Food Business News - July 31, 2012 - (Page 17)

B&G profit rises behind Culver Specialty business New product launches seen as boosting earnings later this year EBITDA guidance, which at the mid-point of the range reflects a 28% increase over fiscal 2011.” In a July 19 conference call with financial analysts, Mr. Wenner said the Culver acquisition has added $45.1 million in net sales, slightly ahead of its previously announced guidance of $88 million for the full year. “Given that new products and new distribution will begin to kick in during the second half, we are hopeful that we will continue to improve on that number by year-end,” Mr. Wenner said. “We are currently launching — working on and launching new products in five of the six Culver brands and should begin launching those products as the second half unfolds.” Looking at the company’s other brands, Mr. Wenner said Ortega has been a “stellar” brand for B&G Foods. “Most of (Ortega’s) growth is coming from mass merchants due to new distributions, but we are holding our own at supermarkets as well despite the soft environment there,” he said. “Cream of Wheat recovered nicely in the quarter after a soft first quarter confirming in our opinion that warm weather affected the brand more than anything else in that quarter. Las Palmas had an unusual decline for the quarter, which we are attributing to retailers on the West coast shifting the format of their stores and temporarily disrupting sales at the retailer level. Consumer trends on the brand remain very strong.” In the conference call Mr. Wenner said cost saving efforts by retailers has slowed new product introductions, because some retailers have extended their product category reviews to 12 months or more. “This is more about changing the set within the section to weed out what is not selling and put in new products that hopefully will sell,” he said. “We have seen retailers not only extend it to 12 months, but extend it s. to well over 12 months. “In the case of the one instance I was citing it was over two years since that category had been reviewed. That is why it took so long to get Cinnabon (Cream of Wheat) into that retailer. I think it is all about the expense of resetting categories. When you have an awful lot of stores it costs an awful lot per store to strip the shelves down and reset them. That expense is slowing people’s inclination down to reset them.” For the six months ended June 30 net income was $32,804,000, or 68c per share, up 27% from $25,904,000, or 54c per share, in the same period a year ago. Net sales totaled $305,951,000, up 17% from $260,858,000. FBN PARSIPPANY, N.J. — Earnings at B&G Foods, Inc. rose 27% in the second quarter while sales in creased 15%, boosted in large part by the Culver Specialty Brands business acquired in November 2011. Net income in the quarter ended June 30 was $16,026,000, equal to 33c per share on the common stock, up from $12,599,000, or 26c per share, in the same period a year ago. Net sales in the second quarter rose to $148,612,000 from $129,453,000. B&G said Culver Specialty Brands contributed $19.5 million in sales during the quarter. Culver, which was acquired from Unilever late last year for about $325 million, includes Mrs. Dash salt-free branded seasoning blends, Molly McButter branded flavored sprinkles, Sugar Twin branded sugar substitute, Bakers Joy branded baking spray and Static Guard branded anti-static spray. B&G Foods said sales increased $1.5 million for its Ortega brand and $600,000 for Cream of Wheat. “The significant increase in our net sales, net income, earnings per share and EBITDA during the second quarter reflect our continued success with the Culver Specialty Brands acquisition and our ability to achieve pricing gains in our base business to offset higher costs and volume weakness for the quarter in certain of our brands,” said David L. Wenner, president and chief executive officer. “We remain confident that we will deliver full-year results within our previously announced Paramount Citrus acquires Healds Valley Farms DELANO, CALIF. — Paramount Citrus, the largest grower of fresh citrus in North America, has acquired Edinburg, Texas-based Healds Valley Farms. Healds Valley accounts for about 50% of Texas’ citrus market. Paramount, which already ships and packs fresh citrus such as Clementine and Afourer mandarins, Navel oranges, Valencia oranges, lemons and limes in North America, now will add Healds Valley’s red grapefruit — the company’s primary product — to its portfolio. Healds Valley will retain its name and workforce, including its management. The only immediate personnel change will be the addition of current vice-president of supply chain for Paramount, Rick Burnes, who will join Healds Valley as general manager. He succeeds Yishai Yeshurun, who will be stepping down. The addition of Healds Valley will allow Paramount to ship more than 15 million cartons of fresh citrus annually to markets across North America, Europe and the Pacific Rim. The citrus fruit will be grown on more than 42,000 acres and processed from facilities in the San Joaquin Valley of California, Mexico and the Rio Grande Valley near McAllen, Texas. FBN July 31, 2012 FOODBUSINESS NEWS ® 17

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