Tag: Humana

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Amazon closer to replacing humans with robots; Pizza Hut owners sue Korea HQ for $658K in fees; and that was a kidney — not a brain! — at an Aussie KFC

A news summary, focused on 10 big employers; updated 10:54 a.m.

Winning Amazon robot
Winning robot in an Amazon competition picked items off a shelf at a speed of about 100 per hour, much worse than the average 400 by humans.

AMAZON awarded a robotics prize to a team from the TU Delft Robotics Institute in the Netherlands and the company Delft Robotics in the retailer’s second-annual competition to find robots that will someday work alongside humans — or in place of them — in Amazon’s massive distribution centers. At the contest in Germany’s Leipzig, Delft’s robot picked items from a mock warehouse shelf at a speed of around 100 an hour with a failure rate of 16.7%. That’s slow compared to what a human can manage (around 400 items an hour), but a big improvement over last year’s winner, which managed just 30 items an hour. This was the second year for the competition (The Verge). Amazon employs 6,000 workers in the Louisville area at mammoth distribution centers in Jeffersonville, and in Bullitt County’s Shepherdsville.

PIZZA HUT: In South Korea today, another 25 franchisees filed a lawsuit seeking repayment of $657,553 the restaurant chain’s Korean national headquarters charged them for marketing and other services — fees the franchise owners said were unjustified. Their suit came a week after the Seoul Central District Court ruled in favor of 88 other owners who had asserted the came claim. The dispute dates to March 2007, when the headquarters demanded franchises remit 0.55% of their profits on grounds they’d benefited from marketing, operational, and customer-service counseling provided by the head office. In April 2012, headquarters boosted the fee again, to 0.8%, and required owners sign another contract agreeing to pay the charges. It also unilaterally nullified contracts with owners that either failed to pay the fee or delayed payment (Korea JoongAng Daily).

HAIER‘s appliances, electronics and ductless air conditioners were incorporated into one of Cocoon9’s container homes at last week’s Dwell on Design residential trade show in Los Angeles. The prefab “plug-and-play houses” contain smart technology, energy efficiencies and versatile spaces, delivered fully assembled with quality construction and high-end finishes within four months (Twice). Haier bought GE Appliances last month for $5.6 billion and its 6,000-employee Appliance Park in Louisville’s southend.

PAPA JOHN’S: In the U.K.’s Hull, Papa John’s is opening as many as four restaurants over the next year in the Kingdom’s next “City of Culture,” according to a shy franchise owner (the local newspaper says he “asked not to be named at this time”) who says the eateries could create as many as 25 jobs per location. They would be the city’s first Papa John’s (Daily Mail). All about the U.K.’s cities-of-culture program.

HUMANA is moving more than 120 employees in downtown Jacksonville, Fla., to two new separate locations as part of a broader effort to put sales and service workers in retail settings closer to members (Daily Record).

Rachel Rae
Rae

In New Zealand, a reformed “KFC queen” has gone public about her efforts to lose weight in a newspaper series the paper very awkwardly describes as being about a group “taking responsibility for their own health within a family-based, non-judgmental environment that supports all levels, sizes and ages.” Rachel Rae told the Taranaki Daily News: “I loved junk food, I loved fish and chips, and I was known as the KFC queen. I would go there about three times a week. Whatever was quick, filling and fattening — sounds gross eh?” (Daily Star).

In Japan, KFC is offering all-can-eat-in-45-minutes meals every Wednesday night between July 13 and Aug. 31, further expanding a special promotion once only offered on founder Colonel Harland Sanders‘s Sept. 9 birthday (Rocket News 24).

And in Australia’s Brisbane, KFC told diner Eden Hoffschildt that what she thought was a chicken’s brain cooked into in a recent meal was actually a kidney. “There is no health risk associated,” the fast-food chain said, in a reply to Hoffschildt’s Facebook posting about the incident. “The kidney is actually present in the thigh piece of chicken supplied by most leading Aussie chicken suppliers and can actually be found in cooked chicken bought from most leading supermarket” (Courier Mail). It was the second case in the past week of the wrong chicken part found in a Brisbane restaurant meal, and one of a series in recent years at other KFCs in Australia, the U.K., and the United States.

Australia’s nickname is Oz, which is another reason why this scene from the 1939 classic is so apropos:

In other and less gross news, tonight’s Mega Millions lottery jackpot is now an estimated $449 million. That would be the seventh biggest jackpot of all time, including the even better-known Powerball (WDRB). Blaming the Obama Administration’s energy policies, Murray Energy of Clairsville, Ohio, says it could lay off up to 4,400 coal miners by September in Kentucky, Ohio, West Virginia, Illinois, Utah and Pennsylvania (WDRB, too). In the year’s first three months, statewide coal employment plunged 18%, to 6,900 — lowest in 118 years (Herald-Leader). A 26-year-history of coal losses, county-by-county (WFPL).

Latest Headlines

Aetna to sell Medicare Advantage assets to appease trustbusters in Humana takeover; and UPS adding 300 customer pickup lockers

A news summary, focused on 10 big employers; updated 4:12 a.m.

HUMANA: Aetna has launched an auction to sell about $1 billion worth of Medicare Advantage assets as it seeks antitrust approval for its planned $37 billion acquisition of Humana. The Hartford insurer will accept bids as soon as next week, according to Reuters, which cited sources it didn’t identify. Wall Street has been less concerned about Aetna making it past antitrust regulators; on Thursday, Leerink Partners analyst Ana Gupte said she believed there was an 80%  chance of Aetna closing on its acquisition (Reuters).

UPS is installing another 300 lockers nationwide to make it easier for people to pick up packages. “UPS Access Point” lockers are usually outside of convenience stores and accessible 24 hours a day. The lockers, which began a staggered rollout last month, will initially be in Washington, Illinois, New York, Pennsylvania and Virginia (Seattle Times). AMAZON has had a similar locker program since 2011, where customers can select any location as their delivery address, and retrieve orders by entering a unique pick-up code on the Locker touch screen (Wikipedia).

KFC: In Corpus Christi, Texas, two KFC employees were hospitalized with second-degree burns after a fryer malfunctioned and hot oil spilled out and burned them from the waist up (KRIS). French news media company STP Productions is working on a story about KFC to be aired in September. Reporter Clementine Mazoyer and a cameraman recently visited founder Harland Sanders’ first restaurant at Corbin, Ky., then traveled to Kingston, N.Y., to interview franchise owner Darlene Pfeiffer, who says she personally new Sanders (Kingston Times).

HAIER: China’s largest home appliances maker will continue to be the company where different cultures thrive and innovate, an approach it will use at its newly bought GE Appliances business. Instead of sending employees to manage acquired foreign firms, Chairman Zhang Ruimin said Haier relies on local staff and focuses on how to effectively motivate them. Over the past decade, Haier has downsized by eliminating more than 10,000 middle-level manager jobs, aiming to transform itself into an incubator of innovators. “So far, we have 3,000 small teams that are working on innovative projects, and about 200 of them have raised funds from venture capital firms,” Zhang told the 2016 Tianjin Summer Davos meeting last week. Haier completed its $5.6 billion purchase of GE last month (China Post).

Bubba's 33 logoTEXAS ROADHOUSE is building one of its next Bubba’s 33 chicken and burger restaurants at the Midland Park Mall in Texas. The Louisville company had seven of the restaurants at the end of last year and plans as many as five more this year (Reporter-Telegram and Nation’s Restaurant News).

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July 12! Amazon sets second 24-hour Prime Day; two Conn. groups push against Humana-Aetna; and the Internet gorges on story about ‘world’s angriest’ Taco Bell customer

A news summary, focused on 10 big employers; updated 10:04 a.m.

AMAZON said this year’s 24-hour Prime Day sale would include more than 100,000 specially discounted items. U.S. members can shop starting at 3 a.m. ET/midnight PT, with new deals as often as every five minutes (press release). Last year, in addition to a 266% increase in orders vs. the same day in 2014, Prime Day also spurred more people than ever to try the $99-a-year Prime service. It also drove more sales than any of the retailer’s previous events — even beating Amazon’s 2014 Black Friday (The Verge). Apparently responding to complaints last year that some items sold out too quickly, Amazon said this year it would “dramatically” boost inventory and make it easier to search for deals by sorting through categories (Cnet).

Amazon employs 6,000 workers in the Louisville area at mammoth distribution centers in Jeffersonville, and in Bullitt County’s Shepherdsville. Plus, another big Prime Day is good news for the retailer’s shipper, UPS; with 22,000 workers at its Louisville International Airport hub, it’s the city’s single-biggest private employer.

HUMANA: Two Connecticut activist groups and the state’s medical society have criticized regulatory reviews of the proposed $37 billion Humana-Aetna merger in a letter this week to the U.S. Justice Department; they’re asking the trust-busters “to protect people from the harm these mergers will cause.” Aetna is based in Hartford. The groups, which also criticized a similar planned merger between Anthem and Connecticut-based Cigna, were joined by 40 other state doctors’ associations and health-care charities nationwide (Hartford Courant). Humana employs 12,500 workers at its downtown Louisville headquarters and other sites across the city.

UPS and the 2,500-member Independent Pilots Association  today announced a tentative agreement on a new five-year labor contract, including improvements across all sections. Specific details of the agreement will not be disclosed before the IPA presents the proposed contract to all UPS pilots (press release).

Also, a looming pilot shortage will soar to 15,000 by 2026, according to a study by the University of North Dakota’s Aviation Department, as more captains reach mandatory retirement age of 65, and fewer young people choose aviation as a profession. “And that’s in an industry,” says the Dallas Morning News, “where captains on the biggest international jets average more than $200,000 a year — with some pushing $300,000” (Morning News).

FORD‘s decision to bypass an employee for a position based on his use of opioids was not enough to prove his disability discrimination claim, the U.S. Sixth Circuit Court of Appeals has found (National Law Review). The automaker employs nearly 10,000 workers at its auto and truck factories in Louisville.

PIZZA HUT: In New Orleans, police arrested a man and woman early yesterday who allegedly carjacked a Pizza Hunt deliverer’s car at gunpoint Tuesday night, then led cops on a car chase before they were apprehended. The driver told officers he was making a delivery about 11:30 p.m. when a woman who said she placed the order — Simonne Walker, 19 — approached him. But instead of paying him, the woman’s companion — Kenneth Rainer, 20 — walked up, put a gun to the driver’s back, and demanded cash and his car keys. Walker and Rainer then got into the car and sped off, the cops say (Times-Picayune).

ChambordBROWN-FORMAN is promoting its Chambord black raspberry liqueur through a “Just Add Chambord” Royale cocktails campaign starting tomorrow. The campaign targeting hotel bars and lounges runs through Sept. 30. The Louisville spirits giant will supply participating establishments with Chambord-branded flute glasses, recipe and tent cards. Nidal Ramini, marketing chief for Bacardi Brown-Forman brands said (in a very odd quote): “We are confident the new platform will inspire the on-trade in particular, to transform and elevate serves, whilst helping them understand how Chambord can be the perfect way to elevate a simple glass of bubbles, and ultimately increase profit” (Harpers). Here’s the Royale recipe.

PAPA JOHN’S fired an employee at Continue reading “July 12! Amazon sets second 24-hour Prime Day; two Conn. groups push against Humana-Aetna; and the Internet gorges on story about ‘world’s angriest’ Taco Bell customer” →

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DOW PLUNGES 589 POINTS IN GLOBAL ROUT, AS INVESTORS REEL FROM BREXIT VOTE; FORD DIVES 7%; YUM, OTHER LOUISVILLE STOCKS SLAMMED

A news summary, focused on 10 big employers; updated 5:21 p.m.

Traders at exchange
Anxious traders at the New York Stock Exchange today (New York Times).

The Dow Jones Industrial Average cratered 3.3% this afternoon, tumbling 589 points and wiping out its year-to-date gains as fears gripped markets with Britain’s stunning vote to  leave the E.U. The broader S&P 500 tumbled 3% and the Nasdaq slumped 3.8%. Latest news.

All 10 big-employer stocks tracked by Boulevard fell sharply:

To fully appreciate the magnitude of the losses, consider Kentucky’s richest family, the Browns of Brown-Forman. They saw $201 million of their more than $6 billion in paper wealth evaporate in a matter of hours.

WSJ-1
This morning’s paper.

The impact of last night’s stunning Brexit news for Louisville employers will be greatest for those with extensive overseas footprints and currency exposure.

They include Brown-Forman, which sells 15 brands such as Jack Daniel’s in 160 countries worldwide. The U.K. is the company’s second-biggest market, accounting for 10% of fiscal 2016 sales, according to Brown-Forman’s annual report. Europe, excluding the U.K., was 21%. The U.S. is No. 1, with 46%. The company says foreign markets are increasingly important: “In fiscal 2016, we generated 54% of our net sales outside the United States compared to 41% 10 years ago.”

Other companies likely taking post-Brexit hits include Papa John’s, which operates in 39 countries; Yum in 130 countries and now reshaping overseas operations with a planned China spinoff in October; Ford, which is already reworking its European sales strategy, and Amazon, a relative newcomer abroad.

Boulevard’s Stock Portfolio companies routinely warn investors about risks of doing business outside the U.S. Papa John’s, for one, noted in its annual report that “international operations could be negatively impacted by changes in international economic, political, security or health conditions in the countries in which the company or our franchisees operate.”

Yum’s 14,600-unit KFC Division bears the biggest overseas exposure; it’s in 120 countries, with more than a third — 5,003 restaurants — in China.

uk_tg
Britain’s Guardian.

“Our business,” Yum says in its annual report, “is increasingly exposed to risks inherent in international operations. These risks, which can vary substantially by country, include political instability, corruption, social and ethnic unrest, changes in economic conditions .  . .  as well as changes in the laws and policies that govern foreign investment in countries where our restaurants are operated.”

Also, Yum warns, “results of operations and the value of our foreign assets are affected by fluctuations in currency exchange rates, which may adversely affect reported earnings.”

Boulevard’s Big 10 companies employ 63,000 workers in the Louisville area, and nearly 2 million worldwide.

In non-Brexit news; updated 5:38 p.m.: Continue reading “DOW PLUNGES 589 POINTS IN GLOBAL ROUT, AS INVESTORS REEL FROM BREXIT VOTE; FORD DIVES 7%; YUM, OTHER LOUISVILLE STOCKS SLAMMED” →

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Prominent U.S. senators ask DOJ to block Humana-Aetna deal; and FAA hits Amazon with another hazardous shipping fine

A news summary, focused on 10 big employers; updated 4:23 p.m.

Richard Blumenthal
Blumenthal

HUMANA: A group of high-profile U.S. Senate Democrats yesterday urged the Justice Department to block the proposed Aetna-Humana and Anthem-Cigna mergers, which would shrink the number of national health insurers to three from five. In a letter, they argued the pending tie-ups would threaten jobs, raise premiums, and reduce the quality of care. The letter was signed by Al Franken of Minnesota, Elizabeth Warren of Massachusetts, Sherrod Brown of Ohio, Edward J. Markey of Massachusetts, Dianne Feinstein of California, Mazie K. Hirono of Hawaii — and Richard Blumenthal of Connecticut, in whose state both Aetna and Cigna are headquartered (Business Insurance). Aetna officials have said they expect the $37 billion merger with Humana will close in this year’s second half.

AMAZON: The FAA has proposed fining Amazon another $130,000 for twice shipping hazardous packages in 2014 without warning labels or emergency response information. In one,  the retailer offered UPS a box with a 19-ounce container of Simple Air EZ Green HVAC Cleaner. The flammable gas was discovered by UPS workers in Kentucky; the second incident involved FedEx. The proposed penalty comes two weeks after the FAA fined Amazon $350,000 over a similar incident that caused injuries to several UPS workers (CIO). Also, a San Francisco Bay area woman learned the hard way that Amazon can, indeed, ban you for good if you return too many orders — although she eventually got a reprieve (NBC). Amazon employs 6,000 at two distribution centers near Louisville.

Papa John's logoPAPA JOHN’S: Researcher Nomura yesterday downgraded Papa John’s stock to neutral from buy, partly because of concerns traffic accidents involving delivery drivers could push up insurance costs. Among the examples cited: A jury in DeKalb County, Ga., awarded $11 million to a woman who suffered long-term brain damage after an incident involving a Papa John’s driver. “While this award likely will be appealed (if it hasn’t already),” Nomura told clients, “it does highlight what appears to us to be the growing risks.” The firm also downgraded Domino’s shares for the same reason (MarketWatch). Wall Street was unfazed: Papa John’s shares closed today at $67.79, up 2.3%.

BROWN-FORMAN is launching a global scavenger hunt to celebrate the 150th anniversary of its flagship Jack Daniel’s Distillery. Starting July 1 through September, the distiller will provide clues via its Facebook page to 150 hidden whiskey barrels around the world and give fans the opportunity to find and win prizes. The barrels will be hidden at airports in Amsterdam, Frankfurt, Heathrow, Milan, Paris, Singapore, Los Angeles and Sydney, plus cultural and historic sites (Frontier Magazine and Travel Retail Business).

FORD and the other two big U.S. automakers collectively outperformed import brands for just the second time in 30 years in this year’s closely watched J.D. Power Initial Quality Study. Still, Ford finished No. 11; Kia was No. 1 (Detroit Free Press). The automaker employs nearly 10,000 workers at its auto and truck factories in Louisville.

UPS: A Idaho woman is praising a UPS driver after he likely saved her and her sons from what could have been a deadly house fire last month (East Idaho News). UPS is Louisville’s single-biggest employer, with about 22,000 workers its Worldport hub at Louisville International Airport, the biggest fully automated package handling facility in the world.

TACO BELL: A viral video of a teenager’s arrest for allegedly brandishing a knife at a Taco Bell employee in Wisconsin has sparked protests and an internal police inquiry (The Root).

In other news, Texas Roadhouse shares closed at $46.55, up 3% — another record closing high — after setting an earlier intraday high of $46.60. And Churchill Downs shares closed at $127.60 up 63 cents as nearly two million shares changed hands — 10 times average volume. Standard & Poor’s announced the Louisville company would replace Fortune Brands Home & Security in the S&P MidCap 400 after the close of trading today (RTT News).

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Aetna-Humana clear big hurdle as California regulators OK $37-billion merger, but Anthem-Cigna deal stumbling

A news summary, focused on 10 big employers; updated 4:56 p.m.

HUMANA: Regulators in the nation’s biggest insurance market, California, have signed off on Aetna’s $37 billion plan to buy Humana, saying yesterday the deal could move forward after Hartford-based Aetna agreed to invest $50 million in the state’s health-care infrastructure (Bloomberg). The companies have said they expect the deal to close in this year’s second half. In another big merger before regulators, Anthem and Cigna may find it impossible to divest themselves of large chunks of their health insurance businesses in order to overcome reported Justice Department antitrust concerns (Wall Street Journal). Meanwhile, Humana plans to move 1,000-1,200 employees to the Waterside and Clocktower buildings it owns downtown, from leased space at 12501 Lakefront Place in the Blankenbaker Station Business Park (Courier-Journal, Business First and WDRB).

Papa John's logoPAPA JOHN’S ranked No. 2 among fast-food restaurants in the annual American Consumer Satisfaction Index survey with a score of 82 out of a possible 100, a 5% increase from 2015. No. 1 Chick-fil-A got 87 points, according to the survey results out today. KFC was No. 9 at 78, and Pizza Hut was No. 79 at 77 (CNN).

TACO BELL makes good on a promise to give away potentially millions of Locos Tacos today, in a promotion tied to the NBA championship finals, which ended yesterday with the Cleveland Cavaliers beating the Golden State Warriors (WISH).

GE: Rival LG’s home Continue reading “Aetna-Humana clear big hurdle as California regulators OK $37-billion merger, but Anthem-Cigna deal stumbling” →