Food Business News - July 31, 2012 - (Page 11)

PepsiCo earnings fall on restructuring costs a well and that growth will continue. “Our challenge is to figure out t the right model to play against the v value players without impacting the m middle. And we wanted to make sure we did it the right way and not take dow the pricing level of the middle.” down T The Quaker Foods North America divi division had an operating profit of $154 milli million, down 8% from $167 million during t the same quarter of the previous year. Revenue for the quarter was $583 millio equal to revenue during the same million, quart of the previous year. quarter Pep PepsiCo Americas Beverages had an opera operating profit of $840 million, down 15% f from $983 million during the same quart of the previous year. Revenue for quarter the se segment was $5,352 million, down 5% from $5,629 million during the same quarter of the previous year. Innovation in the Quaker and Beverages business unit has gained traction, Ms. Nooyi said. “One of our most recent introductions is the (Gatorade) Prime Q,” she said. “The Qs come in three flavors and contain 25 grams of carbohydrates as well as B vitamins to help your body break down carbs into fuel and helps you maintain your performance throughout your activity. And at Quaker, we are driving organic sales growth in share gains with innovation like Quaker Real Medleys and Quaker Yogurt Bars. Interestingly on both Quaker Medley and the Gatorade Qs we are selling all we have the capacity to m make.” For the six months ended June 16, th company as a whole saw the inc income decline 14% to $2,615 m million, or $1.65 per share, w which compared with $3,028 m million, or $1.89 per share, d during the same period of the p previous year. FBN PURCHASE, N.Y. — Restructuring cturing cturing i ntributcosts and a stronger dollar contributed to a 21% decline in income during , the second quarter at PepsiCo, Inc. ne 16, For the quarter ended June 16 the company had income of $1,488 million, equal to 94c per share on the common stock, which compared with income of $1,885 million, or $1.17 per share, during the same quarter of the previous year. Revenue for the quarter was $16,458 million, down 2% from $16,827 million during the same quarter of the previous year. “PepsiCo is diligently executing the strategy we set forth at the start of the year, and we remain on track to achieve our full-year targets,” said Indra Nooyi, chairman and chief executive officer. “We were able to achieve significant pricing in the second quarter, reflecting the strength of our brand portfolio and the success of our packaging initiatives. Our disciplined approach to pricing and continued focus on brand investment drove 5% organic net revenue growth and allowed us to substantially offset approximately $350 million in commodity cost inflation. “Our focus for the second half of the year is squarely on executing against our strategic priorities. We will continue to step up our brand support through increased advertising and marketing, accelerate our innovation to drive growth and drive our aggressive productivity agenda.” During the quarter the Frito-Lay North America division had an operating profit of $835 million, down 2% from $853 million during the same quarter of the previous year. Revenue for the quarter was $3,193 million, up 3% from $3,090 million. Innovation has been a focus for the company and during a conference call with securities analysts, Ms. Nooyi highlighted some of the innovation efforts that have benefited the Frito-Lay North America bus business unit during t siness the past year. “At Frito-Lay North America innovation drove incremental sales all across the portfolio,” Ms. Nooyi said. “Doritos had doubled its sales growth in the quarter behind innovations such as Doritos Jack and Doritos Locos Tacos which continues to drive strong growth at Taco Bell. Ruffles delivered mid, single-digit sales growth supported by incremental sales from Ruffles Ultimate, which continues to gain distribution during ramp up with strong retail activation surrounding the launch. “In our Frito-Lay growth ventures business, which is focused on incubating new ucts, premium and value products, uarrevenue grew 13% in the quars ter led by double-digit gains in od Stacy’s and our smart food platform.” One strategy for improvement within FritoLay has been to grow the business at the value and premium ends of the marketplace. e “We were looking for the right model to compete against the value segment of the business and the premium segment,” she said. “The premium segment we started to compete with our s growth ventures s business and that’s l. doing very well. all Again, off of a small ng base, but it’s doing July 31, 2012 FOODBUSINESS NEWS ® 11

Table of Contents for the Digital Edition of Food Business News - July 31, 2012

Food Business News - July 31, 2012
Slowing global economy pressures McDonald’s net
Big changes may be looming for Dole Food Co.
Drought effects go well beyond corn, soybean crops
Table of Contents
Web Contents
Editorial - Global food parallels oil refining
Investments help drive earnings gain at Hershey
Prepared foods market to reach $32.45 billion in 2012
PepsiCo earnings fall on restructuring costs
Private investment group to buy Peet’s Coffee for $1 billion
Sales of Fairtrade-certified products grow 12%
Annie’s earnings climb 18% in first quarter
Food and beverage C.P.I. up 0.1% in June
Nestle Health Science acquires stake in medical foods company
Starbucks breaks ground on $172 million facility
Cal-Maine to buy egg production assets
Emmi Roth expanding in Wisconsin
B&G profit rises behind Culver Specialty business
Paramount Citrus acquires Healds Valley Farms
Washington - Government takes steps to aid drought-stricken farmers and ranchers
Ingredion: More than a catchy name
Ingredient Innovations - The next step in sodium reduction
Health and Wellness - Trans fats in review
Industry Images - Images from the I.F.T.
New Food Products
Supplier Innovations and News
Ingredient Market Trends
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - July 31, 2012