Global Retailers Aim at Higher Revenues Through Partnerships, JVS, M&AS
The organised global retail industry is heading towards a phase of consolidation marked by partnerships, mergers and acquisitions. In this growing M&A landscape, retailers are seeking success by harmonising their infrastructure. Merging retailers are hopi
Nestlé Gets Perpetual Rights to Market Starbucks Consumer Packaged Goods
Nestlé and Starbucks Corporation announced the closing of the deal granting Nestlé the perpetual rights to market Starbucks Consumer Packaged Goods and Foodservice products globally, outside of the company’s coffee shops. Through the alliance, the two companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans as well as instant and portioned coffee. The alliance will also capitalize on the experience and capabilities of both companies to work on innovation with the goal of enhancing its product offerings for coffee lovers globally.
“This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands. With Starbucks, Nescafé and Nespresso we bring together the world’s most iconic coffee brands,” said Mark Schneider, Nestlé CEO. The agreement significantly strengthens Nestlé’s coffee portfolio in the North American premium roast and ground and portioned coffee business. It also unlocks global expansion in grocery and foodservice for the Starbucks brand, utilizing the global reach of Nestlé.
Pepsico Enters into Agreement to Acquire Sodastream International Ltd.
Pepsico, Inc. and Sodastream International Ltd. announced that they have entered into an
agreement under which Pepsico has agreed to acquire all outstanding shares of Sodastream for US $144.00 per share in cash, which represents a 32 percent premium to the 30-day volume weighted average price.
“Pepsico and Sodastream are an inspired match,” said Indra Nooyi, Pepsico Chairman and CEO. Daniel Birnbaum, Sodastream CEO and Director said, “Today marks an important milestone in the Sodastream journey. It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world. We are honored to be chosen as Pepsico’s beachhead for at home preparation to empower consumers around the world with additional choices. I am excited our team will have access to Pepsico’s vast capabilities and resources to take us to the next level. This is great news for our consumers, employees and retail partners worldwide.”
Pepsico’s strong distribution capabilities, global reach, R&D, design and marketing expertise, combined with Sodastream’s differentiated and unique product range will position Sodastream for further expansion and breakthrough innovation. The transaction is another step in Pepsico’s Performance with Purpose journey, promoting health and wellness through environmentally friendly, cost-effective and fun-to-use beverage solutions.
Crocs to Outsource Manufacturing of Clogs, Other Footwear
Colorado-based footwear company Crocs Inc is closing company-owned manufacturing plants in Italy and Mexico by year’s end and replacing its chief financial officer. According to a PTI report: The company announced the outsourcing of additional manufacturing and the closure of a distribution facility in Mexico Tuesday while reporting a second-quarter profit of US $30.4 million, or 35 cents per share. Crocs is also closing less productive retail stores as leases expire and focusing more on online sales. Executive Vice President Carrie Teffner will leave the company by next April, but is stepping down as CFO on August 24. Anne Mehlman, a former Vice President of corporate finance for Crocs and current CFO of Zappos, will take over as CFO.
Starbucks And Alibaba Group Enter into Strategic Partnership In China
Starbucks Coffee Company and Alibaba Group Holding Ltd. has announced a deep, strategic ‘New Retail’ partnership that will enable a seamless Starbucks Experience and transform the coffee industry in China.
Collaborating across key businesses within the Alibaba ecosystem, including Ele.me, Hema, Tmall, Taobao and Alipay, Starbucks announced plans to pilot delivery services beginning September 2018, establish ‘Starbucks Delivery Kitchens’ for delivery order fulfillment and integrate multiple platforms to co-create an unprecedented virtual Starbucks store – an unparalleled and even more personalized online Starbucks Experience for Chinese customers. The announcement marks a historic moment as two iconic, global companies build on their distinct retail and technology strengths to revolutionize the customer experience. Leveraging the Alibaba ecosystem and New Retail infrastructure, Starbucks will be able to further unify a seamless Starbucks Experience between its stores and online for customers.
“Thanks to the elevated customer experience delivered by our over 45,000 partners, Starbucks is growing and innovating faster in China than anywhere else in the world,” said Kevin Johnson, President and Chief Executive Officer, Starbucks Coffee Company.
The strategic partnership is part of Alibaba’s broader New Retail push, which aims to transform how commerce is conducted by merging online and offline experiences. New Retail was introduced by Alibaba in 2016 and has since become a hallmark strategy of the retail industry.
Kroger Launches Directto-customer E-commerce Platform Ship
The Kroger Co. has announced the introduction of Kroger Ship, its new direct-to-customer e-commerce platform.
“Kroger Ship is our next step in creating a seamless experience that allows our customers to shop when and how they want,” said Yael Cosset, Kroger’s Chief Digital Officer. “Our new service is just one more way we are redefining the customer experience as part of Restock Kroger, bringing more convenience and options to shoppers across America. Kroger Ship complements and joins our 2,800 grocery stores, 1,250 curbside pickup locations, and delivery service from 1,200 locations.”
Kroger Ship is launching in four markets: Cincinnati, Houston, Louisville, and Nashville. The retailer anticipates quickly rolling out the ship service to additional markets over the next few months. During the first phase of Kroger Ship, customers can shop from a curated selection of 4,500 our brands products, which are not available anywhere else online, and more than 50,000 centeraisle groceries and household essentials that matter the most, influenced by 84.51° data and insights.
The service offers competitive ecommerce pricing and fast and free doorstep delivery by a package carrier on orders over US $35, otherwise shipping is US $4.99 per order. Ship customers will experience exclusive money-saving opportunities, including promo codes and pricing deals along with the convenience of a set-andsave subscription model. During the launch phase, customers will receive free shipping—no minimum purchase required—and 15 percent off their order with a one-time-use promo code.
“Kroger is building on our expansive logistics and fulfillment infrastructure to support the rapid rollout of Ship,” said Frank Bruni, Vice President of Supply Chain and Procurement. “With the support of Our Brands, and Kroger’s manufacturers and suppliers, our vision is to build a seamless e-commerce system that offers our customers an evergrowing number of products and allows Kroger to ship nationwide, serving America through food inspiration and uplift.”
Leonardo Dicaprio Invests in Sustainable Footwear Brand Allbirds
Actor Leonardo Dicaprio’s latest investment will help in making sustainable, ecofriendly fashion more mainstream with his sustainable footwear company ‘Allbirds.’
The environmentally conscious actor has been active towards the battle against climate and environmental changes, and has now invested in an eco-friendly footwear company, reports People.com
“Creating sustainable consumer products requires a deep commitment from brands that understand the role they have in helping solve our environmental crisis,” Dicaprio said in an exclusive statement.
Dicaprio, 43, donated US $1 million to help protect marine life in Seychelles from his foundation, and in the year 2017, he announced that his foundation would be donating a US $20 million grant to help combat climate change.