Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Duckhorn Portfolio would not consider $11 a heady price for a bottle of its luxury wine. But for a price per share of its company, it represents the height of decadence. The Napa Valley headquartered vintner this week sold itself for $11.10 a share, more than double its previous trading price and an implied enterprise value of $2bn.
Duckhorn had gone public at $15 per share in 2021. But a recent big acquisition, youth apathy towards wine, and a small cap float collectively meant that Wall Street turned sour. Its buyer, the private equity firm Butterfly Equity, is taking a big swig with some unusual backers.
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Butterfly is not relying on a traditional commercial banking syndicate nor a private credit asset manager. Rather, the committed transaction debt is to come from the US Farm Credit System, which is composed of a set of agriculture co-operative banks that are scattered across America.
The unusual funding group includes such names as American AgCredit, Compeer Financial, Farm Credit Services of America and Farm Credit Mid-America. The Farm Credit System is a so-called government sponsored enterprise — similar to Fannie Mae and Freddie Mac — whose bonds avoid state and local taxation. Take that JPMorgan and Apollo.
The farm credit funding parent corporation has more than $400bn of debt securities outstanding that supports its lending. As for the Duckhorn deal, the leverage and other financing details were not initially disclosed but it is safe to assume that the US Farm Credit System is not particularly experienced in public company M&A.
Duckhorn typically sells wine bottles for between $20 and $200, a range known as “luxury”. It was founded in 1976 by a husband and wife team. Its two largest current owners are the private equity group TSG and Brown-Forman, the spirits conglomerate which sold its Sonoma-Cutrer Vineyards for $400mn to Duckhorn last year.
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Since that transaction, Duckhorn has faced stagnating sales amid an overall dip in wine sales. Younger Americans are either eschewing alcoholic beverages generally or prefer other types of tipples.
Expect Butterfly, which is paying nearly 13 times ebitda, to slash costs and manage the business for cash flow. The worst case scenario contemplated conjures a remarkable possibility: a bank owned by farmers and ranchers foreclosing on a Northern California wine company.
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Israel has told the US that defence minister Yoav Gallant will no longer travel to Washington this week, prompting fears the cancellation could jeopardise co-ordination with Israel over its response to Iran’s missile attack.
“We were just informed that minister Gallant will be postponing his trip to Washington, DC,” deputy Pentagon press secretary Sabrina Singh said on Tuesday, hours before he was due to fly to the US.
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The visit, which had been scheduled at Gallant’s request, was seen as a crucial chance for the US and Israel to discuss Israel’s planned retaliation against Iran for its ballistic missile attack last week and its expanding conflict in Lebanon.
Israeli Prime Minister Benjamin Netanyahu told Gallant to postpone his visit to Washington, said a person familiar with the matter.
The prime minister did not want Gallant to go until his cabinet votes on the country’s response to Iran’s ballistic missile strike and Netanyahu speaks with US President Joe Biden on the phone, the person said.
A call between Netanyahu and Biden has been in the works for “many days” but has not taken place, they added.
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A US official said a call between the two leaders was expected soon.
Defence secretary Lloyd Austin had been scheduled to host the Israeli defence minister for a bilateral meeting in Washington on Wednesday.
While the US has backed Israel’s right to respond to Iran’s missile attack, Washington has sought to place some limits on the retaliation, warning Netanyahu’s government against striking Iranian nuclear facilities and indicating it would not be in favour of an attack on the Islamic republic’s oil sector.
US and Israeli officials have been in frequent contact in recent days and officials in Washington say they do not believe Israel has taken any final decision on its response to Iran.
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But the postponement of Gallant’s visit is likely to raise concerns about a rift in relations between US and Israel. Although Washington has continued to supply weapons to its ally and helped its defence, Israel has frequently defied US wishes to pursue a diplomatic solution to the conflict in the Middle East that erupted after Hamas’s attack on Israel a year ago.
Singh insisted relations between Austin and Gallant remained strong. “I don’t think there’s tension . . . you can have direct conversations with your friends. You’re not always going to agree on everything, but that doesn’t mean that there’s tensions,” she said.
She added the US would “continue to consult with the Israelis on what their response [to the Iranian strikes] might be”, and said the cancellation of Gallant’s trip would not have any impact on the dialogue between the two countries.
Another US official said they expected to see Gallant soon and did not view the cancellation of his visit as significant.
Singh added Austin and Gallant had not spoken on Tuesday but it was “still early, and they’re in touch pretty frequently, so a call could always be scheduled for later today or later this week”.
The cancellation of Gallant’s visit comes as Israel has continued to pummel targets in Lebanon and has expanded its ground offensive in the south of the country in an attempt to weaken Hizbollah, the Iran-backed proxy group.
Netanyahu on Tuesday released a video message in which he called on the Lebanese population to rise up against Hizbollah, urging them to “save” their country “before it falls into an abyss of destruction and suffering like Gaza”.
The Uxbridge store launch marks the household and garden retailer’s return to West London.
It is also its seventh opening since the brand was acquired by CDS Superstores.
Spanning approximately 30,000sqft, the store will be situated in its former trading location at The Pavillions Shopping Centre.
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It looks to offer local shoppers access to products they know and love – including Christmas essentials.
The store’s launch day will feature goody bags for the first 50 shoppers in the queue and an exclusive prize for the first person in line, along with great value deals across many key categories.
Shoppers will also get to try their luck at the spin the wheel, with a chance to win gift cards and pick-n-mix vouchers.
As with its fellow six concept stores launched to date, the new Uxbridge store will feature additional services, including a Click and Collect offering.
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This store launch forms part of Wilko’s expansion plans, with a further national roll-out planned.
Huge budget retailer to shutter ANOTHER former Wilko store just months after opening
It’s the brand’s latest store, joining recent openings in Poole, Exeter, Luton, Plymouth, St Albans and Rotherham.
What other retailers have made a comeback?
It has been a tough time for retailers since Covid and the last few years have seen many vanish from our high streets.
The rising cost of living and expensive rents have all been playing a part in the demise of some of our much-loved high street names.
The record store was once a staple of the UK high street from the early 1970s until 2004.
The first store was on London‘s Finchley Road, and the brand had as many as 300 branches at its peak, making it one of the biggest music store chains in the UK.
Last week Our Price revealed it would be making a return as music lovers will once again be able to buy thousands of vinyls and other merch.
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Shoppers can browse the catalogue online for now only, owners have not ruled out the return to physical stores at some point in the future.
Toys R Us is also among those which has managed to make a comeback.
IT’S not all bad news on the high street as several retailers are bucking the trend and opening shops.
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German discounter Aldi has announced it will open 35 new UK stores this year. The openings form part of Aldi‘s long-term target of operating 1,500 stores in the UK.
Purepay Retail Limited , the parent company of Bonmarché, Edinburgh Woollen Mill (EWM) and Peacocks, Purepay Retail Limited, has said it wants to open 100 new high street stores over the next 18 months.
Brazil’s Supreme Court has said it is lifting a ban on the social media platform X, formerly known as Twitter.
In his decision, Justice Alexandre de Moraes said that he authorised the “immediate return” of its activities in the country after it paid hefty fines and blocked accounts accused of spreading misinformation.
According to a statement, the site has paid fines totalling 28 million reais ($5.1m; £3.8m) and agreed to appoint a local representative, as required by Brazilian law.
Moraes had blocked access after the platform, owned by Elon Musk, refused to ban several profiles deemed by the government to be spreading misinformation about the 2022 Brazilian Presidential election.
COCA-COLA has confirmed the return of one its limited edition drinks just in time for Christmas after it was axed four year ago.
One fan described the drink as their “favourite ever” after a post on Facebook revealed the product had returned to UK shelves.
The drinks manufacturer has confirmed its Zero Sugar Cinnamon flavour will be available across the UK from mid-October until the “end of the year.”
A post in group Newfoodsuk about the drink rapidly gained traction and amassed over 500 comments and 700 reactions.
Some fans rejoiced at the news following the product’s axing in 2020.
One user commented: “Lovely stuff, wish it was available all throughout the year.”
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Read More on Product Revivals
Another added: “Best coke, should be permanent.”
Some described it as their “favourite” while others were excited to “try” the unusual flavour.
However, not all reception was positive.
Some were sceptical of the item’s taste, while others had less than fond memories of it from the past.
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One commenter said: “Don’t like the sound of cinnamon coke.”
Another said: “Not something I’d want to try doesn’t sound appealing.”
A look back at the history of Coca-Cola and the search of the secret formula
One unhappy user commented: “Why do Coca-Cola insist on making it zero sugar when it’s flavoured?
“Coke zero is awful.”
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The product is currently available exclusively at Tesco in 2L bottles and retails for £1.85.
This places it in line with the price of the brand’s entire Zero range, which also includes regular Zero, Zero Caffeine-Free, Zero Lemon, and Zero Cherry.
Coca-Cola Cinnamon was first introduced in the UK back in 2018 as a “limited-time offer for the holiday season.”
It then returned for the festive season again in 2019 and 2020 but hadn’t been seen in UK supermarkets since.
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A ranking of the best Coke flavours in 2024 by lovefood.com placed the cinnamon version 10th on its list.
One user said: ” I wish Coca Cola should bring back the Diet Vanilla Coke that was delicious.”
Just last month, the drink’s giant had to apologise for discontinuing its Cherry Vanilla flavour, citing “consumers’ taste preferences and lifestyles constantly changing.”
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Brands being revived this Christmas
A RANGE of classic products are being revived this Christmas after previously being axed.
Aldi’s Chocolate Mountain Bar
ALDI shoppers have been left overjoyed after the supermarket’s iconic Toblerone dupe returned to shelves.
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Fans of the bargain retailer have been pleading for the Specially Selected Swiss chocolate bar to make a comeback, with Aldi finally giving in.
The blonde bar is seen as a family favourite with happy customers describing it as “lush” as they race into stores to grab one.
Each 100g pack cost is now priced at £1.69.
Each bar is packed with delicious ingredients from white chocolate, honey, almond, nougat and salted caramel pieces.
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Mars’ Marathon Bars
Mars announced it was bringing back the iconic Marathon chocolate bar after it was rebranded 34 years ago.
The bar was re-titled as Snickers in 1990 and lost its iconic name but will return to supermarket shelves for a limited time this year.
The limited-edition wrappers will be available exclusively at Morrisons until December, which means you’ll only have a few months to enjoy the blast from the past.
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Starbucks’ Toffee Nut Latte
Starbucks fans are going wild as a £1.50 buy has landed back in stores – and if you’re a lover of the coffee chain’s Christmas drinks, then prepare to be overjoyed.
One savvy shopper was left beaming when browsing in her local Sainsbury’s, when she noticed that toffee nut latte sachets were now available to buy.
So if you’re obsessed with the Starbucks Christmas beverage, which normally hits stores at the start of November and is available until the end of the year, and want to be able to have it all year round, you’ll need to head to Sainsbury’s and stock up.
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Cadbury’s Dairy Milk Winter Mint Crisp
The confectionery giant has brought back its Dairy Milk Mint Crisp bar for shoppers to enjoy as the nights draw in.
It forms part of the sweet makers’ new Christmas range which also includes a retro selection box.
Cadbury‘s confirmed earlier this year that the minty treat had been axed from shelves and it had “no plans to reintroduce it”.
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It came after nostalgic shoppers made calls for Cadbury‘s to bring back the retro snack.
Its WinterMint Crisp bar has already landed on shelves, with Tesco charging £4.50 for a 360g bar.
You can get it for just £4 if you have a Tesco Clubcard.
A NEW themed land could soon open at one of the UK’s top theme parks, if plans are given the go-ahead.
Last year, Chessington World of Adventures was named the UK’s best theme park at the UK Theme Park Awards.
And the theme park could soon renovate two of its pre-existing areas.
The project, called ‘Refresh and Renew’ hopes to see Wild Asia, one of the theme park’s oldest areas, undergo a huge revamp.
According to the proposal, Wild Asia will be replaced by a new themed land have a range of immersive experiences like play areas and sensory environments.
A new rollercoaster with both indoor and outdoor elements is slated to feature in the new themed land too.
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Kobra, one of Chessington’s most popular rides, will also undergo a makeover, according to the proposal.
A new indoor ride and an outdoor play area are included in the plans as well as new food and drink outlets and a retail shop.
The new themed land will also make use of the Explorer Glamping Area, which has yet to open at the London-based theme park.
Another proposal being considered called Project Play.
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Project Play will see Mexicana, a ‘ramshackle western town‘ that opened in 1987, also undergo renovation.
The new themed lands aren’t the only new attraction that’s set to open at Chessington World of Adventures, with the resort confirming a waterpark will be added to its line-up.
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Announced last year, the waterpark, which hopes to rival the likes of Disney, will have a wave pool, infinity pools, slides and a water play area.
A safari ‘beach’ and spa will also feature, along with a splash pad and adventure river, with the theme park extending its Safari Hotel as part of the expansion.
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A spokesperson for Chessington previously said the new attraction is needed to give a “strong boost” to both London and the tourism industry following the pandemic.
They said: “Visitors’ demands and expectations of leisure and tourism attractions are constantly evolving and growing.
“These are influenced by experiences abroad where the likes of Disney and Universal Studios are able to accommodate guests on site for extended periods, to enable visitors to fully immerse themselves in the experience of the themed areas and attractions on offer… without investment visitor numbers will decline.”
If the plans are given the go-ahead, the new attraction could open as early as 2025.
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What is it like to visit Chessington Worlld of Adventures?
The Sun’s Head of Travel Caroline McGuire recently visited Chessington – here’s what she thought.
I mutter a series of expletives as the 42mph ride, in the theme park’s brand new ‘World of Jumanji’ land, tosses me every which way as it reaches its 55ft peak at the top of a jaguar shrine.
Then shout them louder as the shuttle rollercoaster, which is Chessington‘s first inversion ride and the world’s only Jumanji ride, repeats itself backwards.
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The ride is the jewel in the crown of the new themed land, which has been several years and millions of pounds in the making.
But equal amounts of attention and care have been paid to everything else, including the other two rides – Mamba Strike and Ostrich Stampede.
For the little ones who can’t meet the 1.2m height requirements, there are plenty of quirky Jumanji-themed activities positioned around the land, including a maze of pathways styled like the original boardgame.
My 4-year-old loved playing one of the side stall games, which involved trying to knock down bugs with a ball and there is some great themed merchandise for all ages, from stuffed toys to clothing.
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For those looking for a Jumanji-style snack, there are also giant turkey legs, foot-long hotdogs and jungle stampede cupcakes on offer.
The themed fun doesn’t have to end there though, as Chessington’s Safari hotel also has six new Jumanji hotel rooms.
The bedrooms, which can sleep up to five people in a double bed, a bunk bed and a pull out single, are brilliantly styled to make you feel like you’re entering the jungle.
A new £300m theme park could soon open in the UK – despite not having any rides.
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Meanwhile, a new indoor theme park could open in Europe next year, with a huge castle, a water flume and a family rollercoaster.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Investors which manage £1.7tn of assets have urged UK chancellor Rachel Reeves to revamp Britain’s fiscal rules to unlock billions of pounds of more funding for infrastructure projects.
The group of pension investors including Australia’s IFM and the UK’s Universities Superannuation Scheme called on Reeves to redefine the key debt measure in her Budget rules.
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They said the UK’s “public sector net debt” measure should be changed to recognise the financial value of assets created by government spending on infrastructure and green energy projects.
The move would give an incentive to the government to spend more on infrastructure, and potentially unlock billions in extra future spending from pension groups, which prefer investing alongside states to reduce their risk.
“The UK state is actively discouraged by its own debt rules from co-investing with pension funds . . . in infrastructure projects,” said Gregg McClymont, executive director at IFM, whose UK investments include Manchester Airport Group and Anglian Water.
The UK’s current public sector net debt measure does not account for the value of assets the government invests in.
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“Public sector net debt actively discourages co-investments on the government side of the table since it treats a pound spent on acquiring productive assets the same as a pound lost down the back of the proverbial sofa,” McClymont said.
The intervention adds to a growing chorus of voices calling for a change to the rules, including former cabinet secretary Lord Gus O’Donnell.
Reeves has said she will stick to the constraining rule that the ratio of debt to GDP must be forecast to be falling in five years, but hinted at the Labour party conference last month that she was open to reforming the definition of debt if it would help encourage investment.
The group will meet Treasury officials on Wednesday to pitch a new blueprint for how the UK can achieve its net zero climate ambitions, with a change of the fiscal rules its key priority to stimulate investment. The Treasury was approached for comment.
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“We’re delighted to be involved with this important blueprint . . . the policy options offer the opportunity of better aligning pension scheme interests and capital with the government’s net zero ambitions,” said Carol Young, chief executive at USS, which invested in Heathrow and motorway service area operator Moto.
The government has said it wants the taxpayer to profit from the success of new green technologies by taking stakes alongside private capital in Great British Energy projects, a new state-owned energy investment company.
But as the rules stand, government money spent on GBE would only be treated as a liability on the government’s balance sheet, pushing up public net debt.
Infrastructure and clean energy projects are particularly attractive for pension funds because they provide a steady stream of income.
Other countries, such as those in the EU, have avoided making the cost of big infrastructure projects a drag on fiscal rules by using a narrower definition of debt, McClymont said.
“The capital investment levels that these economies have enjoyed versus [the] UK over a long period of time is likely not unrelated to [the] fact that their national finance institutions . . . are incentivised to make long-term investments in the economy,” he added.
The government will host an international investment summit in London next week, at which Reeves and Prime Minister Sir Keir Starmer will promise to invest alongside the private sector on projects to boost the UK’s sluggish growth rate.
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