Food Business News - September 13, 2011 - (Page 28)

Restructuring charges weigh on Campbell earnings We Really Pack-A-Punch! CAMDEN, N.J. — Restructuring charges and lower sales in U.S. soups contributed to a 5% decline in earnings for Campbell Soup Co. during fiscal 2011. For the year ended July 31, the company had earnings of $805 million, equal to $2.44 per share on the common stock, which compared with earnings of $844 million, or $2.44 per share, during fiscal 2010. Sales for the year were $7,719 million, up 1% from $7,676 million during fiscal 2010. “Our fourth-quarter results were slightly better than expected,” said Denise Morrison, president and chief executive officer. “Our Global Baking and Morrison Snacking segment delivered strong performance with double-digit topand bottom-line growth in the quarter. We also continued to make progress on our efforts to stabilize U.S. Simple Meals. But we have more work to do. As expected, lower promotional spending contributed to improved soup profits despite anticipated volume declines. We’re confident that rebalancing our marketing investments toward consumer-focused brand-building activities and developing a more robust innovation pipeline is the right approach to restore profitable growth over time.” The U.S. Simple Meals segment had earnings of $657 million during the year, down 11% from $737 million during the previous year. Sales for the segment were $2,751 million, down 6% from $2,938 million. “… Our Simple Meals performance suffered as increases in promotional spending behind U.S. Soup did not deliver the expected volume lifts,” said Ms. Morrison in a conference call with analysts on Sept. 2. “Midyear we changed our marketing strategy and pulled back on heavy promotions. “As a result, we began to improve the profitability of the Simple Meals business in the third quarter. Subsequently, we took a list price increase in U.S. Soup due to inflationary pressures. In the fourth quarter we continued to see further profit improvement in our Simple Meals business despite anticipated volume declines. “Emphasis on brand building combined with more consistent innovation is the right approach to stabilize and then profitably grow our Simple Meals business. To that end, customer reception to our new products in Simple Meals — Slow Kettle soups, Swanson Flavor Boost and new Prego and Wolfgang Puck sauces — is positive and the sell-in is progressing as planned. We also have begun the important longer-term process of reinvigorating our Simple Meals innovation pipeline.” The U.S. Beverages segment had earnings of $182 million during the year, down 12% from $206 million during the previous year. Sales for the segment were $759 million, down slightly from $762 million. For the fourth quarter ended July 31, the company as a whole had earnings of $100 million, or 31c per share, down 12% from $113 million, or 33c per share, during the same quarter of the previous year. Sales for the segment were $1,607 million, up 6% from $1,518 million during the same quarter of the previous year. FBN Experience the difference of SensoryEffects , where you can taste our passion for flavor. We specialize in customizing beverage flavor bases for: Juices Smoothies Flavored Milks Eggnogs Hot Beverages Teas Contact us if you’d like to take the ordinary and turn it into something extraordinary. Starbucks K-Cup Portion Packs going to grocery stores SEATTLE — Starbucks Corp. is making its Starbucks coffee K-Cup Portion Packs for the Keurig Single-Cup Brewing system available in grocery stores and specialty retailers beginning in November. “We are excited to expand our presence in the multi-billion dollar single-cup coffee category with the introduction of Starbucks coffee K-Cup Portion Packs, which offer a convenient at-home brewing solution utilizing the popular Keurig Brewer,” said Jeff Hansberry, president of Starbucks Global Consumer Products Group. The K-Cup Portion Packs will be available in the most popular Starbucks varieties, including Breakfast Blend, Pike Place Roast, House Blend, Sumatra and French Roast. Two selections of Tazo tea also will be available in K-Cup Portion Packs — Tazo tea Awake and Tazo tea Zen. The packs will be available in 10-count, 16-count and 54-count packs for the coffee and in 10- and 16-count packs for the Tazo tea. The products will be available in Starbucks retail stores in 2012. Mr. Hansberry said the company plans to build system-wide sales of K-Cup into a $1 billion business over time. FBN Toll Free: 800.422.5444 28 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