Food Business News - June 18, 2013 - (Page 10)

Diamond Foods challenged by walnut supply and Emerald relaunch Continued from Page 1 impactful brand-positioning approach, new packaging, new offerings and a pricing architecture that is not discounting-dependent, we are gearing up for a relaunch this summer,” said Brian Driscoll, president and chief executive officer. “It is difficult to predict the timing of Emerald change in trajectory; however, we have now lapped most of the significant promotional spending and will begin cycling our s.k.u. reduction work in November. All told, while challenges remain, we believe the Emerald relaunch is promising.” The Emerald brand strategy is part of a larger business improvement process to revitalize the company following an accounting scandal that led to the ouster of its chief executive officer and the restatement of earnings for a period covering more than two years. An earlier focus on driving growth in the Emerald nuts business through heavy promotional spending and s.k.u. proliferation “significantly impacted the financial contribution of the brand,” Mr. Driscoll said in November, when the company revealed plans to eliminate more than 170 Emerald s.k.u.s, which represent about 65% of the brand’s total s.k.u.s and about 20% of the brand’s revenue. With regards to its walnut supply, Diamond Foods expects to continue its contracting process with growers through the end of July. “We are seeing positive signs from the grower community, but it is difficult at this stage to determine if these positive sentiments will translate into an increase in supply in the short term,” Mr. Driscoll said. “That said, the work we have done to provide contract terms, services and pricing to growers that are competitive with alternatives they may have appears to be resonating. … As I’ve indicated before, it will take time to rebuild our position, but doing so can produce attractive long-term economic benefits to Diamond.” Improving its supply position would poise Diamond Foods to develop product innovations outside of its core culinary line. Cost savings initiatives have allowed the company to invest more in research and development, but Diamond’s “new product pipeline is not ready for prime time yet,” Mr. Driscoll said. For its Kettle brand, the company will release new varieties in August with plans for more robust innovation in fiscal 2014. “We will continue to refresh the line, which is what this flavor variety innovation does,” Mr. Driscoll said. “And, believe that the steps we’re taking will begin to set the brand in the direction we wanted to go in as we prepare for a launch of bigger and better things in the back half of the year.” FBN Flavored milk to grow at double the rate of white milk LAUSANNE, SWITZERLAND — Global consumption of flavored milk is expected to grow at double the rate of white milk between 2012 and 2015, according to Tetra Pak. Flavored milk is the second most widely consumed liquid dairy product after white milk, and consumption is expected to increase at a compound annual rate of 4.1% between 2012 and 2015, increasing to 19.2 billion liters from 17 billion liters. Tetra Pak said developing countries are especially driving the demand with 7 of the world’s top 10 flavored milk markets being developing countries. Overall, consumption is being driven by the desire for nutritious and 10 FOODBUSINESS NEWS ® healthy food, the “on-the-go” convenience of some of the products, consumer desire to try new beverages and consumer desire for “indulgent” foods and beverages. “With white milk increasingly commoditized, flavored milk offers dairies the opportunity to provide value not only to consumers but to their bottom line,” said Dennis Jonsson, president and chief executive officer of Tetra Pak Group. “With the right flavors, portion sizing and formulations, flavored milk can meet a huge range of health, nutritional and lifestyle needs.” Flavored milk consumption is still well below that of other beverages, but the growth rate is expected to be more than triple that of carbonated soft drinks from 2012 to 2015. FBN June 18, 2013

Table of Contents for the Digital Edition of Food Business News - June 18, 2013

Food Business News - June 18, 2013
Diamond Foods challenged by walnut supply and Emerald relaunch
Market Insight: Mid-year commodity outlook
Fruitful ice cream options
Table of Contents
Web Contents
Editorial - Proposed SNAP cuts will be felt throughout the food sector
Flavored milk to grow at double the rate of white milk
Smucker exits bulk coffee, remains bullish on K-Cups
C.e.o. in unsolicited takeover bid for Dole
Heinz acquisition completed, new c.e.o. takes over
Mondelez to offer coffee pods compatible with rival’s system
Tyson Foods expands prepared foods portfolio with acquisition
Nielsen honors Breakthrough Innovation winners
Taco Bell taking charge of breakfast
Expanded breakfast helps lift McDonald’s May sales
McCormick & Company sees growth ahead from innovation and acquisitions
Wal-Mart doubles-down on fresh produce promise
Morningstar buy may be just the beginning for Saputo
Target delves deeper into organics
PepsiCo hires chief marketing officer
Wenner sees winner in Pirate Brands acquisition
Single-serve coffee' harbinger of things to come at TreeHouse'
Washington - Senate passes farm bill, stage set for debate over SNAP cuts
Sports Nutrition - Improved performance
Ingredient Innovations - Diverse Dynamos for Digestion
I.F.T. to convene in Chicago
New Food Products
Ingredient Market Trends - Imports from Mexico send U.S. sugar stocks to record highs
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 18, 2013