Food Business News - April 10, 2012 - (Page 10)

Investment plans call for Burger King to go public Consumers seeking deals to return to restaurants CHICAGO — While there is a growing divide in the way financially strained consumers and financially comfortable consumers use restaurants, both groups are cost-conscious and appreciate deals, according to The NPD Group. The sluggish demand for restaurants may be attributed to both the financially strained and financially comfortable, but a greater proportion of those cutting back are those most affected by the economy. The NPD Group found that 56% of the more than 5,000 consumers they surveyed said they are financially strained while 44% said they are financially comfortable. The majority of the financially strained are 18 to 34 years old, and the financially comfortable are mostly evenly dispersed. However, twice as many of those 65 and above fall into the financially comfortable group compared with the financially strained. In addition, 75% of the financially comfortable and 92% of the financially strained classified themselves as controlled spenders. “It is presumed financially-stressed consumers have kept the industry from realizing growth, but that’s not the case,” said Bonnie Riggs, restaurant industry analyst. Price and affordability are preventing the financially strained from visiting restaurants more often, and diet and health reasons are preventing the financially comfortable from increased visits. No matter their financial situation, consumers are still looking for deals to bring them back to restaurants. However, what is classified as a good deal depends on the consumer’s financial situation. For the financially comfortable, frequent visitor cards and rewards programs are good enticements, but the financially strained are looking for coupons and discounts. FBN MIAMI — Burger King Worldwide, Inc. will be a newly renamed company that will list and commence trading on the New York Stock Exchange under a definitive business combination agreement announced April 3 between Burger King Worldwide Holdings, Inc., Miami, and London-based Justice Holdings Ltd., a publiclylisted United Kingdom investment vehicle. “We believe it is the right time for Burger King to be publicly traded in the U.S. again,” said Daniel Schwartz, chief financial officer for Burger King Worldwide. “With this transaction, we are positioning the Burger King brand for long-term growth both domestically and internationally and are excited to take this next step in delivering on our strategic objectives.” Under the agreement, 3G Capital, a global investment firm and Burger King Worldwide’s principal stockholder, will receive about $1.4 billion in cash and continue as the majority shareholder. The Justice Holdings shareholders and its founders will own about 29% of the combined company. The co-founders of Justice Holdings have agreed to reduce their founders’ interest to 3% of the combined company’s outstanding shares and have waived the right to receive any other additional equity interests originally contemplated by the Justice structure. Investment funds managed by Pershing Square Capital Management, L.P. will own about 10% of the combined company’s outstanding shares, which it will receive as a result of its interests in Justice Holdings. Upon closing of the agreement, the combined company will be incorporated in Delaware and will be renamed Burger King Worldwide, Inc. It is expected the company will list and commence trading on the N.Y.S.E. Shares of Justice Holdings will be suspended from trading on the London Stock Exchange. “We believe that Burger King’s aggressive plans for international growth will benefit from its visibility as a N.Y.S.E.-listed public company,” said Nicolas Berggruen, cofounder of Justice Holdings. “We looked at many different opportunities over the last 14 months, but Burger King stood out as a unique global player in the expanding international quick-service restaurant industry with a strong heritage and an aggressive transformation under way in its North America business unit.” Burger King previously was traded publicly, but it became private in September 2010 when affiliates of 3G Capital acquired the company for $4 billion. The Burger King system operates in more than 12,500 locations and serves more than 11 million guests daily in 81 countries and territories. Independent franchisees own and operate about 90% of Burger King restaurants. Martin Franklin, a co-founder of Justice Holdings, and Alan Parker, one of the independent directors of Justice Holdings, will join the board of directors for Burger King Worldwide. Other members will remain on the board. “Burger King Worldwide’s long-term strategy and its entire senior management team will remain unchanged,” said Bernardo Hees, chief executive officer of Burger King Worldwide. “In partnership with our new public shareholders, we will continue to focus on creating profitable growth for our franchise system while delivering best-in-class food and service for our guests.” The boards of directors of both companies unanimously approved the transaction. It requires no further shareholder approvals. The transaction is subject to other customary approvals such as antitrust approval, listing on the N.Y.S.E. and the effectiveness of a registration statement to be filed with the U.S. Securities and Exchange Commission. Closing of the transaction is expected within 60 to 90 days. FBN 10 FOODBUSINESS NEWS ® April 10, 2012

Table of Contents for the Digital Edition of Food Business News - April 10, 2012

Food Business News - April 10, 2012
F.D.A. rejects petition to ban bisphenol A
Finding savory flavors around the world
Prospective corn plantings at highest level since 1937
Table of Contents
Web Contents
Editorial - Steve Jobs as enticing model for food industry
Investment plans call for Burger King to go public
Consumers seeking deals to return to restaurants
General Mills ahead on product nutrition profile improvements
Test for milk allergens not as effective as thought
Craig Bahner to join Wendy’s as c.m.o.
Gluten-free offerings boost global snack introductions
Warne to lead Perkins and Marie Callender’s
Rich Products buys Canadian frozen dessert company
Michigan retailer acquires dairy production capacity
PepsiCo and Tingyi Holding finalize beverage alliance in China
US Foods acquires specialty importer
Market for food bars reaches $5.7 billion
Misinformation impacts beef demand
C.D.C. vitamin, nutrient data show progress
Burger King rolls out whopper of a menu change
Soup, salads showing strength on the menu
Daniel Saw to lead Campbell’s Asia business
Restaurant operator optimism on the rise
Market Insight - Prospective corn plantings at highest level since 1937
IFT Wellness 12 - Transparency vs. simplicity
Flavor Trends - Finding savory flavors around the world
Ingredient Innovations - Caramel color concerns prompt change
Colors by nature
New Food Products
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News - Egg replacer sales look to grow for Arla
Supplier Innovations and News - Systems reduce sodium in meat
Supplier Innovations and News - Perform spray drying tests in a single operation
Supplier Innovations and News - DuPont offers guar gum alternatives
Supplier Innovations and News - Pea protein enhances chocolate
Supplier Innovations and News - Barry Callebaut profits slip while sales rise
Supplier Innovations and News - Caramel color has more intensity
Supplier Innovations and News - Stabilize freeze-thaw products
Ad Index
Food Business in the News

Food Business News - April 10, 2012