Food Business News - September 13, 2011 - (Page 12)

PepsiCo outlines path for global snacks growth BOSTON — Already managing the largest manufacturer of snack products in North America, executives with PepsiCo, Inc., Purchase, N.Y., outlined how they plan to grow the company’s global snack business during the Barclay’s Back to School Consumer Conference on Sept. 7. “As you know, this business is completely vertically integrated,” said John Comp Compton, chief executive officer of Peps PepsiCo Americas Foods. “We make, m move and sell over $30 billion o snacks around the world. We of o own the largest direct-store deliver system in the world with our ery sna snack business. As a result of that, we touch millions of points of distribu tribution every day, ensuring that our snack are within arm’s reach. Cycle snacks times on our product are as short as seven day from the time the potato comes days out of the field to the time it’s consumed pa in a pantry.” Fro a market share perspective, the From c compa company’s global snack business has s strong positions around the world, with p a 50 percentage point share in Brazil, m mid-60 mid-60s share in both Canada and the U United States, a 70 share in Mexico and T Turkey Turkey, and an 80 share in Argentina. “Ver “Versus our nearest global competit tor, we have over a 10 times relative m market share advantage, so I think this is a pretty good position from which to grow Mr. Compton said. grow,” E Emphasizing the difficult market co conditions that have prevailed durin the past few years, Mr. Compton ing a added that PepsiCo’s global snack b business still has seen its sales and p ts grow consistently at around profi 8% during the past five years. “Y “You may ask can you keep the growth rate going?” he said. “We think we can.” Mr. Compton highlighted per capita snack consumption trends around the world, noting that in the U.S. per capita consumption of snacks is about 8.5 kilos (almost 19 lbs), the highest in the world. “The next closest country to us is the business that we have in the U.K. at 5 kilos,” he said. “The business I run in Mexico is at 3 kilos, and many of our emerging markets are below 1 kilo. The emerging markets have been growing at twice the rate as our average growth rate for snacks. So I think one can successfully argue that we can continue to increase per capita consumption.” He added that as the emerging markets continue to grow there will be approximately 300 million households that cross “income thresholds” and start demanding more packaged foods versus bulk foods. Those consumers will expect improved food safety from the packaged foods they buy, and he sees PepsiCo being positioned to take advantage of that demand due to the nature of the company’s manufacturing and direct-store delivery systems. Finally, Mr. Compton said convenience will drive growth around the world in the same way it has driven growth in the United States. “Everywhere in the world, convenience is one of the key drivers in terms of how they make their purchase decisions,” he said. “Again, with localized distribution, with localized products, with a localized go-to-market system, we think we’re uniquely posi-tioned to grow.” FBN F.D.A. initiates projects to trace foodborne illnesses WASHINGTON — The Food and Drug Administration unveiled two new pilot projects that are expected to enhance the agency’s and industry’s ability to trace products responsible for foodborne illness outbreaks. The Institute of Food Technologists will carry out the pilots at the direction of the F.D.A., under an existing F.D.A. contract. The F.D.A. is required as part of the Food Safety Modernization Act to implement at least two pilot projects: one involving produce and one involving processed foods. Additionally, the law directs the F.D.A. to establish recordkeeping requirements for high-risk foods to help in tracing products. “We can prevent illnesses and reduce the economic impact to the food industry if we can more quickly determine what foods may be causing an outbreak and what foods can be eliminated from consideration,” said Michael R. Taylor, F.D.A. deputy commissioner for foods. “We recognize the importance of engaging stakeholders throughout the process and will consider what is practical for facilities of varying sizes and capabilities.” According to the F.D.A., the pilots will evaluate methods and technologies for rapid tracing of foods, including types of data that are useful for tracing, ways to connect the various points in the supply chain, and how quickly the data are made available to the F.D.A. The agency said industry and consumers will have input into the projects, and efforts will be made to include those representing the food supply chain — from farms to restaurants and grocery stores. After the projects are completed and additional data is gathered, the F.D.A. said it will issue a proposed rule on recordkeeping requirements for high-risk foods to facilitate tracing. The F.D.A. will hold three public meetings during the comment period on the proposed rule. FBN 12 FOODBUSINESS NEWS ® September 13, 2011

Table of Contents for the Digital Edition of Food Business News - September 13, 2011

Food Business News - September 13, 2011
Kraft’s split on schedule
Nonfat dry milk prices drop as milk output rises
Shining a light on sugary drinks
Contents
Web Contents
Editorial - Preparing for the rising cost of fresh water
Private label products make gains in salad, sugar categories
Seaboard’s Rod Brenneman to lead Butterball
Limited avocado supply hurts Calavo earnings
PepsiCo outlines path for global snacks growth
F.D.A. initiates projects to trace foodborne illnesses
U.S.D.A. study shows food insecurity down from 2009
McCormick completes acquisition of Kamis
Leadership team set for Sara Lee’s CoffeeCo spin-off
Seneca, Allens terminate merger negotiations
Human milk components the focus of partnership
JBS shifting operations in Brazil
Dannon opens new innovation center
July red meat production down 4% from year ago
Aramark to acquire Filterfresh from G.M.C.R.
Tyson Foods to ramp up prepared foods output
McDonald’s investing $1 billion in Canada
Rowland Coffee integration on track at Smucker
Food trucks transitioning from fad to trend
Kraft’s split on schedule
Restructuring charges weigh on Campbell earnings
Starbucks K-Cup Portion Packs going to grocery stores
Sanderson Farms swings to loss in quarter
Nestle completes production unit for nutrition factory
Restaurant Performance Index falls beneath 100 to 11-month low in July
Washington - Shining a light on sugary drinks
Market Insight - Nonfat dry milk prices drop as milk output rises
Health and Wellness - School lunches get slimmer
Ingredient Innovations - Possible opportunity in immunity
Flavor Trends - Fire and flavor
New Product Trends - Expanding flavors and protein sources in jerky
New Food Products - Dannon introduces Activia Selects yogurt
New Food Products - Balance Bar launches nimble bar for women
New Food Products - Nestle introducing Nescafe LiquiFresh Gourmet Blend
New Food Products - New jerky from Jack Link’s uses Cholula Hot Sauce
New Food Products - Odwalla adds Super Protein Mango smoothie
New Food Products - Frito-Lay introduces Doritos and Cheetos Fiery Fusion
New Food Products - Burger King adds Quaker oatmeal to breakfast menu
New Food Products - Lifestyle Foods launching G2 snack line
INGREDIENT MARKET TRENDS - Winter wheat planting under way except in dry Southwest
Ingredient Markets
Supplier Innovations and News - Soy blend has texture characteristics of meat
Supplier Innovations and News - Sustainable palm oil certifi cation reaches Brazil
Supplier Innovations and News - Grain Processing Corp. promotes scientist
Supplier Innovations and News - Starches offer retort, freeze/thaw benefits
Supplier Innovations and News - Red Arrow launches pot roast fl avor
Supplier Innovations and News - Takasago names v.p. of consumer insight
Supplier Innovations and News - Honey, fig flavors join balsamic vinegar line
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - September 13, 2011

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