Food Business News - September 11, 2012 - 1

FOODBUSINESS NEWS
NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY

September 11, 2012

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Hillshire’s plan: ‘Fix, drive, expand’
BOSTON — With a portfolio of iconic processed meat brands such as Hillshire Farm, Ball Park, Jimmy Dean and State Fair, it isn’t surprising Hillshire Brands’ focus on the future is “meat-centric.” What is surprising is where the company wants to push its brands in an effort to achieve growth and profitability. Speaking at the Barclays Back to School Conference on Sept. 5, Sean Connolly, chief executive officer, outlined his plans for the company following its spinoff from the Sara Lee Corp. in late June. With $4 billion in total revenues, 85% are in processed meats and 15% are in bakery. Three quarters of Hillshire’s revenues are generated through retail channels while Continued on Page 16

boost
functional benefits
Story on Page 41

Botanicals

Inside PepsiCo’s snack segmentation strategy
BOSTON — Positioned as the largest snack manufacturer in the world, PepsiCo, Inc. is breaking down the category and paying greater attention to the premium and value segments. At the heart of the effort is innovation and taking the snack category in new directions. Speaking at the Barclays Back to School Conference in Boston on Sept. 5, Brian Cornell, chief executive officer of PepsiCo Americas Foods, said the salty snack category is large and continues to grow. PepsiCo sees new opportunities for growth in emerging Continued on Page 18

Milk price outlook uncertain
oaring feed prices have had no greater impact on any agricultural sector than on dairy, where milk producers were facing negative margins due to lower milk prices before the summer drought sent feed prices through the roof, sinking margins even further into the red and forcing some producers to liquidate herds. Estimated feed costs for dairy cattle were up sharply and have increased monthly since January, according to the latest

S

Monthly Milk Cost of Production report from the U.S. Department of Agriculture’s Economic Research Service. Feed costs in July were $15.85 per cwt of milk sold, up 33% from $11.95 per cwt in January and up 25% from $12.63 per cwt in July 2011. Total costs (adding allocated costs, feed costs and other operating costs) were $27.43 per cwt of milk sold in July, up 19% from $23.05 per cwt in January and up 15% from $23.82 per cwt in July 2011, according to the E.R.S. The price for milk received by farmers, meanwhile, has risen in recent months but remains below year-earlier levels. In July farmers received an average of $16.90 per cwt for all milk, up 90c from June but $5.20, or 24%, below $21.80 a cwt in July 2011, according to the U.S.D.A.’s monthly Agricultural Prices report. The average increased another 90c to $17.80 a cwt in August, but still was $4.30, or 19%, below $22.10 a cwt in August 2011. “Weekly dairy cow slaughter turned Continued on Page 24


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Food Business News - September 11, 2012

Table of Contents for the Digital Edition of Food Business News - September 11, 2012

Food Business News - September 11, 2012
Hillshire’s plan: ‘Fix, drive, expand’
Inside PepsiCo’s snack segmentation strategy
Milk price outlook uncertain
Table of Contents
Web Contents
Editorial - How high will gluten-free fly?
Flowers makes case for growth
TreeHouse pledges commitment to single-serve coffee
Smucker sees record new products in 2013
Snyder’s-Lance to purchase Pretzel Crisps maker
Research review finds no evidence organic food is healthier
Sanderson Farms returns to profitability in quarter
European olive oil sales may slide in U.S.
Consumers want more ethnic flavors at restaurants
Kraft to close cheese plant in Arkansas
Investing in biggest brands top priority at Heinz
Sodium reduction labeling efforts slow
Campbell full-year profit eases 4% during ‘strategic transition
Restaurant operators’ optimism declines
Burger King debuts menu items for fall
Washington - The F.D.A. wants more information
Health and Wellness - Research reveals potential starch benefits
Clean label starches introduced
Ingredient Innovations - Benefits in blending whole grains
Ingredient Innovation - Botanicals boost functional benefits
New Food Products
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News
Food Business News - September 11, 2012 - Milk price outlook uncertain
Food Business News - September 11, 2012 - 2
Food Business News - September 11, 2012 - 3
Food Business News - September 11, 2012 - Table of Contents
Food Business News - September 11, 2012 - 5
Food Business News - September 11, 2012 - Web Contents
Food Business News - September 11, 2012 - 7
Food Business News - September 11, 2012 - 8
Food Business News - September 11, 2012 - Editorial - How high will gluten-free fly?
Food Business News - September 11, 2012 - TreeHouse pledges commitment to single-serve coffee
Food Business News - September 11, 2012 - Snyder’s-Lance to purchase Pretzel Crisps maker
Food Business News - September 11, 2012 - Research review finds no evidence organic food is healthier
Food Business News - September 11, 2012 - Sanderson Farms returns to profitability in quarter
Food Business News - September 11, 2012 - European olive oil sales may slide in U.S.
Food Business News - September 11, 2012 - Consumers want more ethnic flavors at restaurants
Food Business News - September 11, 2012 - Kraft to close cheese plant in Arkansas
Food Business News - September 11, 2012 - Investing in biggest brands top priority at Heinz
Food Business News - September 11, 2012 - Sodium reduction labeling efforts slow
Food Business News - September 11, 2012 - 19
Food Business News - September 11, 2012 - Campbell full-year profit eases 4% during ‘strategic transition
Food Business News - September 11, 2012 - 21
Food Business News - September 11, 2012 - Restaurant operators’ optimism declines
Food Business News - September 11, 2012 - Burger King debuts menu items for fall
Food Business News - September 11, 2012 - 24
Food Business News - September 11, 2012 - 25
Food Business News - September 11, 2012 - Washington - The F.D.A. wants more information
Food Business News - September 11, 2012 - 27
Food Business News - September 11, 2012 - 28
Food Business News - September 11, 2012 - 29
Food Business News - September 11, 2012 - Clean label starches introduced
Food Business News - September 11, 2012 - 31
Food Business News - September 11, 2012 - 32
Food Business News - September 11, 2012 - 33
Food Business News - September 11, 2012 - 34
Food Business News - September 11, 2012 - Ingredient Innovations - Benefits in blending whole grains
Food Business News - September 11, 2012 - 36
Food Business News - September 11, 2012 - 37
Food Business News - September 11, 2012 - 38
Food Business News - September 11, 2012 - 39
Food Business News - September 11, 2012 - 40
Food Business News - September 11, 2012 - Ingredient Innovation - Botanicals boost functional benefits
Food Business News - September 11, 2012 - 42
Food Business News - September 11, 2012 - New Food Products
Food Business News - September 11, 2012 - 44
Food Business News - September 11, 2012 - 45
Food Business News - September 11, 2012 - 46
Food Business News - September 11, 2012 - Ingredient Market Trends
Food Business News - September 11, 2012 - Ingredient Markets
Food Business News - September 11, 2012 - 49
Food Business News - September 11, 2012 - 50
Food Business News - September 11, 2012 - 51
Food Business News - September 11, 2012 - 52
Food Business News - September 11, 2012 - 53
Food Business News - September 11, 2012 - 54
Food Business News - September 11, 2012 - 55
Food Business News - September 11, 2012 - 56
Food Business News - September 11, 2012 - 57
Food Business News - September 11, 2012 - 58
Food Business News - September 11, 2012 - Supplier Innovations and News
Food Business News - September 11, 2012 - 60
Food Business News - September 11, 2012 - Classifieds
Food Business News - September 11, 2012 - 62
Food Business News - September 11, 2012 - Marketplace
Food Business News - September 11, 2012 - 64
Food Business News - September 11, 2012 - Ad Index
Food Business News - September 11, 2012 - Food Business in the News
Food Business News - September 11, 2012 - 67
Food Business News - September 11, 2012 - 68
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