Milling & Baking News - July 9, 2013 - 16

Your dependable
partner for
wholesome
nutritious food.

We manufacture state-of-the-art equipment and
produce high-quality products used in the milling
and baking industry.
Some of our products include:
Vitamin and Mineral Premixes Hy-Kure®
Custom vitamin and mineral
Bromate
premixes to meet your exact
Premixes
specifications
Oxylite® AA

Flour maturing agents

Oxylite® XX

REPCO® Ascorbic
Acid 25

Bleaching compound
for whey and cheese

Flour dough conditioning agent

REPCO® ZYME 5000

Kurolite®

Barley or wheat malt replacer

Flour bleaching agent

Flour maturing agent

Calcium Propionate
Mold inhibitor

PO Box 1460, Salina, Kansas USA 67402-1460
PH 785-825-2181 FX 785-825-8908
EMAIL info@researchprod.com
www.researchprod.com
16 / July 9, 2013 Milling & Baking News

Financial Results 

‘Point of difference’ seen
lifting ConAgra brands
OMAHA — Acquisitions and good organic volume performance spurred 8% sales growth in the Consumer Foods
unit of ConAgra Foods, Inc. during the fiscal year ended
May 26. Operating income also improved year-over-year,
climbing 4% to $1,096.5 million in fiscal 2013 from $1,053.3
million in fiscal 2012.
“Many of our brands grew sales, shares and volumes,”
Gary Rodkin, chief executive officer, told analysts as part
of a June 27 conference call to discuss fourth-quarter and
full-year earnings. Specifically, Mr. Rodkin said the division
benefitted from increased investment in brands.
Net income for the year at ConAgra was $773.9 million,
equal to $1.88 per share on the common stock, which compared with income of $467.9 million, or $1.13 per share,
during the previous year. Sales for the year were $15,491.4
million, up 16% from $13,367.9 million. Excluding special
items, net income was up 17%.
“We’re using point of difference communication, along with
strong innovation, to increase
consumer pull for our brands,”
Mr. Rodkin said of the improving
results. “Last quarter, we talked
about our canned tomato portfolio, Hunt’s and Ro*Tel, and that
point of difference advertising
that is really resonating with consumers and driving sales, volume
and share gains and category
growth. Similar messaging has
been very effective for Pam and
Reddi-wip as well. Emphasizing new usage occasions, and
promoting from new locations in the store, are also driving
more demand for a number of our brands. Effective marketing will be a key driver in the success of the innovations
we’re launching this summer.”
Mr. Rodkin said ConAgra is especially excited about new
desserts and frozen breakfasts that are on tap. Despite the
fact frozen breakfast sandwiches have driven significant
frozen breakfast category growth over the past five years,
the frozen breakfast sandwich segment is still an underdeveloped breakfast option, he said.
“That’s where Marie Callender’s and Banquet come in,”
he explained. “Building on capabilities we acquired when
we bought Odom’s Tennessee Pride, and adding some
strong culinary and cooking innovation, we have developed lines of breakfast sandwiches that break new grounds
in term of convenience and quality.”
Mr. Rodkin said the company’s innovation extends beyond the frozen aisle as well.
“We’re building on the terrific equity of Marie Callender’s, and introducing Marie Callender’s Easy Sides, a
shelf-stable pasta dish that cooks in about four minutes
with no clean up, and delivers terrific flavors like alfredo,
Parmesan and stroganoff,” he said.
Looking ahead to fiscal 2014, John Gehring, chief financial officer, said ConAgra expects low-single-digit organic
volume growth and mid-single-digit operating profit
growth in the Consumer Foods segment. He said the estimates reflect modest gross margins improvement in the
segment, driven by mix improvements and strong cost savings, partially offset by modest inflation. MBN
bakingbusiness.com / world-grain.com

http://www.researchprod.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - July 9, 2013

Table of Contents for the Digital Edition of Milling & Baking News - July 9, 2013