Food Business News - July 19, 2011 - (Page 16)

Campbell to invest less in sodium reduction Hamburger consumption on the rise CHICAGO — The hamburger’s prominent placement on the value menus of many quickservice restaurant chains has increased consumer demand since 2009, according to the market research firm Technomic’s Burger Consumer Trend Report. Nearly half of the consumers surveyed by Technomic said they eat a burger at least once per week compared with 38% two years ago. “The value menu is certainly a big part of this increase in burger consumption,” said Sara Monnette, director of consumer research at Technomic. “There are other factors at work, however, as the specialty burger craze has driven growth in a way that is almost defiantly separate from pricing. The better burger restaurants in the fast casual segment have put the burger top-of-mind for consumers, and even the quickservice chains have begun to respond and focus portions of their menus specifically on quality perceptions.” The report reviews the burger consumption, purchasing behaviors, attitudes and preferences of more than 1,500 consumers. Other insights included in the report are the facts consumers between the ages of 18-34 say it is important for vegetarian burgers to be available on restaurant menus, and consumers also are interested in ingredients that carry a “health halo,” such as being marketed as natural, hormone-free and antibioticfree. FBN The company also plans expansion in the simple meals category Continued from Page 1 company has done many things right with our soup business, but there have also been some misjudgments and missed opportunities,” Ms. Morrison said. “I have no doubt that the business can be stabilized and then restored to profitable growth, but to fix the problems, we must acknowledge and understand them.” She said Campbell soup products continue to have a household penetration rate in the United States exceeding 80% and that its line of reduced sodium soups has had some success. Campbell’s Healthy Request line of reduced sodium soup has reached retail sales of almost $300 million and has a compound retail sales growth of 21% over the last five years, she said, but other reduced sodium soups have not fared as well. “What consumers need and want are choices, options that align with their own lifestyles and priorities,” Ms. Morrison said. “We will continue to offer attractive variety and scale for consumers who want reduced sodium products. We will also offer compelling product propositions for those who do not.” Ms. Morrison said the soup category faces more competition from other simple meal products than it did in the past. The number and the variety of simple meal choices have increased in the forms of shelf stable, fresh and frozen formats. Prices gaps between Campbell Soup products and other simple meal offerings have also eroded. “These and other simple meal choices, not other commercial soup products, are the primary competitors to our business,” she said. “And they, not other soups, have been the primary source of our volume declines.” Now in the broader simple meals arena, Campbell will begin offering new and different product forms and packaging formats, she said. “After years of listening to us talk about it, you will see us play across a much broader terrain in the simple meals area,” she said. Sean Connolly, president of North America for Campbell Soup Co., said the brands Pace, Prego, Swanson and Wolfgang Puck may play roles in the simple meal expansion. In fiscal 2012, Campbell expects volume to decline in U.S. soup as the company plans to reduce unproductive trade spending and shift marketing mix to investment in brand building, Ms. Morrison said. Net sales growth in U.S. soup should return, mainly because of list price increases and higher price realization. Campbell in fiscal 2012 will invest more than $100 million to restore competitive marketing to the base business in North America and accelerate innovation in all businesses. Companywide, Ms. Morrison said Campbell expects to spend $325 million on capital projects designed to maintain profit, increase capacity, enhance research and development capabilities, reduce costs and improve quality. Reflecting on investments, Ms. Morrison said Campbell in fiscal 2012 projects net sales should be flat up to a 2% increase, earnings before interest and taxes should decline 6% to 8%, and earnings per share should decline 4% to 6%. After fiscal 2012, Campbell expects to return to net sales growth of 3% to 4% and adjusted net e.p.s. growth of 5% to 7%. FBN 16 FOODBUSINESS NEWS ® July 19, 2011

Table of Contents for the Digital Edition of Food Business News - July 19, 2011

Food Business News - July 19, 2011
U.S. rice production situation changes dramatically
Marketing standards for children’s products proposed
Campbell to invest less in sodium reduction
Editorial - Data transparency hugely important for markets
Dannon to invest $88 million in Ohio yogurt plant
Pfi zer may sell Nutrition business
Nestle Health Science acquires stake in Vital Foods
Hispanic consumers seek authentic menu options
Kraft names Timothy Cofer to European leadership
Gary Lane named c.e.o. of Ottens Flavors
Nestle to buy 60% interest in Chinese confectioner
Sun Capital acquires Contessa Premium Foods
Reser’s Fine Foods to acquire Vaughan Foods
Campbell to invest less in sodium reduction
Hamburger consumption on the rise
Dunkin’ looks to raise $461 million through i.p.o.
Buckhead Beef to build new facility
Global industrial processing of grains in slower growth
Higher adult obesity rates recorded in 16 states
More than 2,000 organizations in support of MyPlate
U.S. rice production situation changes dramatically
Washington - Agreement ends cross-border trucking dispute
Sodium Reduction - Conflicting views on sodium and mortality
Potassium chloride comes with taste issues
Children’s Nutrition - Questions arise about children and food allergies
DAIRY BUSINESS NEWS - Dairy ingredient innovations
DAIRY BUSINESS NEWS - Fonterra names chief executive officer
Dairy Business News - New OptiSol ingredient works with frozen yogurt
Dairy Business News - New Danisco system targets artisan ice cream
Dairy Business News - Regional ice cream maker ceases production
Dairy Business News - Dairy organizations team to form consortium
Dairy Business News - Harris sees consumers continue to focus on value, spending cuts
Dairy Business News - General Mills completes Yoplait acquisition
Dairy Business News - Shadow Beverages acquires Whey-Up brand
Dairy Business News - Dean Foods settles lawsuit for $140 million
Dairy Business News - Sargento Foods expands R.&D. staffi ng
New Product Trends - Beyond meat protein
New Food Products - Zatarain’s introduces frozen meals
New Food Products - Bear Naked launches Nut Cluster Crunch cereal
New Food Products - Kraft adds caulifl ower to new mac and cheese item
New Food Products - AdvancePierre Foods adds Graham Snackers
New Food Products - WhiteWave foods expands product line
New Food Products - Mott’s enters vegetable juice category
New Food Products - Orgain introduces shakes for children
New Food Products - Field Roast launches vegetarian frankfurter
INGREDIENT MARKET TRENDS - Spring wheat crop forecast 11% lower than 2010
Ingredient Markets
Supplier Innovations and News - Caravan launches base for single-serve items
Supplier Innovations and News - B vitamin supplier changes name to Prinova
Supplier Innovations and News -Testing method screens for Salmonella
Supplier Innovations and News - Cargill commits to 2015 sustainable palm oil goal
Supplier Innovations and News - European Commission approves stevia’s use in some foods
Supplier Innovations and News - Kemin hires technical sales manager
Supplier Innovations and News - Bell expands by buying facility
Ad Index
Food Business in the News

Food Business News - July 19, 2011