Food Business News - September 13, 2011 - (Page 22)

Tyson Foods to ramp up prepared foods output McDonald’s investing $1 billion in Canada TORONTO — McDonald’s Canada has unveiled a plan to invest approximately $1 billion to transform more than 1,400 restaurants across Canada. Plans call for new interior and exterior designs, including fireplaces, flatscreen televisions, changes to the kitchen layout and new food equipment. “This is a pivotal time for McDonald’s, and we’re placing unwavering focus on transforming the face of our brand,” said John Betts, president and chief executive officer of McDonald’s Canada. In addition to some physical restaurant changes, McDonald’s detailed plans to enhance customer service, particularly in the areas of speed and quality of service. A new front counter service platform is expected to provide seamless integration between the point-of-sale and the food preparation area, ensuring improved order accuracy and allowing for increased engagement between McDonald’s employees and customers. The addition of double-lane drive-throughs, in many re-imaged locations, eases line-ups inside and outside restaurants and speeds up overall service, the company said. More than half of the company’s restaurants will have been re-imaged by the end of this year, with plans to have the majority of the remaining restaurants transformed by the end of 2012. McDonald’s Restaurants of Canada Ltd. and its Canadian franchisees own and operate more than 1,400 restaurants and employ more than 80,000 Canadians. Approximately 75% of McDonald’s Canadian restaurants are locally owned and operated by independent entrepreneurs. FBN BOSTON — Noting the strength and diversity of Tyson Foods’ product portfolio, with 41% of the company’s sales in beef, 35% in chicken and the rest in pork and prepared foods, Donnie Smith, president and chief executive officer of the Springdale, Ark.-based company, said he sees additional opportunity in the Prepared Food segment. Speaking at the Barclays Capital Back to School Consumer Conference on Sept. 8, Mr. Smith said, “If you look at Tyson and ask what separates Tyson from other protein manufacturers? One of the main things is the breadth of our product portfolio. Yes, beef. Yes, pork. Yes, chicken, in all forms. But also in our Prepared Foods segment. We’re the nation’s second-largest tortilla and chip manufacturer; one of the nation’s leading pizza topping manufacturers; (we have a) good presence in soups and sauces — there’s a lot of opportunity in those businesses as we move forward.” Mr. Smith said Tyson Foods is expanding the company’s Council Bluffs, Iowa, processing facility. The plant conversion involves the installation of new equipment and product flows, as well as a 60,000-square-foot addition. The $48 million renovation is part of Tyson’s effort to help meet total demand in the areas of pepperoni and pizza toppings. “We think there’s lots more opportunity in pizza toppings and so we’re expanding today,” he said. “We think demand is there for that product and we’re great at producing it. We also do other dry sausages and it’ll help us expand capacities in our current plant as well.” The production of flavored tortillas is also on the radar of the company as well as the opportunity to wrap those tortillas around a protein product manufactured by Tyson Foods. “One of our new items this year in our Any’tizer line is our fully cooked retail bag line with Quesa Dipper, which has a sauce, which we make; a tortilla, which we make; and a meat product, which we make. So that is another example of how we would grow Prepared Foods,” he said. Mr. Smith also highlighted the cooked meats category as an area of opportunity, but added that Tyson Foods may need to make an additional investment in the category. “We’re a very good private label lunchmeat supplier,” he said. “I think there are opportunities for us to continue to do that. We probably need to spend some money in our plant and upgrade some equipment, but we have the capital available to us and we’ve got a good business to invest in.” The challenge facing the company, like many other food and beverage processors, is input costs. “From the late ‘70s, which would be sort of the modern corn era, through 2005, $2 to $3 (per bu) cost the vast majority of corn trade,” he said. “During that time period, the average cost of a live chicken, and that would be a chicken delivered to plant, would have been about 25c a lb, okay?” Since the renewable fuels standard in 2005, Mr. Smith said that during the first four years the cost of corn per bu shifted up to a range of $3 to $5. “But look where we are today,” he said. “I mean, today these corn futures are trading at about $7.50.” That increase has had a dramatic increase on the cost of a live chicken delivered to a facility, with the cost rising from 25c per lb to 46c to 47c per lb today. “That’s a huge structural shift that, frankly, our industry is getting used to,” Mr. Smith said. FBN 22 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
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
Ad Index
Food Business in the News

Food Business News - September 13, 2011