World News

• France’s Carrefour will introduce 400 low-cost items, mostly foodstuffs, for the first time ever in the chain’s history.

• Anheuser-Busch InBev is selling Oriental Brewery, South Korea’s #2 brewer, to private equity firm Kohlberg Kravis Roberts & Co. for $1.9bn acing out KKR’s rivals Affinity Equity Partners and MBK Partners. Insiders reported MBK’s bid was higher, but InBev preferred KKR’s plan and financing. The kicker apparently was an agreement to pay $100MM over the selling price if OB’s EBITDA (earnings before interest, taxes, depreciation and amortization) outperformed estimates two years after the deal closes. InBev is sloughing off what it calls “non-core” businesses to pay down debt, sold Japan’s Asahi Breweries, Ltd. a 20% share in China’s Tsingtao Brewery, and is reported shopping around the American iconic brand Rolling Rock. The #1 beer brand in Korea is Hite.

• There is some concern that honey bees are the “canary in the coal mine,” with populations crashing around the world over the past few years. Aside for general ecological fears is the real threat to the agricultural sector and food production, since honey bees are required to pollinate most crops and fruit trees. The U.K. has seen bee stocks drop 10-15% in the past two years, so it’s not surprising the country’s Soil Association, a charity dedicated to promoting organic farming, has denounced the refusal by Hilary Benn, the Secretary of State for Environment, Food & Rural Affairs (Defra) to ban Neonicotinoids, a group of pesticides which were pulled from the market in France, Germany, Italy and Slovenia. For more information on the Soil Association, click here.

• McDonald’s now says it will scale back expansion plans for China from 175 new locations to 150, due mostly to the closing of many factories in southeast China. The fast food giant recently opened its 1,000th store in the Middle Kingdom, but China (along with Germany) are the only markets showing negative results worldwide. Previously the company had listed the Chinese market as its fast-growing sector, outpacing growth in the U.S.

• Dutch-based Royal Wessanen nv has decided to sell its North American holdings which include American Beverage Corporation, the food distribution company Tree of Life North America, along with PANOS Brands (organic and natural products) and Liberty Richter (an importer and distributer for brands like Knorr soups and Appolinaris bottled spring water). The company plans to concentrate on organic and specialty markets in the EU.

• The customer loyalty trend is spreading to the world’s largest customer pool: China Merchants Bank is launching a credit card in partnership with Guangzhou-based retailer Tianhecheng and will offer the MasterCard brand.

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