Activist Investors Take Aim at Food and Consumer Goods Giants
Originally Published 2 years ago — by Reuters
Activist investors are targeting food and consumer goods companies, advocating for executive changes due to underperformance. Investment management firm Artisan Partners, the top shareholder of Danone with a 7% stake, has called for more turnover at senior levels. The consumer goods industry has seen a surge in activist campaigns, with 236 launched globally in the first seven months of 2022. Companies in this sector are attractive to activists due to their low debt levels, cash generation, and potential for cost-cutting and operational improvement. Billionaire activist fund manager Nelson Peltz's presence on Unilever's board has given confidence to other investors. Several top industry executives have stepped down, driven by lifestyle changes or the need for new leadership in a challenging business environment.