Enel chief defends strategy in crosshairs of Meloni government
Head of Italian utility says shift to renewable energy is ‘clearly the way to go’
Enel’s chief executive has launched a robust defence of the Italian state-controlled utility’s renewable energy push, as he faces potentially being ousted by the new government in Rome as soon as next month.
Francesco Starace has transformed the €55bn power company into one of the world’s largest renewable energy producers since taking over in 2014. He said the shift had proven its worth during the energy crisis and would position the group well as the EU tries to end its reliance on Russian gas.
“What it boils down to is the company has delivered in 2022, which was a very, very tough year,” Starace told the Financial Times.
“This is the moment where this trajectory will show extremely well the strength we have in the system.”
Media reports have suggested that prime minister Giorgia Meloni’s new rightwing Italian government is interviewing other potential candidates for Starace’s job.
Italian officials have suggested that her advisers are dissatisfied with the 68-year-old chief executive’s focus on the energy transition. Meloni has previously backed increased domestic drilling for natural gas and criticised climate campaigners such as Greta Thunberg.
Starace has been a vocal supporter of shifting away from fossil fuels, and Enel now bills itself as the world’s largest renewable energy company, with 56GW of low-carbon energy under management.
The chief executive has advocated a drastic reduction of gas consumption for non-industrial purposes, while Enel is progressively shutting down its coal-fired plants as part of its zero-emission power generation target. He told the FT that there was little debate over this strategy, describing it as “clearly the way to go”.
Starace said Enel was in “complete agreement” with the new government’s efforts to diversify its energy sources away from Russia, describing energy security as “what matters to the sovereignty of any country”.
Enel is leaving Argentina, Peru and Romania as part of a €21bn divestment plan aimed at cutting its debt, which soared to €69bn at the end of 2022, partly because of additional costs that it incurred helping shield customers from rising wholesale prices. Rating agency Fitch said last week that the divestments “would moderately improve the group’s business profile and simplify its structure”.
On Monday, Enel will unveil a new solar panel factory in Sicily, partially funded by an EU grant, which is set to become Europe’s largest. Starace said Enel was planning a similar facility in the US, where the Biden administration has created large subsidies for renewable investments.
The move is part of a push to reduce the west’s reliance on China, the world’s largest manufacturer of solar panels.
Meloni last year warned “that the transition to electric without controlling the raw material will make us even more dependent on China than we are on Russia”.
Starace described growth of renewables as “a huge trend that is way stronger than small mishaps that can happen on the way” and criticised those blaming soaring energy prices across Europe on a shift to clean energy.
“Why are we in this problem? Not because we are overly reliant on gas sources from only one country that went crazy, but because we had a green strategy? This is a complete distortion,” he said.
The Enel chief dismissed speculation about his future as “noise”, arguing that he saw no “contradiction” between the government and his strategy, but added that “no one is indispensable”.
“I like this job. I have done it, I think, pretty well and I think that’s recognised. But I’m not a power-obsessed person and I like my life. So if I can be useful, fine. If not, I can do a lot of other things,” Starace said.
“If someone else wants to take it over and the government wants to change, then what can I do about it? It’s OK.”
Alliance against Bayer: Hedge funds explore Allianz against the management
Activist investor Bluebell is stepping up criticism of Bayer and wants to get other dissatisfied funds behind it. The group is threatened with a new uprising by the shareholder
Activist investor Bluebell is stepping up criticism of Bayer and wants to get other dissatisfied funds behind it. The group is threatened with a new uprising by the shareholder
Since it became known that Bluebell was involved with Bayer , many investors had approached the activist, a person familiar with the matter told the Handelsblatt. These investors have "the same thoughts" and complained about the weak share price .
According to the information provided, Bluebell calls for a quick replacement of the CEO position with an external candidate. Bayer CEO Werner Baumann 's contract runs until April 2024. The investor is also demanding changes in the supervisory board and the splitting up of the group. A first step should be the spin-off of the business with non-prescription drugs around the Aspirin brand.
Is This Alo Yoga’s Moment?
The brand’s wellness-centric approach to athleisure has made it a favourite of the boutique fitness set. As Lululemon sees slower growth, there may be an opening to take fashion-forward yoga pants and crop tops mainstream.
It’s a good time to be Alo Yoga.
The 16-year-old brand, known for its Airbrush leggings and a wide variety of crop tops, has long been the fashionable upstart in an athleisure category dominated — and arguably invented by — Lululemon. But the retail giant is suddenly looking vulnerable. It downgraded its profit forecast in January, prompting Bernstein analyst Aneesha Sherman to downgrade her outlook for the company, saying it was due for a “reality check.”
Lululemon still has size on its side: it has nearly 500 brick-and-mortar locations and nearly $8 billion in revenue last year, to Alo’s 34 stores and $200 million in sales in 2020, the most recent year the company has released financials. It’s got a lock on the mainstream customer. But it’s Alo that has the cool factor — Bella Hadid, Kaia Gerber and Justin Bieber wear the brand, which debuted a ski collection at New York Fashion Week last fall and has a virtual “sanctuary” on Roblox.
And with a new, post-pandemic chapter for activewear in its opening stages, cool matters, analysts say.
“As any dominant brand becomes more ubiquitous, its early adopters will look elsewhere,” said Simeon Siegel, managing director and senior analyst at BMO Capital Markets. “Brands like Alo are waiting there with open arms.”
Alo has big plans to meet the moment. Well before Lululemon’s sales growth began to slow, the Los Angeles-based brand had made plans to more than double its store count this year, including expanding internationally (the brand has four stores in the Middle East, with more openings planned in Malaysia, Mexico and Thailand). Where most existing brick-and-mortar locations are in California, New York, or wealthy enclaves like Aspen, the goal of this next retail push is to make Alo an omnipresent sight across the US, and eventually, the world.
“Basketball or American football is not a global sport, but mindfulness and wellness is a global concern,” said Danny Harris, Alo Yoga’s co-founder, owner and CEO. “In fashion, that appeals globally.”
Alo may have carved a niche for itself with the coastal boutique fitness set, but global domination is another matter. Lululemon’s growth is slowing, but it’s not going anywhere. Demand for athleisure remains strong, but isn’t booming like it did in the first two years of the pandemic. August through November 2020, Alo saw over 200 percent year-over-year growth from 2019, and has continued with either triple-digit or high two-digit growth since. In December 2022, the brand saw 56 percent year-over-year growth, according to Earnest Analytics.
In a fractured market with many competitors, the most likely scenario is that no single company comes out on top.
“The future of the market is lots of different brands that appeal to different cohorts,” said Jason Goldberg, chief commerce officer at ad giant Publicis. “Alo has a terrific example to be one of the leaders in that new model, but it’s just not at the same scale as everybody wearing the exact same yoga pants.”
Studio to Street
Alo — which stands for air, land and ocean — was founded in 2007 by close friends Harris and Marco DeGeorge, who remain co-owners and co-CEOs. Both had found solace in yoga in coping with different ailments — DeGeorge was recovering from a back injury, Harris was dealing with anxiety.
That idea of harnessing yoga’s restorative powers, particularly around mindfulness, though not exactly revolutionary, helped define the brand in consumers’ minds. It continues to play a major role: its stores, for example, are called “sanctuaries.”
Also key was a fashion-forward approach. Wellness was already becoming ubiquitous among the fashion and beauty sets when Alo launched (Gwyneth Paltrow founded Goop a year later). Alo helped cement the connection, and was also quick to pick up on the “studio to street,” Los Angeles-centric approach to yoga culture.
“We didn’t want it to feel like we were so granola,” said Harris. “We wanted to give it more of a street edge.”
Yes, Alo carries plenty of crop tops and sports bras that would be just as at home at a cocktail bar than in a workout studio. But it’s also made an effort to align itself with a more high-fashion crowd beyond product. Alo’s inked high-profile partnerships outside of the fitness space, casting stars like Kendall Jenner in ads. It launched skin care — the Alo Glow System — in December 2020, and in September 2021, it announced it would serve as the first official “wellness partner” for New York Fashion Week, hosting yoga classes and a sound bath at Spring Studios, where many shows are held, as well as offering aura photos and astrology readings for attendees. It reprised that role in 2022.
“It’s layering something appealing on top of a model that already worked,” said Goldberg. “What Alo is doing is taking the comfort and utility of that model, and then adding visual distinctiveness and aspirational branding that says something about you when you wear it.”
What’s Next
Alo’s also hopped on fashion-friendly tech trends. It allows customers to make purchases in cryptocurrency, and in June said it would give some employees the option to be paid in crypto. The brand hosts meditation sessions and yoga classes in the metaverse. Some of its higher-priced items, like its Aspen ski collection, come with a digital version of the garment.
“There’s a lot of benefit in creating these experiences, because it drives loyalty and excitement for an item, which of course translates in sales,” said Angelic Vendette, Alo Yoga’s global head of marketing. “But then it also creates a bonding experience between our brand and our community.”
It’s also another way to connect with luxury consumers. Alo’s price point is comparable to Lululemon’s: a pair of leggings can run from $98 to $138, at Lululemon it’s $98 to $128. Offering experiences, like its Alo Wellness clubs, which host yoga classes and light spa treatments, new additions like a private client manager, or teaming up with wholesale partners like the Shop at Equinox, serve as a differentiator.
Though Alo still has yoga in its name, it now offers apparel for activities that may appeal to a similarly-minded consumer, such as tennis and ski. Soon to come is a footwear collection, Harris said.
Despite the crowded market, there’s no denying that Alo has built something that resonates with a crowd that wields serious trend-setting power. And there’s an appetite for more. Beyond brick-and-mortar expansion, the brand also has its sights set on solidifying its presence around the globe. Alo currently ships all over the world, but only operates three stores outside the US, and most of its locations are in coastal cities or other major metropolitan areas.
“I was in Dubai, and I would say I saw more Alo bags than I saw Chanel bags, and we don’t have a store in Dubai.” said Harris. “Perhaps we are the brand for the next generation.”
Moncler Genius Embraces Co-creation
“The Art of Genius 2023” show in London on Feb. 20 will be headlined by the likes of Alicia Keys, Pharrell Williams, Adidas Originals and Roc Nation by Jay-Z, among others.
MILAN — Moncler Genius is planning what it is calling a “monumental” event in London on Feb. 20.
To be sure, the location is grand enough — the Olympia London, a 19th-century exhibition center and event space in West Kensington.
“In 2023, we are entering a new phase for Moncler Genius,” said chairman and chief executive officer Remo Ruffini. “While our commitment toward creativity and innovative thinking does not change, we are moving from a collaboration model to a platform for co-creation, allowing us to interact, learn, think and create something that didn’t necessarily exist before. We will tap into new communities, creators and disruptors from the world of art, design, entertainment, sport, fashion and culture. I am always thrilled by the idea of finding new ways to not only create but also invite new worlds to experience the brand.”
Called “The Art of Genius 2023,” the live show will present a lineup that includes friends of the house such as Alicia Keys; Pharrell Williams; Palm Angels, and Frgmt, as well as Mercedes-Benz; Adidas Originals; Salehe Bembury, and Roc Nation by Jay-Z. Bembury has designed footwear for Yeezy, Crocs, Versace and more. In September 2021, Keys was tapped to host the Moncler Mondogenius presentation in Milan.
The Moncler + Rick Owens collection will also be part of the event.
The event “sets the tone for a redefining year of Genius,” and the concept behind its new iteration is that “the new phase of co-creation focused on human creative skill and imagination” will allow “to make something each brand couldn’t achieve on its own,” the company said.
The multiformat event will present immersive experiences and performances to highlight creativity, “beauty and emotional power.”
The community will be able to participate to “The Art of Genius” with tickets available via registration at moncler.com. The event will also be livestreamed.
This is the first time Moncler Genius will be presented in London, where fashion week will run Feb. 17 to 23.
Ruffini has over the years driven Moncler’s growth by forming close relationships with designers ranging from Nicolas Ghesquière to Junya Watanabe, Giambattista Valli, who designed Moncler Gamme Rouge, and Thom Browne, who was in charge of the Moncler Gamme Bleu line for men. After 10 years of a successful run with the latter two projects, Ruffini overturned the company’s business model and strategy, launching Moncler Genius in 2018, a series of drops and capsules with designers including Richard Quinn and Matthew Williams of 1017 Alyx 9SM; Pierpaolo Piccioli; Simone Rocha; Craig Green; Fragment Hiroshi Fujiwara; Palm Angels’ Francesco Ragazzi, and Jonathan Anderson, as well as Rick Owens with a partnership in a different vein than other Genius tie-ups.
The company has held one Genius event a year since 2018, usually in February, inviting designers to interpret the brand’s signature puffers with their own sensibility.
In 2021, the brand added a new layer to the experience by presenting its collections in September through a digital activation across five cities — New York, Milan, Shanghai, Tokyo and Seoul — and through the vision of 11 designers, in a single show hosted by 15-time Grammy Award winner Keys.
During Moncler’s Capital Markets Day last May, Ruffini said that “Moncler Genius has become a hub of creativity, freedom and global communication. I strongly believe in the Moncler Genius model and in its ‘perennial’ development.” However, he underscored that from then on, the brand would also look to involve personalities or brands from “art, music, movies, sports and much more…the way you combine them, makes a brand unique.”
Ruffini at the time said that Moncler Genius accounts for between 5 and 10 percent of total sales.
In the nine months ended Sept. 30, sales at the Moncler Group, which also includes Stone Island, surpassed the 1.55 billion euros benchmark, compared with 1.17 billion euros in the same period of 2021. The Moncler brand posted a 21 percent gain in revenues in the nine months, reaching 1.25 billion euros.
Harry Styles Wins Album of the Year as Beyoncé Breaks Grammys Record
Beyoncé made history at the award ceremony but the night’s most prestigious prizes went to Harry Styles, Lizzo, Bonnie Raitt and Samara Joy
Beyoncé broke the record for the most Grammy wins in history after winning best dance/electronic music album for her record “Renaissance.” But the superstar was overlooked for the ceremony’s most prestigious prizes.
Pop-rock phenom Harry Styles scored album of the year, the most coveted Grammy, for “Harry’s House”—an outcome that represents an upset, yet one that some Grammy watchers had expected. His blockbuster album also won other awards, including best pop vocal album.
The biggest awards of the 65th annual Grammys in Los Angeles on Sunday delivered surprises. Blues-rock elder stateswoman Bonnie Raitt, who for decades has been respected as a deft interpreter of others’ songs, won song of the year—a songwriter’s award and one of the four biggest trophies—for her composition “Just Like That.”
“I’m just totally humbled,” she said. Ms. Raitt beat out songs by artists including Adele, Beyoncé, Taylor Swift, Mr. Styles and Kendrick Lamar. Another unexpected turn came, though it was in line with the classic tastes of many Grammy voters: Traditional jazz singer Samara Joy, from the Bronx, won best new artist. She also won best jazz vocal album for “Linger Awhile.”
Lizzo won record of the year, which goes to performing artists, producers and engineers, for “About Damn Time.” In her speech, she called Beyoncé “the artist of our lives.”
Whether or not Beyoncé would break the record was one of the biggest questions on Sunday night.
“I’m trying not to be too emotional,” Beyoncé said in accepting the award that made her the most-decorated artist in Grammy history. She thanked her parents, uncle and husband, Jay-Z. “I’d like to thank the queer community for your love—and for inventing the genre.”
With 32 awards amassed over the course of her career, she surpassed the late classical conductor Georg Solti.
Beyoncé went into the ceremony with nine nominations, the most of any artist. She won two awards in a pre-televised ceremony, where roughly 80 of the 91 awards were given out. Those awards included best dance/electronic recording, for “Break My Soul,” the chart-topping lead single from “Renaissance,” and best traditional R&B performance, for one of the album’s tracks, “Plastic Off the Sofa.” During the televised show, she also won best R&B song for “Cuff It.”
The pop-R&B star broke the record without winning any of the major, all-genre awards. Beyoncé had been nominated for album of the year, as well as song and record of the year for “Break My Soul.” Despite her 32 career wins and numerous nominations, Beyoncé hasn’t won one of the three biggest awards (album, song and record of the year) since 2010 when she won song of the year for “Single Ladies.”
Puerto Rican star Bad Bunny kicked off the festivities with a big dance party. Comedian Trevor Noah, who hosted the awards for the third year in a row, made the rounds during his opening monologue, humorously praising music’s biggest stars in their seats. He jokingly hailed Lizzo as “the most famous flute player in the world since…I’m sure there were others.” He referred to Beyoncé’s “Renaissance” as “better than anything from the actual Renaissance.”
Later in the show, playing off the fervor of Taylor Swift’s fans, many of whom have recently criticized Ticketmaster, Mr. Noah asked Ms. Swift: “Can you get them to handle the price of eggs?” Ms. Swift replied: “They’ll get on it. Just let them know what you need.”
One of the show’s brightest moments was a star-studded segment celebrating hip-hop, led by LL Cool J, to commemorate the 50th anniversary of the genre, which crystallized in the Bronx in the late summer of 1973. The Grammys also paid homage to the storied career of Dr. Dre, giving him a new global impact award that will be named for him. “Hip-hop became a lifeline for me,” Dr. Dre said.
Bad Bunny won best música urbana album for “Un Verano Sin Ti,” which was the most popular album in the U.S. last year, according to data tracker Luminate. The album was the first record entirely in Spanish to be nominated for album of the year. Kendrick Lamar won best rap album for “Mr. Morale & the Big Steppers,” among other awards.
Pop singers Sam Smith and Kim Petras took best pop duo/group performance for their No. 1 hit “Unholy.” Ms. Petras, the first transgender winner of the award, thanked the contributions of Madonna and the late art-pop producer and artist Sophie during her speech. Later, Madonna introduced the two artists, who performed the song bathed in red and amid flames.