Food Business News - October 7, 2014 - (Page 12)

General Mills to eliminate more jobs Continued from Page 1 and Exchange Commission. "The company will record total restructuring charges of approximately $135 million to $160 million pre-tax, primarily reflecting one-time employee termination benefits, of which approximately $110 million to $135 million will result in future cash expenditures," General Mills noted in the S.E.C. filing. "These restructuring actions are expected to be completed by the end of fiscal 2015. The company expects that these actions will generate annual cost savings of approximately $125 million to $150 million, beginning in fiscal 2016. In fiscal 2015, the company expects that these actions and other efforts to reduce overhead costs will generate approximately $40 million of savings. The estimates included herein are separate from the estimates provided in connection with the Project Century North American supply chain restructuring plans that we previously announced." The job cuts come on top of several workforce reductions that were announced last month when General Mills said it would close a readyto-eat cereal plant in Lodi, Calif., and a yogurt plant in M h Methuen, M Mass. Th closing of The l i f the Lodi plant is expected to result in the loss of 430 jobs, while the Methuen plant closing will eliminate about 250 Hershey acquires Chinese confectionery company HERSHEY, PA. - Hershey Netherlands B.V., a whollyowned subsidiary of The Hershey Co., has completed the initial closing and acquired an 80% stake in Shanghai Golden Monkey Food Joint Stock Co., Ltd. (SGM), a privately held confectionery company based in Shanghai, China, for approximately $394 million. The remaining 20% stake in the business is expected to be acquired by Hershey Netherlands for approximately $98 million at a second closing, which is scheduled to occur on the one-year anniversary of the initial closing. In total, Hershey will pay about $577 million for SGM, which includes net debt of approximately $85 million. Hershey first announced its intent to acquire SGM in December 2013. "This strategic acquisition advances our international growth agenda and builds on our commitment to the China market by providing worldclass, quality products to Chinese consumers," said Humberto P. Alfonso, president of Hershey International. "We will leverage Shanghai Golden Monkey's iconic brands, diverse product portfolio and 12 FOODBUSINESS NEWS ® strong sales force to build on the organic growth we delivered in China over the past several years. Acquiring such an iconic and scalable brand increases our opportunity to drive top-line growth and create value for shareholders over the long term." Hershey has identified China as its No. 1 priority international market for growth. The company has increased its investment in China over the past several years and is one of the fastest growing confection companies in China. Driven primarily by the Hershey's Kisses and Hershey's brands, Hershey net sales in China are expected to be approximately $200 million in 2014, up about 40% from 2013. In 2013, SGM net sales were approximately $205 million, an increase of about 7% versus 2012. Founded in 1996, SGM's brands include Golden Monkey, which includes Golden Monkey candy, chocolates, protein-based products and snack foods. The company's brands are marketed across the country in both cities and rural areas. With the acquisition of SGM, China is expected to become Hershey's second largest market by year-end 2015 with net sales of around $500 million on a constant currency basis. SGM has more than 5,000 employees and operates 10 sales regions supported by 15 sales branches with 130 sales offices throughout China. Hershey said it will work with SGM senior leaders on integration, portfolio transition and development, and distribution synergies that should enable the combined companies to continue to deliver category-leading, double-digit net sales growth in China. The acquisition is not expected to affect Hershey's previously announced adjusted earnings-per-share-diluted outlook for 2014 provided on July 24, 2014. Excluding integration and transition costs, Hershey expects the acquisition to be slightly accretive on an adjusted basis in 2015. FBN j b Th L di and M h d Methuen jobs. The Lodi closings are part of another General Mills' restructuring effort, dubbed Project Century. FBN Sabra Dipping Co. names new c.e.o. NEW YORK - Shali ShalitShoval has been named chief executive officer of the Sabra Dipping Co., a joint venture between The Strauss Group and PepsiCo, Inc. Ms. Shalit-Shoval replaces Ronen Zohar, who is retiring after seven years in the position. Ms. Shalit-Shoval most recently was chief marketing officer for the Sabra brand. Before that, she was the c.e.o. of a joint venture between PepsiCo and Strauss in Israel. The company also announced the opening of its newly expanded manufacturing plant in Chesterfield, Va. The updated plant is expected to double the company's production. Sabra is a manufacturer of refrigerated dips and spreads. The brand currently holds 65% of the refrigerated flavored dips category in the United States, according to the company. FBN October 7, 2014

Table of Contents for the Digital Edition of Food Business News - October 7, 2014

Food Business News - October 7, 2014
General Mills to eliminate more jobs
Sugar prices remain high amid Mexican trade dispute
Dairy Business News - Increasing ice cream sales
Table of Contents
Web Contents
Editorial - Putting millennials in perspective
Mondelez to build biscuit plant in Bahrain
ADM forming new ingredients unit after Wild acquisition
Hershey acquires Chinese confectionery company
Sabra Dipping Co. names new c.e.o.
Restaurant index rises for first time in three months
Snack preferences differ between millennials and boomers
F.D.A. issues ‘food safety challenge’
Kontos Foods expands to Caribbean
Snatching share in the snack market
Starbucks acquiring full control of Japan business
JAB Holding to acquire Einstein Noah Restaurant
Seaboard sells stake in Daily’s Premium Meats
Diamond still in the rough
Chiquita to get larger share of company in revised Fyffes deal
Coke sees $300 billion international opportunity
Small victories add up for ConAgra Foods
Carbonated waters: Tiny bubbles, big splash
Guilty verdicts in Peanut Corporation of America trial
Washington - F.D.A. revises four proposed food safety rules
Flavor Trends - Sophisticated heat
Ingredient Innovations - Spreading and staying stable
Buzz around sustainable palm oil grows louder
The scoop on Baskin-Robbins’ return to growth
New Food Products
Ingredient Market Trends - U.S.D.A. estimates U.S. wheat crop at 2,035 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 7, 2014