Capital Calls: Nestlé plant-based push is pea in Danone’s shoe

  • 5/5/2021
  • 00:00
  • 3
  • 0
  • 0
news-picture

GREEN SHOOTS. Food giants are chasing the same magic beans: fashionable products they can plug into their vast marketing network, amplifying their impact on the bottom line. That’s why Nestlé’s (NESN.S) launch of Wunda, a milk substitute made out of peas, may bring out rival Danone’s (DANO.PA) green-eyed monster. The French group lost its chairman and chief executive read more to repeated underperformance. Its plant-based food and drinks - a tenth of sales - are a rare bright spark. Luckily for Danone and whoever comes in as CEO, acquisitions are too pricey, buying them some time before Nestlé will really eat into its market share. But while milk substitutes were only about 100 million Swiss francs ($109 million) of Nestlé’s sales last year out of 84 billion Swiss francs overall, CEO Mark Schneider is seeing double-digit growth and has a stated commitment to the sector. His push into plant-based nutrition makes a fairy tale ending for Danone’s own performance look more fanciful. (By Dasha Afanasieva) On Twitter http://twitter.com/breakingviews Earlier in Capital Calls: UK bank suffers unfamiliar altitude sickness read more Aussie bank’s green coal-port loan burns lukewarm read more China’s $5 bln jobs buyout ekes past first round read more ANZ deserves some shareholder respect read more Pfizer’s vaccine windfall read more

مشاركة :