Food Business News - August 2, 2011 - (Page 1)

August 2, 2011 FOODBUSINESS NEWS NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Yoplait enhances General Mills’ global presence MINNEAPOLIS — The acquisition of a majority stake in Yoplait by General Mills, Inc. will add approximately $1.2 billion to the company’s International division’s sales during fiscal 2012. It is anticipated the operating profit margin will be in the low double-digit range, said Chris O’Leary, chief operating officer of General Mills’ International unit. Mr. O’Leary spoke July 13 at an investor’s meeting to discuss the company’s fiscal 2012 outlook. “This is really the first time we have had a chance to talk about these businesses,” he said. In July, General Mills completed the acquisition of Yoplait for $1.2 billion. The Continued on Page 18 Seeds gaining large role as healthful food ingredient s manufacturers continue to differentiate their products through taste and health and wellness attributes, using seeds may be a way that companies achieve a unique market position. “The beauty of seeds is they are a nutrition-dense food ingredient — they are packed with omega-3s,” said Nicole Dawes, chief executive officer and cofounder of Late July Organic Snacks, Barnstable, Mass. “The challenge with many of them, like flax, is they can have a bit of an aftertaste. There is always weighing how much you can include for the nutrition versus when it becomes a negative to the taste profile.” Late July has several multigrain snack Continued on Page 40 Story on Page 24 A Whither the ethanol subsidies? Congress considers ending or significantly reducing primary federal supports to the ethanol sector A s Congress seeks ways to slash federal spending, efforts to jettison ethanol subsidies have strengthened with both the Senate and House of Representatives recently adopting measures that if enacted would either end the principal subsidies to the ethanol sector or halt federal supports for building corn ethanol infrastructure. The changing tide of debate encouraged ethanol advocates in the Senate to introduce legislation that would preserve federal support to the ethanol sector, albeit on a more limited basis. The principal targets of subsidy opponents in the Senate were the volumetric ethanol excise tax credit (VEETC) and the tariff on imported ethanol that effectively protects American manufacturers from foreign competition. Under the VEETC, first authorized under the Jobs Creation Act of 2004 and extended under the 2008 farm act, fuel blenders receive a 45c tax credit per gallon of ethanol they blend and sell. The tariff on imported ethanol is 54c per gallon, which discourages imports from lower-cost producers such as Brazil, which manufactures ethanol from Continued on Page 26

Table of Contents for the Digital Edition of Food Business News - August 2, 2011

Food Business News - August 2, 2011
Web Contents
Editorial - Reason must be at the heart of children’s marketing proposals
Kellogg net up 14%, boosted by higher prices, innovation
Yum! Brands income up 10% in quarter
JC Potter, Williams Sausage to form joint venture
Acquisition, strength in snacks boost PepsiCo net
Consumers noticing rising prices, shrinking product sizes
Campbell shifting R.&D. resources away from sodium reduction
Accuracy of calorie counts on menus evaluated
Seneca Foods, Allens intend to merge
Wrigley to relocate headquarters
MegaMex Foods to acquire Fresherized Foods
Meat inspection agency proposes clean label reg
McDonald’s ups Happy Meal nutritional profi le
Global sales growth helps propel McDonald’s profit
Yoplait enhances General Mills’ global presence
B&G Foods earnings climb 48% in quarter
Cal-Maine income down 10% in year
Weather Watch
Washington - Whither the ethanol subsides?
Sustainable Savings
Bone Health - Improving structural support
Encapsulation advantages
Beverage Business News - Dr Pepper profi t slides 6% on higher costs
Colors - Naturally derived colors in demand
New Product Trends
Supplier Innovations and News
Ad Index

Food Business News - August 2, 2011