Dealmaking Ferrero tycoon breaks decade of family tradition


Ferrero Rocher chocolates box is seen in this picture illustration taken October 22, 2017. — Reuters pic MILAN, Jan 18 — For almost 70 years, family-owned chocolate group Ferrero shunned acquisitions, relying completely on its ability to grow on its own and dream up new products. Those days are gone.  With Giovanni Ferrero at the helm of the Nutella maker, the traditionally Europe-focused business has swallowed up six companies in the last three years – half of them in the United States. The latest acquisition, of Nestle’s US confectionery business,Read More

Dealmaking Ferrero tycoon breaks decades of family tradition (VIDEO)

MILAN, Jan 18 — For almost 70 years, family-owned chocolate group Ferrero shunned acquisitions, relying completely on its ability to grow on its own and dream up new products. Those days are gone. With Giovanni Ferrero at the helm of the…

Health-conscious Nestle sells US candy to Ferrero for US$2.8b

LONDON, Jan 17 — Swiss food group Nestle has agreed to sell its US confectionery business to Italy’s Ferrero for US$2.8 billion (RM11 billion), it said yesterday, marking CEO Mark Schneider’s first big sale and a small step on its path towards…

Global funds continue to increase holdings in Bursa

KUCHING: Global investors continue to increase their holdings in stocks on Bursa Malaysia Bhd (Bursa Malaysia) for the third week continuously. According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a fund flow report yesterday, preliminary data from Bursa which excluded off market deals, international investors acquired RM772.2 million net […]

Nestle Malaysia in RM100 a share club, thanks to innovation

KUALA LUMPUR: If you had believed in Nestle Malaysia Holdings Bhd MD Alois Hofbauer (pix) when he took the helm of the group in 2013 and invested in the group, you would now be part of a novel group of investors in an organisation whose share has passed the RM100 apiece mark.

The group’s share price has appreciated 75% in the last five years since Hofbauer brought in his strategy of fuel, innovate and transform to drive growth.

It is not the work of only one man, however. In fact, the journey to this milestone in Nestle Malaysia’s 105-year history involved more than 6,000 of its own people – from stockists in its warehouse to the highest level of management – turning the group into what Hofbauer calls an “innovation machine”.

This was done via a twofold approach of first convincing employees that their ideas would be taken seriously and second that they would make it work in the marketplace.

“We created this culture where innovation is rewarded.When you innovate basically you are seen by the company – not only that you can express yourself, you are empowered to bring new ideas to the company and you see what you have created in the company environment,” Hofbauer explained when met late last year, adding that this led to ideas coming from all levels in the group.

These ideas were not only focused on new products but also processes and new business models. An annual excellence in innovation award progressed to one which carried with it a US$10,000 (RM40,000) cash prize and two business-class air tickets to Europe.

The culture of “Idea is King” has translated into sales. The group made about RM100 million from new product sales in 2013, and managed to quadruple that to RM400 million, contributing 50% to the 4% growth in sales in the food and beverage business in a market which is at best flat, or in reality has been in negative growth in recent times.

Hofbauer, however, sees light at the end of the tunnel for the industry, citing strong macroeconomic figures as well as its own growth over the last few years as signs of improving consumer sentiment.

Nestle Malaysia’s food and beverage sales have been progressively growing – from 1% in 2015, 3% in 2016 and to 4% or RM4 billion in 2017.

“We are now recognised as the most innovative, most speedy company when it comes to bringing new products and offerings and these are products which are created in Malaysia for Malaysians, which makes a big difference.

“How much more Malaysian can you be than Kit-Kat Nasi Lemak, which doesn’t exist anywhere else in the world?” Hofbauer asked, adding that the product is one of its best sellers.

KTC secures distributorships, boosts FY19 internal target revenue by RM177.1 million

KOTA KINABALU: Kim Teck Cheong Consolidated Bhd (KTC), a Consumer Packaged Goods distributor for third party brands as well as its own brands of products, is pleased to announce that its wholly-owned subsidiarieswere appointed as distributor for five agencies. They are Nestle Products Sdn Bhd (Nestle Products), Heineken Marketing Malaysia Sdn Bhd (Heineken Marketing), L’Oreal […]

KTC’s units bags distributorship from five companies

KTC says the distributorships are estimated to contribute combined monthly internal target revenue of RM14.7 million, translating to RM71.6 million for the financial year ending June 30, 2018 for the Group. (Logo taken from KTC’s website) KUALA LUMPUR: Three subsidiary companies of Kim Teck Cheong Consolidated Bhd’s (KTC) have been appointed as distributor for Nestle Products Sdn Bhd, Heineken Marketing Malaysia Sdn Bhd, L’Oreal Malaysia Sdn Bhd, Oriental Food Industries Sdn Bhd and Sincere Match & Tobacco Factory Sdn Bhd. KTC said the subsidiaries are Kim Teck Cheong (Sarawak) SdnRead More

Ringgit up, stocks down in new year

PETALING JAYA: The ringgit had a good start today after it appreciated to an intraday high of 4.0175 against US dollar, the strongest level since July 2016.

However, profit taking activity sent the local stock market 14.11 points or 0.79% lower to close at 1,782.70 points after a 2.08% jump last Friday. It slumped as much as 24.81 points or 1.4% in early trade.

In line with better economic growth, rising oil prices and a possible rate hike of 25 basis points by Bank Negara this month, the local currency continued with its strength on the first day of 2018 and is just 0.44% shy from the 4.0 psychological level. The first Monetary Policy Committee meeting for the year is scheduled on Jan 25.

Most economists expect the ringgit to reach 3.90 against the greenback at the end of 2018. It appreciated 10.9% in 2017, the biggest gain since 2010.

As at 5pm today, the ringgit strengthened 0.68% to 4.02 to US dollar.

Pacific Mutual Fund Bhd CEO and executive director Teh Chi-cheun said on a broader picture basis, economic growth will remain robust, with growing consumer confidence on the back of rising wages and stable employment.

“Global economic growth projections have been revised upwards in 2017. As at October 2017, the IMF has forecasted global GDP growth in 2017 to be 3.6% compared to their forecast in the beginning of the year of 3.4%.

“2018’s growth is now expected to be 3.7% and in Pacific Mutual’s view, will likely be revised upwards. The world economy today is a bipolar one with the two largest economies in the world, the US and China that are driving growth in their respective regions which results in positive momentum throughout the world.”

Malaysia’s economy grew 5.9% in first nine months of 2017, but is expected to moderate in 2018 due to the high base effect and the moderating external demand.

Meanwhile, political uncertainty remains a big headwind for Malaysian stocks as foreign funds closely monitor the development of the upcoming 14th general election, expected to take place between March and April. Foreign buyers bought RM10.33 billion worth of stocks last year.

The FBM KLCI saw its biggest weekly gain last week since January 2016 at 2.08% closing near 1,800 points, bringing its yearly gain in 2017 to 9.4%.

MIDF Research said although the FBM KLCI lagged its regional peers mainly due to the pre-election effect, the local bourse has a high potential to track gains in its peers as fundamentals of the Malaysian market remains intact. It expects the stock market to hit 1,900 points by year end.

Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd, which were among the top gainers last year, continued to soar today following a slight correction last Friday. Both stocks ended the day 10.18% and 2.66% higher at RM17.96 and RM13.90 respectively.

Meanwhile, the top losers were led by Nestle (Malaysia) Bhd, British American Tobacco (Malaysia) Bhd and Dutch Lady Milk Industries Bhd, which declined 2.04%, 5.15% and 1.94% to RM101.10, RM37.94 and 60.80 respectively.

Five things to look out for in 2018

Five things to look out for in 2018

Factors that will impact the domestic economy, from China to the general election

An investor’s best friend: China’s booming pet market sparks deals (VIDEO)

SHANGHAI, Dec 27 — Li Mingjie is a pet industry investor’s dream. The 23-year-old e-commerce worker spares little expense to make his pooch happy. “I’ll happily splash out on my dog,” Li told Reuters as he walked his brown poodle Coco…