Food Business News - February 11, 2014 - (Page 21)

Hershey seeks to set new bar in spreads HERSHEY, PA. - The Hershey Co. hopes to unwrap new opportunities in the $3.4 billion spreads category with its latest product line. Launched in mid-January, the Hershey's Spreads line includes chocolate, chocolate with hazelnut, and chocolate with almond varieties packaged in 13-oz jars. "(The category of) spreads includes peanut butter, marmalades and other kinds of things," said J.P. Bilbrey, president and chief executive officer, during a Jan. 30 earnings call with financial analysts. "And the fastest growing subsegment of that are really chocolate spreads. So, we looked for unmet needs, and one of the unmet needs, not only in the fast-growing category, was that it was primarily a breakfast occasion. And, as we believe we can bring great chocolate credentials to that space, we are also looking at a different variety of day parts than what was happening." The product is positioned as a "snack enhancer" to be served with fruit, vegetables, pretzels, rice cakes and other between-meal bites. To-go portion packs with graham cracker sticks are set for a 2014 launch. "So, these could be used on apples, bananas, fruits - it's almost endless," Mr. Bilbrey said. "It could be on traditional bread at breakfast occasions, but it makes for a great-tasting and a way to get also healthy snacking throughout the day. ... And what is great for us is this is really incremental. It's not cannibalistic to what we do already." Hershey identified another unmet niche when it bought the Brookside brand of dark chocolate candies at the end of 2011. "Brookside ... satisfies a need that really wasn't there," Mr. Bilbrey said. "It has a package that lends itself to portion control, as well as on-the-go and hand-to-mouth." This year, Hershey is expanding the brand with a crunchy cluster variety. Other upcoming launches from Hershey include York Minis, which are unwrapped, bite-size peppermint patties; Lancaster Soft Crèmes caramels, featuring caramel, caramel and vanilla, and raspberry flavors; and new packaging options for its hand-tomouth products, including an instant consumable flex pack that fits in a cup holder. "And a yet-to-be-announced new product that we are very excited about," Mr. Bilbrey added but declined to provide more details. Hershey's approach of "fewer, bigger, better" launches is driven by consumer-centric demand, as well as whether the company identifies opportunities to participate in a given category, as it did with spreads. For the year ended Dec. 31, 2013, Hershey's net income increased 24% to $820,470,000, equal to $3.76 per share on the common stock, up from $660,931,000, or $3.01 per share, in 2012. Net sales advanced 8% to $7,146,079,000 from $6,644,252,000 the year before. Fourth-quarter income climbed 24% to $186,075,000, or 85c per share, up from $149,879,000, or 69c per share, in the prioryear period. Net sales for the quarter rose 12% to $1,956,253,000 from $1,751,035,000 during last year's fourth quarter, led by core brand volume growth and new products. Looking ahead, the company expects its net sales in 2014 to grow 5% to 7%, driven primarily by core brand volume growth and innovation. Hershey is targeting adjusted diluted earnings per share growth of 9% to 11% for the full year. Plans in 2014 will focus on targeted growth initiatives in key global markets, new product launches in both the U.S. and international regions, and continued support of core brands. Hershey expects its December agreement to acquire 80% of Shanghai Golden Monkey Food Joint Stock Co., Ltd., a Shanghai, China-based privately held confectionery company, to further accelerate the company's scale and geographic footprint in the market. FBN We make your brands a little more Honey Molasses Brown Sugar Powdered Sugar Granulated Sugar Where Quality Comes Naturally 9501 Southview Avenue Brookfield IL 60513 888-SUGAR-99 SweetenerSupply.com February 11, 2014 FOODBUSINESS NEWS ® 21 http://www.SweetenerSupply.com

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
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - February 11, 2014

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