Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th


Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th
Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


Toys R Us built a kingdom and the world's biggest toy store. Then, they lost it.

The toy emporium that Charles P. Lazarus envisioned has been reduced to dusty floors and empty shelves.

Much has been said about the demise of the toy empire, which this week announced its plan to liquidate. There have been fingers pointed at corporate raiders, Amazon and big-box stores. All contributed to its undoing.

Ultimately, though, Toys R Us’ collapse is a story of loyalty run dry. The store in its early days fostered devotion from customers and toymakers. In the end, it lost hold on both.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. It didn’t invest in its stores, even as it was adding to the fleet, leaving it vulnerable when new competition moved in.

The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. By 1978, he had created a toy superstore large enough to become a public company.

In its heyday in the 1980s and 1990s, it was the most important toy store in the country, if not the world. Its strength grew as competitors Kiddie City and Child World went out of business.


Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


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Walgreens and Humana are reportedly in talks to take stakes in each other

Drugstore chain Walgreens Boots Alliance and health insurer Humana are in preliminary talks to take stakes in each other, the Wall Street Journal reported Tuesday, citing unnamed sources. The report cautioned that such talks are preliminary, and there is no guarantee of a deal. Shares of Walgreens were up less than 1 percent in trading after the market’s close, while shares of Humana were unchanged. Pharmacy sales account for almost 70 percent of Walgreens’ U.S. revenue. In the less competitive


Drugstore chain Walgreens Boots Alliance and health insurer Humana are in preliminary talks to take stakes in each other, the Wall Street Journal reported Tuesday, citing unnamed sources. The report cautioned that such talks are preliminary, and there is no guarantee of a deal. Shares of Walgreens were up less than 1 percent in trading after the market’s close, while shares of Humana were unchanged. Pharmacy sales account for almost 70 percent of Walgreens’ U.S. revenue. In the less competitive
Walgreens and Humana are reportedly in talks to take stakes in each other Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren hirsch, robert ferris, christopher lee, bloomberg, getty images
Keywords: news, cnbc, companies, stakes, online, preliminary, pharmacy, healthcare, humana, reportedly, talks, health, walgreens, sales, report


Walgreens and Humana are reportedly in talks to take stakes in each other

Drugstore chain Walgreens Boots Alliance and health insurer Humana are in preliminary talks to take stakes in each other, the Wall Street Journal reported Tuesday, citing unnamed sources.

The two are also in discussions about potentially expanding their current partnership that serves seniors, the report added. The report cautioned that such talks are preliminary, and there is no guarantee of a deal.

Shares of Walgreens were up less than 1 percent in trading after the market’s close, while shares of Humana were unchanged.

The discussions are a sign of the disruption facing pharmacies and health insurance companies, as both industries face new pressures. Consumers can now get their household goods online and in convenience stores. The health-care industry is undergoing dramatic transformation amid regulatory scrutiny over rising costs.

Some competitors have already made their move. Amazon recently acquired online pharmacy PillPack. CVS Health last year announced its $69 billion acquisition of Aetna, which will combine CVS’ pharmacy and pharmacy benefits manager platform with Aetna’s insurance business.

Walgreens has been hoping to position itself as more of a broader health-care company helping to transform patient experience, while lowering costs. To this end Walgreen has been signing deals with a number of health-care companies including Humana and diagnostics company LabCorp.

It has also explored a number of options, including a potential deal with AmerisourceBergen. Talks with the wholesale drug distributor ended without an agreement last year.

Pharmacy sales account for almost 70 percent of Walgreens’ U.S. revenue. In the less competitive international retail environment, Walgreens garners about 35 percent of its sales from its pharmacy.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren hirsch, robert ferris, christopher lee, bloomberg, getty images
Keywords: news, cnbc, companies, stakes, online, preliminary, pharmacy, healthcare, humana, reportedly, talks, health, walgreens, sales, report


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Campbell Soup tops analyst expectations ahead of contested shareholder vote

Campbell Soup on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations ahead of a key shareholder vote on its board next week. The fight comes as Campbell has been working on a business turnaround, following a string of poor quarterly results. Excluding items, Campbell earned 79 cents per share, beating the 70 cents per share expected by analysts surveyed by Refinitiv. Campbell has already begun to shop its Garden Fresh business, CNBC has reported, to see if it can exp


Campbell Soup on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations ahead of a key shareholder vote on its board next week. The fight comes as Campbell has been working on a business turnaround, following a string of poor quarterly results. Excluding items, Campbell earned 79 cents per share, beating the 70 cents per share expected by analysts surveyed by Refinitiv. Campbell has already begun to shop its Garden Fresh business, CNBC has reported, to see if it can exp
Campbell Soup tops analyst expectations ahead of contested shareholder vote Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren hirsch, cole burston, bloomberg, getty images
Keywords: news, cnbc, companies, cents, fresh, million, shareholder, contested, soup, analyst, business, reported, campbell, share, tops, sales, expectations, vote, company, ahead


Campbell Soup tops analyst expectations ahead of contested shareholder vote

Campbell Soup on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations ahead of a key shareholder vote on its board next week.

Shares of the company jumped 6.8 percent Tuesday.

Campbell is locked in a proxy fight with activist firm Third Point, which wants to place five new directors on its board. The fight comes as Campbell has been working on a business turnaround, following a string of poor quarterly results. After a three-month review this summer, Campbell announced it is selling its fresh food and international snacks business, while focusing on revitalizing its core soup and domestic snack business.

“We continue to expect fiscal 2019 to be a transition year as we fully operationalize our plans to turn around Campbell,” said interim CEO Keith McLoughlin.

In a statement, he said the company has begun to see improved trends in its U.S. soup business, return to sales growth in its V8 drink business and “continued solid performance” in its snack business, which includes Snyder’s pretzels and Goldfish crackers.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: 79 cents, adjusted, vs. 70 cents expected

Revenue: $2.69 billion vs. $2.67 billion expected

Campbell reported fiscal first-quarter 2019 net income of $194 million, or 64 cents per share, down from $275 million, or 91 cents per share, a year earlier. Excluding items, Campbell earned 79 cents per share, beating the 70 cents per share expected by analysts surveyed by Refinitiv.

It said the impact of its acquisition of Snyder’s-Lance and organic soup brand Pacific Foods were “neutral” to the company’s adjusted earnings.

Net sales rose 25 percent to $2.69 billion, beating expectations of $2.67 billion.

Still, the company has challenges ahead.

Sales at its meals and beverages unit, which houses its namesake soup, dropped 5 percent after stripping out the impact of currency and acquisitions, driven largely by declines in U.S. soup, Prego pasta sauces and its Canadian business.

Sales at its fresh food business, which Campbell plans to sell, fell 1 percent to $232 million, led by declines in refrigerated soup, its Garden Fresh Gourmet salsa and its Bolthouse Farms smoothies.

Campbell has already begun to shop its Garden Fresh business, CNBC has reported, to see if it can expedite the sale of the unit.

The fresh food business posted an operating loss of $3 million, an improvement over its loss of $6 million a year earlier. Its Bolthouse Farm carrot business, meantime, also showed signs of progress, the company said.

The soup company reaffirmed its expectations for 2019. On Aug. 30, Campbell said without taking into account its planned sales, it expects adjusted earnings to be within a range of $2.45 to $2.53 per share. Assuming the divestitures, it expects a range of $2.40 to $2.50 a share.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren hirsch, cole burston, bloomberg, getty images
Keywords: news, cnbc, companies, cents, fresh, million, shareholder, contested, soup, analyst, business, reported, campbell, share, tops, sales, expectations, vote, company, ahead


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Sears is just one of five retailers that have no room for error this holiday season

The holiday season will be the first for new CEO Jill Soltau, who is tasked with turning around a ship that her predecessors could not. Soltau has said her objective is to put J.C. Penney back on a path to profitable growth. That means this holiday season it can’t discount its way to sales growth, it also needs to make some money. That challenge may be heightened as it faces liquidation sales from Sears, one of its competitors in appliances. J.C. Penney this past quarter lost 52 cents a share.


The holiday season will be the first for new CEO Jill Soltau, who is tasked with turning around a ship that her predecessors could not. Soltau has said her objective is to put J.C. Penney back on a path to profitable growth. That means this holiday season it can’t discount its way to sales growth, it also needs to make some money. That challenge may be heightened as it faces liquidation sales from Sears, one of its competitors in appliances. J.C. Penney this past quarter lost 52 cents a share.
Sears is just one of five retailers that have no room for error this holiday season Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: lauren hirsch, getty images, richard sheinwald, bloomberg via getty images, michael nagle, bloomberg, daniel acker, richard levine, corbis, yana paskoya
Keywords: news, cnbc, companies, lost, debt, room, sears, retailers, sales, penney, left, growth, season, error, jc, holiday, company


Sears is just one of five retailers that have no room for error this holiday season

The holiday season will be the first for new CEO Jill Soltau, who is tasked with turning around a ship that her predecessors could not.

Shares of J.C. Penney are hovering just over a dollar, as the retailer has lost track of its core customer, struggled to find the right inventory and left investors uncertain it has reason to exist. It’s also dealt with a string of high-profile executive departures, including former CEO Marvin Ellison, who left for Lowe’s, and CFO Jeffrey Davis.

Soltau has said her objective is to put J.C. Penney back on a path to profitable growth. That means this holiday season it can’t discount its way to sales growth, it also needs to make some money. That challenge may be heightened as it faces liquidation sales from Sears, one of its competitors in appliances.

J.C. Penney this past quarter lost 52 cents a share. Its shares are down 62 percent since January. It has $4.2 billion in debt as of Aug. 4, 2018, according to Factset.

Analysts have begun to question how it will manage its debt load in the face of its sales and earnings decline. Senior Vice President Trent Kruse recently acknowledged the company’s leverage “is a little ahead” of the company, but said its debt does not come due for another five years, giving it time to address those concerns.

Kruse also said the company will continue to think about options and opportunities with respect to its real estate and its debt.


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: lauren hirsch, getty images, richard sheinwald, bloomberg via getty images, michael nagle, bloomberg, daniel acker, richard levine, corbis, yana paskoya
Keywords: news, cnbc, companies, lost, debt, room, sears, retailers, sales, penney, left, growth, season, error, jc, holiday, company


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Investor advisory firm ISS supports Third Point in battle for Campbell board seats

In a blow to Campbell, investor advisory firm Institutional Shareholder Services came out in support Wednesday night of activist firm Third Point’s efforts to put five of its nominees on the soup company board. Still, Campbell remains very much a family company, with descendants of the soup company’s founder retaining a significant stake. Campbell Soup heirs who hold roughly 41 percent of the company’s shares have already come out in support of Campbell. Three descendants currently sit on the Ca


In a blow to Campbell, investor advisory firm Institutional Shareholder Services came out in support Wednesday night of activist firm Third Point’s efforts to put five of its nominees on the soup company board. Still, Campbell remains very much a family company, with descendants of the soup company’s founder retaining a significant stake. Campbell Soup heirs who hold roughly 41 percent of the company’s shares have already come out in support of Campbell. Three descendants currently sit on the Ca
Investor advisory firm ISS supports Third Point in battle for Campbell board seats Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: lauren hirsch, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, board, investor, battle, soup, nominees, point, company, companys, seats, firm, ceo, campbell, supports, poor, advisory, shareholder, iss


Investor advisory firm ISS supports Third Point in battle for Campbell board seats

In a blow to Campbell, investor advisory firm Institutional Shareholder Services came out in support Wednesday night of activist firm Third Point’s efforts to put five of its nominees on the soup company board.

In the ruling, ISS criticized the soup company for poor performance, which it said “appear directly linked to shortcomings in the company’s acquisition strategy, poor execution of mergers and a lack of focus on the company’s core business.”

ISS is typically an influential guide on how institutional shareholders should vote. Still, Campbell remains very much a family company, with descendants of the soup company’s founder retaining a significant stake.

Campbell Soup heirs who hold roughly 41 percent of the company’s shares have already come out in support of Campbell. Three descendants currently sit on the Campbell board.

Nonetheless, ISS pointed to a number of missteps it said the company made under its current board, underlined by its financial performance. The company delivered a roughly 19 percent total shareholder return over the last two years, while the S&P 500 has nearly tripled in the same period.

“Given the board’s subpar oversight of critical issues such as M&A and succession planning, shareholders may wonder whether the incumbent board is capable of steering Campbell back on track in a timely manner,” according to the ruling.

Campbell is currently unwinding efforts to diversify into fresh foods, selling brands it spent more than $1 billion on under the leadership of former CEO Denise Morrison. After struggles due to their inexperience with fresh food and an ill-timed drought, its fresh food unit posted an operating loss of $7 million last quarter.

Meantime, Campbell’s $6.2 billion acquisition of pretzel and chip company Snyder’s-Lance more than tripled the company’s debt burden and brought with it a business that will be challenging to integrate.

The soup company, continues to stand by the deal — interim CEO Keith McLoughlin told analysts in August that the company is “even more convinced of the growth prospects and synergies.”

ISS also raised questions about Campbell’s dedication to its dividend, despite its poor financial performance.

“Maintaining the dividend may prove to be the right decision, though it raises the question of whether the board, which currently includes three members of the founding family, is truly considering all options,” the ruling stated.

Third Point — which recently trimmed its board nominees from twelve to five — has nominated Sarah Hofstetter, president of Comscore; Bozoma Saint John, chief marketing officer of entertainment conglomerate Endeavor; Kurt Schmidt, a former director and CEO of Blue Buffalo; William Toler, former CEO of Hostess Brand and Third Point executive Munib Islam.

Campbell spokesman Thomas Hushen said in a statement Wednesday night the company strongly disagrees with ISS’s conclusion.

“The Campbell board consists of 12 members, 11 of whom are independent and four of whom have been added since 2016,” Hushen said.

The board combines the necessary skills — including a strong mix of industry experience, operating expertise, long-term shareholder perspectives, financial acumen, and global public company experience — needed to provide the proper oversight and strategic guidance on a variety of diverse consumer and business needs amid rapid changes in the food industry.

Interim CEO McLoughlin said last week the company proposed adding two of Third Point’s nominees to its board, Kurt Schmidt and Sarah Hofstetter. McLoughlin said Third Point rejected that option.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: lauren hirsch, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, board, investor, battle, soup, nominees, point, company, companys, seats, firm, ceo, campbell, supports, poor, advisory, shareholder, iss


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JC Penney shares dive as sales fall short despite narrower-than-expected loss

Excluding items, J.C. Penney said it lost 52 cents per share, which was less than the 56 cents per share loss expected by analysts surveyed by Refinitiv. J.C. Penney in October filled its vacant CEO role with Jill Soltau, former CEO of Joann Stores. “Our objective to put J.C. Penney back on a path to profitable growth is clear,” Soltau said in a statement. “While restoring J.C. Penney to sustained profitable growth will be a lengthy process, I understand the need for quick action. Meanwhile, J.C


Excluding items, J.C. Penney said it lost 52 cents per share, which was less than the 56 cents per share loss expected by analysts surveyed by Refinitiv. J.C. Penney in October filled its vacant CEO role with Jill Soltau, former CEO of Joann Stores. “Our objective to put J.C. Penney back on a path to profitable growth is clear,” Soltau said in a statement. “While restoring J.C. Penney to sustained profitable growth will be a lengthy process, I understand the need for quick action. Meanwhile, J.C
JC Penney shares dive as sales fall short despite narrower-than-expected loss Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: lauren hirsch, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, narrowerthanexpected, share, billion, dive, million, penney, sales, fall, quarter, despite, soltau, shares, cents, loss, short, jc


JC Penney shares dive as sales fall short despite narrower-than-expected loss

J.C. Penney on Thursday reported quarterly revenue that fell short of analysts’ expectations, sending shares down more than 10 percent in premarket trading, to just above a dollar a share.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Losses per share: 52 cents, adjusted, vs. 56 cents expected

Revenue: $2.65 billion vs. $2.81 billion expected

J.C. Penney said its loss in the fiscal third-quarter widened 21 percent to $151 million, or 48 cents per share, from a loss of $125 million, or 40 cents per share, a year earlier.

Excluding items, J.C. Penney said it lost 52 cents per share, which was less than the 56 cents per share loss expected by analysts surveyed by Refinitiv.

Net sales dropped 5.8 percent to $2.65 billion, and fell short of expectations of $2.81 billion.

Comparable sales declines 5.4 percent for the quarter, compared with a 1.7 percent rise the same quarter last year.

J.C. Penney in October filled its vacant CEO role with Jill Soltau, former CEO of Joann Stores. Soltau came after a string of executive departures, including former J.C. Penney CEO Marvin Ellison, who left for Lowe’s, and CFO Jeffrey Davis.

“Our objective to put J.C. Penney back on a path to profitable growth is clear,” Soltau said in a statement.

“While restoring J.C. Penney to sustained profitable growth will be a lengthy process, I understand the need for quick action. My commitment is that we will make sound, strategic decisions backed by data, and will always be rooted in delivering on our customers’ wants and expectations.”

Rivals like Macy’s have been benefiting from a stronger economy, and have improved their performance by investing in their e-commerce operations. Meanwhile, J.C. Penney has struggled to navigate the new retail world. Those challenges have included not knowing who its key customers are and struggling to manage unsold and outdated merchandise that has piled up in its stores.

J.C. Penney said Thursday that its inventory at the end of the quarter was $3.22 billion, down 5.4 percent from the same quarter last year.

It ended the quarter with $168 million in cash and cash equivalent, and more than $1.9 billion in liquidity.

The retailer also withdrew its earnings expectations for fiscal 2018, but updated its forecast for same-store sales, which it now expects to grow at a low single-digit rate. It expects to have positive free cash flow for the fiscal year.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: lauren hirsch, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, narrowerthanexpected, share, billion, dive, million, penney, sales, fall, quarter, despite, soltau, shares, cents, loss, short, jc


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David’s Bridal to file for bankruptcy

Wedding dress retailer David’s Bridal said on Thursday it will file for bankruptcy in the “near future,” as it grapples with a heavy debt load amid changing consumer tastes in the wedding industry. David’s Bridal said in a statement the company will continue to operate throughout bankruptcy. The bridal store was acquired by private equity firm Clayton, Dubilier & Rice in 2012 for roughly $1.05 billion. The imminent bankruptcy comes roughly a year after bridal store Alfred Angelo liquidated its b


Wedding dress retailer David’s Bridal said on Thursday it will file for bankruptcy in the “near future,” as it grapples with a heavy debt load amid changing consumer tastes in the wedding industry. David’s Bridal said in a statement the company will continue to operate throughout bankruptcy. The bridal store was acquired by private equity firm Clayton, Dubilier & Rice in 2012 for roughly $1.05 billion. The imminent bankruptcy comes roughly a year after bridal store Alfred Angelo liquidated its b
David’s Bridal to file for bankruptcy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: lauren hirsch, jeenah moon, bloomberg, getty images
Keywords: news, cnbc, companies, continue, store, davids, debt, bankruptcy, support, file, retailers, bridal, wedding, traditional


David's Bridal to file for bankruptcy

Wedding dress retailer David’s Bridal said on Thursday it will file for bankruptcy in the “near future,” as it grapples with a heavy debt load amid changing consumer tastes in the wedding industry.

The bankruptcy is part of a deal the retailer has reached with its lenders that will reduce its debt by more than $400 million .

David’s Bridal said in a statement the company will continue to operate throughout bankruptcy. Customers can continue to shop in its more than 300 stores, and its orders and appointments will not be impacted..

“David’s Bridal will continue to lead our category with an unbeatable selection of beautiful, high-quality wedding and special occasion dresses in a wide range of styles, colors, sizes, and prices,” CEO Scott Key said.

“For 60 years David’s has delivered for our customers on time, and the agreement announced today allows us to maintain that tradition for many years to come.”

David’s Bridal’s term loan lenders have offered $40 million to help support the retailer’s operations throughout its bankruptcy.

The bridal store was acquired by private equity firm Clayton, Dubilier & Rice in 2012 for roughly $1.05 billion.

The imminent bankruptcy comes roughly a year after bridal store Alfred Angelo liquidated its business, another victim of the changing times.

Millennials now marry later on. When they do, often opt for non-traditional garments. Newer online retailers like Reformation now offer brides more relaxed alternatives to the traditional gowns worn in years past.

David’s Bridal made its own online push, buying digital gift company Blueprint Registry this past summer. It can be hard though, for traditional retailers hamstrung by debt to build up the infrastructure necessary to support an expansive e-commerce business.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: lauren hirsch, jeenah moon, bloomberg, getty images
Keywords: news, cnbc, companies, continue, store, davids, debt, bankruptcy, support, file, retailers, bridal, wedding, traditional


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Kellogg exploring sale of Keebler, Famous Amos and fruit snacks business

Kellogg is selling its Keebler, Famous Amos and fruit snacks businesses, making it the latest Big Food company to look to pare down to focus on its core. The maker of Special K cereal said Monday it is focusing on its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Brands like Eggo waffles and Froot Loops comprise 80 percent of the company’s revenue. “We need to make strategic choices about our business and these brands have had difficulty competing for re


Kellogg is selling its Keebler, Famous Amos and fruit snacks businesses, making it the latest Big Food company to look to pare down to focus on its core. The maker of Special K cereal said Monday it is focusing on its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Brands like Eggo waffles and Froot Loops comprise 80 percent of the company’s revenue. “We need to make strategic choices about our business and these brands have had difficulty competing for re
Kellogg exploring sale of Keebler, Famous Amos and fruit snacks business Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: dawn kopecki, lauren hirsch, luke sharrett, bloomberg, getty images
Keywords: news, cnbc, companies, unit, snacks, portfolio, foods, exploring, keebler, kellogg, sale, amos, brands, focus, fruit, business, thrive, strategic, famous, wholeheartedly, waffles


Kellogg exploring sale of Keebler, Famous Amos and fruit snacks business

Kellogg is selling its Keebler, Famous Amos and fruit snacks businesses, making it the latest Big Food company to look to pare down to focus on its core.

The maker of Special K cereal said Monday it is focusing on its morning foods, snacks and frozen foods brands, which it will consolidate into one unit. Brands like Eggo waffles and Froot Loops comprise 80 percent of the company’s revenue.

“We need to make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio,” Chairman and CEO Steve Cahillane said in a statement. “Yet, we wholeheartedly believe these iconic and beloved brands can thrive in the portfolio of another organization that can focus on driving growth in these particular categories.”


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: dawn kopecki, lauren hirsch, luke sharrett, bloomberg, getty images
Keywords: news, cnbc, companies, unit, snacks, portfolio, foods, exploring, keebler, kellogg, sale, amos, brands, focus, fruit, business, thrive, strategic, famous, wholeheartedly, waffles


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Campbell’s cookie unit Arnott’s attracts attention from Kraft Heinz, Mondelez

The soup company had previously said it planned to sell its international and fresh food food businesses after a three-month review it announced after a string of poor quarterly results. Third Point has since said it would also accept other moves for Campbell, including a breakup. Food companies — including Oreo-owner Mondelez, Kraft Heinz and Ferrero, which owns Nutella — are among those eyeing the business, the people said. This will launch a formal sale process. One likely consideration in th


The soup company had previously said it planned to sell its international and fresh food food businesses after a three-month review it announced after a string of poor quarterly results. Third Point has since said it would also accept other moves for Campbell, including a breakup. Food companies — including Oreo-owner Mondelez, Kraft Heinz and Ferrero, which owns Nutella — are among those eyeing the business, the people said. This will launch a formal sale process. One likely consideration in th
Campbell’s cookie unit Arnott’s attracts attention from Kraft Heinz, Mondelez Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: lauren hirsch, jeff greenberg, universal images group, getty images
Keywords: news, cnbc, companies, companies, process, buy, campbells, attracts, business, heinz, point, mondelez, sale, including, international, cookie, campbell, arnotts, food, attention, unit, kraft


Campbell's cookie unit Arnott's attracts attention from Kraft Heinz, Mondelez

Campbell Soup has begun the process of selling off a number of its brands, including its Arnott’s cookie and crackers business, as it looks to pay down the debt left in the wake of its acquisition of Snyder’s Lance earlier this year, people familiar with the matter tell CNBC.

The soup company had previously said it planned to sell its international and fresh food food businesses after a three-month review it announced after a string of poor quarterly results. It said focusing on its signature packaged food would help regain its financial footing. The decision came despite pressure from activist fund Third Point, which initially said the only justifiable outcome of the review was a sale to a strategic buyer. Third Point has since said it would also accept other moves for Campbell, including a breakup.

Campbell has sent out materials to tease the sale of its Australian Arnott’s biscuits business and Kelsen baked snacks that could fetch $2.5 billion to $3 billion from buyers. The biscuit and cracker maker is the largest in Australia and has therefore caught the eye of a number food companies that are eyeing global expansion as challenged U.S. grocers continue to exert their pressure.

Food companies — including Oreo-owner Mondelez, Kraft Heinz and Ferrero, which owns Nutella — are among those eyeing the business, the people said.

Snacks have become increasingly important for food companies to buy as more and more people eat on-the-go and sales of grocery staples, like cereal, have slowed. In the U.S., though, there are few brands available to buy to move the needle for companies that generate billions in annual sales.

Arnott’s gives buyers a chance to buy a large business in an established market. Still, with Australia relatively isolated, it would also likely require a buyer with an existing global footprint and may also limit their ability to expand the brand further into other international markets like China, say people familiar with the industry.

Campbell expects to sign non-disclosure agreements for its international snack business in the next weeks, and will then begin to send out confidential materials, the people said. This will launch a formal sale process. While such processes take weeks, it remains possible a keenly interested party could expedite it by lobbing in a particularly high bid, some of the people said.

One likely consideration in the sale process is potential anti-trust issues due to Arnott’s hold on the Australian cookie market. Campbell is under pressure from activist investor Dan Loeb and his hedge fund Third Point, which have chastised it for poor performance, making it unlikely it will want to take on much risk that antitrust authorities could oppose a deal.


Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: lauren hirsch, jeff greenberg, universal images group, getty images
Keywords: news, cnbc, companies, companies, process, buy, campbells, attracts, business, heinz, point, mondelez, sale, including, international, cookie, campbell, arnotts, food, attention, unit, kraft


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P&G CEO David Taylor worries trade war will destroy consumer confidence in American brands

Procter & Gamble CEO David Taylor worries about the long-term damage the global trade war will have on consumer behavior and spending. “What I worry most about with the trade war is it destroys consumers’ confidence in American brands,” Taylor told CNBC’s Sara Eisen in an interview that aired Friday on “Squawk on the Street.” “Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S. operations,” P&G lobbyist Selina Jackson wrote.


Procter & Gamble CEO David Taylor worries about the long-term damage the global trade war will have on consumer behavior and spending. “What I worry most about with the trade war is it destroys consumers’ confidence in American brands,” Taylor told CNBC’s Sara Eisen in an interview that aired Friday on “Squawk on the Street.” “Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S. operations,” P&G lobbyist Selina Jackson wrote.
P&G CEO David Taylor worries trade war will destroy consumer confidence in American brands Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: robert ferris, lauren hirsch, scott mlyn
Keywords: news, cnbc, companies, war, destroy, products, trade, ceo, global, tariffs, good, david, consumer, pg, costs, taylor, confidence, worries, company


P&G CEO David Taylor worries trade war will destroy consumer confidence in American brands

Procter & Gamble CEO David Taylor worries about the long-term damage the global trade war will have on consumer behavior and spending.

“What I worry most about with the trade war is it destroys consumers’ confidence in American brands,” Taylor told CNBC’s Sara Eisen in an interview that aired Friday on “Squawk on the Street.”

Rising commodity costs have already forced the company to hike prices on Pampers diapers, Bounty paper towels, Charmin toilet paper and Puffs tissues in recent months, and the trade war isn’t helping.

“It’s not good. I believe, and our company believes, in free and open trade. We think that raises all boats,” Taylor said. “It’d be good for the global economy, good for our country, good for China for a productive and constructive resolution of this.”

Still, Taylor noted he has not yet seen an impact on consumer confidence.

Procter & Gamble tends to manufacture close to its customer base, so its products intended for Chinese buyers are typically made in China and products for American buyers are mostly made in the United States. As such, Taylor noted P&G is impacted less than other global companies by trade ware threats.

The maker of everyday household goods, including Tide detergent and Crest toothpaste, said in early October that tariffs on products sent to Canada were hurting the company. P&G successfully obtained an exemption from paying steel tariffs on its Gillette and Venus brand razor blades after arguing against the levies in a letter to the U.S. Trade Representative.

“Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S. operations,” P&G lobbyist Selina Jackson wrote.

Still, Taylor said the U.S. remains a primary focus for the company. He said that with innovation of its brands like Olay Whips cream-to-liquid moisturizer and Tide Pods detergent packets, he is confident Americans will continue to be willing to “pay a little more because they provide better value.”

That’s even as it sees competition from cheaper, store-owned brands.

Meantime, the sprawling consumer products company announced plans Thursday to simplify its operations.

The announcement came after activist investor Nelson Peltz joined the board in March following a vigorous proxy battle. Peltz had previously pushed for a simplified structure, saying it would improve accountability, agility and responsiveness to local needs.

Under the new business structure, the company will now have six sector business units organized by industry. Each business will have a unit “CEO” responsible for running all major decisions, like marketing, costs and supply chain.

“We did certainly consult with all 12 of our external board members. And we have a very active and engaged board…But certainly any good ideas we’ll take. I don’t care where they come,” said Taylor.

Shares of P&G have jumped by more than 29 percent since hitting a 52-week low of $70.73 a share in May, giving it a market value of $227.6 billion. They closed on Thursday at $91.36 a share and opened Friday’s session little changed.

WATCH:Twelve US execs explain how Trump’s trade war affects their bottom lines


Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: robert ferris, lauren hirsch, scott mlyn
Keywords: news, cnbc, companies, war, destroy, products, trade, ceo, global, tariffs, good, david, consumer, pg, costs, taylor, confidence, worries, company


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