Meat+Poultry - April 2017 - 12

BUSINESS NOTES

APPLEGATE COMMITS TO
IMPROVING ANIMAL WELFARE
Applegate, a leading producer of
organic meat, cheese and frozen
food products, plans to adopt
animal welfare standards for broiler
chickens that are consistent with
the Global Animal Partnership
(GAP) 5-Step Rating Program, which
replaces fast-growing chicken breeds
with "higher welfare breeds."
Applegate, a subsidiary of Hormel
Foods Corp., said the changes will
require the company to use breeds of
broiler chickens that are scientifically
proven to have better welfare
outcomes. By 2024, Applegate will
improve its animal welfare standards
for broiler chickens by:
x Using broiler breeds scientifically
proven to have improved welfare
outcomes;
x Providing chickens with more
space (maximum stocking density
of 6 lbs. per sq. ft.) and improved
environments, including lighting, litter
and enrichments; and
x Eliminating live shackling and
dumping while ensuring that birds are
rendered unconscious through a multistep controlled atmospheric stunning
before slaughter.

JBT ACQUIRES HPP TECHNOLOGY

12

ADVANCEPIERRE REPORTS NET
SALES INCREASE IN Q4 2016
AdvancePierre Foods reported a 6.1
percent increase in its fourth quarter
2016 net sales, but a 2.7 percent
decrease in its 2016 fiscal year sales.
The company finished its 2016 fiscal
year with $1.568 billion in net sales.
Adjusted EBITDA advanced 17.9
percent from $68.9 million in Q4 2015
to $81.2 million in Q4 2016, and up 15.4
percent from $260.2 million at year-end
2015 to $300.2 million at year-end 2016.
"Our fourth quarter results were
highlighted by profitable growth in each
of our three core segments, strong cash
flow generation, and the completion of
another strategic business acquisition,"
said AdvancePierre CEO John
Simons. "In 2016, we delivered on our
commitments to achieve solid organic
growth, increase earnings, and deploy
cash flow to reward our shareholders
with an attractive dividend."
The company completed the
acquisition of Allied Specialty Foods
Inc., a manufacturer of raw and cooked
beef and chicken Philly steak products,
for $60 million in cash in October 2016.
For the year ahead, AdvancePierre
expects net sales in the range of $1.640
billion to $1.670 billion, including 2 to 3
percent organic volume growth in each
of its three core segments. The company
expects Adjusted EBITDA in the range
of $315 million to $325 million.

MEAT+ POULTRY | 04.17 | www.meatpoultry.com

"We plan to continue to invest
in highly accretive acquisitions and
reduce leverage," said AdvancePierre
President Chris Sliva. "Our growth
trajectory sets us apart from the
broader food industry and we are well
positioned to continue our momentum
driven by execution of our continuous
improvement process, 'the APF Way', in
2017 and beyond."

GOLD'N PLUMP UNVEILS NEW
LINE OF CHICKEN SAUSAGE
Pilgrim's Pride Corp. plans to launch
a new line of chicken sausages under
its Gold'n Plump label in time for the
beginning of grilling season. The fully
cooked, ready-to-heat sausages will be
on the market beginning in April.
"Our research shows consumers
seek 'old world style' sausages, and
tend to choose chicken sausages with
adventurous flavors," said Tracy Miller,
director of product innovation for the
brand. "Gold'n Plump Fully Cooked
Chicken Sausages were artisan made
by our culinary experts who worked
in our test kitchen to carefully explore
and layer real ingredients to create
these distinctive combinations."

The five flavors include Bacon
Gouda, Hickory Smoked Apple, Italian
Cheese & Peppers, Jalapeño Cheddar
and Spinach & Asiago.
The new fully cooked sausages will
be coarse ground from boneless, skinless
thigh meat. The sausages will also be
free of monosodium glutamate (MSG),
fillers, preservatives, nitrates and nitrites,
gluten and artificial flavors and colors.

For more news,
visit MEATPOULTRY.com

Gold 'n Plump

JBT Corp. announced its purchase
of Erlanger, Kentucky-based Avure
Technologies Inc., a leading provider
of high pressure processing (HPP)
systems, for $57 million. According to
JBT, the acquisition of Avure should
bring in approximately $50 million of
additional annual revenue.
Transaction costs and purchase
price accounting associated with the
acquisition are expected to offset
earnings generated under JBT ownership
in 2017, with approximately $0.05 per
share of dilution for the year.
"We are excited about the rapidly
expanding market adoption of HPP
across protein and liquid foods,"
said Steve Smith, president of JBT

FoodTech. "With the addition of
Avure, JBT will be able to offer
comprehensive thermal and nonthermal preservation solutions."
Avure is a privately held company
with a manufacturing center in
Middletown, Ohio.
"As part of JBT, Avure will
benefit from our global salesforce,
service support and extensive
customer relationships, as well as our
commitment to developing solutions
that maximize customer profitability,"
said Tom Giacomini, JBT's chairman,
president and CEO.
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Meat+Poultry - April 2017

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