Afternoon Coffee: Aetna-Humana Merger Called Off, Kellogg Revamps Distribution Model

Health insurers Aetna and Humana have called off their $34 billion merger, after a federal judge ruled against the deal in January. Regulators were concerned that the merger will stifle consumer choices and competition in the market for Medicare Advantage plans.

The End of $20 Jeans?

U.S. cotton farmers are worried. President Donald Trump’s trade stance on Mexico has big implications for the cotton supply chain, the Wall Street Journal reports. The U.S. exports high volumes of cotton yarn and fabric to Mexico, where the materials are then woven into cheap apparel for the U.S. market.

Blame E-Commerce

Kellogg Co. is changing its distribution model for snack products as part of a plan to save up to $475 million annually by 2018. Instead of delivering products directly to stores, the company behind Cheez-Its and Corn Flakes will switch to a warehouse model, which it already uses for 75% of its U.S. sales.

Bad Romance

According to the latest annual survey from the National Retail Federation, Valentine’s Day spending this year is expected to drop 7.6% to $18.2 billion. The average spending per person is expected to decrease from $146.84 last year to $136.57.

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