Food Business News - August 22, 2017 - 29
B&G Foods' Green Giant
business posted a 1.9% decline
in sales during the quarter.
B&G FOODS, INC.
have combined to double the size of B&G
Foods, and each one is exceeding our
expectations," Mr. Cantwell said.
Like many of its packaged food peers,
adapting to the evolving retail market is
another priority for B&G Foods.
"E-commerce and all the other
things that everybody talks about is here
to stay," Mr. Cantwell said. "It's a small
part of... the food business today, but
we are also dedicating a team to make
sure we're out in front of that because we
think it will be a bigger and bigger part of
the food business as we go forward. Our
expectation, though, is, hopefully, that
helps some of our brands, not hurts it."
B&G Foods also expects to launch a
"number of new items across our portfolio" in the months ahead, Mr. Cantwell
said. The company's largest business,
Green Giant, posted a 1.9% decline in sales
during the quarter, as strong growth of
recently introduced frozen products was
more than offset by distribution losses
with certain customers that negatively affected the brand's shelf-stable products. In
the coming quarters, the company plans
to introduce a new line of products that
will "mark our entry into a new category
of frozen vegetables," Mr. Cantwell said.
"We're really excited about our
launch that we'll announce in September for delivery in January in the frozen
space that nobody else is doing today,"
he said. "We're really excited about our
approach to innovation on Green Giant,
which is, in a lot of ways, as simple as,
let's try to deliver vegetables in a format
that the consumer wants to eat them
today, not just as a side, but a lot more
ability to use in recipes along with a side
or use as a main meal altogether."
For the remainder of the year, management expects to see an improvement
in year-over-year trends, with net sales
of the base business up approximately
2%, driven by a double-digit net sales
increase in Green Giant, offset by a net
sales decrease of 2% to 3% for the rest of
the base business, Mr. Cantwell said.
"We had some bigger hits this quarter
and kind of year-to-date on some of those
key brands that drove some bigger dollar
numbers. Once you get past the bigger dollar numbers, I mean, there's a lot of little
shortfalls and some gains, but they're all
relatively small pluses and minuses ...
"Still doesn't help our overall
results, so we felt let's be more conservative here as we look at the rest of the year
until we prove that we can do better." FBN
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August 22, 2017
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Food Business News