Frost, storms hurt French wine output
PARIS -- French winemakers are lamenting the smallest vintage in 60 years after spring frost damaged vines at Bordeaux chateaus like Angelus and Canon La Gaffeliere, while summer storms caused grape rot in Champagne.
Wine volume will fall 19 percent to the equivalent of about 4.9 billion bottles, the Agriculture Ministry forecasts. That would be the least since 1957, another year when a freeze destroyed spring buds, based on data from the ministry and the European Union's statistics department.
"The drop in production will be mainly on account of the hard spring frost," the ministry said. "The persistent drought in the southeast further reduces production."
France and Italy typically compete for the rank of world's biggest wine producer, with weather a key factor. While Italian vineyards also suffered damage from frost, drought and hot weather, volumes are still expected to outpace those in France. The Italian association of wine-industry technicians forecasts output of 1.2 billion gallons, compared with 974 million gallons for France.
-- Bloomberg News
Kellogg's will buy protein-bar maker
BATTLE CREEK, Mich. -- Kellogg Co. is pursuing a health kick under its new chief executive officer.
The breakfast-cereal giant, which handed the reins to Steve Cahillane this week, agreed to buy protein-bar maker Chicago Bar Company LLC for $600 million. That company produces the RXBar, which is made from eggs, fruit and nuts -- and lists ingredients prominently on the front of the package.
Kellogg hired Cahillane from vitamin purveyor Nature's Bounty, a sign that the maker of Frosted Flakes wants to pursue a more health-conscious strategy. The Battle Creek, Mich.-based company has been struggling to cope with broad shifts in how Americans eat and shop. Cereal sales have declined for years, and Kellogg's snack-bar business also has performed badly -- with its once-strong Special K brand losing its allure with consumers.
Large packaged-food companies also are facing concerns that a grocery price war will further batter margins, especially as Amazon.com Inc. pushes into supermarkets with its acquisition of Whole Foods. Grocery stores are increasingly turning to private-label products in a bid to draw price-conscious customers, adding another headwind to national brands.
Shares of Kellogg have dropped 15 percent this year. The stock was little changed on Friday, trading at $62.83 in New York.
-- Bloomberg News
Renault sets electric-hybrid timeline
PARIS -- French carmaker Renault said Friday that half of its models will be electric or hybrid by 2022, and it's investing heavily in "robo-vehicles" with increasing degrees of autonomy.
A strategic plan released Friday aims to increase Renault's annual revenue to $82.2 billion by 2022 from about $60 billion last year, in part through an effort to double sales outside its traditional markets in Europe -- especially Russia and China.
The plans reflect the vision laid out last month by the Renault Nissan Mitsubishi alliance, the world's No. 1 carmaker by sales. Many of Renault's new aims depend on saving money through sharing platforms and development with Nissan and Mitsubishi.
Chief Executive Officer Carlos Ghosn said Renault is aiming to sell more than 5 million vehicles annually by 2022 from 3.2 million last year. The plan relies in part on increasing low-cost car production in emerging markets, notably with the Dacia Logan and Kwid mini-SUV.
As regulators crack down on emissions from combustion engines and as drivers seek cars that can do more by themselves, Ghosn wants to position Renault as a major player in mass-market electric and driverless cars.
"We are confident we can turn upcoming ... challenges into significant business opportunities for Renault," he said.
-- The Associated Press
Berkshire buys stake in Italian insurer
OMAHA, Neb. -- Warren Buffett is expanding his wager on Italy.
The billionaire's Berkshire Hathaway Inc. said Thursday it agreed to buy about 9 percent of Italy's Catholic Insurance Society, known in Italy as Cattolica, from Banca Popolare di Vicenza SpA, one of two failed banks in the northern region of Veneto.
A company controlled by Berkshire is buying the Cattolica shares at $8.62 each for a total of about $136 million, according to a statement Thursday. The Verona, Italy-based insurer rose as much as 23 percent, the biggest advance on record, to $10.55.
The purchase follows the December acquisition by Berkshire unit Marmon Holdings Inc. of Modena, Italy-based Zephir SpA, a manufacturer of industrial tractors and vehicles that move train cars in rail yards. Earlier last year, Marmon announced it would buy Italian pasta-equipment maker Dominioni Punto & Pasta and catering-equipment firm Angelo Po.
While Italy, Europe's third-largest economy, has been struggling with slow growth, Buffett has long said he's willing to endure sluggish periods at businesses with attractive long-term prospects.
-- Bloomberg News
JPMorgan citing spot prices of bitcoin
NEW YORK -- JPMorgan Chase & Co.'s widely followed morning markets note highlights the spot price for bitcoin, less than a month after the bank's chief executive said he would fire any employee trading the cryptocurrency.
The price sits right below a rundown of commodities and above the 10-year Treasury yield -- the latest sign that Wall Street is embracing the likes of bitcoin. While most financial firms have been exploring ways to leverage the blockchain technology underpinning cryptocurrencies, they're now increasingly responding to growing interest from clients to track and even trade the digital coins.
But during an investor conference in New York on Sept. 12, CEO Jamie Dimon called bitcoin a "fraud" and said that if a JPMorgan trader began trading in bitcoin, "I'd fire them in a second. For two reasons: It's against our rules, and they're stupid. And both are dangerous."
-- Bloomberg News
Business on 10/07/2017