Food Business News - June 18, 2013 - (Page 12)

Smucker exits bulk coffee, remains bullish on K-Cups ORRVILLE, OHIO — When it comes to coffee, bigger isn’t always better. The J.M. Smucker Co. is backing away from bulk coffee while remaining full steam ahead on its K-Cup business. “Consumer preference in premium coffee continues to shift away from the bulk segment,” said Vince Byrd, president and chief operating officer, during a June 6 call with financial analysts to discuss fiscal 2013 earnings. “Accordingly, we have decided to exit our bulk coffee business by the end of the fiscal year.” While bulk coffee, which primarily consists of ground coffee products sold in bulk packaging, contributed a weak $25 million in sales during the year, K-Cups brewed up $290 million — slightly short of the company’s expectations, but still the segment powerhouse. “While as expected the growth rate has slowed, we remain bullish on K-Cups,” Mr. Byrd said. “New users continue to enter the category, and our relationship with Green Mountain Coffee remains strong.” Smucker plans to launch two new K-Cup varieties during fiscal 2014, in addition to expanding its premium offerings with a Dunkin’ Donuts Bakery Series and a sustainable line under the Life is good brand. In the food service channel, Smucker is introducing Folgers liquid coffee in place of the Douwe Egberts brand it had acquired in 2011 with its purchase of the Sara Lee Corp.’s North American food service coffee and hot beverage business. “Although a well-recognized and a great brand in much of Europe and other parts of the world, (Douwe Egberts) is unrecognized in North America,” said Steve Oakland, president of the International, Food Service and Natural Foods division. “So, we’re very excited about putting the Folgers brand on it. And that allows us to take that product, the highvolume coffee outlets where it’ll be front of house, where consumers will see the piece of equipment. So, we think that opens up a whole new realm of opportunities for us.” As a testament to the strength of its coffee business, Smucker invested $70 million to expa its two New Orleans coffee facilities durpand in the year. The company also began fruit ing s spreads operation at its new Orville-based m manufacturing plant, where 80% of anticip pated volume is currently produced with pl plans to transition completely by the end of th calendar year. the For the year ended April 30, Smucker’s U.S. Re Retail Coffee segment had profit of $607.5 m million, up 12% from $543 million during the pr previous year. Sales for the segment were $2 $2,306.5 million, up slightly from $2,297.7 millio during the previous year. FBN lion C.e.o. in unsolicited takeover bid for Dole WESTLAKE VILLAGE, CALIF. — David H. said it will consider the unsolicited Murdock, chairman and chief executive offi- proposal and its implications for the comcer of Dole Food Company, Inc., has offered pany and its stockholders. to acquire all outstanding shares of With 2012 revenues from conthe company’s common stock for tinuing operations of $4.2 billion, $12 per share in cash. Dole is one of the world’s largest Mr. Murdock currently has about a producers and marketers of fresh 39.5% stake in Dole Food Co., which fruit and vegetables. has about 89.5 million outstanding After closing at $10.20 per share shares, according to FactSet. The on June 10, pre-market trading for offer is valued at approximately $1.5 Dole shares was up nearly 22% on billion. June 11 following the announceDole’s board of directors Murdock ment. FBN 12 FOODBUSINESS NEWS ® Heinz acquisition completed, new c.e.o. takes over PITTSBURGH — H.J. Heinz Co. has announced the completion of its acquisition by Berkshire Hathaway and 3G Capital. The transaction, valued at $28 billion, including the assumption of outstanding debt, was first announced on Feb. 14. A majority of shareholders approved the acquisition on April 30. Bernardo Hees has become the chief executive officer of Heinz. Mr. Hees was previously c.e.o. of Burger King Worldwide, Inc. and he has been c.e.o. of America Latina Logistica, Latin America’s largest railroad and logistics company. “I am honored today to Hees become Heinz’s seventh c.e.o. in the company’s renowned 144-year history,” Mr. Hees said. “I look forward to building upon Heinz’s incredible platform and delivering worldclass products for all of our consumers around the world, while maintaining the company’s unwavering commitment to quality, safety and superior customer service.” Mr. Hees replaces William R. Johnson, who has retired from his position as Heinz’s chairman, president and c.e.o. after 31 years with the company. He will serve as a part-time adviser to Mr. Hees. Paulo Basilio, a partner at 3G Capital, has become chief financial officer. He previously was c.e.o. of America Latina Logistica. 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