunch that has slowed #innovation, growth and #MergersAndAcquisitions in the #foodindustry and #beverageindustry, according to one insider, but she warns the timeline is longer for closing deals and the bar is higher than pre-pandemic -- especially for small and midsize companies or #startups looking for a successful exit. In this week's #SoupToNuts #podcast, Nixon Peabody LLP Counsel Shaziah Singh shines a light on how the M&A landscape is evolving in 2024, the factors that are influencing it, who is active -- including a prediction on when #PrivateEquity may re-enter the game -- and advice for both buyers and sellers looking to make the best deal. 📣 Take a listen: https://lnkd.in/e3CKnsuR #foodbusinessnews #CPGfood #mergers #acquisitions #fundraising #entrepreneurs

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The plant-based foods sector in the UK witnessed significant growth in recent years, driven by rising consumer concerns around health and sustainability. However, due to cost pressures and reduced consumer demand, we have seen big brands axing non-core lines and retailers rationalizing their ranges. Read this article to learn about the challenges facing the plant-based meat industry in the UK: http://ms.spr.ly/6040Y67zy #Restructuring

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Here’s yet another shrink-to-grow portfolio move (speculated) in the food space.  If it wasn’t clear before, it is now: big food companies are VERY focused on improving growth and apparently shedding slow-growth anchors is a preferred lever in this environment. This strategy is understandable, because they can control a divestiture more than trying to make an acquisition, or a series of acquisitions.  Of course, they still need a counter-party to do a deal, but this specific business and others that have been announced, discussed or completed (e.g., Kellogg and cereal, Unilever and Ice Cream, General Mills and Yogurt) is big enough that the public markets are always a viable transaction partner. If you needed any more convincing (which you probably don't), the divestiture bandwagon suggests some conviction about future growth levers in the big food c-suite: 1. The pricing window is truly closed.  Pricing has driven topline in the recent past but now organic growth will have to come from other sources – and the only foreseeable catalysts for unit growth are lower pricing (no thank you, apparently) or innovation (see point 2). 2. Innovation confidence is low.  Small food companies are the innovators and growth-makers in this industry.  They are taking share and have been for over a decade.  Apparently the big guys do not expected this to change anytime soon. 3. Portfolio growth exposure = growth reality.  Big food companies are growth-takers.  They grow at the underlying growth rate of their combined geographies and categories – faster growth will come if they can improve this underlying growth exposure. https://lnkd.in/gaNBYeKS

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I have just managed to finish and send out this month's Craft Spirits Market Intelligence and Tracking Survey in time for the weekend. It is quite a good read if you are in the Craft Spirits business. This month the News Digest is full of interesting trade news. Plus I have also included a quick audit of RTDs. If you know anyone you might be interested in it please do forward my details, you can subscribe directly with me (for a discount) or alternatively buy one off reports at my Sellfy store https://lnkd.in/eUtrutk7 ***** The March 2024 Craft Spirits Market intelligence and Tracking Survey covering over 800 UK craft spirits from 85 distilleries/ producers; this month it includes an audit of Distillery Tours; this month it contains an audit of tours. The Report includes social media and email activity tracking by brand, SKU/Range analysis and online pricing tracking. Sections included: English Whisky, English Craft Gin, English Craft Vodka, British Rum and British Liqueurs. It includes a News Digest and Insights to aid management of product range. It is ideal for Distillery Marketing teams and CEOs/Founders who want to understand marketing activity in the UK craft spirits market and also get insights into what is required to stand out in the sector. It is useful for pricing reviews.  It is helpful for range planning and product planning. Developing Market Plans and Social Media campaigns It is also useful to give market background for brands raising money.    Note The March survey covers February 2024 and first 15 days of March. It is 73 pages.    The report is issued monthly by the 27th of the Month and is available monthly.  #craftspirits #craftdistilleries #englishwhisky #marketresearch LongshotInsights | Longshot Ventures Ltd

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Diageo to invest €100m in Dublin facility 👏 The British multinational beverage company have announced plans to invest €100m in decarbonising its St. James's Gate facility, which has brewed Guinness for 264 years. It is part of Diageo's mission to achieve net-zero carbon emissions for the site, with the investment being used to transform energy and water consumption. The alcohol giant aims to make it one of the 'most efficient breweries in the world by 2030'. Simon Harris, Prime Minister of Ireland, commented: "Guinness has been made in Dublin for over a quarter of a millennium, and today so many tourists visit the location while they are here. It’s not just a green transformation for St James’s Gate but a flagship transformation that will send a strong message to the world." "It also demonstrates the government’s commitment to businesses, big and small, to make the green transition, and to work in partnership to help achieve our climate goals.” Debra Crew, CEO of Diageo, added: "I want to thank the Taoiseach and Minister Burke for their support for our ambitious decarbonisation plan for St James’s Gate as demonstrated by the support from our partners Enterprise Ireland." "We’re 260 years into our 9,000-year lease at St James’s Gate and this investment will ensure that Guinness has an exciting and long-term sustainable future. We are proud to lead the way on decarbonisation, both as a major Irish business and as an industry-leading company.” #News #Drinks #Alcohol #Beverage #Decarbonisation #Investment #Guinness #Strategy

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