Food Business News - October 23, 2012 - (Page 49)

BEVERAGEBUSINESSNEWS Old Orchard debuts frozen sweet tea line October 23, 2012 Looking for a SPARTA, MICH. – Old Orchard Brands is introducing a sweet tea in frozen concentrate form. The product is available in two varieties: southern style and half and half. The company said the new line of teas fills a niche in the tea segment by providing consumers with a fresh-when-you-make-it option that costs less than 25c per serving. In addition, the frozen concentrate packaging provides a more environmentallyfriendly option when compared to traditional bottled packaging, according to Old Orchard Brands. “The Old Orchard premise has always been about great-tasting juice blends that offer families affordable, nutritious options for meal planning and snack time,” said Mark Saur, president of Old Orchard Brands. “We are committed to the frozen juice category, and we believe these sweet teas represent the kind of innovation that keeps the frozen juice category relevant to today’s consumer.” The new product is available in 12-oz cans and has a suggested retail price of $1.49 per package. BBN A Red Bull to add fruit-flavored energy drinks NEW YORK — Red Bull will expand its energy drink line next year with the addition of three fruit flavors: cranberry, lime and blueberry. It will mark the first time the beverage has been offered in flavors. The company said the drinks will be sold in 8.4-oz cans and four-packs beginning in March 2013. Red Bull already comes in a sugar-free version and a zero-calorie version, which was introduced earlier this year. With 30% of the market in terms of sales volume, Red Bull is the second-largest player in the energy drink market. Monster is No. 1 with 35% and Rockstar is No. 3 with 19%, according to Beverage Digest. CocaCola Co. and PepsiCo each have about 5% of the market. BBN difficult third quarter at PepsiCo, Inc., particularly the company’s Americas Beverages business, makes clear why the company is intently focused on improving results in what is the largest division at the company in its current reporting structure. By most measures, Pepsi Americas Beverages was the worst performing unit at PepsiCo during the quarter ended Sept. 8. Volume for the segment fell 3%, while the remainder of PepsiCo’s divisions achieved positive volume growth, save Europe, off 1%. Net revenue, down 6% on a core basis, was worse than five of the six other segments. Core operating profit, down 15%, underperformed every other PepsiCo segment — Frito-Lay North America, Latin American Foods, Quaker Foods North America, Europe and Asia, Middle East and Africa (AMEA). Overall, operating income for the Americas Beverages division was $837 million in the third quarter ended Sept. 8, while revenues were $5,530 million. The lower operating profit was attributed principally to higher commodity costs as well as elevated advertising and marketing expense. The impact of the higher costs was partly blunted by favorable effective net pricing and savings resulting from productivity initiatives, the company said. Costing the segment 2 percentage points in operating profit performance was a refranchising of the division’s Mexican beverage business. The revenue decline represented a reversal from the second quarter when net revenue was higher, bolstered by strong pricing and good performance in small format and wholesale club channels. At the time, PepsiCo leadership was upbeat about its strategies. “We remain highly disciplined in the Continued on Page 55 Octoebr 23, 2012 FOODBUSINESS NEWS ® 49

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