TOP NEWS
* Brown-Forman Corp. reported a year-over-year profit decline in the fourth quarter of fiscal 2018 and flagged concerns over the possible impact of retaliatory trade tariffs on U.S. liquor products. Net income fell to $110 million, or 23 cents per share, in the quarter that ended April 30, from $144 million, or 30 cents per share, in the year-ago quarter. For the full fiscal 2018, net income rose to $717 million, or $1.48 per share, from $669 million, or $1.37 per share, in fiscal 2017.
* E-commerce behemoth Alibaba Group Holding Ltd. plans to introduce artificial intelligence technologies at the Chinese pig farms to boost productivity and run operations smoothly, The Financial Times reported. The AI technology and smart sensors will monitor each pig's health and activity, which will then provide intelligent data for decision-making and increasing production. The e-commerce giant's "agricultural brain" is likely to cut the newborn death rate and lead to three more piglets born per sow, the report noted.
FOOD RETAIL AND DISTRIBUTION
* India-based conglomerate Future Group is set to roll out doorstep delivery service of milk, eggs and bread in the country, Economic Times (India) reported. The retail group is set to provide service at about 1,000 outlets under its Easyday, Nilgiris and Heritage labels. The service, which is available within a radius of 2 kilometers to 3 kilometers from a delivery kiosk using a mobile app, is slated to be launched in the next two weeks in metro cities of India.
PACKAGED FOODS
* Del Monte Pacific Ltd.-owned Del Monte Philippines Inc. postponed its initial public offering of up to $258 million as a result of weak performance of Philippines' stock market, which lost 10% in 2018, Reuters reported. The bankers advised DMPL to delay the IPO, which marks the country's biggest offering since October 2016, but did not announce a date when it might take place, the report added.
* South Africa's Oceana Group Ltd. is struggling to retain its fishing rights in Namibia after the country said listed companies will not be awarded quotas, Reuters reported. According to the report, Namibia's Fisheries Minister Bernhard Esau said the change in policy bars listed companies from applying for fishing rights because it was not easy to monitor whether they were owned by Namibian citizens, as required by law. Bidvest Namibia Ltd, another listed company on the country's stock exchange, is also likely to lose its local fishing rights.
* Brazilian food processor BRF SA denied having any information about the formal process regarding a merger with competitor Minerva SA, which according to a financial blog Brazil Journal, was looking for investors to merge the two companies. The investment was reportedly valued between $2.5 billion and $3 billion, according to the Journal. Separately, Reuters reported that Minerva said it has not proposed any investment in a tie-up.
* Jefferies Financial Group Inc., formerly known as Leucadia National Corp., closed its sale of 48% of National Beef Packing Co. LLC to Marfrig Global Foods SA. Jefferies received a total of about $1.1 billion in cash from the sale, including sales proceeds and related pre-closing distributions. The estimated pretax gain resulting from the sale is about $860 million to $880 million. The deal reduced Jefferies' ownership in National Beef to 31%.
* Hershey Co. rolled out a new CSR strategy in conjunction with its 2017 social responsibility report, the Shared Goodness Promise, which aims to "make a positive difference" in people's lives through investments, collaborative programs, and sustainable business practices. Among other initiatives, the company aims to "enhance" the lives of 10 million people.
* United Natural Foods reported strong results for the third quarter and updated its guidance for fiscal 2018 to reflect an improved outlook for the rest of the year. Net sales for the 13-weeks ended April 28 rose 11.8% to $2.65 billion from $279.3 reported in the year-ago period. Net income jumped 41.8% on a year-over-year basis to $51.9 million. The company reported adjusted earnings per share of $1.04, exceeding an S&P Capital IQ compiled mean consensus analysts' estimates of 93 cents.
BEVERAGES
* Molson Coors Brewing Co. said in a blog post that it acquired Clearly Kombucha, a Fairfield, Calif.-based beverage maker, on June 1. Financial terms of the deal were not disclosed. The maker of nonalcoholic fermented tea beverages will become part of the Molson Coors U.S. business, MillerCoors, and will be added to its craft and specialty import division.
* Rémy Cointreau SA reported strong annual performance with a 14.1% increase in its annual operating profits, driven by strong demand for its premium cognac in China. The company reported net earnings per share of €3.04 for the year ended March 31, compared to €2.75 in 2017, marking a gain of 10.6%. Net profit, excluding non-recurring items, amounted €151.3 million, up 12% year over year.
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US pork, produce set to see heavy impact from Canada, Mexico tariffs
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng was up 0.81% to 31,512.63, while the Nikkei 225 rose 0.87% to 22,823.26.
In Europe, around midday, the FTSE 100 fell 0.09% to 7,705.22, and the Euronext 100 rose 0.18% to 1,061.99.
On the macro front
The jobless claims report, the quarterly services survey, the EIA natural gas report, the consumer credit report, the Fed balance sheet and the money supply report are due out today.
