Brew Markets: Can Amazon Deliver on Grocery & Novo Nordisk and Pfizer’s Drug War

Podcast: Brew Markets
Host: Ann Berry
Date: November 3, 2025

Episode Overview

This episode dives into three major stock market stories shaking up the business world:

1. Kimberly Clark’s $49B acquisition of Kenview (Tylenol & Band-Aid parent)
2. Amazon’s ongoing struggles — and fresh announcements — in the grocery market amid a huge new cloud deal
3. A high-stakes acquisition drama between Pfizer and Novo Nordisk for obesity drug developer Metsera

Throughout, host Ann Berry and co-host John Crateau unpack what these events mean for investors, markets, and industry competition. Expect sharp insights, industry context, and lively stock market anecdotes.

1. Kimberly Clark’s Bold Kenview Deal

Key Discussion Points

• Kimberly Clark, known for Huggies and Kleenex, is purchasing Kenview (Tylenol, Band-Aid, spun off by Johnson & Johnson two years ago) for $49B
  • Kenview’s share price has tumbled 35% since the spinoff; sales are down 4% last quarter.
  • Kimberly Clark’s stock dropped 14% on the news (00:35).
  • Investors question the timing and rationale, particularly as Tylenol faces legal and political scrutiny.
  • Ann Berry likens the move to “a textbook play for scale” but notes shareholder skepticism about both timing and Kenview’s growth prospects.
• Tylenol in the Political Crosshairs
  • The Trump administration recently cited a study (Johns Hopkins; Tylenol and pregnancy risk) and Texas is suing Kenview and J&J over alleged non-disclosure.
  • “Now this is a lot for Kimberly Clark to be taking on. In contrast, Kenview shareholders saw their stock soar nearly 15% today...this deal is starting to look a lot like an extremely welcome escape hatch.” – Ann Berry (02:29)
• Outcome: Kimberly Clark’s investors appear wary; Kenview shareholders get a reprieve.

2. Amazon’s Cloud Triumph and Grocery Growing Pains

Segment Timestamps

• Amazon Segment Begins: 03:35

Latest Amazon Highlights

• Strong Quarterly Earnings:

  • $2.7 trillion market cap; AWS growth outpaces rivals with revenue up 20% YoY to $33B (07:41).
  • New investments in Trainium AI chips, robo-taxis.
  • AWS now makes up two-thirds of Amazon’s overall profit (06:35).

• Big New Cloud Deal with OpenAI:

  • Announced a $38B agreement to provide computing/cloud services to OpenAI, after its former Microsoft exclusivity lapsed (07:41–08:58).
  • Amazon stock jumped 11% on earnings, another 5% on news of the OpenAI deal.
  • “They’re going into business with everyone.” – John (08:54)

• Grocery Division: Still Floundering

  • Whole Foods remains stuck at ~4% national market share since acquisition in 2017 (10:00).
  • Cultural misfit: “There were die-hard Whole Foods fans who...said no. The whole point for Whole Foods is...a mission that’s completely misaligned with...Amazon.” – Ann (10:26)
  • Amazon’s store experiment: replacing coffee shops in Whole Foods with mainstream snack kiosks (“Kraft Mac and Cheese and Chips Ahoy”), further blurring the brand’s identity (12:02).
  • “The Amazon grocery world is very confusing to me. When I lived in LA, there was Amazon Fresh, Amazon Direct, Amazon to Go… The distinction is confusing.” – John (12:57)
  • Ann anticipates “Amazonification” and a more coherent approach to food retail (13:50).
  • Walmart still dominates US grocery at 20% share, showing how much ground Amazon needs to make up (11:40).

• Amazon as a Labor & Economic Bellwether

  • Ann contrasts Walmart’s retail employment signals with Amazon’s recent layoff of 14,000 white-collar workers—possibly up to 30,000, signaling tech industry trends and the impact of AI (13:50).
  • “I think Amazon has now become [the bellwether] for white collar jobs.” – Ann (13:50)

3. The GLP-1 Drug Acquisition War: Pfizer vs. Novo Nordisk for Metsera

Segment Timestamps

• M&A Segment Begins: 16:28

The Contenders and the Deal

• Pfizer’s Initial Offer: $7.3B total ($5B upfront to Metsera shareholders; the rest via performance milestones)
• Novo Nordisk’s Counter: Unsolicited $9B offer, structured in two creative steps:
  1. Immediate $6B for preferred stock (50% share capital), most paid out as a special dividend to shareholders
  2. Additional $21.25/share later, if clinical/regulatory goals are met
• Risky Tactics:
  • Novo’s complex structure means they take significant regulatory risks upfront (18:30).
  • “According to M&A experts who I called on this, [Novo’s offer] may even be unprecedented.” – Ann (17:18)
• Corporate Upheaval: Novo Nordisk’s board drama—7 directors resigned over the company’s eroding lead and recent stumbles; new CEO is only months in (19:40).
• Metsera’s Board Backs Novo: Wants to ditch Pfizer, even with a $190M break-up fee.
• Pfizer’s Fury: Launches lawsuits alleging antitrust avoidance, breach of fiduciary duty, and violation of Delaware law:
  • “Pfizer is apoplectic, releasing a statement on Friday that it has launched legal proceedings against Metsera, its board and Novo Nordisk, and lobbing in a second suit today.” – Ann (20:35)
  • Pfizer claims the deal structure is designed to “avoid antitrust review… an illegal attempt by a company with a dominant market position to suppress competition.” (20:35)
• Political Subtext: Pfizer’s recent direct deal with the White House (introducing “Trump Rx” drug discounts) may influence who wins (21:45).

4. Market Close & Quick Hits

Timestamps

• Market Recap: 22:29

• S&P 500: +2.10%

• Dow: -0.5%

• Nasdaq: +0.5%

• Berkshire Hathaway: Earnings up 34% YoY, insurance profits soar, $382B cash reserve, but shares off highs as Buffett retires (22:30).

Notable Quotes

• On the scale and complexity of Amazon:
  “It’s got so much going on, it’s hard to imagine everything going wrong all at the same time in this business.” — Ann Berry (05:47)

• On Kenview’s exit:
  “Kenview shareholders saw their stock soar nearly 15% today...this deal is starting to look a lot like an extremely welcome escape hatch.” — Ann Berry (02:29)

• On Whole Foods culture clash:
  “There were die-hard Whole Foods fans who...said no. The whole point for Whole Foods is...a mission that’s completely misaligned with...Amazon.” — Ann Berry (10:26)

• On the confusion of Amazon’s grocery strategy:
  “The Amazon grocery world is very confusing to me...The distinction is confusing.” — John Crateau (12:57)

• On Novo’s M&A move:
  “[Novo’s structure] is creative, it’s cunning, and it may even...be unprecedented.” — Ann Berry (17:18)

• On Pfizer’s reaction:
  “Pfizer is apoplectic, releasing a statement...that it has launched legal proceedings against Metsera, its board and Novo Nordisk...” — Ann Berry (20:35)

Key Insights

• Scale matters — but timing and liability do too: Mega-acquisitions in consumer staples (Kimberly Clark/Kenview) are meeting investor skepticism amid product liability and macro uncertainty.
• Even tech titans have blind spots: Amazon’s cloud business is booming, but grocery remains a weak point, hindered by brand confusion and strategic drift.
• Acquisition wars can shake up entire sectors: The Pfizer–Novo Nordisk–Metsera battle showcases high-stakes deal tactics, regulatory gambits, and political overtones in pharma M&A.
• Stock market headlines reveal bigger economic trends: Amazon’s white-collar layoffs and Berkshire’s cash hoard both reflect broader shifts in labor and capital.

Episode in a Nutshell

If you missed the episode, know this:

• The world’s biggest brands are making aggressive, controversial bets—with no guarantee of success.
• Amazon may be unbeatable in cloud, but Walmart still sits atop US food retail, and confusion reigns in Amazon’s grocery branding.
• Drug giants Pfizer and Novo Nordisk are playing chess at the billion-dollar scale, and politics are never far from the action.

For More

More earnings, acquisitions, and sharp takes coming this week—listener requests welcome!