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

Hershey has big plans in nuts and fruits HERSHEY, PA. — A key component of The Hershey Co.’s strategy in fiscal 2013 is the introduction of Brookside Foods products to a broader audience in North America. Hershey acquired Brookside Foods in December 2011. The business unit is a manufacturer of chocolate covered nuts and dried fruit. “We continue to feel very good about the direction of our core U.S. business as we are bringing innovative news, variety and excitement to the category,” said J.P. Bilbrey, president and chief executive officer, in a conference call with securities analysts on Jan. 31. “I’m also excited about the broader launch of the Brookside products into the FDMx channels. Brookside has increased sales at a compound annual growth rate of about 20% over the last several years. With our additional manufacturing capacity now on-line, Brookside 2013 net sales growth will exceed this historical CAGR. “Three s.k.u.s (stock-keeping units) and a stand-up 7-oz re-sealable pouch began shipping to retailers a few weeks ago. Our research indicates strong appeal among many of the consumers identified within our confectionery demand landscape. Therefore, we believe Brookside will attract new consumers to the confectionery category by focusing on unmet consumer needs.” At the time The Hershey Co. acquired Brookside Foods, the business unit’s products were available nationally across Canada and in Costco stores in the United States. “We would expect it to really be in all the channels where our products are today with the exception early on of convenience, where we haven’t yet built up the packaging we think will be appropriate,” Mr. Bilbrey said. “Although we certainly plan to do that because we think it’s a great on-the-go product (and) you would expect it to look very similar to the balance of our line in 2013 and beyond.” Hershey plans to put significant marketing muscle behind the Brookside brand in 2013. It has increased its advertising and promotion budget 20% compared to fiscal 2012. “A lot of the increases you’re seeing is because Brookside is a big brand and it’s now going to be advertised,” Mr. Bilbrey said. FBN American Licorice Co. to expand in Indiana LA PORTE, IND. — The American Licorice Co., maker of the Red Vines, GrapeVines and Sour Punch licorice brands, plans to renovate its plant in La Porte. The Bend, Ore.-based, company will invest $10 million in the project, and the expansion will include installing a licorice production line and adding a rail spur to allow for the receiving of ingredients by rail. The renovations are expected to be completed by 2015. “American Licorice has been making 12 FOODBUSINESS NEWS ® candy for the past 99 years, and we look to sustain that momentum for many more,” said John Kretchmer, chief executive officer of American Licorice. “Indiana’s centralized location within the United States and its business friendly climate at the state and local levels were both contributing factors in our decision to grow at our La Porte facility.” The company also has a production facility in Union City, Calif. FBN Unilever to close spreads plant in Atlanta ENGLEWOOD CLIFFS, N.J. – Unilever announced it will close its spreads factory in Atlanta on June 30 to address spare capacity among the company’s other U.S.-based spreads plants. The decision affects 125 employees at the Atlanta factory, where Country Crock, Imperial, and I Can’t Believe It’s Not Butter products are manufactured. After a string of divestures that included its frozen meal brands to ConAgra Foods, Inc., and Skippy peanut butter to Hormel Food Corp., London-based Unilever P.L.C.’s food business has been reduced to three core activities: margarine, dressings and savory. Unilever’s margarine business struggled in last year’s third quarter due to competition from butter, said Paul Polman, chief executive officer for Unilever P.L.C., in a Jan. 23 conference call with analysts to discuss full-year results for fiscal 2012. “We found ourselves in a very unique situation that the butter prices were cheaper, although obviously a significantly less healthy product,” Mr. Polman said. “We have put the price equation right again. … And as a result of that, we see increasingly our business growing share there, in a market though, I want to reiterate once more, that is not growing to the extent that some of our other markets are growing.” Mr. Polman said the company continues “to shed the non-core and margin-dilutive parts of the (food) portfolio and will continue to do so.” Unilever employs about 11,000 people in the United States and generated more than $9 billion in sales in 2012. 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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