Food Business News - August 26, 2014 - (Page 12)

TreeHouse ahead on Keurig 2.0 product OAK BROOK, ILL. - Sam Reed, chairman, chief executive officer and president of TreeHouse Foods, declared Aug. 7 that his company has developed an unlicensed single-serve coffee pod that is compatible with Keurig Green Mountain's 2.0 system that is slated to be introduced later this year. Earlier this year TreeHouse filed a lawsuit against Keurig Green Mountain that claimed the 2.0 system is anticompetitive. "Five weeks ago, shortly after the Fourth of July holiday, we declared our coffee independence to our customers in successfully developing prototype single-serve cups that are 2.0 compatible," Mr. Reed said during a conference call to discuss TreeHouse's second-quarter earnings. "This is only the latest in a series of advances that mark our consistent private label leadership in this burgeoning category. "We have now initiated commercialization of our prototypes and will convert them to scale production for retail distribution before year's end. This massive undertaking involving more than 300 s.k.u.s. (stock-keeping units) is yet another example of the close cooperation between our grocery customers, their custom products and our unmatched commitment to their private labels." In a conference call with financial analysts on Aug. 6, Brian Kelley, president and c.e.o. of Keurig Green Mountain, said he would not comment on unlicensed manufacturers developing singleserve pods that work with the 2.0 system. "The 2.0 interactive technology, we're confident in the proprietary nature," he said. "We're confident in its performance, and we are confident that the Keurig designed and produced beverages will be the ones that work in the Keurig 2.0 brewer. "It's the Keurig 2.0 brewer that will allow us to perform consistently. We're not going to comment on the rumors. We've seen them and heard them as well. We know the market is competitive. But we're very, very confident in the interactive technology we have and we'll stick with that." An obvious question is if Keurig Green Mountain will take legal action to prevent TreeHouse from selling unlicensed 2.0 compatible pods, but Dennis Riordan, chief financial officer of TreeHouse Foods, said the company has past experience with such issues. "I think we've got a great history here of having introduced products that are compatible, national brand equivalent products that don't overstep the line of - the legal lines," he said. "We did that with our original coffee products, and we will do that with this as well. So that is not something that is going to change our strategy because we think we do an excellent job of making sure we run clearly within the right legal framework to introduce these products and that will be the same with this one." FBN Kraft, McDonald's going forward with McCafé partnership OAK BROOK, ILL. - After a successful test, McDonald's Corp. and the Kraft Foods Group are going ahead with plans to bring McCafé coffee to the retail marketplace. The products, which will be available in ground, whole bean and single-serve applications, will be available starting in 2015. "We understand there is huge demand for at-home options, and we've built great success with our McCafé coffee in restaurants," said Greg Watson, senior vice-president of McDonald's U.S. menu innovation. "We have always been committed to serving 12 FOODBUSINESS NEWS ® delicious, high quality beverages at a value, and we're happy to provide consumers another great way to enjoy McDonald's McCafé coffees." The ground and whole bean product formats will be available in several varieties, including premium, breakfast blend, French roast, premium decaf, French vanilla, hazelnut and French roast whole bean. The single-serve varieties will be available in premium, French roast and premium decaf. "In a competitive category that is growing rapidly and changing every day, this new partnership with McDonald's represents a whole new era in the world of at-home premium coffee," said Nina Barton, vice-president of coffee for Kraft Foods. "This partnership will allow us to leverage each company's best-in-class capabilities, putting us in a prime position to drive further category growth and deliver one of America's largest, fastestgrowing coffee brands to coffee lovers nationwide." 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