Food Business News - February 26, 2013 - 12

Dr Pepper to invest heavily
behind TEN platform

PLANO, TEXAS — The success of Dr Pepper
TEN is prompting the maker of 7UP, Sunkist, Mott’s and other drinks to invest heavily
behind the platform in 2013 as a way to deliver what it believes are healthier beverage
options for consumers. Dr Pepper Snapple
Group is in the midst of a national launch
for the TEN versions of 7UP, Sunkist, A&W,
Canada Dry and RC after the beverages performed successfully in select test markets in
2012, said Larry Young, president and chief
executive officer, in a Feb. 13 conference call
with financial analysts.
“We believe these great tasting products
together with strong marketing and in-store
activity will help reenergize the category,”
Mr. Young said. “We will invest heavily behind this critical platform, which includes
Dr Pepper TEN, with brand investments associated with TEN expected to exceed $30
million in 2013.”
Mr. Young said that in test markets, more than
7% of the volume from the 7UP, Sunkist, A&W,

Canada Dry and RC trademarks came from TEN,
and 40% of TEN’s dollar sales were incremental
to the carbonated soft drink category.
“We know we have a winner here,” he said.
“What is required is patience because changing consumption habits takes time.”
Martin Ellen, chief financial officer,
stressed that bringing consumers back to
C.S.D.s with healthier options “is not only
critical to us, but also to the industry and our
retailers.”
Against that backdrop, he noted the $30
million in investments associated with the
TEN platform is above the expected contribution of the brands in 2013.
“The TEN platform may be our most strategically important innovation,” Mr. Ellen
said. “So we are prepared to invest in it heavily, even though this will slow our earnings
growth in 2013.”
Full-year and fourth-quarter earnings and
sales increased at Dr Pepper Snapple Group
Inc. driven by higher prices, but results still
fell short of analysts’ estimates. As a result,
the company’s share price fell nearly 8% on
Feb. 13, the day results were released.
The company posted net income of $629
million in the year ended Dec. 31, 2012, equal
to $2.99 per share on the common stock, up
4% from $606 million, or $2.77 per share, in
fiscal 2011. Net sales for fiscal 2012 increased
to $5,995 million from $5,903 million.
For the fourth quarter, net income totaled
$170 million, or 82c per share, up from $166
million, or 78c per share, in the same period a
year ago. Net sales increased to $1,484 million
from $1,461 million. FBN

Poultry processor to build plant in Texas
LAUREL, MISS. — Sanderson Farms, Inc.
tentatively plans to build a poultry processing complex near Palestine, Texas. The complex will feature a processing plant, feed mill,
hatchery and wastewater facility.
Executives said the Palestine plant will
complement its other poultry processing operations in Bryan and Waco, Texas.
“The state of Texas has been an outstanding place for Sanderson Farms to do business,”
said Joe Sanderson Jr., chairman and chief executive officer. “We look forward to the new
marketing opportunities the new facility will
create for us in this important region.

FOODBUSINESS NEWS

“However, construction of the new facility
remains on hold until we have better visibility on future prices and availability of grain,
and is subject to other contingencies, including obtaining necessary permits, negotiating
construction contracts, completing construction and obtaining board approval to move
forward with the project.”
This past November, the company ended
its efforts to build a poultry processing complex in Nash County, N.C. The company said
it decided against moving forward with the
project due to legal challenges that may have
delayed construction. FBN

Former Dean
Foods exec to
lead Atkins
DENVER — Joseph E. Scalzo, formerly the president
and chief operating officer
of Dean Foods Co., has
joined Atkins Nutritionals,
Inc. as president and chief
executive officer. As Atkins
c.e.o., Mr. Scalzo succeeds
Monty Sharma, who will remain on the Atkins board of
directors.
Atkins said Mr. Scalzo “is
credited at Dean for leading
the transformation of its
W h i t e Wa v e
Foods Co.,
which began
as three separate
businesses, into a
winning consumer foods Scalzo
company.”
Before coming to Dean
Foods, Mr. Scalzo held leadership positions at The Gillette Co. and The Coca-Cola
Co. He began his career at
The Procter & Gamble Co.
in 1985.
Currently, Mr. Scalzo
serves on the board of directors of Earthbound Farms,
an organic food company.
Ezra Field, a managing
director at Roark Capital Group and a member
of the Atkins’ board, said
of Mr. Scalzo, “He brings
great experience building
valuable and trusted consumer brands, and with
healthy and nutritious
foods in particular, as well
as strong executive leadership skills.”
Atkins Nutritionals is
a portfolio company of
Roark. Other food-related
investments of Roark include Auntie Anne’s, Il
Fornaio, Seattle’s Best, Cinnabon, Arby’s and Corner
Bakery.
Atkins Nutritionals manufactures and markets frozen meals, nutrition bars
and shakes designed around
the principles of the Atkins
Diet. FBN

February 26, 2013

Food Business News - February 26, 2013

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