Milling & Baking News - May 28, 2013 - 14

Business 

Kellogg Special K Nourish brand
broadening into hot cereal, bars
BATTLE CREEK, MICH. — As part of
ongoing efforts to reshape its slumping cereal business, the Kellogg Co. is
introducing Special K Nourish, a line
of hot cereal and bars.
With such ingredients as quinoa,
fruit, nuts and seeds, the individually
packaged products offer both portability and nutrition benefits.
Packaged in single-serve microwavable cups, the hot cereals contain
a whole grain blend of quinoa, oats,
wheat and barley, plus nuts and fruit
in a removable cap that may be stirred
in. In maple brown sugar crunch, cranberry almond and cinnamon raisin pecan varieties, the products contain 5
grams of fiber and 8 grams of protein
per serving. They will be available at
retailers nationwide beginning in July
for a suggested retail price of $2.29 for
two servings.
The bars feature a whole grain blend

with quinoa, fruit, nuts and seeds and
are available in dark chocolate nut,
cranberry and lemon twist flavors.
The products contain 5 grams of fiber,

8 grams of protein and 170 to 180 calories per serving. They will be available
at retailers nationwide for a suggested
retail price of $1.29 for a single bar and
$6.49 for a 5-count box.

The company previously rolled out
Kellogg’s To Go breakfast shakes and
mixes and plans to launch Nutri-Grain
Biscuits breakfast cookies this year.
Both products are designed to provide
the benefits of cereal without the bowl.
Driving innovation in the breakfast
category has been a continuous priority for Kellogg, as increased competition and demographic shifts recently
have challenged ready-to-eat cereal
sales. Noting a lag in adult cereal consumption during a May 2 earnings
call with financial analysts, the company revealed forthcoming products
that target the elusive high-income
boomer. These include Kashi Heart to
Heart Chia, Raisin Bran Omega-3 and
Special K Multigrain.
“I think the real issue there is our
innovation,” said John Bryant, president and chief executive officer, during the May 2 call. “And the innovation in the category needs (to be)
more nutrition- and benefit-oriented
and, quite frankly, less about pricing
and merchandising.” MBN

Financial Results 

Campbell baking and snack
earnings ﬂat in quarter
CAMDEN, N.J. — Earnings were flat
but sales rose 5% within the Global Baking and Snacking division of the Campbell Soup Co. during the third quarter
ended April 28. Earnings for the quarter
totaled $73 million, unchanged from the
same period of fiscal 2012.
Sales for the division rose to $568
million from $543 million. Volume
and mix added five percentage points
while price and sales allowances added one percentage point. Currency
subtracted one point.
For the first nine months of fiscal
2013, earnings in the segment were
$232 million, unchanged from the
same period of fiscal 2012, while sales
increased 4% to $1,703 million from
$1,637 million.
“Sales of Pepperidge Farm products
increased, primarily driven by volume
gains,” the company said. “In cookies and crackers, sales increases were
driven by strong gains in both Goldfish
snack crackers and Pepperidge Farm
cookies. Sales of fresh bakery products
increased double-digits versus the prior year, driven by volume gains.”
Campbell said increased sales at
14 / May 28, 2013 Milling & Baking News

Arnott’s were driven by growth in
Australia and gains in Indonesia, partially offset by the negative impact
of currency. Sales growth in Australia was driven by increases in savory
crackers and sweet cookie varieties.
For the quarter ended April 28,
Campbell Soup Co. had earnings of
$181 million, equal to 58c per share on
the common stock, which compared
with earnings of $177 million, or 56c

per share, during the same quarter of
the previous year. Sales for the quarter were $2,094 million, up 15% from
$1,821 million.
For the nine months ended April 28,
the company as a whole had earnings of
$616 million, or $1.96 per share, down
5% from $647 million, or $2.03 per share,
during the same period of the previous
year. Sales for the period were $6,763
million, up 11% from $6,094 million.
The company revised its forecast
adjusted earnings per share for fiscal 2013 to be in the range of $2.58 to
$2.62, up from $2.51 to $2.57. MBN

Crumbs loss widens in ﬁrst quarter
NEW YORK — Although Crumbs Bake Shop, Inc. believes it has the initiatives in place
to contribute to the vitality of the business, the plans failed to translate into improved
results in the first quarter of fiscal 2013. The company sustained a loss of $1,975,000 in
the quarter ended March 31, versus a loss of $783,000 in the same period a year ago.
Net sales at the cupcake specialty store chain increased, though, rising 7% to
$12,080,000 from $11,277,000.
“While some of our financial shortfall can be attributed to weather conditions
and economic headwinds, we have identified, and are addressing, three internal
factors that limited our ability to achieve more,” said Julian R. Geiger, president
and chief executive officer. “These include stimulating our beverage business, delivering our much discussed centralized ordering system and also making our
vision of our celebrity chef sandwich program a reality.”
Crumbs maintained its full-year 2013 forecast of $57 million for net sales
and an adjusted loss before interest, taxes, depreciation and amortization of
$3,900,000. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - May 28, 2013

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