Briefs: Toy­ota hails Uber; New York state looks to give Domino’s work­ers a big tip

Bloomberg Businessweek (North America) - - Contents - Jennifer Ka­plan Edited by James E. El­lis Bloomberg.com

Toy­ota is buy­ing a small stake in ride­hail­ing leader Uber and will be­gin of­fer­ing leases to Uber driv­ers. The deal fol­lows in­vest­ments by Volk­swa­gen and Gen­eral Mo­tors in Uber ri­vals Gett and Lyft, re­spec­tively. Toy­ota and Uber didn’t dis­close the size of the in­vest­ment. Hewlett Packard En­ter­prise will spin off and merge its busi­ness-ser­vices di­vi­sion with Com­puter Sciences in a deal val­ued at $8.5 bil­lion. That lets CEO Meg Whit­man exit IT out­sourc­ing, leav­ing HPE to con­cen­trate on sell­ing servers, stor­age, and net­work­ing hard­ware, plus soft­ware. Eg­g­less may­on­naise maker Hamp­ton Creek is look­ing for fresh cap­i­tal to fund its ex­pan­sion. It’s been try­ing to raise about $200 mil­lion based on a $1.1 bil­lion val­u­a­tion, say peo­ple fa­mil­iar with the mat­ter. The com­pany sells what it bills as sus­tain­able foods at Tar­get, Wal­mart, Whole Foods Mar­ket, and other big chains. It wants to in­crease the num­ber of prod­ucts it of­fers to more than 600, from 64. Royal Dutch Shell will cut 2,200 jobs in re­sponse to oil prices stay­ing “lower for longer,” it said. The move raises the tally of job losses at Shell since the be­gin­ning of 2015 to 12,500. New York state filed suit against Domino’s Pizza, say­ing the com­puter sys­tem used by its fran­chisees un­der­counted hours worked by em­ploy­ees, re­duc­ing their wages. New York sued the fran­chisor rather than in­de­pen­dent store own­ers, say­ing the par­ent re­quired fran­chisees to use a flawed com­puter ac­count­ing sys­tem. Domino’s said the law­suit was base­less and “dis­re­gards the na­ture of fran­chis­ing.”

ex­ec­u­tives hope that ready-to- drink cold cof­fee in the U.S. could some­day ri­val the brew’s pop­u­lar­ity in Ja­pan. That’s the largest such mar­ket in the world, ac­cord­ing to An­drea Illy, chief ex­ec­u­tive of­fi­cer of Il­ly­caffè. Coca-Cola, which part­ners with Illy in the U. S. and other coun­tries, sells more bot­tles and cans of cof­fee than any­one else glob­ally, largely be­cause of sales in Ja­pan.

The Star­bucks-pep­sico ven­ture is in­tro­duc­ing sweet­ened and unsweet­ened bot­tled black cof­fee and cold brews this sum­mer. Peet’s Cof­fee & Tea, owned by JAB Hold­ing, got into cold-brew canned cof­fee when it agreed to ac­quire Stump­town Cof­fee last fall. La Colombe, backed with fund­ing from Chobani yo­gurt founder Hamdi Ulukaya, will re­lease its canned latte later this year in gro­cery stores around the coun­try. The drink, which foams like a hot latte when poured, sold 10,000 cans in its first hour when it was of­fered on­line in March.

In April, Dr Pep­per Snap­ple en­tered into a dis­tri­bu­tion deal with High Brew Cof­fee, an in­de­pen­dent com­pany started by David Smith. For Smith, who’s count­ing on Dr Pep­per for its “mer­chan­dis­ing mus­cle,” cof­fee is a sec­ond act. He co-founded Sweet Leaf Tea, which was sold to Nestlé Wa­ters North Amer­ica in 2011. While on a seven-month sail­ing trip with his fam­ily, of­ten is­land-hop­ping at night, he found stan­dard cof­fee wasn’t giv­ing him the jolt he needed to stay alert. So while at sea he made his own cold-brew, which car­ries twice the caf­feine punch of brewed cof­fee. “A light­bulb went off,” Smith says. “If some­body came up with a ready-to- drink, shelf- sta­ble, cold-brew cof­fee that was con­ve­niently pack­aged, it would re­ally be a great ad­di­tion to what is avail­able tto con­sumers out there to­day.” The re­sult­ing prod­uct, High Brew Cof­fee, hhit gro­cery stores in 2014. Sales grew 2270 per­cent in 2015, says Smith, who de­clines to pro­vide dol­lar fig­ures.

“One tiger is no match for a pack of wolves.” ——Wang Jian­lin, chair­man of Dalian Wanda Group, which runs theme parks in China, com­ment­ing on the open­ing of Walt Disney’s first theme park there, Shanghai Disney Re­sort, in June

The bot­tom line Sales of ready-to-serve canned and bot­tled cof­fee could ap­proach $3.6 bil­lion in the U.S. in 2020, up six­fold from 2001.

The Gyeondyo-bar, a grape­fruit-fla­vored ice cream bar to help cure hang­overs, has been in­tro­duced in Korea, which has the high­est per capita al­co­hol con­sump­tion in Asia.

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