recentpopularlog in

jerryking : consolidation   54

Firms That Bossed Agriculture for a Century Face New Threat: Farmers - WSJ
August 15, 2018 | WSJ | By Jacob Bunge

On any given day, Cargill’s global network may handle up to 20% of the world’s food supply, company officials estimate. Crops like corn, soybeans, wheat and canola remain the fuel for much of the empire.

“It’s the root of the Cargill company,” said Marcel Smits, Cargill’s chief financial officer. Still, he said, “it’s clear that everybody in the industry has had a difficult time over the past few years.”

Among the shifts: low crop prices, farmers with more capacity to store their grain and competition for crops from livestock operations and ethanol plants. Venture capital-backed startups are developing services that scan a wider range of grain buyers or connect farmers directly with food makers.

From 2012 to 2017, Archer Daniels Midland Co.’s ADM -0.33% profits in its grain merchandising and handling division fell 39%. Profits from Bunge Ltd.’s BG -0.26% similar agribusiness division dropped 76%. Cargill’s annual profits fell three out of those years, and the company has pointed to struggles in its own grain business as a factor......

A deeper technology effort is advancing inside Cargill’s corporate campus west of Minneapolis, where Justin Kershaw, the company’s chief information officer, is overseeing a multimillion-dollar investment in data science. The company is hiring technicians and building a “digital labs” unit that can knit together satellite imagery, weather-sensor data and artificial intelligence to get an early read on creeping droughts and places where foodstuffs may run short, he said.

Cargill expects the data-crunching unit to show how the company can run its own trading and logistics operations more profitably, Mr. Kershaw said. But Cargill also will use it to develop crop-planning and futures-market services for farmers.
ADM  agriculture  Bunge  Cargill  commodities  consolidation  grains  farming  threats  food_crops  informational_advantages 
august 2018 by jerryking
Constellation Software may have to revisit its retreat into silence - The Globe and Mail
DAVID MILSTEAD
PUBLISHED 2 DAYS AGO
UPDATED 2 DAYS AGOFOR SUBSCRIBERS

So far this year, less has been more for Constellation Software Inc.

Less communication, as chief executive Mark Leonard has decided to abandon his regular shareholders' letters, and his company has ended quarterly earnings conference calls and announced it will no longer reveal certain performance metrics.
dealmakers  software  mergers_&_acquisitions  consolidation  Ivey  alumni  Constellation 
august 2018 by jerryking
Torstar cuts jobs, internship programs; board chair says the company is fighting for survival - The Globe and Mail
SUSAN KRASHINSKY ROBERTSON
PUBLISHED FEBRUARY 13, 2018 | |

Torstar Corp. is fighting for survival......The struggles precipitated by declining print advertising, and by a booming digital economy that has been dominated largely by Facebook and Google – at the expense of others who would survive on digital advertising – have led to widespread job cuts. On Monday, the company tightened its belt one more notch, cutting 13 jobs in its digital and sales operations, slashing the Toronto Star's travel and freelance budgets and suspending its summer and year-long internship programs. The Star's internships were among the most prestigious in the country for training young journalists.

While cutting costs, Torstar is also attempting to establish its digital future....... What is your view of the impact consolidation has had in Canadian media? How much more consolidation is to come?

As you know, we just announced a consolidation deal. [In November, Torstar and Postmedia Network Canada Corp. swapped 41 newspapers and subsequently shut down most of them.] Publishing newspapers – dailies and weeklies – is becoming more and more challenging. In an effort to lengthen the runway, give us more time, these amalgamation deals have been done.
Susan_Krashinsky  Torstar  digital_media  digital_strategies  newspapers  digital_first  cost-cutting  subscriptions  paywalls  layoffs  consolidation 
february 2018 by jerryking
TV chief looks beyond cable for the voyage of Discovery
5 August/6 August 2017 | Financial Times | by Shannon Bond.

"Swallowing Scripps marks a return to focus to the U.S. Zaslav is looking to the company for more content to bulk up his offerings, on traditional pay-TV and new digital outlets such as Amazon, Netflix, Facebook and Snapchat. "Content has always been our north star", he said this week.
Discovery  mergers_&_acquisitions  Scripps  CATV  CEOs  John_Malone  North_Star  content  consolidation 
august 2017 by jerryking
Supermarkets Face a Growing Problem: Too Much Space - WSJ
By Heather Haddon and Julie Jargon
July 31, 2017

A massive retail build-out has taken a toll on earnings, leaving the industry vulnerable to closures; ‘There’s only so much food we can buy’....Supermarket chains operating in dense areas where shoppers have more online grocery options are particularly vulnerable to future consolidation, according to Barclays Capital Inc., which said that 38 of the top 50 grocery markets in the U.S. are already too saturated by food retail per capita or are on track to be so by next year......the growth in groceries has extended across many types of retailers in recent years. Part of the expansion comes from grocers, who accelerated their store openings as a way to drive sales growth after the 2008 recession. At the same time, club chains, dollar stores, pharmacies—and even gas stations—increased their fresh food offerings to drive traffic and boost profits.....The food-retail sector has become even more saturated at a time when competition is only getting fiercer, particularly at the two ends of the shopping spectrum. Growing European deep-discounters Aldi and Lidl are vying for U.S. market share, hoping their prices will win over the budget-conscious shopper while internet companies like Amazon.com Inc. are trying to lure higher-income grocery shoppers online. Regional supermarkets and conventional ones such as Kroger Co. and Albertsons Cos. are the most likely to get squeezed in the process, according to analysts....... enduring changes in eating and food-shopping habits toward cheaper and more convenient options means consumers will increasingly spread their dollars among a variety of retailers.
retailers  grocery  supermarkets  oversaturation  e-commerce  barbell_effect  real_estate  store_openings  commercial_real_estate  prepared_meals  convenience_stores  pharmacies  overcapacity  Aldi  Lidl  consolidation 
july 2017 by jerryking
When local news outlets shutter due to cuts, we all lose - The Globe and Mail
ELIZABETH RENZETTI
The Globe and Mail
Published Saturday, Apr. 01, 2017

Local journalism, whether it’s at a city paper or a weekly, a radio or TV station, keeps its community entertained and informed. The National isn’t going to send a camera crew to cover the profoundly annoying pothole on Main Street, or the feud between the dress-shop owners, or the cozy relationship between the mayor and the developers. The Globe and Mail is not likely to, either: This is where the country’s 1,060 community papers come in – or where they used to. According to a recent report, those papers lost $400-million, or one-third of their revenue, between 2012 and 2015. The Public Policy Forum’s recent report on media in Canada, called The Shattered Mirror, contains an even more alarming statistic: “Since 2010, there have been 225 weekly and 27 daily newspapers lost to closure or merger in more than 200 federal ridings.” Local television coverage has contracted as well.

“Well, so what?” you might ask. Your neighbourhood has a Facebook page. The mayor has a Twitter account. Except that none of your neighbours is going to sit through a long and boring zoning meeting and report back (unless he is particularly weird). And the mayor’s Twitter feed? Undeniably good if you’re looking for sunshine and kittens. Not so good for anything she doesn’t want you to see. When provincial legislatures and city councils are left unwatched, it also means no one is keeping an eye on the sausage-making machine of democracy......The problem of fleeing ad dollars and subscribers won’t be settled so easily, either: The industry has struggled with these pains for years. Not-for-profit foundations that run news outlets might be one idea, or hyper-local websites that are crowdsourced by neighbours.....In his farewell column, Kevin Diakiw wrote, “Moving forward, you will likely receive your information from the Internet, or newsrooms pared to the bone. Be sure to read not only information that fits your own narrative, but opposing views as well.

“The weighty responsibility of hunting for balance and accuracy now lands largely on your shoulders.”
newspapers  rural  community  journalism  opposing_actions  journalists  provincial_legislatures  engaged_citizenry  city_councils  local  print_journalism  subscriptions  dual-consciousness  Postmedia  consolidation  local_journalism 
april 2017 by jerryking
Pillars of Black Media, Once Vibrant, Now Fighting for Survival - The New York Times
JULY 2, 2016 | NYT | By SYDNEY EMBER and NICHOLAS FANDOS.

As racial issues have once again become a prominent topic in the national conversation, the influence of black-owned media companies on black culture is diminishing.

“Ebony used to be the only thing black folks had and read,” Ms. Spann-Cooper said. “As we became more integrated into society, we had other options.”

Continue reading the main story
To that end, Time Inc. now owns the magazine Essence and Viacom owns Black Entertainment Television. The Oprah Winfrey Network, a partnership between Ms. Winfrey and Discovery Communications, has been around since 2011. The Undefeated, ESPN’s site covering the intersection of race and sports, debuted in May. The emergence of Black Twitter has also given African-Americans a powerful voice on social media.

Johnson Publishing stressed that the Clear View Group, the private equity firm that bought Jet and Ebony, was an African-American-led company and positioned the sale more as a partnership. “...Traditional media companies have struggled for years to adapt to a digital world, but the pressure on black-owned media has been even more acute. Many are smaller and lack the financial resources to compete in an increasingly consolidated media landscape. Advertisers have turned away from black-oriented media, owners say, under the belief that they can now reach minorities in other ways.

++++++++++++++++++++++++++++++++++++++++
See my Pinboard reference to [Carol Williams' concern] that agencies catering to multicultural audiences employ mass marketing strategies that look to target such consumers simply by casting minorities in ads, or making assumptions based on social media data.

“It becomes an issue of, ‘If they see themselves in a commercial, they’ll buy the product,’ rather than it being about the messaging and how that messaging is delivered to them,” she said.

Some companies are also using digital technology to “withdraw what they perceive as insights out of these communities,” she added, instead of “developing research techniques to really get to know this culture.”
African-Americans  owners  digital_media  mass_media  FCC  broadcasting  publishing  consolidation  television  culture  magazines  radio  black-owned  Carol_Williams  Essence  Ebony  print_journalism 
july 2016 by jerryking
Financial PR spins a new global story — FT.com
MAY 6, 2016 by: By Shannon Bond and James Fontanella-Khan in New York and Arash Massoudi in London

Leading financial communications companies from New York to Hong Kong are responding to growing demand for “whisperers” with global, political and digital nous. Nowadays, PR firms are expected to craft a corporate narrative that works across different markets, to handle complex relations with governments whose interests often diverge and to provide rapid-response crisis management.
crisis_management  Wall_Street  London  Communicating_&_Connecting  boutiques  public_relations  government_relations  consolidation  financial_communications  rapid-response 
may 2016 by jerryking
St-Hubert, Rona and new fears of a hollowed-out Quebec Inc. - The Globe and Mail
KONRAD YAKABUSKI
MONTREAL — The Globe and Mail
Published Thursday, Apr. 07, 2016

Existing institutions, starting with the Caisse de dépôt et placement du Québec, are increasingly seen as being unable or unwilling to play the gatekeeper role that prevented key businesses from falling into outside hands in the past. The Caisse, which manages investments for the Quebec Pension Plan and other provincial retirement regimes, is much more focused on global opportunities as it seeks the returns it needs to prepare for an onslaught of pensioners.

For former Rona chief executive officer Robert Dutton, that became painfully clear in 2012 when Lowe’s first tabled a hostile bid for the Quebec chain. Speaking out for the first time last week, Mr. Dutton told Radio-Canada that Caisse chief Michael Sabia had always favoured Rona’s sale, but was forced by then Liberal finance minister Raymond Bachand to block the Lowe’s bid in 2012. Mr. Dutton’s ouster and subsequent board changes, he said, were engineered by the Caisse to pave the way for a much richer bid by Lowe’s, a premium made possible by a weak Canadian dollar.

Mr. Sabia has offered a different version of events. In 2012, the Caisse, which owned about 17 per cent of Rona, believed that the Quebec chain could still be a consolidator in the North American home-renovation sector if it boosted its competitiveness. By early 2016, that plan no longer seemed feasible. “Rona was improving, but it was still not well-positioned,” Mr. Sabia said in February.
CDPQ  competitiveness  consolidation  economic_nationalism  gatekeepers  generational_change  hollowing_out  Konrad_Yakabuski  Quebec  M&A  mergers_&_acquisitions  multinationals  weak_dollar 
april 2016 by jerryking
Sears Canada races to close more stores amid cost-cutting efforts - The Globe and Mail
Jan. 24, 2016 | G&M | MARINA STRAUSS - RETAILING REPORTER

Sears Canada Inc. is stepping up its efforts to close another round of stores, raising more questions about its fate and putting pressure on landlords who already have a lot of empty retail space.

The struggling Sears has instructed real estate firm CBRE to look for alternative uses for Sears’s weakest stores, such as its clearance outlets... As well, Sears officials are working internally to shrink its store network, he said....Sears’s most recent store-closing plans differ from previous shutdowns, which involved landlords often approaching Sears with offers to buy back the retailer’s store leases to replace Sears with alluring foreign retailers, such as United States-based Nordstrom Inc., which could draw more customers.

But amid the rash of retailers such as Target that have closed stores, landlords no longer have compelling new retailers to fill so much space. ...Sears is determined to turn around its core business and remain in many locations, although some may be downsized or closed when the lease expires. He hired Carrie Kirkman, a seasoned merchant, late last year as Sears’s new president, aiming to lure younger consumers with new styles and store layouts. He’s looking to improve the state of some of Sears’s stores.
Marina_Strauss  retailers  cost-cutting  commercial_real_estate  CBRE  consolidation  store_footprints  under-performing  downsizing  small_spaces  Sears_Canada  RioCan 
january 2016 by jerryking
Thoughtful Italian dealmaker who plays the long game
| Financial Times |

Stefano Pessina has struck dozens of deals during his 40-year career. But unlike a gung-ho corporate raider, the 74-year-old chief executive of Walgreens Boots Alliance has played the long game, getting to know potential partners and targets, and waiting for the right moment to strike. This week was no different. Walgreens announced the purchase of Rite Aid for $17.2bn, alighting on the chain in a period of consolidation in the US pharmacy industry.
dealmakers  Italian  pharmaceutical_industry  retailers  CEOs  consolidation  pharmacies  long-term  long-range 
november 2015 by jerryking
No place for Future Shop as shopping’s future shifts - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER
The Globe and Mail (includes correction)
Published Sunday, Mar. 29 2015
Marina_Strauss  retailers  e-commerce  consolidation  Future_Shop  Best_Buy  marketing  branding  bricks-and-mortar 
march 2015 by jerryking
Nine retailers closing the most stores
Douglas A. McIntyre and Alexander E.M. Hess, 24/7 Wall St. 8:30 p.m. EDT March 12, 2014

A number of factors can lead companies to close stores. One is mergers and acquisitions activity. As organizations join forces under a single umbrella, locations that once competed for sales can become redundant, leading to store closings. The most recent example of this is the marriage of Office Depot and OfficeMax, completed late last year. Management has made it plain that the merger would produce cost savings by consolidating jobs and closing stores.

The pressures businesses face from the growth of online retail is another factor that can contribute to store closings....Outside of those retailers undergoing mergers, or shrinking to limit costs and preserve their bottom lines, a number of retailers have had to shrink their store count in order to shift into new markets. ...Companies close stores for different reasons. In the case of Sears Holdings, is likely to shutter a number of locations as part of a larger strategic overhaul to fund its transformation and make operations more efficient. Closing stores "frees up capital, reduces losses and de-risks our model," the company said in an earnings presentation.

In contrast, J.C. Penney is only closing stores that noticeably underperformed.
bricks-and-mortar  consolidation  de-risking  downsizing  e-commerce  LBMA  mergers_&_acquisitions  retailers  store_closings  store_footprints  under-performing 
march 2015 by jerryking
The incredible shrinking retail sector - The Globe and Mail
BARRIE McKENNA
The incredible shrinking retail sector
SUBSCRIBERS ONLY
OTTAWA — The Globe and Mail
Published Thursday, Feb. 12 2015

Entire categories of products are moving online, making many bricks-and-mortar stores redundant. Video and book stores are all but gone. Office supply, electronics and department stores are in retreat. A future without auto showrooms and movie theatres may be coming.

The era of the big-box store has peaked as city dwellers move back downtown, where space is at a premium.
Barrie_McKenna  retailers  size  mergers_&_acquisitions  downsizing  small_spaces  grocery  supermarkets  pharmacies  proximity  convenience_stores  store_footprints  post-deal_integration  bricks-and-mortar  consolidation  distribution_channels  Target  Wal-Mart  Loblaws  competitive_landscape  e-commerce  fresh_produce  perishables  big-box  supply_chains 
february 2015 by jerryking
When Media Mergers Limit More Than Competition - NYTimes.com
James B. Stewart, a columnist for The New York Times, explores the antitrust concerns related to a potential deal between Time Warner Inc. and 21st Century Fox. Publish Date July 25, 2014.
antitrust  consolidation  mergers_&_acquisitions  M&A  deal-making  regulation  21st_Century_Fox  competitive_landscape 
july 2014 by jerryking
Wal-Mart not a big, bad food buyer after all
12/17/2005|Western Farm Press Vol. 27 Issue 25, p22-22. 3/4p |Harry Cline.

The article presents information on competition between Wal-Mart store Inc. and other companies in the food business market. According to a food business expert, Roberta Cook the traditional supermarkets have cut their food prices quality and service in order to compete with Wal-Mart store. She says that even after the merger between traditional supermarkets their stock market prices has still continued declined as compare to the prices of the Wal-Mart store. Cook told the National American Agri-Women's convention that supermarket merger mania and traditional grocery store price cutting have failed to dethrone Wal-Mart's supermarkets.
Wal-Mart  fresh_produce  supermarkets  grocery  price-cutting  consolidation  competition  Roberta_Cook 
march 2014 by jerryking
Market Trends and Retailers’ Strategies in Fresh Produce
26-27 April 2007 | Dr. Marian Garcia, Kent Business School, University of Kent.

Suppliers of fresh produce are less able to differentiate their products at the consumer level
==> They are in a weak bargaining position as price differentiation is almost the only available strategy.

Impact on Fresh Produce Suppliers
* Despite increasing rationalization of the supply base, retailers are still able to switch volumes between suppliers of fresh produce.
* As a result, suppliers of fresh produce are often forced to accept low prices in order to get volume growth, which does little to improve their immediate and long-term financial performance.
* In response to consumer trends and marketing demands, innovative growers of fresh produce have increased their cooperation and involvement with buyers and other members of the supply chain to ensure their produce meet consumer expectations.
* Closer relationships between the various members in the supply chain, ensure information is shared and can be used to improve the competitive position of all members in that supply chain.
fresh_produce  marketing  trends  consolidation  information_flows  grocery  supermarkets  OPMA  strategies  retailers  Tesco  Sainsbury's  ASDA  supply_chains  private_labels  relationships 
january 2014 by jerryking
With Safeway deal complete, Sobeys demands price cuts from suppliers - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER

The Globe and Mail

Published Wednesday, Jan. 08 2014,

In its letter, Sobeys says its acquisition of Safeway Canada will provide it with a new growth platform in Western Canada, the country’s fastest-growing region, while also significantly increasing the retailer’s economies of scale. To help it gain scale, Sobeys will require the retroactive 1-per-cent “synergy savings rate” from suppliers, it says.

“This 1 per cent synergy savings rate will be deducted from payments starting the end of January 2014,” the letter says. “Retroactive savings will also be deducted. The rate applies to all branded and private label grocery products.

“In addition, and as you are aware, current market retail pricing conditions leave no room for absorption of cost of good increases. As such, Sobeys Inc. will not accept any cost of goods increases through 2014.”

It will make some exceptions in cases of pharmaceutical supplies and “single commodity items,” which are currently priced daily or weekly, such as sugar, or possibly “where extraordinary unforeseen circumstances apply,” the letter says.
Marina_Strauss  grocery  supermarkets  retailers  Sobeys  Safeway  scaling  consolidation  supply_chains  economies_of_scale  synergies 
january 2014 by jerryking
The high cost of low food prices - The Globe and Mail
Sylvain Charlebois

Special to The Globe and Mail

Published Monday, Jan. 06 2014
food  pricing  retailers  consolidation  Loblaws  Wal-Mart  Sylvain_Charlebois  high-cost 
january 2014 by jerryking
Got Growth? - Forbes
Lynn J. Cook
5/12/2003

While a gallon jug of white milk delivers single-digit gross margins, single-serve bottles of flavored milks and coffee drinks gross 45% to 55%. So Dean has been doing licensing deals with the likes of Hershey’s, Folgers and Land O’Lakes to market milkshakes to teenagers, mocha lattes to folks in their 20s and 30s and lactose-free milk to minorities (70% of Hispanics, 80% of African-Americans and 90% of Asians are lactose-intolerant)....Marketing, however, is not his forte. Engles is a market consolidator, spending most of the past decade eliminating his competition by buying it up.
soybeans  Dean_Foods  dairy  licensing  consolidation  food  growth  roll_ups  single-serve  high-margin  gross_margins  margins 
december 2013 by jerryking
Grocery wars spur industry consolidation - The Globe and Mail
Grocery wars spur industry consolidation Add to ...

MARINA STRAUSS

RETAILING REPORTER — The Globe and Mail

Published Wednesday, Aug. 14 2013
Target  Sobeys  Loblaws  Shoppers  Metro  grocery  supermarkets  competitive_landscape  consolidation 
august 2013 by jerryking
Jonway Auto's Big Plans Points to Chinese Consolidation - WSJ.com
April 9, 2013 | WSJ | Rose Yu.

Overcapacity worries aren't confined to cars. China has a glut of factories in industries ranging from steel to construction equipment to solar panels. Beijing encouraged heavy investment in those industries to move away from its dependence on low-level manufacturing. While central government officials signal that they want to tamp down on capacity, local governments are still backing local champions that are major employers.

China's car-making capacity is set to soar in coming years. General Motors Co., GM +3.05% Volkswagen and Ford Motor Co F +2.50% . are building new factories and assembly lines. China's top 10 auto groups—which make both foreign and domestic brands—are expected to have combined capacity to build about 35 million vehicles a year by the end of 2015, according to their previous announcements, compared with 18 million vehicles in 2012.

But sales growth is slowing.
automotive_industry  China  overcapacity  consolidation 
april 2013 by jerryking
Know where your customers are headed - and get there first
Copyright 2012 Farm Management Canada By Glenn Cheater

It’s easy to say you believe in that all-important first principle of marketing – Know Your Customer – but it’s a lot harder to put in practice: Customers are definitely fickle creatures.

But understanding customers is critical to the success of Bay Growers Co-operative in Clarksburg in the heart of Ontario’s Georgian Bay apple country. It started up a dozen years ago when 22 local growers jointly built a storage facility, but its watershed moment came when it zeroed in on what its customers – grocery retailers – were doing.

“We could see the writing on the wall,” says co-op president John Ardiel. “The retail business was consolidating. There were fewer and fewer retailers, and the next logical step was that there would be fewer and fewer suppliers.
apples  Ontario  co-operatives  farming  agriculture  customer_insights  first_principle  marketing  know_your_audience  turning_points  retailers  supply_chains  grocery  consolidation  know_your_customer 
august 2012 by jerryking
Opportunities for Entrepreneurs_Consolidating Fragmented Service Industries
Spring 1986 | New Management Vol. 3. Iss, 4; pg. 23. 5 pgs | Krauss, Carol Gibbons.

There are many opportunities for aspiring entrepreneurs to establish a successful business in the fragmented service industries. Reasons for fragmentation include: 1. the need for personal selling or delivery of a highly customized product, 2‘ local variations in environment or demand. and 3. inability to achieve economies of scale. Several possible strategies to overcome these fragmenting factors exist 1. Introduce a higher level of professionalism 2. Transform a service from a specialty into a commodity‘ 3. Separate portions of a mixed service and specialize in one aspect. 4. Change the delivery system by replacing some personal interaction with either automation or more customer participation To take advantage of these business opportunities. one must have a creative mind that is open to new organizational designs. The goal is to create a flexible formula that can be replicated
consolidation  entrepreneur  fragmentation  opportunities  personal_selling  small_business  start_ups  strategic_planning  economies_of_scale  fragmented_markets  roll_ups  professionalization 
july 2012 by jerryking
Supermarket Challenges and Opportunities for Producers and Shippers: US Experience1
February Quarter 2005 | Farm Policy Journal Vol. 2 No. 1 |Roberta Cook
Extension Marketing Economist, Department of Agricultural and Resource Economics.

The United States fresh fruit and vegetable market place has undergone consolidation in recent years, the
result being fewer, larger buyers who cater for large retailers. A large proportion of fresh produce is now
sold directly by shippers to retailers, bypassing intermediaries and wholesale markets. Transactions in
this consolidated market place involve more complex sales arrangements which can include off-invoice
fees and also quality, packaging and food safety requirements. More buyers in the food retail industry
are moving to seasonal and annual contracts which vary considerably for any given commodity. The
foodservice industry is also increasingly purchasing directly from shippers based in production regions.
Consolidation of food retail grocery stores has induced consolidation of shippers as firms attempt to match
the scale of the few, larger buyers. Shippers are now more market orientated and seek growers willing to
make changes necessary to be part of a more tightly controlled, yet geographically dispersed supply chain.
Contracts between shippers and producers are typically not fix-priced contracts, and focus on meeting
year-round consumer demand. Shippers reduce seasonal supply variation using imported products which
has implications for early and late season producers who may permanently face lower average prices.
Ultimately producers benefit by marketing through a shipper who can accurately reflect both shortand
longer-term market signals and can also assemble larger supplies of consistent quality products.
grocery  supermarkets  shippers  fresh_produce  OPMA  farming  agriculture  fruits  vegetables  consolidation  challenges  opportunities  Roberta_Cook 
june 2012 by jerryking
Family farms are fewer and larger, StatsCan says - The Globe and Mail
May. 10, 2012 | Globe and Mail | PAUL WALDIE.

Sparling noted that it takes about $2.31 worth of assets on a large farm to produce $1 of revenue. By contrast, a farm generating less than $100,000 in revenue requires $18 in assets to produce the same revenue....But not all of the changes have been welcomed. The demise of the Canadian Wheat Board, which had a monopoly over the sale of all wheat and barley grown in Western Canada, has prompted a series of court battles, led by farmers who believe the board gave grain growers clout in international markets. Others fear the shift to large farms will attract buying by investment funds eager to cash in on the rise in global food demand.

Still others worry about the age of Canadian farmers. The Statistics Canada census found that 48 per cent all farmers are 55 or older, the highest percentage ever. Meanwhile, the percentage of farm operators under 35 has fallen to 8.2 per cent from 9.1 per cent in 2006.
farming  Canadian  agriculture  trends  aging  Paul_Waldie  Statistics_Canada  consolidation 
may 2012 by jerryking
Shift in Customer Base Transforms Seigle's - WSJ.com
May 6, 2003 | WSJ | By JEFF BAILEY | Staff Reporter of THE WALL STREET JOURNAL.
Shift in Customer Base Transforms Seigle's
Retailer Returns to Roots as Supplier And Finds the Ground Has Changed
family-owned_businesses  retailers  Home_Depot  Lowe's  shifting_tastes  home-center_industry  consolidation  home-improvement 
may 2012 by jerryking
Settling the Landscape After Merging Firms - WSJ.com
April 15, 2003 | WSJ | Paulette Thomas.

THE PROBLEM: A merger, intended to open new sales opportunities, introduces a host of unexpected hurdles.

Steve Thomas thought he'd hit upon a perfect solution to his marketing problem. His company sold enterprise software -- for multiple users within a company -- for corporate training. But the Columbus, Ohio-based Pathlore Software Corp. couldn't break into the top tier of companies. The $5 million business had about 200 smallish customers. "We would jokingly call ourselves "the quiet company," because no one had ever heard of us," he says.

So he pursued a merger with another company, coveting its big, fat client list. Silton-Bookman Systems in Cupertino, Calif., also sold software used for corporate training, but it was a modest, PC-based product. It had 2,000 customers, including most of the Fortune 100. Its owners quickly agreed to terms. So in late 1999, while other software companies were plotting IPOs, and primping for venture capitalists, they combined in a lowly stock-swap, with Pathlore taking the controlling position.

Happy ending, right? Pathlore would sell its more sophisticated, big ticket product using the entrée provided by Silton-Bookman's gold-plated client list.

Except that their sales teams were utterly incompatible. Pathlore's sales people were accustomed to meeting with top executives to pitch their $1 million product face-to-face, with a sale typically requiring 12 months of courting. Silton-Bookman's salespeople worked by phone, selling its $10,000 software using a methodical step-by-step program. Retraining was unsuccessful. Some of the Silton-Bookman sales team left in frustration, and some went to new Pathlore jobs.

Tech support was a challenge, too. Pathlore's product required lots of time on the phone with its customers, working through the challenges of its sprawling, Web-accessed product. Silton-Bookman tech support addressed fast, easy-to-solve problems at high volume.

"Sometimes you don't know what the issues are going to be until you get in," says Mr. Thomas. "We struggled."

THE SOLUTION: Playing to the strengths of the component companies.

In order to bolster the old Pathlore sales team, it raised $10 million in venture capital for new hires and training. With the new client list in place, aggressive spending for new sales hires -- with experience -- made sense.

Pathlore split up other tasks among the two companies. Its tech support staff -- newly trained to deal with both products -- moved to Columbus, where tech labor is cheaper and less prone to turnover. It put its product development team and marketing staff in Cupertino to take advantage of the deep reservoir of Silicon Valley talent. Sales -- now requiring about six months -- have reached $26 million, and they are profitable.

THE LESSON: Even the most straightforward mergers present unforeseen challenges. Expect surprises and stay flexible.

-- Paulette Thomas
mergers_&_acquisitions  M&A  problems  incompatibilities  tech_support  venture_capital  lessons_learned  post-deal_integration  consolidation 
may 2012 by jerryking
Business: Mr Ellison helps himself;
Computing
Anonymous. The Economist. London: Apr 25, 2009. Vol. 391, Iss. 8628; pg.
65
The industry is, in other words, going back to its past, when it was
dominated by a few integrated companies that tried to do it all.

This is, in part, a consequence of the industry's maturity: to keep
growing, firms have to invade each other's markets. In addition,
customers increasingly prefer to buy integrated systems from one vendor,
rather than doing the plumbing themselves.
ProQuest  Oracle  mergers_&_acquisitions  M&A  consolidation  mature_industries 
march 2011 by jerryking
Magic Johnson, Yucaipa Invest in Vibe - WSJ.com
FEBRUARY 10, 2011 | WSJ | By RUSSELL ADAMS. Magic Johnson, Yucaipa Invest in Vibe.
African-Americans  private_equity  Magic_Johnson  Ron_Burkle  Vibe  roll_ups  consolidation  media 
february 2011 by jerryking
African Farms Attract Private-Sector Funds - WSJ.com
OCTOBER 29, 2010 | Wall Street Journal | By CAROLINE HENSHAW.
Mounting concern over security of food supplies is spurring a wave of
private-sector investment in Africa that many hope will put it at the
center of a green revolution...hopes for Africa's agriculture sector
have been dashed before. Weak rule of law, political instability and
prohibitive trade policies have teamed up to keep productivity low and
chase away investment. Today, yields in sub-Saharan Africa are about a
1/3 of the world avg. at 1 ton/ha, highlighting the potential
challenges—and opportunities—for investors...Diversified across crops,
biofuels, livestock, game farming and timber, the fund aims to profit by
increasing yields through using modern farming techniques, investing in
technology—only 2% of African farmland has any irrigation system in
place—and generating economies of scale by aggregating smaller farms.
agriculture  farmland  Africa  private_equity  Green_Revolution  farming  economies_of_scale  consolidation  political_instability  productivity  rule_of_law  sub-Saharan_Africa 
october 2010 by jerryking
Aon to Buy Hewitt in $4.9 Billion Deal - WSJ.com
JULY 13, 2010 | Wall Street Journal | By JOANN S. LUBLIN and
DANA MATTIOLI. Consolidating Consultants: Aon Agrees to Buy Hewitt .
"You will continue to see more consolidation in the sector,'' predicted
Timothy McHugh, a consulting-industry analyst for William Blair &
Co. in Chicago. Firms keen to make acquisitions "are looking for global
scale, diversity and additional products and services to cross sell to
their clients,'' he said.
consolidation  mergers_&_acquisitions  M&A  management_consulting  Joann_S._Lublin  Dana_Mattioli  PwC  McKinsey 
july 2010 by jerryking
Macy's Clout Drives Supplier Consolidation - WSJ.com
MARCH 23, 2010 | Wall Street Journal | By RACHEL DODES.
Macy's Buying Clout Drives Supplier Consolidation. Shirt-Maker Van
Heusen's Bid for Tommy Hilfiger Expands Its Portfolio While Raising Its
Profile With Department Store.
Macy's  retailers  consolidation  supply_chains  supply_chain_squeeze  buying_power 
april 2010 by jerryking
Gap Widens Between Tech Richest and the Rest - WSJ.com
MARCH 16, 2010 | Wall Street Journal | Ben WORTHEN. A handful
of cash-rich companies are consolidating power in the technology
industry, using their wealth to expand into new businesses and making it
harder for small and midsize competitors to break through. Why the
industry is evolving this way is rooted in balance sheets. Over the past
2 years, Apple Inc., Oracle Corp., Google Inc., Microsoft Corp. and 6
other large tech companies have generated $68.5 billion in new cash,
compared with just $13.5 billion for the other 65 tech companies in the
S&P 500 Index combined. Because of their massive cash accumulation,
these companies can afford to take risks that smaller companies can't
at a time when the economy remains fragile. The result is a bifurcated
tech landscape, says Erik Brynjolfsson, a professor at MIT's Sloan
School of Management.
Apple  barbell_effect  Ben_Worthen  Big_Tech  cash  cash_reserves  consolidation  Erik_Brynjolfsson  Fortune_500  Google  large_companies  market_power  Microsoft  new_businesses  Oracle  risk-taking  small_business  start_ups  trends  winner-take-all 
march 2010 by jerryking
Ducati's Motorcycles Face Tough Road
Jun 11, 2003.Wall Street Journal. pg. B.5.E By Nina De Roy.
Today, Ducati has 1,145 employees and produces motorcycles across five
segments: the "monster," the Sport Touring, the Supersport, the
Superbike and the newly launched Multistrada, designed to deal with a
variety of road surfaces and weather conditions. Ducati spends 6% of
revenue on innovation... "Consolidation would be good for the sector,"
says Mr. Minoli, when asked about a possible takeover. "But that need
not entail mergers. Ducati is open to synergies but at the moment we
have no plans to sell."

In many ways neither do the people who drive them. Ducati has made a
good job of targeting younger riders with catchy marketing ploys that
allow Ducati owners to feel part of the action.
Ducati  motorcycles  Italian  consolidation  synergies 
december 2009 by jerryking
Consolidation is the big story
Ben Hall. Financial Times. London (UK): Aug 31, 2009. pg. 12
consolidation  publishing  Gadi_Prager 
december 2009 by jerryking
Introduction: Customer Focus - HBR.org
May 2007 | HBR | Customers are the real employer—the people
who fund our paychecks, the only guarantors of our jobs. Because the
customer’s power is very real, the dynamics of business drive everything
toward commoditization. As surely as springtime melts snowbanks,
markets erode profits. A company can respond to melting margins in one
of four ways. It can surrender, giving up differentiation and competing
on efficiency and cost. It can consolidate power by buying its rivals,
figuring that the biggest snowbanks survive longest. It can innovate,
leaving behind the commoditized old and making money from that which is
still fresh and profitable. Or it can differentiate not just its
offerings but its approach to customers as well: It can cleverly define
segments of customers and sell only to those for whom it can create
especially valuable offerings or work with individual customers to
combine its products and services into unique packages, often described
as “solutions.”
HBR  customer_focus  commoditization  customer_centricity  consolidation  innovation  differentiation  bespoke  personalization  customer_segmentation  value_propositions  solutions  solution-finders  packagers 
october 2009 by jerryking
Big Changes at the High End
AUGUST 16, 2007 | WSJ.com | by RICHARD NALLEY

Luxury goods industry--the only area in which it is possible to make luxury margins--has consolidated into conglomerates.
luxury  consolidation  Outsourcing  counterfeits  book_reviews  branding  PPR  LVMH  high-end  industries 
april 2009 by jerryking
Palm-Oil Plantations Plan Merger
posted by admin on 28/11/06 on the Ciptapangan Portal. Also
related to , "Malaysian Palm-Oil Deal Aims to Improve Business
Efficiencies," which appeared on Nov. 29, 2006, WSJ article pg. B3D, " "
by E-Ling Liaw, Elffie Chew and Carolyn Lim.
palm_oil  Malaysia  consolidation  industries 
march 2009 by jerryking

Copy this bookmark:





to read