The prospect of a No Deal Brexit has usually spelled bad news for shares in Britain’s biggest grocers. But the supermarkets swept higher after a cheery analysis concluded they could flourish even if the UK doesn’t strike an agreement with the EU (The Daily Mail). Brexit-driven changes in consumer spending, tariffs and supply chain disruption have knocked supermarkets this year — but too hard, according to analysts at Investec (The Times £).
Talks about a $200bn merger between Altria and Philip Morris International have run into scepticism among investors, threatening to undermine the plan to reunite the US and international tobacco giants behind the Marlboro brand. (The Financial Times £)
Tobacco merger lights up smoke-free market, writes The Times (£). “Wall Street and City analysts view the catalyst for the merger as the approval in April by the Food and Drug Administration of Philip Morris International’s IQOS device, which is deemed to be less harmful than traditional cigarettes as it heats rather than burns tobacco.”
Faced with declining sales in mature markets such as the US, Big Tobacco has been scrambling for alternative money spinners. But switching to next-generation products comes with a significant cost. (The Telegraph)
WH Smith’s switch away from Britain’s troubled high street continues to pay off with the retailer reporting strong sales in its burgeoning travel business (The Times £). WH Smith is making more money from its shops in hospitals than from those in train stations as it told the City it expects to meet its profit targets (The Telegraph). Good old reliable WHSmith didn’t ruffle many feathers today as it updated shareholders on its progress so far this year (The Daily Mail).
Cargill, the agricultural trader and processor, is increasing its exposure to pea protein, investing $75m in Puris, which supplies plant-based burger maker Beyond Meat. (The Financial Times £)
A combination of business taxes and higher staff costs hit first-half profits at PizzaExpress, prompting the UK chain to scale back its expansion plans (The Financial Times £). Pizza Express has blamed industry-wide cost pressures, including business rates and minimum wage increases, for slicing almost 8 per cent off its earnings (The Times £). The downturn in casual dining delivered another blow to Pizza Express in the first half of the year while newer rival Franco Manca hit the spot as its menu of sourdough pizzas, green cola and vegan cheese appealed to changing consumer appetites (The Guardian). Pizza Express said boosting its vegan menu options and strengthening its ties with delivery group Deliveroo had helped it keep up with shifting diner demands (The Daily Mail). The casual dining crunch has taken another bite out of the bottom line for Pizza Express (The Telegraph)
The pound was volatile on Wednesday following news that Parliament is to be suspended just days after MPs return to work on 3 September. (The BBC)
Consumer confidence has hit a five-year low with the majority of people expecting a recession before the end of the year, according to a poll. (The Times £)
Children are still buying knives from big UK supermarkets including Tesco and Asda – despite retailers’ recent public pledges to toughen up their sales policies – according to the results of tests carried out by National Trading Standards officers (The Guardian). Asda and Tesco have been found to sell knives to under-18s in new data from National Trading Standards. (Sky News)
There is no ‘scientific’ reason to ban chlorinated chicken or hormone beef in a post-Brexit trade deal with America, a senior government scientist has said. (Sky News)
Consumers want fair trade but not its price, writes the FT. Tea industry buyers are near monopolies who outgun the smallholders or day labourers. (The Financial Times £)
The head of Coty has said there will be “progress as of this year” in its efforts to fix long-running problems at its biggest division, which sells mass-market make-up brands including CoverGirl and Max Factor, after reporting a drop in annual sales. (The Financial Times £)
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