March 20, 2015
Andrew Keen: "The Internet and the monopolists who dominate it need regulation"
Is the Internet a common good or should it be? Andrew Keen sees our digital age as a very mixed blessing and has become one of its most vehement critics. The British entrepreneur and author maintains that online monopolies, such as Amazon, Google, YouTube or Uber, have created a dangerous dystopia. In his opinion they destroy jobs, stifle innovation, and exacerbate global inequality. Social media platforms also raise Mr Keen's ire as being anything but social and only seemingly free. He accuses these networks of destroying our privacy and ruthlessly marketing personal data: "Facebook is not interested in humanity, but primarily in profit." And, if Edward Snowden's revelations are to be believed, the providers of such platforms are not only commercialising but also surveilling users in collaboration with the NSA. Keen also claims that WhatsApp, Instagram & Co promote a trivial, narcissist culture and "the tyranny of the moment". Is then the Web an amoral force in desperate need of state regulation, or is the man merely exaggerating in order to sell his controversial books?
March 19, 2015
ALDI Liquor: Online delivery site for wine, beer, and spirits in eastern Australia
This could be the game changer the market has long been waiting for. In a significant break with tradition, Aldi Süd (Aldi South) is taking a big step towards becoming an internet retailer. According to our sources, the German discount giant plans to trial an online shop in the United Kingdom and is looking to develop similar activities in a number of other countries, including Germany. Sister company Aldi Nord (Aldi North) is also believed to be considering a launch into Spanish and Portuguese cyberspace. Germany's most profitable discounter has been scrutinising the virtual world for more than a decade, but persons familiar with the group state that its interest has now entered a new and decisive phase.
March 16, 2015
Forbidden view: This beer ad was ruled to be discriminatory against women
Men are generally suckers for a pretty face. And it is highly amusing to see how sex appeal can open the purse strings of the most flint-hearted male penny-pincher. The advertising industry, essentially run by men and working for male-dominated clients, frequently cannot resist pandering to clichés and sexual stereotypes, especially when marketing to an essentially male audience. Sex sells, as they say in the trade. If a few airy-fairy sociologists worry about the commoditisation of human relationships or the over-sexualisation of our society, who cares? Thus, smokers are treated to pictures of steamy Latinas on hand-rolled tobacco pouches, or long-legged girlies drape themselves over sports cars at motor shows. Even some German milk products apparently can't be sold without touting a nubile blonde, dressed in a plunge bra and dirndl, waiting expectantly in the barn.
March 13, 2015
David McCann: "We are an initiator"
Last year was full of banana drama: Fyffes, the fourth-largest tropical fruit trader in the world, announced bold, cost-saving plans to merge with larger US rival Chiquita. The attempted mega-deal, which would have catapulted "ChiquitaFyffes" to no. 1 in the global fruit business, held the trade in suspense for much of 2014. Investors on the Irish Stock Exchange generally loved the idea, although some analysts were worried about the level of debt. After coming with an ace of clinching the deal, however, the proverbial luck of the Irish failed. Fyffes was outbid by Brazilian fruit juice giant Cutrale and investment group partner Safra. Wisely, the Dubliners had negotiated a termination fee and didn't slip on the proverbial banana skin. But could the McCann founder family soon find themselves faced with takeover interest from fruit giants Dole, Del Monte or Chiquita? Mild-mannered Chairman David McCann didn't look at all anxious at interview. Buoyed by good results from 2014, the 56-year-old Irishman sees a bright future for Fyffes Plc. Despite a strong dollar pushing up costs, he is clearly bullish on international growth, including Germany.
March 12, 2015
Professor Ulrike Detmers: "Prejudices and relics from the old men's club days are the biggest barrier to encouraging female management talent"
More than a century after the suffragettes, the world clearly still has a long way to go when it comes to creating a level playing field for women. This goes far beyond the stubborn persistence of sexual stereotypes and harassment at the workplace. Last Sunday, International Women's Day reminded an often indifferent planet of, for instance, female factory hands in Bangladesh who strive for a liveable wage and safer work conditions. Even in the West, women generally still do not earn the same wages as men. Although pay gaps have been narrowing over recent years, the rate of change has been painfully slow. In fact, it has been computed that, if remuneration improvements continue at their present snail's pace, a girl born today would have to live to 88 in order to experience full equality. Although an Angela Merkel or a Christine Lagarde have made it to the top against the odds, women still tend to abound in honourable professions, such as nursing, which require immense devotion for little recompense. Whether in investment banking or commodities trading, male domains are nearly always to be found where the financial goodies lie. Retailing, in particular, still retains its red-neck image. But even in the more rarefied world of fmcg, many senior women struggle to break through the glass ceiling. So most C-suites remain testosterone-drenched boys' clubs.
March 5, 2015
Lidl services company: Has set up US headquarters in Arlington/Virginia
Rejoice America, Lidl is nearer than you think! Although the official entry date is still set for 2018, the signs are increasing that the German discounter could cross the Big Pond as early as next year. Doubtless this will please our transatlantic cousins who have regularly been demanding on this site that the company comes to Battle Creek, Tallahassee or Atlantic City! Lidl is currently contacting its supplier base in order to ascertain who can also deliver to the US market. Around 200 execs from within parent Schwarz Group's vast international empire will apparently soon undergo training at head office in Neckarsulm in preparation for entry. After years of prevarication, which were lengthened by the global financial crisis in 2008/09, senior staff at the group are now said to be rooting for the project. They are clearly excited by the huge potential of the market where the multiple will inevitably meet an old friend – Aldi.
March 5, 2015
Aldi trips off the Italian tongue so much more easily than Lidl that one would have thought them on the sunshine peninsula long before their arch-rival. In fact their fellow German discounter ventured across the Alps in 1992 and was joined two years later by Rewe Group subsidiary Penny Market. In the 1990's, "sources close to Aldi" revealed that Austrian subsidiary Hofer had indeed taken a long hard look at bella Italia. At the time, however, group head office in Mülheim was said to have been deterred by the complex building regulations governing the numerous centri storici (historical town centres) which delight the world's tourists. Nonetheless, the secretive retail giant confirmed exclusively to Lebensmittel Zeitung this week that it is reviewing the dossier. Local bureaucracy has hardly simplified in the interim. So what has made Aldi change its mind about the Italian job?
February 6, 2015
Long road: São Paulo is 10,250km and three time zones away from Berlin
Mention the letters BRF to most Europeans, and they will look at you blankly. Say them to a Brazilian, and his or her face will light up with recognition. This is because they stand for what was formerly Brasil Foods, the country's largest food maker with something like the status in Latin America of a Nestlé or Unilever on our continent. In fact, BRF is among the Top 30 global food companies by revenues and a leading producer of refrigerated and frozen protein foods. The agribusiness powerhouse is also the world's largest exporter of poultry. To dominate what WH Group exec Larry Pope has called "the best place in the world to raise meat" is a pretty good starting point. But as Brazil's economy enters a fifth consecutive year of low growth, this national champion is finding foreign shores increasingly attractive. BRF now sells meat products to more than 110 countries. Exports, fuelled by a weaker real, already account for around 45 per cent of annual revenues. But only approx. 16 per cent of these go to Europe – behind the Americas, Asia and especially the Middle East, where demand is booming. Why then do Roberto Banfi, CEO Europe & Eurasia, and Christophe Vasseur, General Manager West & South Europe, want to boost business in a region that is both mature and saturated? Granted Europe is a bastion of stability in an often uncertain global village, but with EU import quotas and sanitary restrictions on Brazilian meat, BRF needs a damned good route-to-market.
January 22, 2015
Andrea Illy: "The massive consolidation in the global coffee segment doesn't worry us a bean"
Elegant and sophisticated, without palpable vanity; scrupulously polite, yet not stiff and formal; eloquent, but not glib – Andrea Illy has exactly the right blend to be the testimonial of the super-premium coffee brand he represents. The Chairman & CEO of Trieste-based family company illycaffè is a formidable marketer and exudes the quiet confidence of a man who knows his product is on the global up. Germans love their coffee with foamed, creamy milk; Americans like it black and weak; Italians prefer extra-strong espresso and ristretto; but one thing is for sure: the human race is becoming ever more addicted to the "black gold". The aspirational lifestyle trend associated with coffee is percolating through mature western markets to consumers in emerging economies with a growing thirst for a hit of caffeine. Given that only one in five of the world's population drinks coffee, global sales could double within the next generation. Around 2bn coffee capsules were sold in Germany alone last year, and a conservative estimate by the German Coffee Federation points to annual local growth of 10 to 20 per cent. Need one wonder why Andrea Illy is increasingly enjoying his visits to this country?
January 15, 2015
Rating Agencies: Only good corporate boys and girls get a good report
Given the intense criticism the industry underwent in the wake of the global financial crisis, ratings agencies are disappointingly discreet. This may please corporate clients, but it is frustrating for journalists who make a living out of other people's indiscretions. When cornered, ratings analysts will politely refer to "regulatory requirements". Even loaded questions, such as "How can you rate Douglas now that it no longer publishes financial statements?" or "How would you rate Tesco if it sold its operations in Eastern Europe?", are skilfully fielded. The inscrutable answers will vary from "we meet our clients regularly" to "we aren't allowed to tell clients what they should do" or, most fatal of all, "on the one hand…on the other…". So what then are these guys good for? S&P publicly rates 46 retailers and restaurants across Europe, Russia and Africa. This puts them in pole position to review the state of the industry. A recent roadshow in Frankfurt reveals how they view the retail world and their weather forecast for the trade this year.