Food Business News - February 11, 2014 - (Page 10)

Post to buy PowerBar from Nestle Continued from Page 1 manufacture and market bars, powders and gels in geographies that represent more than 90% of global category sales, according to Euromonitor. PowerBar, the first energy bar created by athletes for athletes nearly 30 years ago, was and was acquired by Nestle in 2000. Musashi is a sports nutrition brand in Australia. Capital has been invested in the PowerBar business over the past seven years, and manufacturing capacity exists in the United States, Germany and Australia to meet projected demand for the next three to five years. Post management believes that PowerBar can continue to capitalize on its high brand recognition with focus and innovation. The PowerBar and Musashi brands will join Premier Nutrition's Premier Protein and Joint Juice brands (which Post agreed to acquire last August) and Dymatize Enterprises' Dymatize and Supreme brands (which Post agreed to acquire last December). The combined portfolio will provide the Active Nutrition Group access to all channels of sales and distribution as well as all leading product forms, including bars, shakes and powders, while expanding its presence worldwide. David Ritterbush, president and chief executive officer of Premier Nutrition, and Greg Venner, president and c.e.o. of Dymatize, will serve as coc.e.o.s of the Active Nutrition Group within Post, reporting to Terence E. Block, president and chief operating officer of Post. "It's truly exciting to continue the transformation of Post and to increase the role active nutrition will play in that transformation," said William P. Stiritz, chairman and chief executive officer of Post. The transaction is expected to be completed in Post's fiscal third quarter, subject to customary closing conditions. Post expects to fund the acquisition with cash on hand. The transactions continue an active acquisition period for Post Holdings over the past year. In December, the company agreed to pay more than $680 million for Golden Boy Foods Ltd. and Dymatize Enterprises, L.L.C. In September, the company agreed to acquire Dakota Growers Pasta Company, Inc. from Viterra, Inc. for $370 million. Dakota Growers Pasta manufactures a full line of dry pastas for retail, food service and food processors, including whole grain and organic items. In August, the company agreed to acquire the Premier Nutrition Corp., Emeryville, Calif., for $180 million. In late May the company acquired the branded and private label cereal, granola and snack assets of Hearthside Food Solutions L.L.C., Downers Grove, Ill., for $158 million, and in January 2013 Post acquired Attune Foods, San Francisco, for an undisclosed amount. For Nestle, the sale continues its trend of shedding businesses that don't fit its focus of dealing with what has become a fast-changing, competitive landscape across geographies and categories. Last November, Nestle sold its Jenny Craig weight management business in North America and Oceania to North Castle Partners L.L.C., a Greenwich, Conn.-based private equity firm. FBN Green Mountain, Coca-Cola form partnership Coca-Cola also is taking a 10% equity stake in the company WATERBURY, VT. - A new beverage battle is brewing. Green Mountain Coffee Roasters and the Coca-Cola Co. on Feb. 5 announced a strategic partnership to develop a new home beverage system called Keurig Cold, a move that suggests the companies are thirsty for SodaStream International's share of the in-home soda making market. In addition to a 10-year agreement to collaborate on the project, Atlanta-based Coca-Cola will purchase a 10% minority equity position in Green Mountain for approximately $1.25 billion. 10 FOODBUSINESS NEWS ® The investment is expected to close in March, subject to customary closing conditions and regulatory approvals. As part of a 10-year agreement, Green Mountain will become the exclusive partner for the production and sale of Coca-Cola branded singleserve, pod-based cold beverages. The companies also will explore additional collaboration opportunities on the Keurig platform. Keurig Cold is expected to debut during Green Mountain's fiscal 2015. With an open-architecture platform similar to Keurig's hot system, Keurig Cold will use single-serve pods to dispense cold beverages, including carbonated drinks, enhanced waters, juice beverages, sports drinks and teas. Coca-Cola, however, will not be the platform's only licensed partner. "In fact, it will work very similar to our hot system, nearly identically," said Brian Kelley, president and chief executive officer of Green Mountain, during a Feb. 5 earnings call with financial analysts. "We'll manufacture and design the brewers and the portion packs. We will partner with the world's best brands and bring them into our system, and we'll collaborate with them to build the Keurig Cold system just like we have the Keurig hot system." For Coca-Cola, the partnership presents a potential revival in its carbonated soft drink business, as trends in individualization and customization begin to redefine the beverage category. "This agreement demonstrates our creative approach to partnerships and ability to identify and stay at the forefront of consumer trends driving the industry," said Muhtar Kent, chairman and c.e.o. of Coca-Cola. FBN February 11, 2014

Table of Contents for the Digital Edition of Food Business News - February 11, 2014

Food Business News - February 11, 2014
Post to buy PowerBar from Nestle
Beverage ingredients in the spotlight
Beef prices are red hot
Table of Contents
Web Contents
Editorial - Cause marketing gaining momentum
Green Mountain, Coca-Cola form partnership
McDonald’s is learning less is more
F.D.A. proposes sanitary food transportation rule
Price increase still planned for Chipotle
Inside Tyson Foods’ prepared foods strategy
Beef, chicken drive gains for Tyson
Meat costs will hinder Hillshire in second half
Meijer to build dairy facility in Ohio
Hershey seeks to set new bar in spreads
Washington - Putting the new farm bill in focus
Health and Wellness - Digesting the additional benefits of gut health
Are designer fibers on the horizon?
Ingredient Innovations - Making cereal more satisfying
More satiety strategies
Beverage Business News - Beverage ingredients in the spotlight
New Food Products
Ingredient Market Trends - Weather woes continue to affect markets
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 11, 2014