Food Business News - February 9, 2016 - (Page 10)

Mondelez expects snack sales to slow Continued from Page 1 Mondelez overcome lower volumes to achieve organic growth of 3.7% for the year. The company posted a net loss in the fourth quarter of $729 million, which compared with net earnings of $500 million, or 30c per share, for the same period of the previous year. Results included a onetime charge of $778 million related to a change in accounting for the company's Venezuelan operations. Adjusted earnings per share rose 20% on a constant-currency basis, the company said. Net revenues for the fourth quarter dropped 17% to $7,364 million from year-ago revenues of $8,830 million, primarily as a result of foreign currency exchange and lost coffee sales. Mondelez said its market share improved as the year progressed, driven by increased advertising and consumer support behind such key brands as Oreo and Chips Ahoy! cookies, Ritz crackers and belVita biscuits. Still, the company's performance fell below global category growth. Executives said the shortfall was related to the impact of strategic actions and price elasticity experienced earlier in the year. Executives said the company plans to continue reducing supply chain and overhead costs in the coming year to mitigate the impact of challenging economic conditions. Near-term headwinds include fragile recoveries in developed markets, recessions in Brazil and Russia, slowing growth in China and volatility in the Middle East and Africa, the company said. Mondelez's stock price fell by as much as 7% on Feb. 3, ending the day at $39.17 from the previous close of $41.95, after the company issued what it called a "prudent" guidance of at least 2% organic revenue growth in the year ahead. The outlook includes the impact of trade optimization and the elimination of less-profitable products. The company also said it estimates global snacks category growth in 2016 to slow to a range of 3% to 4% due to the difficult economic environment. Long term, however, Mondelez said it is well-positioned to succeed in the $1.2 trillion global snacking market. "We are growing essentially in line with our categories in 2016, while we are expanding margins by 200 basis points," said Irene Rosenfeld, chairman and chief executive officer, during a Feb. 3 earnings call with financial analysts. "I think it's our ability to drive top- and bottom-line as one of the things that will continue to distinguish us." In North America, sales for the year grew 1% behind increased brand support and new product launches, including Oreo Thins cookies and belVita Bites biscuits. Ms. Rosenfeld said the company gained share in cookies and crackers in the United States. "We actually feel quite optimistic about the outlook for our snacks in North America," Ms. Rosenfeld said. "We're seeing good progress, as we said, as we exited the year. The growth rate is in excess of the category-growth rate; in fact we are driving it... "And we've got a good innovation pipeline. I think we are well-staged to continue to drive growth in this geography." FBN Survey finds natural labels may mislead consumers YONKERS, N.Y. - No U.S. federal definition exists for natural labeling on food products, but consumers have their own definitions, according to a survey from Consumer Reports. Their criteria for the 10 FOODBUSINESS NEWS ® labels may not match what some products contain. Fifty-one per cent of the survey respondents said they did not think natural labels were verified while 45% said they thought they were and 4% said they were unsure. Sixty-two per cent said they bought food labeled as natural. When consumers were asked what the natural label on packaged/processed foods means, 63% said no toxic pesticides were used, 62% said no artificial materials or chemicals were used during processing, 61% said no artificial ingredients or colors were used, and 60% said no bioengineered ingredients/ G.M.O.s were used. When consumers were asked what the natural label means for meat and poultry items, 65% said no artificial ingredients or colors were added, 64% said no artificial growth hormones were used, 61% said the animals' feed contained no artificial ingredients or colors, 59% said the animals' feed contained no bioengineered ingredients/G.M.O.s and 57% said no antibiotics or other drugs were used. The Opinion Research Survey, Princeton, N.J., conducted the survey for Consumer Reports by contacting 1,005 U.S. adults by phone Dec. 4-7, 2015. The survey had a margin of error of plus-orminus 3.1 percentages points at a 95% confidence level. Since the natural term has no clear meaning and no federal agency regulates the term, Consumer Reports in 2014 petitioned the U.S. Food and Drug Administration to ban its use on labeling. The F.D.A. is taking public comments on natural labeling until May 10 of this year. FBN February 9, 2016

Table of Contents for the Digital Edition of Food Business News - February 9, 2016

Food Business News - February 9, 2016
Mondelez expects snack sales to slow
Starbucks ‘firing on all cylinders’ in C.P.G.
Beverage Business News - Boosting the nutrition profile of beverages
Table of Contents
Web Contents
Editorial - Trust and the rising bar for ‘achieving’ food safety
Survey finds natural labels may mislead consumers
‘The U.S. consumer has changed’
Take the lead in transparency
ChemChina to acquire Syngenta for $43 billion
A new venture for PepsiCo
Chipotle focusing on recovery, food safety
Coca-Cola takes stake in Nigerian business
SuperValu picks new president, c.e.o.
Madagascar 2 - Vanilla prices soar again
Nestle in talks to acquire Israel’s largest food company
Global challenges weigh on Hershey’s earnings
Court sides with Dannon, General Mills in yogurt case
Market Insight - Beef is bouncing back
Ingredient Trends - Plant protein applications evolving
Ingredient Innovations - Three considerations when choosing emulsifiers
Emulsion innovation extends beverage stability
New Food Products
Ingredient Market Trends - Ethanol fuels fireworks in the Iowa Republican caucus
Ingredient Markets
Supplier Innovations and News
Marketplace
Ad Index

Food Business News - February 9, 2016

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