Food Business News - February 12, 2013 - (Page 10)

General Mills settles Yo-Plus lawsuit MINNEAPOLIS — General Mills, Inc. c. has agreed to pay $8.5 million to settle a class action lawsuit accusing the Minneapolis-based company of falsely advertising the digestive health benefits of its Yo-Plus probiotic yogurt. General Mills no longer sells Yo-Plus. The class action complaint alleged General Mills had no scientific support for Yo-Plus digestive health advertising claims and that alleged misleading advertising messages allowed General Mills to charge up to a 44% price premium for Yo-Plus over Yoplait Original brand yogurt. h As part of the settlement, consumers who purchased Yo-Plus in the United States between July 26, 2007, and July 5, 2012, will be entitled to $4 each for each unit they purchased, up to 13 units. Any unclaimed funds from the $8.5 million class action lawsuit settlement will be distributed to the National Consumer Law Center and the Mayo Clinic, which will support Mayo’s nationwide public education efforts around nutrition and gastrointestinal health. “Considering the strengths and weakness of this case, including the amount of potential damages available to the class after trial here and in other jurisdictions around the United States, the settlement represents an excellent result and i l d relief f purchasers of Y Pl on a nationh f YoPlus ti includes li f for wide basis,” the plaintiffs said in a motion to approve the settlement. “Had the plaintiffs in the various jurisdictions tried these cases to obtain results nationwide, the damages could have been about $35 million based on one viable measure of relief.” The plaintiffs noted in the motion that some consumers would receive more in return than they initially paid for the yogurt under the proposed class action settlement agreement. Responding to the settlement, General Mills said, “We stand behind our products and the accuracy of our label — and we disagreed with plaintiffs on the merit of this case. But we agreed to resolve the matter to avoid further litigation.” FBN Green Mountain Coffee sees single-serve pack sales rise 21% in first quarter WATERBURY, VT. — Sales of single-serve packs of coffee rose 21% during the first quarter of fiscal 2013 for Green Mountain Coffee Roasters. The single-serve sales increase supported the company’s net income of $107,583,000 in the quarter ended Dec. 29, 2012, equal to 72c per share on the common stock, and a slight increase compared with the first quarter of fiscal 2012, when net income was $104,414,000, or 67c per share. Sales for the quarter were $1,339,059,000, which compared with $1,158,216,000 during the previous year. The company said the increase in single-serve pack sales was driven by a 26% increase in sales volume that was offset by a 4% decrease due to single-serve pack product mix and a 1% decrease due to net price realization. “The Keurig Single Cup brewing system is a powerful breakthrough for the beverage business, with significant untapped potential in the U.S. and globally,” said Brian P. Kelley, president and chief executive officer. “We are in the early days of a marked evolution in how consumers purchase, 10 FOODBUSINESS NEWS ® prepare and customize hot beverages in their homes. With a robust innovation pipeline and a growing awareness and commitment to the Keurig brand, G.M.C.R. is well positioned to continue to lead this disruptive shift in consumer behavior.” There were a total of 4.95 million Keurig brewers sold during the quarter, an 18% increase compared with the previous year. Sales for G.M.C.R.’s Brewers and Accessories business unit rose 14% during the quarter, from $330.4 million during the first quarter of fiscal 2012 to $377.3 million during the same quarter of fiscal 2013. “For the remainder of the year, we expect to see continued year-over-year gross margin improvement due to lower green coffee costs and ongoing brewer quality improvements,” Mr. Kelley said. “While we expect growth will continue to moderate in the overall total coffee and espresso maker category, we also expect our share of the category to continue to increase driving further expansion of our installed Keurig brewer base. Consistent with our previous outlook, we estimate total fiscal year 2013 net sales growth in the range of 15% to 20% over fiscal year 2012.” FBN Soren Schroder named next c.e.o. of Bunge Ltd. WHITE PLAINS, N.Y. — Bunge Ltd. has announced Alberto Weisser will retire as chief executive officer, effective June 1, and Soren Schroder, c.e.o. of Bunge North America, will assume the role. “Alberto has guided Bunge through one of the most significant and successful eras in its nearly 200year history,” said L. Patrick Lupo, deputy chairman and lead independent director. Mr. Weisser has been with Bunge since 1993 and was named c.e.o. in January Schroder 1999. Mr. Schroder currently heads business operations in the United States, Canada and Mexico and previously held several agribusiness leadership roles in the company. Before his time with Bunge, he worked for Continental Grain and Cargill. “Soren is a proven leader and has been instrumental to Bunge’s growth and success since he joined the company in 2000,” Mr. Weisser said.  “He helped build our global agribusiness marketing and trading operation, developed our agribusiness franchise in Europe and the Middle East, and as c.e.o. of Bunge North America since 2010, has managed our complete value chain, including agribusiness, edible oils and milling, in a key region. In addition to an excellent track record as a commercial and operational manager, Soren possesses unparalleled industry expertise, market insight and understanding of our customers’ needs.” FBN February 12, 2013

Table of Contents for the Digital Edition of Food Business News - February 12, 2013

Food Business News - February 12, 2013
China problems may challenge Yum! Brands in 2013
Tyson Foods sees chicken demand rising
Kellogg frozen foods business on the fast track
Table of Contents
Web Contents
Editorial - Starbucks is redefining brand loyalty
General Mills settles Yo-Plus lawsuit
Green Mountain Coffee sees single-serve pack sales rise 21% in first quarter
Soren Schroder named next c.e.o. of Bunge Ltd
New Mexico legislature blocks bioengineering labeling bill
Pork prices may be volatile in 2013
Kraft Foods fills newly-created marketing post
Hershey has big plans in nuts and fruits
American Licorice Co. to expand in Indiana
Unilever to close spreads plant in Atlanta
Greek yogurt may be going to school
Frito-Lay to launch Taco Bell-inspired Doritos
Kellogg income rises on cost-savings, Pringles acquisition
China problems may challenge Yum! Brands in 2013
Juice, baking business come into focus for Starbucks
New product pipelines pump up protein
Washington - 'Smart snack' guidelines get favorable reviews
Market Insight - Per capita calories rise on added fats
Beverage Trends - Oat beverages offer benefits beyond the bowl
Ingredient Innovations - Fiber boosts for whole grain items
Harvard’s approval of 10:1 ratio draws critiques
Correction
Beverage Business News - Nothing to see here
New Food Products
Ingredient Market Trends - Open outcry trading of hard red winter wheat futures to shift to Chicago
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - February 12, 2013

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