Food Business News - May 3, 2016 - (Page 10)

Dr Pepper Snapple pivoting with the consumer Continued from Page 1 said during an April 27 earnings call with financial analysts. "We're not going to try to make brands that consumers have said serve a certain purpose for them ... and try to change them and change the perception of them in the marketplace. "So of course, this is about innovating with a very, very fast-changing consumer. And while we are getting growth in some of these categories today, and that's really good, we'll see where the growth curves go. Some may fade over time, just because consumers change over time, and they're changing quickly. So we play this without capital at risk, and we get to capture the growth quickly." Mr. Ellen described the partnerships as a win-win. The brands benefit from Dr Pepper's distribution system, 170 warehouses and 8,000 trucks. "The whole strategy is about capturing the passionate spirit of these people, and bring something to the party that they absolutely need and we need," Mr. Ellen said. "I don't know how we could ever have had an innovation pipeline like we're seeing through the (allied brands). Would we have ever invented coconut water, for example, and had the success in Vita Coco? Would we ever have created a Bai and had the success of a Bai?" Net income in the first quarter ended March 31 was $182 million, equal to 97c per share on the common stock, up 16% from $157 million, or 82c per share, in the same period of the year before. Net sales increased 2% to $1,487 million from $1,451 million. Foreign currency translation reduced net sales and earnings per share by 2% and 1%, respectively. Bottler case sales volume for the quarter increased 2%, with carbonated soft drinks and non-carbonated beverages both growing 2%. "Brand Dr Pepper increased 4%, reflecting growth in our Dr Pepper Snapple's net sales worldwide in millions $6,282 2015 $6,121 2014 2013 $5,997 2012 $5,995 2011 2010 $5,903 $5,636 Source: Dr Pepper Snapple Group Three meals a day still the American way CHICAGO - Americans are snacking more, but the graze craze hasn't overturned the traditional three-meals-a-day mentality, according to the NPD Group. The concept of eating three main meals is primarily culturally-based, NPD said, since societal norms in the United States tend to revolve around mealtimes. While consumers are sticking to the main meal trio, the type of foods they are eating at these meals is shifting. Consumers increasingly are incorporating "healthy" portable snack foods into 10 FOODBUSINESS NEWS ® their breakfasts, lunches and dinners, NPD said, resulting in a decline in the number of dishes and ingredients used to prepare main meals. Although Americans are relying on more snack foods to make up their main meals and the meal sizes are shrinking, the perception that snacking is replacing mealtimes is misconstrued, NPD said. Between-meal snacking accounts for about a third of all eating occasions, but these mini-meals are not adding new or additional occasions to the day, NPD said. "There is a lot of buzz about snacking these days," said Darren Seifer, food and beverage industry analyst for the NPD Group and author of Snacking in America. "One headline could talk about how snacking is up, and another might say we graze throughout the day instead of eating a main meal. While those headlines are eye-grabbing and give people something to talk about, it's important to read past them and dig into the details. The opportunities are uncovered by the details and not the headlines." FBN fountain food service business," said Larry Young, president and chief executive officer. "Over half of this growth was due to timing of sales to a large bottling customer that we had planned for in the second quarter. Our Core 4 brands decreased 3%, as growth in Canada Dry was more than offset by declines in 7UP, Sunkist Soda and A&W. Crush and Schwepps grew 6% and 10%, respectively, on increased promotional activity at a large retailer. Squirt grew by 3% and Penafiel increased 5% in the quarter, while lapping 20% growth a year ago. All other C.S.D.s decreased 1% in the quarter. "In non-carbs, Snapple increased 4% in the quarter, Hawaiian Punch decreased 7% as planned, driven by price increases on single-serve packages, and Mott's decreased 4%, again as planned, on lower promotional activity and continued declines in the juice category. Clamato grew 10% in the quarter, primarily on increased promotional activity, and our water category grew by 22%. Aguafiel grew double digits, and continued strong contribution to growth were also driven by a number of our allied brands, including Bai and Fiji. All other non-carb brands decreased 2% in the quarter." To spark growth in its sparkling beverage portfolio, the company is rolling out 7.5-oz slim cans across its carbonated soft drink brands and direct-store delivery network. Also on tap is the Pick Your Pepper program, geared toward millennials, which will offer 150 unique labels on 20oz single-serve bottles. For the full year, the company expects net sales growth of approximately 2%, which includes a 1% headwind from foreign currency translation. The company now expects full-year e.p.s. to be at the high end of its previously announced range of $4.20 to $4.30, based on lower-than-expected currency headwinds. FBN May 3, 2016

Table of Contents for the Digital Edition of Food Business News - May 3, 2016

Food Business News - May 3, 2016
Dr Pepper pivoting with the consumer
New front opens in the battle over sodium
Beverage Business News - Beverage makers capitalizing on dairy
Table of Contents
Web Contents
Editorial - Vermont’s immediate impact is becoming clearer
Three meals a day still the American way
Mondelez battling weakness in biscuit market
Pinnacle picks Mondelez exec as new c.e.o.
Chipotle Mexican Grill in the midst of a slow recovery
Hormel sells Diamond Crystal Brands
Starbucks sets forth single-serve strategy
PepsiCo initiating transformational innovation agenda
McCormick acquires Australian herbs company
Costco eyes Nebraska for new poultry plant
Hershey still seeking answers to slow growth
Nestle, R&R to create world’s third largest ice cream company
Saputo details succession plan for presidency
Papa John’s removes HFCS from menu
Danone building strength in yogurt
Dannon to go non-G.M.O.
Taco Bell to limit antibiotics in chicken
Dr. Praeger’s focused on keeping brand fresh
PepsiCo appoints new global food service leader
NatureBox moves from snail mail to retail
Market Insight - The good and bad of El Nino, La Nina
Ingredient Trends - Clean label gains momentum
Food packaging and clean label
Ingredient Innovations - Red means go in color innovation
Specialty dairy ingredients used in beverages
New Food Products
Ingredient Market Trends - I.G.C. forecasts world wheat stocks at new record in 2016-17
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - May 3, 2016