Food Business News - May 3, 2016 - (Page 14)

Hormel sells Diamond Crystal Brands AUSTIN, MINN. - Hormel Foods Corp. has entered into an agreement to sell its Diamond Crystal Brands, Inc. business to an affiliate of Peak Rock Capital, L.L.C., an Austin, Texas-based private equity firm. Financial terms of the deal were not disclosed. Founded in 1980, Diamond Crystal Brands manufactures and distributes portion-control and single-serve products for food service, including sauces, dressings, condiments, drink mixes, salt, pepper and sweeteners. The transaction is subject to customary YOUR RIGHT INGREDIENT - TODAY AND TOMORROW We know consumers are demanding fewer and more recognizable ingredients in their food and beverage products. It's estimated that 80% of consumers feel a short and simple ingredient list is important or very important to their purchasing decision. Formulators and marketing teams are spending countless hours searching for alternative technologies. Brenntag has Clean Label Solutions! Our partnerships with leading manufacturers bring alternative technologies and naturally derived, GMO-Free and certified organic ingredients to help solve the clean ingredient challenge. Contact Brenntag today to learn how we can be your trusted partner in delivering quality ingredients safely, and on time. Brenntag North America 14 FOODBUSINESS NEWS ® closing conditions and is expected to close in the second quarter of 2016. Hormel Foods will retain its Hormel Health Labs unit, which provides nutritional foods and beverages for consumers with special dietary needs. For Peak Rock, the deal marks its fourth recent food-related investment. Others include Natural American Foods, a producer of honey; Berner Food & Beverage, a manufacturer of dairy-based shelf-stable snacks and beverages; and Highline Mushrooms, a producer and distributor of mushrooms in North America. Diamond Crystal Brands "represents an exciting opportunity to invest in a leading middle market food and beverage company with a long-standing reputation for quality and service," said Anthony DiSimone, chief executive officer of Peak Rock Capital. "The transaction highlights Peak Rock's ability to efficiently execute complex corporate carveouts, where we can leverage the extensive operational experience of our principals to effectuate a seamless company transition to a standalone entity, in order to further drive growth and operational improvements." Hormel Foods previously discussed plans to sell a portion of the Diamond Crystal Brands business during an earnings call this past November. In fiscal 2015, the company recorded pre-tax, nonrecurring charges of $21.5 million related to a goodwill impairment charge for the business, which is part of Hormel's Specialty Foods segment. "While the business is still performing acceptably, we feel it no longer fits within our strategic priorities," said Jeffrey Ettinger, chairman and chief executive officer, during the call. "We will pursue a sale over the course of the next few months, allowing us to redeploy capital in investments that better support our growth goals." 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