Food Business News - February 24, 2015 - (Page 10)

Confectionery companies switching to simpler ingredients HERSHEY, PA. - Shortly after competitor Nestle USA announced a similar commitment, the Hershey Co. said it will begin transitioning to simple and easy-to-understand ingredients in such products as Hershey's Milk Chocolate Bars and Hershey's Kisses. "The dialogue around consumers' changing relationship with food is prevalent," John P. Bilbrey, president and chief executive officer, told investors on Feb. 18 at the Consumer Analyst Group of New York conference in Boca Raton, Fla. "Consumers are telling all manufacturers that they want to recognize all of the ingredients in their food and that what they are consuming is made with the fewest ingredients possible." Hershey said it will begin making products with such recognizable ingredients as milk from local farms, roasted California almonds, cocoa beans and sugar. The company will share information on ingredients, sourcing, manufacturing and labeling with consumers on packaging and on-line. Add Additionally, the comp pany said it will c continue to work w with suppliers to re responsibly source su sustainable ingredient including 100% ents, cer ed and sustaincertifi abl cocoa and certiable f i e d sustainable and traceable palm oil. The company is moving to non-bioengineered sugar and milk from cows not treated with rBST. "We will strive for simplicity with all of our ingredients, but we may not achieve it with every product," Mr. Bilbrey said. "This is a journey, and it will take time. We are equally committed to sharing what we achieve and what we don't. For ingredients that may not be as simple, we will explain what they are and why we need them to provide the great flavors, aromas, textures and appearances that our consumers know and love." In addition to transitioning some of its most popular chocolate brands this year, Hershey is set to introduce Brookside Dark Chocolate Fruit & Nut Bars, which contain no high-fructose corn syrup, artificial flavors or artificial colors. From Hershey's Milk Chocolate Bars and Hershey's Kisses, the company is removing lactose, vanillin and artificial flavor and adding natural flavor. Hershey also is dropping poly-glycerol polyricinoleate, an emulsifier, from its chocolate bars. Hershey said it will invest in higher initial supply costs to make the changes but has no plans to increase prices on reformulated products. Hershey raised wholesale prices across its portfolio last year to offset significant increases in input costs, including raw materials, packaging, utilities and transportation. On Feb. 17, Nestle USA, the maker of such confectionery brands as Nestle Crunch, Butterfinger and Baby Ruth, said it will remove all flavors perceived as artificial and Food and Drug Administrationcertified colors from all of its chocolate candy products by the end of 2015. Products will begin appearing on retail shelves by the middle of the year and carry the claim "No artificial colors or flavors" on each product's label. "We know that candy consumers are interested in broader food trends around fewer artificial ingredients," said Doreen Ida, president of Nestle USA Confections & Snacks. "As we thought about what this means for our candy brands, our first step has been to remove artificial flavors and colors without affecting taste or increasing the price. We're excited to be the first major U.S. candy manufacturer to make this commitment." Some product formulation changes will include using annatto instead of Red 40 and Yellow 5 in Butterfinger products, and replacing artificial vanillin in Crunch products and replacing it with natural vanillin. Going forward, all newly launched chocolate and nonchocolate candy products (gummies, sours, etc.) introduced by Nestle USA will be made without artificial flavors or colors, said Leslie Mohr, nutrition, health and wellness manager for Nestle Confections & Snacks. Additionally, Nestle USA is pursuing the removal of caramel coloring from its chocolate products. Caramel coloring is an exempt-from-certification color additive, which is used in only 9 of the more than 250 chocolate products, according to the company. FBN McCormick to acquire Italian spices and seasonings company SPARKS, MD. - McCormick & Co., Inc. has agreed to acquire Drogheria & Alimentari (D&A), a privately held spices and seasonings company based in Italy, for approximately €85 million ($97 million). The purchase price consists of a cash payment of approximately €50 million and a potential earn out payment in 2018 of up to €35 million based upon the performance of the business. "We are pleased to expand our portfolio of leading 10 FOODBUSINESS NEWS ® brands around the world with the addition of Drogheria & Alimentari," said Alan Wilson, chairman and chief executive officer of McCormick. "As a supplier of both brand and private label products, D&A has approximately one third of the spice and seasoning category in Italy and exports its products to 60 other countries. We anticipate strong growth for these premium products, particularly in the U.S. and key international markets where consumers are seeking unique and authentic ethnic flavors." Founded in 1880, D&A has approximately 120 employees and a manufacturing facility in Florence, Italy. D&A's annual sales are approximately €50 million ($57 million), with 80% in Italy and 20% exported to 60 other countries. Malcolm Swift, president of McCormick Europe, Middle East and Africa (EMEA), said the acquisition complements McCormick's strong brands across EMEA and expands its current spice and seasoning leadership in Europe with a sizable footprint in Italy. "In addition, there is a strong fit between McCormick, a recognized flavor leader in the region, and Drogheria & Alimentari, which has a reputation for high quality products and professionalism," Mr. Swift said. McCormick said it expects to work with the current owners of the business and to grow sales of D&A products at a mid-single digit rate. FBN February 24, 2015

Table of Contents for the Digital Edition of Food Business News - February 24, 2015

Food Business News - February 24, 2015
General Mills accepts the C.P.G. challenge
Gluten-free front and center
Mexican trade rift looms over Sweetener Colloquium
Table of Contents
Web Contents
Editorial - Subscription models may offer unique marketing opportunities
Confectionery companies switching to simpler ingredients
McCormick to acquire Italian spices and seasonings company
Mondelez has big plans to grow small platforms
WhiteWave Foods ‘busting at the seams'
More c-suite change at Kraft Foods
Keurig in transition
Mondelez acquires Enjoy Life Foods
Innovation paying for PepsiCo
TreeHouse Foods trims expectations
Kraft cleans up Capri Sun
Washington - Federal bills seek to mandate G.M.O. food labeling
Company Profile - Dr Pepper Snapple Group seizing opportunities
Capitalizing on R.C.I.
Ingredient Innovations - Clean label starches get tougher
Are clean labels and G.M.O. ingredients compatible?
More clean label ingredient opportunities
Dairy Business News - Yogurt, the next generation
New Food Products
Ingredient Market Trends - Belt-tightening time for U.S. agriculture in 2015-16
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 24, 2015