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Big investors are concerned about ‘frightening’ health and financial consequences

Denny’s, Greene King and eight other food businesses have come under pressure from big investors to end the unnecessary use of antibiotics in their supply chains. Concerns are mounting that overuse of these drugs is damaging human health.

Papa John’s, the pizza company, Whitbread, the British company behind Costa Coffee, and the Cheesecake Factory, the US restaurant chain, will also be targeted by the coalition this year.

The fear is that regular use of the medicines in animals is leading to antibiotic resistance in humans, leaving food companies at risk of losses if governments attempt to tackle the growing threat to public health.

Jeremy Coller, chief investment officer of Coller Capital, the private equity house, said: “The potential cost of anti-microbial resistance to our health and wealth is truly frightening.”

The coalition, which includes Aviva Investors, the £319bn fund manager, and Boston Common Asset Management, the US investment house, has urged food and restaurant companies to introduce comprehensive public policies on antibiotics use across their meat and poultry supply chains.

The group wants restaurant and pub companies to prevent the routine use of antibiotics by their meat and poultry suppliers, particularly of so-called last line of defence antibiotics that are vital for human health.

Chickens, pigs and other animals that are raised in closed quarters are often given antibiotics to prevent infection, or to help increase growth. The fear is that eating them might boost antibiotic resistance in humans.

Clare Richards, campaigns manager at ShareAction, the responsible investment organisation that brought the investors together, said: “Sick animals should receive treatment, but medically important antibiotics should have no place in masking the symptoms of poor animal welfare conditions.

“Companies that fail to adequately address this risk are missing a trick: neglecting both their opportunity to offer leadership in the face of a public health crisis, plus the chance to positively differentiate themselves from their competitors.”

Lauren Compere, director of shareholder engagement at Boston Common, added that the EU and the US have already begun fighting the use of antibiotics for growth promotion. “[There is a] financial risk linked to companies not anticipating [regulatory changes]. As long-term investors, we have to think about the risks the [companies] face.”

This year’s campaign over antibiotics is an escalation of one that launched last year and which targeted McDonald’s, Domino’s Pizza and eight other food and restaurant businesses.

A spokesperson for Whitbread said its suppliers do not feed antibiotics to animals to prevent disease, and will only use the medicines when “absolutely necessary” to treat an ill animal.

Greene King said: “[We] work closely with our suppliers to ensure they comply with our policy to use antibiotics only when a bacterial infection is present and not as part of routine management or for cost benefits.”

Papa John’s, Denny’s and The Cheesecake Factory did not respond to a request for comment.

Elliott Management will meet with BHP Billiton's Australian shareholders this week as the activist investor pushes for strategic changes at the world's biggest miner, two sources familiar with the matter said on Monday.

The sources, who could not be named because they were not authorised to speak publicly about the issue, told Reuters that Elliott was seeking feedback from other investors about its proposed overhaul of BHP.

Over the past year, Elliott has built up a 4.1 percent stake in BHP's British arm and last month told the company it had failed to deliver "optimal" value.

Elliott, led by U.S. financier Paul Singer, demanded BHP spin off its U.S. oil assets, ditch a corporate structure built on dual listings in London and Sydney and hand back more money to shareholders.

BHP swiftly rejected the approach, saying the costs of the changes would outweigh the benefits.

But Elliott could be gaining some traction according to investors.

Analysts said Elliott would likely push its case for a revamp of BHP's U.S. oil business, after BHP on April 26 said it was progressing the sale of onshore U.S. petroleum interests at two key fields.

BHP said the plan had been in the works prior to Elliott going public with its proposals.

"It's clear they (Elliott) aren't going to just give up," said Shaw and Partners analyst Peter O'Connor.

I'm not surprised they are here, they have been conspicuous in their absence," he added.

BHP declined to comment.

Oil prices were in retreat on Monday following a choppy week of trade and renewed concerns about supply.

Brent crude, the international benchmark, was down 0.3 per cent at $51.90 a barrel in a public holiday-dominated session for Asia: Australia and Japan were the only major markets open.

West Texas Intermediate was down 0.2 per cent at $49.24.

Brent finished Friday 0.6 per cent higher, but down 0.4 per cent for the overall week.

Confidence in oil markets has been rattled in recent weeks. Data showing US weekly gasoline inventories unexpectedly rose gave investors the chills, as did the number of oil rigs operating in US fields jumping to its highest since 2015. Recent figures have also showed a rebound in Libya’s crude production after pumping resumed following a halt there, which would boost global supply.

Gold was down 0.4 per cent at $1,263.63 an ounce.