Food Processing - April 2008 - (Page 12)

NEWS BITES •CONSUMER TRENDS• Store brands ring up $5.4 billion in sales increases sales of store Br and Products across the major u.s. retailing channels last year increased by $5.4 billion versus the prior year to reach a new all-time high of $74.2 billion. that’s according to Private label Manufacturers assn.’s 2008 Private label Yearbook, which is compiled with data provided by the nielsen co. the figures include supermarkets, drug chains and an estimate of the mass merchandiser channel. In supermarkets, private label gained 7.6 percent in dollar volume, three times the rate of national brands, which were up 2.6 percent. store brand sales were $3.5 billion ahead of the prior year to a total of $49 • L I T I G AT I O N • billion. Private label dollar volume share moved to 17.1 percent (from 16.4 percent). compared to five years ago, annual sales of private label products in supermarkets are up $5.8 billion, an increase of 13.3 percent. In drug chains, private label increased 8.2 percent in dollar volume, more than twice that of national brands (which were up 3.6 percent), and advanced to 12.2 percent (from 11.7 percent) in dollar volume share. Private label brought in a total of $4.9 billion, an increase of $400 million over the prior year. compared to five years ago, annual sales of private label in drug chains have expanded by $1.2 billion, an increase of 32.9 percent. Grocer charges chocolate price-fixing In a lawsuIt fIled In late March In u.s. dIstrict court, grocer Giant eagle claims the world’s largest chocolate companies formed a conspiracy to raise prices and stif le competition. the Pittsburgh-based chain claims it was overcharged for nearly $200 million worth of chocolate products between 2002 and 2007 by hershey co., Mars Inc., nestle sa and cadbury schweppes Plc, according to the Pittsburgh TribuneReview. a canadian network of food distributors, Itwal ltd., which allegedly aided in the conspiracy, also was named a defendant. Giant eagle’s claim did not mention by how much it overpaid. the lawsuit is at least the fourth filed in the u.s. since last year that alleges a chocolate conspiracy. the suit cites a 2007 investigation by the canadian competition Bureau, which claimed nestle, hershey and Mars conspired to fix prices in canada. MERGERS & ACquISItIONS ConAgra Foods Inc., Omaha, Neb., has an agreement to sell its commodity trading and merchandising operations (ConAgra trade Group) to the Ospraie Special Opportunities fund and other investors for approximately $2.1 billion. Ospraie Management is an investment management firm focused exclusively on commodities and basic industries with approximately $9 billion under management. ConAgra trade Group will be renamed Gavilon llC upon completion of the sale. ConAgra will accept $525 million of debt securities of the new holding company. Sara Lee Corp. in March said it will sell its minority stake in Mexican meat and cheese group qualtia Alimentos to venture partner Xignux, a local conglomerate. Sara lee, of Downers Grove, Ill., set up the venture with Xignux in 1994. qualtia Alimentos generates annual sales of $300 million. Sara lee did not disclose the selling price. Marfin Investment Group of Athens, Greece, said its investment arm in the food and beverage sector, Vivartia SA, has an agreement to buy u.S. snack producer Nonni’s Food Co. from majority owner Wind Point Partners, a private equity firm, for $320 million. Nonni’s, headquartered in tulsa, Okla., makes biscotti cookies and other specialty baked good products. It owns six production facilities (three in New Jersey, one in Oklahoma, one in New York and one in tennessee) and had 2007 sales of $187 million and earnings of $32 million. 12 • FOOD PROCESSING APRIl 2008 FOOD FOR thOuGht Sara lee 13.6% George Weston A WONDER-Ful DEAl FOR SARA lEE? 9.5% Interstate Bakeries 6.4% Bimbo Bakeries 5.4% Campbell (Pepperidge Farm) 9.1% 5.1% Flowers Foods 24.7% Others 26.1% Private label Source: Sanford C. Bernstein Research As Interstate Bakeries continued to struggle to exit bankruptcy protection, Crain’s Chicago Business quoted one analyst who said Sara lee Corp. could become the top seller of fresh bread in the u.S. if it bought the Kansas Citybased baker, whose brands include Wonder Bread. WWW.FOODPROCESSING.COM http://WWW.FOODPROCESSING.COM

Table of Contents Feed for the Digital Edition of Food Processing - April 2008

Food Processing - April 2008 Contents Editor's Plate NewsBites The Trends Rollout Food Biz Kids Consumer Taste Test - Indulgent, Superpremium Chocolate...at 3 Calories a Pop Cover Story - Annual Capital Spending Report - To Build or Not to Build? Ingredients - Trendy Fruits, Nuts and Vegetables Plant Operations - iPlant: Assessing the State of Automation Plant Operations - Your Sanitation Can Be Greener Packaging - For Which Oven? MRO Q&A New Supplier Products Toops Scoops

Food Processing - April 2008

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