Food Business News - May 3, 2016 - (Page 12)

Mondelez battling weakness in biscuit market DEERFIELD, ILL. - Mondelez International, Inc. expects good things from Good Thins, the Deerfield-based snack company's latest product line. Representing the company's first new snack brand in more than a decade, the baked crackers are made with potatoes, chickpeas or rice and contain no artificial flavors, colors, cholesterol, partially hydrogenated oils or high-fructose corn syrup. "We launched Good Thins in March, and it has already reached a 1.4 share of the U.S. cracker market," said Irene Rosenfeld, chairman and chief executive officer of Mondelez, during an April 27 earnings call with financial analysts. Still, the category experienced weakness in the recent quarter. "(The U.S.) is our biggest biscuit market, and we did see that category slowing down," Ms. Rosenfeld said. "There are a lot of factors that contribute there. Some of our biggest customers are changing some of their merchandising policies, which is having an impact. I think we are still performing quite well within those constraints, but it is having somewhat of an impact on our overall performance. "So I think the facts are ... our biscuit revenue in North America was up almost 3%. Very strong volume/mix, but the category itself was a little weaker than we had seen, and our approach to that is just to continue to invest in our strong brands, to continue to introduce innovation like Oreo Thins and Good Thins, which are driving very strong results, and continuing to leverage the fact that we have much more flexibility in our packaging capability as a result of the addition of assets like Salinas (Mexico facility)." During the quarter, 80% of Mondelez's biscuit revenue held or gained market share, led by such brands as Oreo and belVita. "So, we are clearly in charge of the category performance here in the U.S., and we have very strong plans in place to continue to drive that," Ms. Rosenfeld said. For the first quarter ended March 31, net earnings attributable to Mondelez were $554 million, equal to 35c per share on the common stock, up 71% from $324 million, or 20c per share, for the prioryear period. Net revenues fell nearly 17% to $6,455 million from $7,762 million, driven by the negative impact of the company's coffee transaction and currency headwinds. On an organic basis, net revenues advanced 2.1%, the company said. Mondelez's financial performance was helped by margin expansion as the company continued to reduce supply chain and overhead costs. "We delivered this growth, despite the volatile operating and currency environment that pressured category growth, especially in many of our larger emerging markets," Ms. Rosenfeld said. For the full year, the company expects organic revenue growth of at least 2%, adjusted operating income margin of 15% to 16%, and double-digit adjusted earnings per share growth on a constant currency basis. To drive growth in biscuits, Ms. Rosenfeld said the company plans to expand some of its platforms to additional markets. As an example, Oreo Thins cookies, which debuted in China, have been introduced in the United States, Canada and Australia, and are expected to generate $200 million this year. Another product, belVita Crunchy breakfast biscuits, will launch into new markets and is expected to become a $500 million business this year. In conjunction with releasing first-quarter results, Mondelez announced the departure of Mark A. Clouse, chief commercial officer, who has been named c.e.o. and director of the board at Pinnacle Foods Group, Inc. Mondelez said it does not plan to appoint a new chief commercial officer. FBN Pinnacle picks Mondelez exec as new c.e.o. PARSIPPANY, N.J. - Mark A. Clouse has been appointed chief executive officer and member of the board of directors Mark A. Clouse 12 FOODBUSINESS NEWS ® at Pinnacle Foods Group, Inc., effective May 23. Mr. Clouse will replace Bob Gamgort, who plans to leave the company to take the reins at Keurig Green Mountain, Inc. at the end of April. Currently, Mr. Clouse is chief commercial officer at Mondelez International, Inc., where he has spent 20 years in leadership positions involving such brands as Oreo, Nabisco, Cadbury and Trident. He was also the chief growth officer for Mondelez, led businesses in emerging markets such as China and Brazil and held leadership roles related to integration of acquisitions. Before Mondelez, Mr. Clouse served in the United States Army as a pilot and completed his service as a captain. "We are thrilled to welcome Mark to Pinnacle as our new c.e.o.," said Roger K. Deromedi, chairman of Pinnacle. "He assumes the leadership of a very strong company with an exceptionally talented team and bright future. Mark's strong operating background and proven track record of success, combined with his broad experience in both the North American market and more entrepreneurial developing market businesses, make him the ideal candidate to lead Pinnacle and drive the continued success of our business model and strategy." Craig Steeneck, chief financial officer of Pinnacle, will step in as interim-c.e.o. after Mr. Gamgort's departure through May 22. 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
Correction
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
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - May 3, 2016

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