Milling & Baking News Corporate Profiles - October 2011 - (Page 60)

Confectionery million from $1,516 million. The Hershey Co., Hershey, Pa., came close to tripling its income during the second quarter. The company said earnings growth was driven by overall strength of the candy, mint and gum (C.M.G.) category as well as one-time costs during the previous-year comparable period. For the quarter ended July 3, 2011, the company posted net income of $130,019,000, equal to 59c per share, up 178% from $46,723,000, or 21c per share, during the same quarter of the previous year. Sales for the quarter were $1,325,171,000, up 7% from $1,233,242,000. Hershey raised its full-year guidance to a 10% expected increase in earnings per share from a 6% to 8% expected increase. “As we enter the third quarter, we are well-positioned to continue to increase U.S. market share and deliver on our financial objectives,” said John P. Bilbrey, president and c.e.o. of Hershey. “In the second half of the year, consumers will begin to see higher retail price points on our everyday instant consumable and take-home packaged candy. Therefore, over the remainder of the year, we expect U.S. C.M.G. category growth to be within the historical 3% to 4% growth rate.” Consolidation through acquisitions was a common occurrence in 2011. Several companies made strategic acquisitions to strengthen their market share and broaden portfolios. The acquisitions also were an opportunity for companies to offer more products and different price points. Bazooka Candy Brands acquired Sharkey’s Organic Fruit Chews in January 2011. Bazooka, a confectionery division of Topps Co, Inc., will now offer products with only natural ingredients that will appeal to health- and wellness-conscious consumers while also diversifying the company’s portfolio. Grupo Bimbo S.A.B. de C.V., Monterrey, Mexico, acquired Dulces Vero, a Mexican confectionery group that makes a variety of sweets and confections, including lollipops, caramels, gummies and marshmallows. Dulces Vero, which had sales of $87 million, will be folded into Grupo Bimbo’s snack division. The move strengthens Bimbo’s position in the Mexican confection market. Nestle S.A. acquired a 51% stake in Dogan and Balaban Gida, a Turkish chocolate and confectionery maker. The acquisition is expected to advance Nestle’s Popularly Positioned Products segment, which is geared to lower income consumers. The lower priced confectionery goods market is worth about $2.3 billion, or about half the confectionery goods market in Turkey. Brynwood Partners VI L.P. acquired Pearson Candy Co. Based in St. Paul, Minn., the company makes Pearson’s Salted Nut Roll, Leading regular gum g (no sugarless) unit sales by brand s) 27,069,890 Wrigley’s Doublemint Wrigley’s Juicy Fruit 17,726,430 Freedent Wrigley’s Spearmint Hubba Bubba Bubble Tape Wrigley’s Big Red Wrigley’s Winterfresh Bubble Yum Concord Dubble Bubble 11,507,110 10,344,930 10,344,750 8,460,164 8,270,291 6,595,751 5,455,225 Private label Source: SymphonyIRI 3,883,215 Pearson’s Mint Pattties and Pearson’s Nut Goodies. Brynwood plans to use its acquisition of Pearson Candy Co. as a platform for additional acquisitions in the candy sector. Sucden Americas Corp. and Amalgamated Sugar Company L.L.C., one of the country’s largest sugar producers, created a marketing venture called National Sugar Marketing L.L.C. Expansion plans at Mars Inc. include a new chocolate manufacturing plant in Topeka, Kas., and an investment of $60 million over the next two years to expand an existing line for its new Pretzel M&Ms and add assembly lines for its M&Ms and Twix products. CP LEADING regular gum vendors LEADING 1 2 3 4 5 6 7 8 9 Wm. Wrigley Jr. Co. Concorn Confections, Inc. The Hershey Co. Kraft Foods Inc. Farley’s & Sathers Candy Ford Gum & Machine Co., Inc. The Topps Co., Inc. Hilco Corp. Sunstar Americas, Inc. Private label Total % change (NO SUGARLESS) from Dollar sales year ago $123,595,200 -5.5% $14,427,270 8.2% $7,285,913 -5.3% $7,059,185 -32.2% $5,268,798 -18.0% $3,882,313 21.6% $2,161,045 -10.9% $1,482,162 68.7% $871,670 513.6% $5,292,697 -4.3% $179,089,500 -4.8% regular gum brands Wrigley’s Doublemint Wrigley’s Juicy Fruit Freedent Concord Dubble Bubble Hubba Bubba Bubble Tape Wrigley’s Spearmint Wrigley’s Winterfresh Wrigley’s Big Red Bubble Yum Private label Total 1 2 3 4 5 6 7 8 9 (NO SUGARLESS) Dollar sales $33,673,100 $22,585,820 $14,856,420 $12,047,870 $11,984,080 $11,576,090 $10,034,750 $9,635,617 $7,210,787 $5,292,697 $179,089,500 % change from year ago 3.1% -0.8% -6.0% 8.4% 6.0% -10.9% -14.1% -3.3% -1.4% -4.3% -4.8% Data for 52 weeks ended Aug. 7, 2011 Total U.S. - Supermarkets, Drugstores and Mass Merchandisers excluding Wal-Mart Source: SymphonyIRI 60 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011