Latest news with #FrootLoops
Reuters
6 hours ago
- Business
- Reuters
Lazard's profit tops estimates on record advisory revenue from dealmaking
July 24 (Reuters) - Investment bank Lazard (LAZ.N), opens new tab surpassed second-quarter profit estimates on Thursday, as a rebound in dealmaking helped power record revenue in its advisory business, sending its shares up 1.5%. Dealmaking activity bounced back sharply in May and June, after grinding to a halt in April as uncertainty over U.S. tariffs weighed on corporate confidence. Lazard's financial advisory revenue jumped 21% to $497 million in the quarter on robust activity in Europe. The business generated record revenue in France and Germany in the first half. "We are super busy," CEO Peter Orszag told journalists on a conference call. "We also see an increasingly constructive environment for dealmaking going forward." Orszag said on a post-earnings call Lazard saw a bit more of an uptick in European activity in the first half that may get balanced as the year progresses and U.S. activity expands. Lazard expects that private equity will play an increasingly active role in M&A, Orszag said, as pressure from investors to return cash continues to mount. The largest U.S. banks last week struck an optimistic tone about the outlook for the rest of the year after their profits beat expectations. Investment banking fees rose 13% at Citigroup (C.N), opens new tab, 7% at JPMorgan (JPM.N), opens new tab, 26% at Goldman Sachs (GS.N), opens new tab, and 9% at Wells Fargo (WFC.N), opens new tab. Lazard had advised Belgian healthcare REITs Aedifica ( opens new tab and Cofinimmo ( opens new tab on their $13.8 billion merger during the second quarter. In July, the company advised Italy's Ferrero on its $3.1 billion deal for Froot Loops maker WK Kellogg (KLG.N), opens new tab. Lazard has hired 14 managing directors in 2025 after setting an earlier target to add 10 to 15 per year, as part of its goal to double revenue by 2030. On an adjusted basis, it earned 52 cents per share in the quarter, beating expectations of 40 cents, according to estimates compiled by LSEG. Adjusted revenue jumped 12% to $770 million, topping estimates of $683.4 million. In asset management, Lazard registered net inflows of $677 million in the quarter, after grappling with outflows since the second quarter of 2023. "Asset management achieved positive net flows in the quarter and record gross inflows for the first half of the year, demonstrating progress towards our goal for this year to serve as an inflection point for the business," Orszag said. Analysts said the inflows could be an early signal of a turnaround for the business. The real highlight of this quarter was in asset management, said Wolfe Research analyst Steven Chubak. Orszag told journalists there are inorganic growth opportunities on the asset management side, but Lazard has not yet found the "right match". Asset management provides a durable source of revenue and helps diversify revenue from investment banking businesses that are driven by economic cycles. Revenue in the asset management business rose 2% to $292 million, while assets under management rose 2% to $248 billion, as of June 30.
Time of India
a day ago
- Business
- Time of India
Breakfast cereal sales declined for decades before Kellogg's sale to Italian company
Breakfast cereal could use a lucky charm. U.S. sales of the colorfully packaged morning staple have been in a decades-long decline, a trend back in the spotlight with news that Italian confectioner Ferrero Group plans to purchase WK Kellogg, maker of Corn Flakes, Froot Loops, Rice Krispies and other familiar brands. Except for a brief period during the coronavirus pandemic, when many workers were home and had time to sit down with a bowl of cereal and milk, sales of cold cereal have steadily fallen for at least 25 years, experts say. In the 52 weeks ending July 3, 2021, Americans bought nearly 2.5 billion boxes of cereal, according to market research company Nielsen IQ. In the same period this year, the number was down more than 13% to 2.1 billion. Cereal has been struggling for multiple reasons. The rise of more portable options like Nutri-Grain bars and Clif Bars – which both went on sale in the early 1990s – made it easier for consumers to grab breakfast on the go. Concerns about food processing and sugar intake have also dimmed some consumers' enthusiasm for cereals. One cup of Lucky Charms contains 24% of a consumer's daily recommended intake of sugar, for example. 'Cereal finds it really hard to get out from underneath that,' said Tom Rees, global insight manager for staple foods at the consulting company Euromonitor. 'It can't escape the fact that it doesn't look like a natural food. You have to create it and form it.' Rees noted that for decades, cereal manufacturers focused on adding vitamins and minerals to build cereal's health credentials. But consumers now are looking for simplified ingredient lists. Artificial dyes — like the petroleum-based colors that brighten Froot Loops — have also come under fire. Last fall, dozens of people rallied outside WK Kellogg's Battle Creek, Michigan, headquarters demanding that it remove artificial dyes from its cereals. Kellogg and General Mills — another major U.S. cereal maker — have since pledged to phase out artificial dyes. Add to that, consumers are expanding their idea of what breakfast can be. Yogurt and shakes have replaced the traditional bacon and eggs. Kenton Barello, a vice president at the market research firm YouGov, said his polling shows that Generation Z consumers, who were born between 1997 and 2007, eat more vegetables for breakfast than other generations. Barello said YouGov's polling also shows that members of Gen Z are less likely to eat breakfast but still buy ready-to-eat cereal, suggesting they're eating it as a snack or for other meals. 'With younger generations, there are differences in their relationship with food and these eating moments,' Barello said. 'They are going about breakfast in a different way than Millennials, Gen X and Baby Boomers.' Cereal's struggles are part of what led to the breakup of the Kellogg Company. In 2023, the century-old company that put Battle Creek, Michigan, on the map split into two companies. Kellanova took popular snack brands like Cheez-Its, Pringles and Pop-Tarts as well as international cereals, and WK Kellogg made cereals for the U.S., Canada and the Caribbean. In 2024, M&M's maker Mars Inc. announced a plan to buy Kellanova for more than $30 billion. That plan has cleared U.S. regulators but is still awaiting regulatory approval in Europe. WK Kellogg was left to try to rejuvenate the cereal business. The sale of WK Kellogg to Ferrero doesn't mean supermarket cereal aisles are at risk of extinction. Packaged food companies have options for turning around their soggy cereal sales, Rees said. He thinks Kellogg's Mashups line, which mixed brands like Frosted Flakes and Froot Loops into one box, appeal to younger consumers, who tend to like interesting flavor combinations. The market may also have a fragmented future, according to Rees. Companies may have to accept that younger buyers want a sweet-and-spicy cereal while older buyers might want a Keto-friendly option. 'The future might be realizing that the era of 'This brand will serve everybody' isn't going to happen,' Rees said. Julia Mills, a food analyst with the consulting company Mintel, thinks the shrinking population of children in the U.S. gives cereal makers the opportunity to shift to more sophisticated flavors and packaging. Cereal could be positioned as a fancy topping for yogurt, for example, or a fiber-rich food that can improve gut health. Some niche cereal brands , like high-fiber Poop Like a Champion cereal and high-protein, zero-sugar Magic Spoon, are already doing that. But legacy brands say they shouldn't be counted out. Jeffrey Harmening, the chairman and chief executive officer of Cheerios maker General Mills, said his company considered trying to acquire Magic Spoon. Instead, it made high-protein versions of Cheerios, which now outsells Magic Spoon. 'The key to longer term is, honestly, is giving consumers more of what they want,' Harmening said during a conference call with investors in March.
Bloomberg
6 days ago
- Business
- Bloomberg
Froot Loops, Apple Jacks to Cut Synthetic Dyes by End of 2027
WK Kellogg Co. will remove synthetic dyes from its cereals, including Froot Loops and Apple Jacks, by the end of 2027, joining a growing cohort of other US companies that have committed to eliminate colorants such as Red 40 and Yellow 5 from their foods. The Battle Creek, Michigan-based company said it would remove the additives on its website on Friday. It had previously announced that it wouldn't introduce new products with the dyes beginning in 2026 while also committing to eliminate the ingredients from its cereals served in schools by the 2026-2027 school year.
The Sun
15-07-2025
- Health
- The Sun
US ice cream makers to remove synthetic dyes under RFK Jr initiative
WASHINGTON: Major US ice cream manufacturers have announced plans to eliminate synthetic dyes from their products by 2027, responding to pressure from Health Secretary Robert F. Kennedy Jr. The move comes as part of broader efforts to reduce unnecessary additives in food. The International Dairy Foods Association (IDFA), representing over 40 leading ice cream brands, confirmed the decision to phase out petroleum-based artificial colorings. Studies have linked these dyes to health issues such as ADHD, cancer, and digestive problems, despite providing no nutritional benefits. Kennedy praised the industry's commitment at a press event, calling it a positive step for public health. 'This is a great day for dairy and it's a great day for Make America Healthy Again,' said IDFA President Michael Dykes, referencing Kennedy's MAHA slogan. Turkey Hill CEO Andy Jacobs noted that many manufacturers had already begun removing artificial dyes. 'By taking this step now, ice cream manufacturers are ensuring that ice cream remains a special part of our lives as consumer preferences change,' he said. The US ice cream industry, worth $12 billion annually, sees Americans consuming around 19 pounds per person each year. While some companies like Nestle and PepsiCo have already committed to removing synthetic dyes, others, including Mars and Kellogg's, continue to use them in products like M&M's and Froot Loops. Meanwhile, the FDA under President Biden recently banned Red Dye No. 3, while the Trump administration has fast-tracked approvals for natural alternatives like gardenia blue. Kennedy's voluntary approach has drawn criticism for being too lenient, but industry participation suggests progress. - AFP
Yahoo
12-07-2025
- Business
- Yahoo
Ferrero Puts Snap, Crackle and Pop into Its Earnings With WK Kellogg Acquisition
Nutella-covered Froot Loops could become a thing now that Ferrero's buying WK Kellogg for $3.1 billion. The Rice Krispies-maker's shares did 'Gr-r-r-eat' yesterday, popping 30% as investors backed the Italy-founded company's takeover of American breakfasts. Ferrero previously bought Nestlé's US candy biz for $2.8 billion, as well as chocolate-maker Fannie May and RedHots owner Ferrara — considering the name, it was inevitable. The Italian company is now the US's third-largest candy seller, behind Hershey and Mars, according to Evercore ISI. Ferrero has also brought over brands that Americans used to visit the EU to buy (Kinder Bueno, Joy Eggs) and Americanized a couple of its products: Dr Pepper Tic Tacs and Nutella Peanut. READ ALSO: Delta Air Lines Projects Clearer Skies Ahead and Pentagon to Take $400 Million Stake in Rare Earth Miner Outside Vegas Sugary cereals never left the '90s as shoppers switched to healthier and higher-protein breakfast options with fewer artificial food dyes. And in recent years, inflation has pushed cereal buyers to opt for more affordable private-label brands (Shredded Wheat instead of Mini-Wheats). WK Kellogg reported that its sales fell 6% in the first quarter and cut its annual guidance, citing 'weaker than expected consumption trends.' The company has been going soggy for a while: In 2023, Kellogg spun off its struggling cereal biz as WK Kellogg and renamed itself Kellanova to focus on its snack portfolio (Pringles, Cheez-Its). Though both companies have struggled with scrimping shoppers, Kellanova's sales weren't hit as hard as WK Kellogg's last quarter. Ferrero's competitor Mars is betting on snacks over cereal. Mars announced in August that it'll buy Kellanova for $36 billion, and the deal was approved by the FTC last month — it's still facing antitrust scrutiny in the EU. Experts don't think regulators will challenge Ferrero's deal since it's significantly smaller, and Ferrero isn't a major player in the cereal aisle. Milking It: The campaign to get Americans to eat more cereal is underway. WK Kellogg CEO Gary Pilnick encouraged Americans to eat cereal for dinner last year (the comment caused some PR drama), citing company data showing a quarter of consumers already eat cereal outside of breakfast time. WK Kellogg's has also tried turning its cereals into snacks, launching grab-and-go bags of brands like Froot Loops and Apple Jacks as well as cereal bars. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
