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Tag: platinum

  • Nestlé Partners with Platinum Equity: Spins off Premium Water Business into Multibillion-Dollar Joint Venture

    Nestlé Partners with Platinum Equity: Spins off Premium Water Business into Multibillion-Dollar Joint Venture

    Nestlé has revealed plans for a significant reorganization of its worldwide water division through a new collaborative endeavor with the private equity company, Platinum Equity. This move will see both Nestlé’s water and premium beverage businesses incorporated into a new autonomous company named Peranel. The 50:50 partnership with Platinum Equity will oversee this process.

    Peranel is set to manage an assortment of high-end brands, including Perrier, S Pellegrino, Acqua Panna, Maison Perrier, Buxton, and La Vie, across more than 120 countries globally.

    Financial Aspects and Benefits of the Partnership

    From this arrangement, Nestlé is projected to receive around €3 billion (US$3.4 billion) in cash while still holding a 50% stake in the newly formed business. Nestlé has communicated that this partnership will offer increased strategic focus and operational flexibility for the water division, allowing the company to redirect its attention towards its primary growth categories.

    Emphasizing the benefits of this partnership, Nestlé’s CEO, Philipp Navratil, stated that, “By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility. With added focus, it will be better equipped to drive its long-term growth ambitions by bolstering this unique portfolio of international and local brands, through continued investment in innovation, premiumization, operational excellence, and sustainability.”

    The new company, Peranel, will be under the leadership of the current CEO of Nestlé’s waters and premium beverages, Muriel Lienau, along with a team of seasoned management personnel. The transaction, which assigns an enterprise value of $5.6 billion to Peranel, is anticipated to be finalized in the first half of the ensuing year.

    Steady Growth and Future Outlook

    Nestlé’s announcement of this restructuring aligns with the multinational FMCG company’s release of its first-half results. The company reported sales of CHF43.1 billion (approximately US$ 52.76 billion) for the six months ending June 30, with an organic growth of 3.7%. This growth was supported by 1.8% real internal growth and 1.9% pricing. The coffee and confectionery sectors continued to perform exceptionally well, while pet care sustained its positive momentum.

    Nestlé’s CEO, Philipp Navratil, commented on the company’s performance stating, “Emerging markets growth accelerated, and we delivered solid performance in developed markets. We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest. While the external environment remains uncertain, we are taking actions to accelerate consistent growth.”

    Navratil also confirmed the company’s full-year guidance, with an expectation of achieving organic sales growth of between 3 and 4 percent.

    Questions & Answers

    What is the purpose of creating the new company, Peranel?
    The formation of Peranel will allow Nestlé’s waters and premium beverages business to execute its strategy with greater agility and focus.

    Who will be leading the new company, Peranel?
    Peranel will be led by Muriel Lienau, the current CEO of Nestlé’s waters and premium beverages, and a team of seasoned management personnel.

    What are Nestlé’s growth expectations for the year?
    Nestlé expects organic sales growth of between 3 and 4 percent for the year.

  • Platinum Jewellery Leads China Jewellery Industry in a V-Shaped Recovery

    Platinum Jewellery Leads China Jewellery Industry in a V-Shaped Recovery

    With manufacturers reporting greater demand volumes and retailers confirming a steady increase in business in April and May, the China jewelry industry finds itself in the midst of a V-shaped recovery in the second quarter of 2020. A confluence of factors has led to platinum becoming a strategic category as the industry embarks upon recovery programs.

    Platinum jewelry manufacturers have been reporting greater demand volumes through April and May as a result of a remarkable level of replenishment purchasing in platinum.  Retailers across the board, from national and Hong Kong chains through regional chains, independents, and wholesalers have shown strong interest in a new generation of designs that provide stronger margins. By May, platinum fabrication volume had returned to a level on par with the same period last year.

    Retailers have witnessed a gradual ramp-up in business volume since the reopening, with some reporting sales of platinum jewelry reaching 80% or higher compared to the same period last year.

    Over-stocking of gold and gem-set jewelry due to lockdowns imposed since January had led to an inventory backlog in these categories. Record high prices for gold have depressed buying among consumers and retailers, while a record low platinum price has made platinum an attractive replacement for some pure gold and k-gold counters, offering improved profit margins and turn.

    This comes at a time when manufacturing partners of Platinum Guild International (PGI) have been prioritizing new collections and design directions to meet changing consumer needs.

    Underpinning this innovation has been the development of new alloys and technologies that PGI has been working with partners in recent years. This includes hard platinum and heat-treatable alloys that allow for refined contours in designs, better polish, better shape retention, and higher resistance to scratch. These innovations are expected to enable platinum to capture a more competitive market position in the jewelry space. The incorporation of new materials including enamels also add color and novelty allowing for more designed collections, such as Chow Tai Fook’s Frozen II and Angel of Peace Collections.

    “Our industry partners in China are reporting a platinum recovery driven by competitive pricing and the launch of new products which utilize innovative new technologies and designs that are capturing the interest of a new generation of consumers. Platinum Guild International’s initiatives to engage with both the jewelry trade and consumers have been extremely effective in accelerating this recovery during post-COVID-19. Despite pandemic uncertainty ahead, we hope conditions will allow for continued foot traffic to stores to ensure the sell through needed for a sustainable recovery,” says CEO Huw Daniel of PGI.

    More players have begun to enter or re-enter the platinum jewelry industry, leading to a rising interest in platinum fabrication. New players from the gem-set and gold retail industries have also started to carry platinum. For example, Shining House, which is a newcomer in platinum gem-set jewelry, now carries platinum in 100 of its 300+ stores in Central and East China, with the intention to include a platinum exclusive collection (“One Life One Love”) to all stores by end of third quarter.

    ”We are prioritizing this new SKUs, with improved production technology, that enables better pricing and recognizable new features for sales push this summer. We believe these SKUs could better help sales recovery,” says Ms. Sun, Product Head of Changzhou Jewellery, a regional prominent retailer in East China.

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  • Platinum Group sees gold in Chinese tourism

    Platinum Group sees gold in Chinese tourism

    Mall company The Platinum Group is banking on Chinese tourism to support a retail shopping centre it plans to open next year.

    With a wholesale fashion mall in Bangkok that attracts about 15 million people annually, the group is investing about THB6 billion (US$180 million) in the project, says president Chanchai Phansopha.

    “We want to transform the company from an operator of a wholesale fashion mall into a commercial property developer,” he says. The Bangkok project is part of a wider, THB11-billion investment plan that will also add hotel and office space over five years.

    Thailand last year had nearly 9 million Chinese visitors who spent an above-average $176 a head daily.

    Chanchai says he foresees double-digit growth in sales and profit, with the new mall, The Market, expected to boost revenue at least 30 per cent in 2019.

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  • Vincom suits Platinum Cineplex

    Vincom suits Platinum Cineplex

    Earlier, on March 8, the M.V.P Group held a press conference to address issued related to the closure of Platinum Cineplex, the biggest cinema operator by screen in Hanoi, at three Vincom malls.

    The three cinemas include Platinum Royal City in Thanh Xuan District, Platinum Times City in Hai Ba Trung District and Platinum Long Biên in Gia Lam District.

    At the press conference, an M.V.P representative said that VCR’s unilateral termination of the contract signed with M.V.P Group ahead of expiration date was illegal, as the group had not breached the contract.

    Platinum has no outstanding debts at any of the three Vincom malls, the representative said, dismissing claims made by Vincom Retail in local media.

    He said that the information supplied by VCR had serious impact on the group’s prestige.

    In response to claims by the M.V.P Group, VCR general director Trần Mai Hoa said VCR had many times asked the M.V.P to voluntarily move its assets away from VCR premises as regulated in contract clause of termination. However, M.V.P has deliberately delayed moving.

    Specically, on October 15, 2016, M.V.P agreed to move their assets but later asked for extension to February 4, 2017. On December 19, 2016, the group once again asked for an extension of 10 to 12 months. On December 20, 2016, it requested an extension and permission to operate over the Tết (Lunar New Year) holiday.

    VCR agreed to an extension to February 24, but M.V.P has still not moved its assets. Therefore, on March 1, VCR was forced to seal the premises, in accordance with the contract. It notified M.V.P of its plans, and even agreed for M.V.P to send a representative to the premises to check its assets.

    “Sealing the premises is a legal measure to recover our premises appropriated by the M.V.P when the leasing contract ended,” Hoa said. It was done and witnessed by M.V.P managers and representatives from authorities at each location.

    Related to the outstanding debts, Hoa said that VCR and M.V.P had a working session to calculate the outstanding debts, and on October 14, 2016, head of the M.V.P financial department confirmed the figure.

    The contract was terminated in accordance with the rights of the two parties negotiated and clearly specified in the contract, the VCR representative said.

    She noted that the case is a disagreement between the two independent business partners and should therefore be resolved on the basis of law and the trade and civil agreement between the parties.

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  • As platinum gains popularity, more outlets set to come up

    As platinum gains popularity, more outlets set to come up

    As platinum gains popularity in India, the Platinum Guild India expects to see the number of outlets going up from 800 now to over 1200 by March 2016.

    Vaishali Banerjee, India Manager of Platinum Guild India, told that within a short span, India has become the fourth largest market for platinum jewellery in the world and this can only get bigger as more youth take to this precious metal.

    The growth in India has been particularly rapid in the past 5 years and has grown to over 5 tonnes last year as against about 400 kg in 2008. This speaks volumes of how young people are embracing Platinum jewellery, whose trade is getting extremely organised with big retail stores setting up exclusive zones for display of platinum jewellery, she said.

    What started with platinum couple bands has gradually gained with men’s jewellery spanning chains and bracelets and now has grown into the Evara range of bridal jewellery segment. Introduced about six months ago, it is gaining popularity as its charm is in co-existence with popular gold jewellery in India. Though gold jewellery is tops when it comes to bridal jewellery, a number of youngsters are taking to platinum jewellery, she said.

    Vaishali said, “We are pleased at the way Platinum Evara has been received by consumers and trade, as platinum symbolises love and resonates well with the new bride and groom. There is huge appeal for platinum amongst youngsters.”

    Varghese Alukka, Managing Director of Jos Alukkas Jewellery said, “From 34 stores in the southern market in the country, we are looking at growing this to 50 stores in the next two years.”

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