Food Business News - October 23, 2012 - (Page 30)

JBS USA has option to acquire XL Foods Following XL Foods facility closure due to recall, JBS to take over facility GREELEY, COLO. — JBS USA, one of North America’s largest animal protein processors, has entered into an agreement to manage the operations of XL Foods’ Lakeside beef processing plant in Brooks, Alta. As part of the agreement, JBS USA has the option to purchase the Canadian and U.S. operations of XL Foods. XL Foods’ agreement with JBS comes at a time when XL Foods is under pressure following the recall of beef products manufactured at the Brooks facility that may be contaminated with E. coli O157:H7. In early September, the Canadian Food Inspection Agency (C.F.I.A.) identified a positive E. coli O157:H7 sample of raw beef trimmings produced at the Alberta plant. The company did not initiate a recall at that time because it was determined none of the contaminated product had reached the market. By mid-September it was determined contaminated product manufactured at the facility had reached the market and was associated with ill i C d d h U i dS illnesses in Canada and the United States. On Sept. 27, the C.F.I.A. temporarily suspended XL Foods’ license to operate the Brooks facility. The inspection agency determined food safety controls h f ili d at the facility were not adequate. On Oct. 11 the facility resumed processing meat products under “intensified inspection and sampling activities,” according to the C.F.I.A., and no products were allowed to enter the market place. Financial pressures from the recall led XL Foods to lay off 2,000 employees who work at the facility on Oct. 13. Eight hundred workers were called back to the plant three days later to finish processing beef carcasses for a C.F.I.A. assessment of operations at the facility. The workers then were laid off the following day. Part of JBS’s agreement to take over the Brookside facility is the option to buy XL Foods, which includes the Brookside beef packing plant; a beef packing plant in Calgary, Alta.; a feedlot in Brooks, Alta.; a beef packing plant in Omaha, Neb.; and a beef packing plant in Nampa, Idaho. If JBS exercises its option to acquire XL Foods, it will pay $50 million in cash and $50 million in JBS S.A. shares, the Sao Paulo, Brazil, parent company of JBS USA. In addition, JBS USA said it would assume none of XL Foods’ debt or liabilities. “Today, JBS USA expands its North American operations through an agreement with Canada’s XL Foods, one of Canada’s largest producers of beef and related products,” said Bill Rupp, president and chief operating officer of JBS USA Beef. “As the world’s largest producer of animal protein, we know full well the commitment it takes to manage world-class operations that produce safe and nutritious products for consumers around the world to enjoy. We believe our experienced team will prove an invaluable asset in the management of XL Lakeside and we look forward to exploring our options to purchase XL assets in the near future.” FBN 30 FOODBUSINESS NEWS ® October 23, 2012

Table of Contents for the Digital Edition of Food Business News - October 23, 2012

Food Business News - October 23, 2012
Private label penetration forecast to grow in U.S.
Softer demand slows rate of Nestle sales growth
Drought’s impact becomes clearer
Table of Contents
Web Contents
Editorial - Food issues dampened before election
Culver acquisition boosts B&G third-quarter income
Foreign exchange rate cuts into McDonald’s earnings
Structural changes cut into PepsiCo sales in third quarter
Legislation proposed to track antibiotic use on farms
Dean Foods posts preliminary WhiteWave-Alpro results
California poultry processor files for Chapter 11 protection
Peapod testing virtual grocery stores in the Northeast
Shell egg prices push Cal-Maine income up sharply
ConAgra to close pork processing plant
Cereal Partners Worldwide to reduce sugar, sodium
Frozen food sales projected to remain sluggish
New food safety effort targets consumers
ConAgra Foods looks to heighten focus on nutrition addition
Cholesterol profile of U.S. adults improving
Food and beverage C.P.I. increases in September
Strong China results boost Yum! earnings
Global Greek yogurt introductions accelerate
Sunland recall reverberates throughout the industry
JBS USA has option to acquire XL Foods
Washington - F.D.A. issues guidance for food facility registration
Sports Nutrition - Broadening the appeal for sports nutrition products
Ingredient Innovations - Ushering in the next generation
Convenience Store Trends - On-the-go gourmet
Beverage Business News - Looking for a Pepsi rebound
Old Orchard debuts frozen sweet tea line
Red Bull to add fruit-flavored energy drinks
Lawsuit takes aim at New York’s 16-oz beverage rule
Coca-Cola profit climbs on volume growth
Beverage industry embraces calorie counts on vending machines
Journal report links sugary beverages to obesity
Tingyi partnership poised for flight
Beverage still tops at Pepsi...barely
Beverage Trends - An (energy) shot in the arm
New Food Products
Ingredient Market Trends - CME Group to acquire the K.C.B.T
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 23, 2012