Food Business News - August 16, 2011 - (Page 42)

Dean Foods suffers loss after litigation charge Food inflation combined with declining consumer demand for fresh milk remain a concern Continued from Page 41 confidence that these volume declines will abate anytime soon. This makes our effort to drive out cost and add new business all the more important. It also means that a disappointingly high level of our cost saves are being offset by the inevitable fixed cost deleverage we experience as volume declines.” Second-quarter operating income for WhiteWave-Alpro increased 13% to $44.1 million from $39.1 million. On an adjusted basis, which excludes the impact of the 50% interest in the Hero/WhiteWave joint venture that WhiteWave does not own, the segment reported operating income of $44.6 million, a 14% increase from $41 million. The company expects full-year operating income growth in the low to midteens for WhiteWave-Alpro. Second-quarter net sales for WhiteWaveAlpro rose 12% to $514 million from $459 million because of strong growth across the product portfolio. Sales of Horizon Organic branded milk gained mid-teens in the quarter as did sales of branded creamer, same period of the previous year. Six-month net sales were $6.3 billion, up from $5.9 billion in the same period of the previous year. In the third quarter Dean Foods expects adjusted diluted earnings per share between 12c and 17c per share, Mr. Engles said. He added the company reaffirmed its previous full-year earnings guidance of between 67c and 75c per adjusted diluted share. “Consistent with our previous comments, our biggest concern over the balance of the year continues to be the volume weakness across conventional dairy categories, which has worsened in recent periods,” Mr. Engles said. “Due to the heavy fixedcost nature of our business, relatively small changes in volumes drive meaningful changes in bottom-line performance. “We believe a recovery in volumes will not happen until the employment picture improves, particularly among the less-affluent, who continue to struggle. In the interim, our best course of action is to continue driving structural costs out of the business to offset the deleveraging effects of soft volumes.” DBN which includes International Delight and Land O’Lakes creamers. Silk sales increased mid-single digits on continued strength of Silk PureAlmond and Silk PureCoconut. Companywide for the six months ended June 30, Dean Foods had net income of $57.1 billion, or 31c per share, which was down from $96.5 million, or 53c per share, in the 42 FOODBUSINESS NEWS ® August 16, 2011

Table of Contents for the Digital Edition of Food Business News - August 16, 2011

Food Business News - August 16, 2011
Ralcorp to buy Sara Lee refrigerated dough business
Whey protein’s emerging mass appeal
Gluten-free labeling in the spotlight
Web Contents
Editorial - Search for insights in P.&G.’s farewell to food
Nestle profi t down in fi rst half of year
Sara Lee income up sharply in year
Pilgrim’s Pride’s second-quarter earnings plunge
Snyder’s-Lance swings to loss in quarter
Consumers taking active role in beverage trends
Cargill recalls 36 million lbs of ground turkey
Consumers more concerned with fat, calories than HFCS
Investment group partnering with Kettle Cuisine
Smart Balance purchases gluten-free food company
Sunsweet acquires Function Drinks
Kraft's big Split
Additional amicable separations
Ralcorp to buy Sara Lee refrigerated dough business
Ralcorp net down on impairment charge
F.D.A. warns Lazy Larry brownies are unsafe
Cott income climbs 19% in second quarter
Lower salad volumes contribute to loss at Chiquita
Restaurant Performance Index above 100 in June
Cost and taste remain barriers for functional foods
Sugar prices strong as supplies tighten
Gluten-free labeling in the spotlight
Health and wellness remains at the heart of oil innovations
Inside the guar gum bubble
Use hydrocolloids to save on costs
Dairy Business News
Conditions remain diffi cult for Dean Foods
Dean Foods suffers loss after litigation charge
Whey protein’s emerging mass appeal
Adding ethical value
Dannon adds Greek Oikos to portfolio
Caribou adds ‘Grown-up Grilled Cheese’ to menu
Beech-Nut to co-brand baby food with Mott’s
Earth’s Best expands Sesame Street line
Popchips introduces jalapeño variety
Kettle Brand launches reduced-fat chip line
Tropical fl avor line extends beyond familiar
SunOpta completes purchase of juice company
Spicetec names director of marketing
Carton protects fragile products
GPC hires scientist, sales representative
F.D.A. has no objection to krill oil’s GRAS status
Birko to buy maker of washing, pasteurizing systems
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - August 16, 2011