ApprovedBusinessBusiness and finance

3G missed Unilever but its methods are spreading

Rejected suitor

JORGE PAULO LEMANN (pictured), a Brazilian investor, is ill-accustomed to failure. On February 17th Kraft Heinz, backed by Mr Lemann’s 3G Capital, said it had bid $143bn for Unilever, a maker of food and personal products. 3G has gobbled many a consumer firm, slashed costs, then bought an even bigger one. Even so, the Unilever bid was surprising in its audacity—the merger would have been the second-largest ever. As shocking, it collapsed two days later.

Kraft Heinz had hoped to continue talks in private, but news of its offer leaked out. Its management appeared to have badly misjudged the depth of Unilever’s attachment to its culture and its pursuit of long-term, “sustainable” growth. Unilever’s outright rejection meant that 3G and Warren Buffett, who was expected to help fund a deal, faced the prospect of going hostile against a revered firm. It was a rare stumble. But the episode doesn’t spell the end of its model. More deals are likely. And Kraft Heinz is already changing how Unilever and other rivals operate.

Times are hard for big consumer companies, once among the world’s…Continue reading

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ApprovedBusinessBusiness and finance

Toymakers bounce back in the land of adult nappies

WILLIAM ELLIOT GRIFFIS, an American educator who travelled to Japan in the 1870s, noted that in the previous two and a half centuries, “the main business of this nation was play”. He described toyshops filled as full as Christmas stockings and plenty of grown-ups “indulging in amusements which the men of the West lay aside with their pinafores”.

Griffis would have found it familiar walking today around Hakuhinkan Toy Park, one of the largest toy stores in Tokyo. Teens, office workers and grandparents are mostly to be seen perusing its 200,000-odd knick-knacks across five floors. Its director, Hiroyuki Itoh, says he wants the store to be a place where everyone can play. After work, suited salarymen come to spend ¥200 (under $2) for a five-minute whizz around a 36-metre slot-car racetrack. In another corner a gaggle of university students fiddle with displays of toys from the era of their childhoods.

Playthings aimed at the over-20s make up 27% of Japan’s domestic toy sales, according to figures from Euromonitor, a market-research firm. That grown-up portion of the market has been crucial for Japan’s three biggest players,…Continue reading

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ApprovedBusinessBusiness and finance

Toymakers bounce back in the land of adult nappies

WILLIAM ELLIOT GRIFFIS, an American educator who travelled to Japan in the 1870s, noted that in the previous two and a half centuries, “the main business of this nation was play”. He described toyshops filled as full as Christmas stockings and plenty of grown-ups “indulging in amusements which the men of the West lay aside with their pinafores”.

Griffis would have found it familiar walking today around Hakuhinkan Toy Park, one of the largest toy stores in Tokyo. Teens, office workers and grandparents are mostly to be seen perusing its 200,000-odd knick-knacks across five floors. Its director, Hiroyuki Itoh, says he wants the store to be a place where everyone can play. After work, suited salarymen come to spend ¥200 (under $2) for a five-minute whizz around a 36-metre slot-car racetrack. In another corner a gaggle of university students fiddle with displays of toys from the era of their childhoods.

Playthings aimed at the over-20s make up 27% of Japan’s domestic toy sales, according to figures from Euromonitor, a market-research firm. That grown-up portion of the market has been crucial for Japan’s three biggest players,…Continue reading

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