Food Business News - August 26, 2014 - (Page 10)

Wal-Mart in effort to be even more price competitive Price First and Savings Catcher are two efforts designed to attract more value shoppers Continued from Page 1 are feeling pressure on their budgets, we have to be at our best," said Doug McMillon, president and chief executive officer of Wal-Mart Stores, Inc., during an Aug. 14 conference call with financial analysts to discuss secondquarter earnings. "That's why it's so important for us to deliver a compelling customer proposition of low prices and quality service for every transaction." Price First is one way in which Wal-Mart Stores, Inc. is adapting to changing consumer needs. Smaller-format stores and e-commerce platforms represent additional areas of focus for the retailer. Challenged by price investments and reduced SNAP benefits, Wal-Mart U.S. reported flat comparable performance for its food business during the second quarter. "Stronger sales in the U.S. businesses would have helped our profit performance in the quarter," Mr. McMillon said. "We can get better operationally, and we will." Turnaround efforts include th the recent announcement of a n new leader for Wal-Mart U.S. G Greg Foran in July was prom moted to president and c.e.o. o of Wal-Mart U.S., succeeding B Bill Simon, who had been i in the role since June 2010 a and will transition out of t the company. Wal-Mart also continues to invest heavily in its ec commerce business, which p posted double-digit growth i in the United States during t the quarter, outpacing the ecommerce market overall. Wal-Mart recently began the roll-out of a global technology platform with streamlined search and navigation functionality that personalizes the user's experience. The company also launched its Savings Catcher program nationwide, which automatically matches competing retailers' prices and delivers a rebate to customers via a mobile app. And an improved checkout process is also on the way, executives said. "Because the lines between digital and physical retail have blurred, we must be nimble to adjust so that we can exceed customer expectations," Mr. McMillon said. For the second quarter ended July 31, net income from continuing operations attributable to Wal-Mart fell 3% to $3,923 million, equal to $1.27 per share on the common stock, which compared with $4,062 million, or $1.25 per share, in the prior-year period, reflecting headwinds from health care costs and incremental labor expenses. Revenues totaled $120,125 million, up 2.8% from $116,830 million. Although Wal-Mart U.S. comparable sales were flat for the quarter, executives said they were encouraged by an improvement over the prior year's string of negative comps as well as an increase in traffic. "While it's early in the quarter, I'm encouraged by a strong start to Q3," Mr. Foran said. "However, we know we're in a challenging retail environment, and it will take some work to continue moving in the right direction. Given that, we expect comp sales to be relatively flat for the 13-week period from Aug. 2 through Oct. 31, 2014." FBN Nestle to implement animal welfare standards VEVEY, SWITZERLAND - Anyone who supplies Nestle with dairy, meat, poultry or eggs will have to meet the company's new animal welfare guidelines. The company has signed an agreement with the non-governmental organization World Animal Protection to develop and implement the standards. Nestle has approximately 7,300 suppliers from whom it buys animal-derived products directly, including milk for its range of yogurts and ice creams, meat for its chilled foods and eggs for 10 FOODBUSINESS NEWS ® its fresh pastry and pasta. "We know that our consumers care about the welfare of farm animals, and we, as a company, are committed to ensuring the highest possible levels of farm animal welfare across our global supply chain," said Benjamin Ware, the company's manager of responsible sourcing. Examples of the new standards include spacing requirements for the housing of pigs or cows to ensure they are not living in a cramped environment or unable to engage in normal animal behavior. The company also is working to ensure the pain felt by animals is minimized by employing veterinary practices that reduce pain. Nestle has commissioned an independent auditor, SGS, to carry out checks to ensure the new standards of animal welfare are met on its supplying farms. In 2014, several hundred farm assessments already have been conducted worldwide. Some of the checks were also attended, unannounced, by World Animal Protection representatives whose role is to verify the auditors. When a violation is identified, Nestle said it will work with the supplier to improve the treatment of farm animals to ensure they meet the required standards. If, despite engagement and guidance from Nestle, the company is unable or unwilling to show improvement, it will no longer supply Nestle, according to the company. FBN August 26, 2014

Table of Contents for the Digital Edition of Food Business News - August 26, 2014

Food Business News - August 26, 2014
Wal-Mart in effort to be even more price competitive
Coca-Cola Co., Monster Beverage enter energy drink deal
Beverage Business News - Blending innovation in the juice segment
Table of Contents
Web Contents
Editorial - Social progress tied to diet
Wal-Mart in effort to be even more price competitive
Nestle to implement animal welfare standards
TreeHouse ahead on Keurig 2.0 product
Kraft, McDonald’s going forward with McCafé partnership
Gary Rodkin to retire from ConAgra Foods
Pinnacle Foods moving past Hillshire ‘distraction’
Displays, distribution propel Hostess cakes, rival says
Popcorn has global possibilities
TreeHouse Foods eyeing private label organic, natural category
Big Lots ramps up food offerings
Market Insight - Beef's simmering troubles
Washington - Transportation proposal under scrutiny
Ingredient Innovations - Rallying around omega-3
Oil blend with omega-3s offers stability
Health and Wellness - Better living through nutrition
New Food Products
Ingredient Market Trends - Canadian crop forecasts at ‘more normal levels’
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - August 26, 2014