Food Business News - September 13, 2011 - (Page 24)

Rowland Coffee integration on track at Smucker BOSTON — The May acquisition of Rowland Coffee Roasters, Inc. has provided additional scale and unique brands for J.M. Smucker Co. and is on track to contribute more than $100 million in sales in the current fiscal year, according to a presentation by Richard Smucker, chief executive officer of Orrville, Ohio-based J.M. Smucker, at the Barclays Capital Back to School Consumer Conference held Sept. 7 in Boston. Mr. Smucker said Rowland’s Café Bustelo and Café Pilan Hispanic brands complement Smucker’s portfolio and position the company well for establishing a strong presence in coffee in the Hispanic markets. “This demographic represents nearly 15% of the coffee drinking households in the U.S. and is expected to grow significantly over the next several years,” he said. “Over the long term, we expect to expand distribution of these brands into the key Hispanic regions in the U.S. by leveraging our go-to-market strategy and our national scale. This acquisition is on track to contribute over $100 million in sales, or approximately 2 percentage points of our net sales growth, in this fiscal year and approximately add 5c per share to our earnings excluding charges.” Mr. Smucker said customer facing and distribution network activities are on schedule to be completed by November, while manufacturing operations are expected to be consolidated into Smucker’s existing facility in New Orleans in approximately three years. Product innovation also has driven growth for Smucker during the year. Mr. Smucker indicated new products are expected to contribute about $200 million, or approximately three percentage points, to net sales during the current fiscal year. In the company’s fruit spread business, recent product launches include new flavors of Orchard’s Finest preserves. Additionally, Smucker is testing fruit spreads sweetened with Truvia. Addressing the commodities situation, Mr. Smucker said the status of the peanut crop and its impact on availability and costs remain an area of focus. While confident in the company’s supply position, Mr. Smucker said peanut costs will be significantly higher the remainder of the year. As a result, Smucker will implement a 30% price increase on peanut butter products effective in November. “While the level of price elasticity will depend on many factors, including the responses of our retailers, our competitors and consumers, as well as supply, we expect to achieve significant price realization t that will be sufficient to recover our h higher costs,” Mr. Smucker said. “ “Once again, this is an issue facing t the U.S. peanut industry.” Higher costs also have weighed o on the fruit spreads business, and M Mr. Smucker said the company will r raise the prices on the majority of i its fruit spread products by 4%, also e effective in November. FBN Food trucks transitioning from fad to trend also found that food trucks have a more noticeable presence in communities in the West and Northeast than in other parts of the United States.” While 29% of consumers in the West and 24% in the Northeast said they saw a food truck this summer, only 9% in the Midwest and 15% in the South said they saw a food truck. More than two-thirds of consumers ages 18 to 44 said they would be likely to visit a food truck if offered by their favorite restaurant while only 38% of consumers 65 and older said the same. Seventy per cent of adults with children said they would be likely to patronize a food truck while only 52% of adults without children said the same. “Though food trucks are often equated with chefs and entrepreneurs, they also present opportunities for operators of established restaurants to expand their operations and presence, as a majority of consumers say they would visit a food truck run by their favorite restaurant,” Mr. Riehle said. “Mobile food service can be a good way to extend an existing restaurant brand beyond the four walls of the establishment.” FBN WASHINGTON — Nearly 60% of consumers would be likely to visit a food truck if their favorite restaurant offered one, according to the National Restaurant Association. That’s up from 47% a year ago. The N.R.A. said food trucks are gaining in popularity with 18% of consumers seeing a food truck in their community this summer and 28% of those who saw a food truck this summer making a purchase. “Convenience is a major driver in restaurant growth, and food trucks are certainly a convenient option by essentially bringing the restaurant to the consumer,” said Hudson Riehle, senior vice-president of the research and knowledge group for the N.R.A. “Our research shows that in just one year, the number of consumers who say they would be likely to visit a food truck increased significantly. We 24 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