The slow economic recovery would continue to affect consumer spending among the customer base warned Walmart president and CEO Mike Duke. "Our international business continues to be an impressive growth engine and Walmart International grew operating income faster than sales," he said.
BELGIUM: Supermarket group Delhaize has downgraded its 2010 forecast following tougher second-quarter trading in the US, its main market. Delhaize said it expected 2010 operating profit growth of between minus 2% and 2% compared with their previous forecast of 2% to 5%.
The company attributed the downgrade to the worsening outlook on US inflation for the rest of the year, a volatile economic and competitive environment and tough trading in Greece. Second-quarter operating profits fell 7% to E227m with like-for-like store sales down 3.6%. However in Belgium, comparable store sales rose 5% helped by good weather conditions.
GERMANY: Private brewer the Warsteiner Group and Diageo have extended their exclusive partnership in Germany for Irish beer brands Guinness and Kilkenny for three years. Warsteiner has been responsible for the national distribution of bottles and cans of the brands in the German retail sector since 2005.
"We are pleased to be continuing our successful cooperation with Diageo," said Warsteiner Group retail sales director Nils Handke. "We have been achieving considerable double-digit growth rates with Guinness and Kilkenny since the start of the cooperation."
GERMANY: European drinks manufacturer Refresco Holding has announced its intention to acquire Soft Drinks International, a German producer of soft drinks and water. Refresco makes own-label soft drinks and fruit juices and co-manufactures international branded products. SDI is primarily active in Germany and Benelux and focuses solely on own label. In 2009 it produced approximately one billion units and its turnover totalled £115m. The deal is expected to complete within several months.
VIETNAM: PepsiCo plans to invest £160m in its food and beverage business in Vietnam over the next three years. The new investment will increase manufacturing capacity, add marketplace equipment such as coolers, strengthen existing brands and broaden the product portfolio via innovation. Over the past two years, PepsiCo has already invested in a new foods plant in Binh Duong and a new beverages plant in Can Tho.