Food Business News - August 16, 2011 - (Page 9)

Editorial EDITORIAL STAFF Editor-in-chief Morton I. Sosland Executive editor, markets Neil N. Sosland Editor L. Joshua Sosland Executive editor Keith Nunes Senior editor, markets Jay S. Sjerven Managing editor Eric J. Schroeder Associate editor Jeff Gelski Assistant editor Ron Sterk Internet editors Allison Gibeson Erica Shaffer Graphic designer, market graphics, data Christina Sullivan MORTON SOSLAND Search for insights in P.&G.’s farewell to food PUBLISHING STAFF Chairman Charles S. Sosland Vice-chairman L. Joshua Sosland President and publisher Mark Sabo Associate publisher David DePaul G. Michael Gude Bruce Webster Vice-president, chief financial officer Melanie Hepperly Audience development director Don Keating Advertising manager Nora Wages Director of design services Sadowna Conarroe Circulation manager Judith Arnone Digital systems analyst Marj Potts Manager of advertising design Becky White Director of e-Business Jon Hall Director of on-line advertising and promotions Carrie Fluegge WE’RE EAGER TO RECEIVE YOUR FEEDBACK: E-mail or write to us at Food Business News, 4800 Main Street, Suite 100, Kansas City, Mo, 64112 hen Procter & Gamble Co. earlier mixes. Bought from the predecessor of this year sold its last food opera- ConAgra Foods, Inc. in 1956, Duncan Hines tion, questions arose about why cake mixes were seen as a way of expanding this was done and what it may mean for the in grain-based foods. The most notable move entire food industry. After all, P.&G. is one was the early 1980s introduction of a line of of the largest and most highly regarded com- soft cookies under the Duncan Hines brand, panies operating globally that is engaged in provoking a hotly competitive battle with selling consumer products. For this compa- Nabisco and Keebler, the two companies ny to take an action that signals abandon- that viewed P.&G.’s entry into cookies as an ment of what had been a major effort in the intrusion demanding harsh counter-attacks. branded food business requires careful anal- The ensuing “cookie wars,” which have left ysis. Since the company itself has not seen enduring scars, finally resulted in the sale of fit to offer an explanation, beyond what had Duncan Hines mixes in the 1990s. been known moves to sell the Pringles opLike Crisco, Pringles originated with eration, considerable guesswork and even internal research that produced the speculation are needed. No one familiar with the Observing its actions over the years seems to indicate history of P.&G. over the years has reasons to doubt that many of P.&G.’s undertakings in food were that a great deal of thought went into many decisions half-hearted at best and were never of a dimension regarding food, including this final step. Observing intended to make food a main line. its actions over the years seems to indicate that many of its undertakings in food were half-hearted at best and were never of stackable potato crisp in a new type of a dimension intended to make food a main container. Even as this product gained an line. Without knowing exactly the size of the adequate domestic market and met with investments made in acquisitions, it is sensed greater success in many foreign countries, that a large share of the food outlays were its role as the only surviving food owned by made up of internal spending on research P.&G. obviously made it vulnerable. That was and brand-building. These are areas where especially the case as the company’s major P.&G. has a formidable reputation, but they acquisitions focused on brands with much differ from the capital spending that would greater margins than prevail in even the most successful of food brands. Disposing have clearly meant a stellar role for food. This assessment also flows from how of peanut butter and cake mixes because P.&G. bought and acted in ways resembling they were deemed products with scant a series of experiments with popular food international potential had to have made the categories. The company’s entry into decision to sell Pringles, which won its best food came as the result of its location in results overseas, a bit of a quandary. It is likely that P.&G.’s participation in Cincinnati, which in the mid-19th century was known as Porkopolis for its lead role the food business, from the time in the midin pork production. Selling lard was an 1950s when foods accounted for more than important business until an early 20th a quarter of its global sales to the present, century hog shortage that encouraged will provide an instructive business book research resulting in Crisco, the all-vegetable chapter about diversification not working oil shortening not requiring refrigeration. It for this giant company. Yet, the businesses, was after World War II that the company like Pringles, were sold at impressive, even sought to use its great branding skills with rewarding, prices, reflecting their continuing additional foods. Thus, it purchased what excellence. All of this underscores the value was to become Jif peanut butter, followed of every one of these food assets outside the by Folger’s coffee and Duncan Hines cake P.&G. sphere. FBN W August 16, 2011 FOODBUSINESS NEWS ® 9

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