Tag Archive | "snacks"

Kraft Foods Names New Board of Mondelez International


Kraft Foods has announced the composition of the board of directors for its global snacks company, Mondelez International, which has will be separated from the North American grocery business in October 2012. Irene Rosenfeld (pictured), currently head of Kraft Foods, will be Chairman and CEO of Mondelez International. Other board members are:

* Stephen Bollenbach, 70, served as Co-Chairman and Chief Executive Officer of Hilton Hotels Corporation from May 2004 until his retirement in October 2007, and served as President and CEO from February 1996 to May 2004.  Prior to that, he served as Senior Executive Vice President and Chief Financial Officer of The Walt Disney Company from September 1995 to February 1996. Bollenbach spent the previous 30 years in various financial leadership positions in the hospitality, real estate and financial services industries.

* Lewis Booth, CBE, 63, served as EVP and CFO of the Ford Motor Company from November 2008 until his retirement in April 2012. He was EVP, Ford of Europe, Volvo Car Corporation and Ford Export Operations and Global Growth Initiatives and EVP of Ford’s Premier Automotive Group, from 2005 to 2008.  Prior to that, Booth held various executive leadership positions with Ford, including as Chairman and Chief Executive of Ford of Europe, President of Mazda Motor Corporation and President of Ford Asia Pacific and Africa Operations.  He was employed continuously by the Ford Motor Company in positions of increasing responsibility since 1978.

* Lois Juliber, 63, Kraft Foods Inc. director since 2007, served as a Vice Chairman of the Colgate-Palmolive Company from July 2004 until April 2005. She served as Colgate-Palmolive’s Chief Operating Officer from March 2000 to July 2004, EVP – North America and Europe from 1997 until March 2000 and President of Colgate North America from 1994 to 1997. Prior to joining Colgate-Palmolive, Juliber spent 15 years at General Foods Corporation, in a variety of key marketing and general management positions.

* Mark Ketchum, 62, Kraft Foods Inc. director since 2007 and Lead Director since 2009, served as President and CEO of Newell Rubbermaid Inc. from October 2005 to June 2011 and was a member of its board of directors from November 2004 to May 2012. From 1999 to 2004, Ketchum was President, Global Baby and Family Care of The Procter & Gamble Company. Ketchum joined P&G in 1971, where he served in a variety of roles, including VP and General Manager – Tissue/Towel from 1990 to 1996 and President–North American Paper Sector from 1996 to 1999.

* Jorge Mesquita, 50, Kraft Foods Inc. director since May 2012, has been employed continuously by P&G in various marketing and leadership capacities since 1984. He has served as Group President – New Business Creation and Innovation since March 2012.  He was Group President, Global Fabric Care from 2007 to 2011 and President, Global Home Care from 2001 to 2007, also serving as President of Commercial Products and President of P&G Professional from 2006 to 2007.

* Fredric Reynolds, 61, Kraft Foods Inc. director since 2007, served as EVP and CFO of CBS Corporation from January 2006 until his retirement in August 2009. From 2001 until 2006, Reynolds served as President and CEO of Viacom Television Stations Group and EVP and CFO of the businesses that comprised Viacom Inc. He also served as EVP and CFO of CBS Corporation and its predecessor, Westinghouse Electric Corporation, from 1994 to 2000. Prior to that, Reynolds served in various capacities with PepsiCo, Inc. for 12 years, including CFO at Pizza Hut, Pepsi Cola International, Kentucky Fried Chicken Worldwide and Frito-Lay.

* Ruth Simmons, 67, is President Emerita of Brown University and Professor of Comparative Literature and Africana Studies since 2001. Prior to that, Simmons served as President,SmithCollegefrom 1995 to 2001 and Vice Provost of Princeton University from 1991 to 1995. She served in various administrative positions at colleges and universities since 1977, including the University of Southern California from 1979 to 1983, Princeton University from 1983 to 1989 (and again from 1991 to 1995) and Spelman College from 1989 to 1991.

* Jean-Francois van Boxmeer, 50, Kraft Foods Inc. director since 2010. Van Boxmeer has been Chairman of the Executive Board and CEO of Heineken N.V. since 2005 and a member of its Executive Board since 2001. He has been employed continuously by Heineken in various capacities since 1984, including as General Manager of Heineken Italia from 2000 to 2001.

Posted in NewsComments Off on Kraft Foods Names New Board of Mondelez International

PepsiCo UK to Invest £15.2 Million at Walkers


PepsiCo UK is investing £15.2 million in its Walkers snacks manufacturing campus at Leicester. The investment will support the introduction of a new production line making kettle-fried potato crisps, such as the Red Sky and Walkers Extra Crunchy varieties.

PepsiCo is also hiring 110 people as part of the expansion programme. First established in Leicester in 1982, the Walkers site, situated in the Beaumont Leys area of the city, employs over 2,000 people.

As PepsiCo celebrates its 30th anniversary in the area, a number of long serving members of staff are reaching retirement this year. PepsiCo is now looking to both fill these vacancies whilst also creating new roles as the site expands. In the past year alone, Walkers has employed over 300 people from the Leicester area to help boost the production team.

PepsiCo has invested £14.4 million and £9.3 million in its Quaker Oats site at Cupar, Scotland and its distribution site in Peterlee, respectively this year.

Posted in NewsComments Off on PepsiCo UK to Invest £15.2 Million at Walkers

Kellogg is One of Top 50 Companies for Diversity in 2012


Kellogg Company’s long-standing commitment to diversity and inclusion was recognized when the company was named one of the ‘Top 50 Companies for Diversity’ in 2012 by DiversityInc, a leading global organisation focusing on diversity and inclusion. DiversityInc began recognising global companies that play a leading role in supporting and promoting diversity since it first published its ‘Top 50’ list in 2001. This year, more than 500 companies participated in the selection process. Kellogg has been previously recognized by DiversityInc as a ‘noteworthy’ company prior to making it into their Top 50.

There are four core areas DiversityInc considers when selecting its Top 50 companies: the CEO’s commitment to diversity and inclusion; human capital; corporate and organisational communication on diversity-related issues; and supplier diversity.

“The concepts of diversity and inclusiveness are at the heart of Kellogg’s values,” says president and chief executive John Bryant. “We are committed to growing our diverse workforce not only because it is the right thing to do, but also because it is critical to our ongoing success.  A diverse and inclusive workforce is more nimble, more innovative, more connected to our customers and consumers, and more open to new ideas, particularly in this increasingly global economy.”

With sales of more than $13 billion in 2011, Kellogg Company is the world’s leading producer of cereals and a leading producer of snacks and frozen foods. Its brands are produced in 17 countries and marketed in more than 180 countries.

Posted in NewsComments Off on Kellogg is One of Top 50 Companies for Diversity in 2012

PepsiCo Potato Chip Brands Surpass $10 Billion in Global Retail Sales


PepsiCo’s global ‘Banner Sun’ potato chip portfolio has grown to more than $10 billion in annual retail sales, anchored by Lay’s, the world’s largest food brand and the number one potato chip brand globally. The ‘Banner Sun’ logo – which appears on packaging for leading brands such as Lay’s, Walkers, Smith’s and Sabritas – has grown into a symbol for quality potato chips around the world. Lay’s and Walkers are among PepsiCo’s portfolio of 22 billion-dollar food and beverage brands, a number that has doubled since 2000 – further illustrating the strength of the company’s worldwide food and beverage business.

Expansion into international markets has driven the success of PepsiCo’s potato chip portfolio, with about 60 percent of ‘Banner Sun’ sales coming from outside North America. The top 10 markets are: the United States, United Kingdom, Russia, Canada, Spain, Australia, China, Mexico, Netherlands and India.

“PepsiCo continues to focus on growing its largest food and beverage brands, and this milestone is another example of how our efforts are paying off,” says Salman Amin, PepsiCo’s chief marketing officer. “Whether it’s Lay’s, Walkers, Smith’s or Sabritas, PepsiCo has built some of the world’s strongest brands that are loved by consumers around the globe.”

PepsiCo uses culinary insights to tailor its chips to the local tastes of consumers in diverse markets around the world, with current best-sellers including Lay’s Magic Masala in India, Lay’s Red Caviar in Russia, Lay’s Numb & Spicy Hot Pot in China, Lay’s Cheese & Onion in the United Kingdom, Sabritas Adobadas (tomato & chili) in Mexico and Lay’s Classic in the United States.

PepsiCo has leveraged its global brand building strength to connect with consumers in meaningful ways and drive the growth of the ‘Banner Sun’ portfolio worldwide. For example, with the ‘Do Us A Flavour’ campaign, which first launched in the United Kingdomin 2008, PepsiCo was among the first companies to co-create new products with consumers by using traditional and social media to invite people to submit their ideas for new flavors of potato chips. PepsiCo has launched this campaign in 30 countries to date.

As one of the largest seed-to-shelf companies in the world, PepsiCo sources more than four million tons of potatoes a year for its products. The company works with local farmers to understand every aspect of the growing process and ensure a consistent supply of high-quality potatoes needed to make the chips consumers know and love.

PepsiCo has one of the world’s most powerful go-to-market systems, operating more than 100,000 routes, serving approximately 10 million outlets every week and generating over $300 million in retail sales every day. This ability to make, sell and deliver its products on such a large global scale has been instrumental to the growth of the ‘Banner Sun’ portfolio. Frito-Lay North America was one of the first companies to adopt a system for direct-store-delivery, enabling the company to reach more than 500,000 retail customers each week.

Posted in NewsComments Off on PepsiCo Potato Chip Brands Surpass $10 Billion in Global Retail Sales

Mondelez International is New Name For Kraft’s Global Snacks Business


Kraft Foods’ high-growth global snacks business, which will be separated from its North American grocery business later in the year, will be called Modelez International. The North American grocery company will become Kraft Foods Group, retaining the Kraft brand for its corporate identity and as the brand for many of its consumer products. As a result, the global snacks company will require a new name when it launches later this year.

Mondelez is a newly coined word that means ‘delicious world’. It is a combination of the word monde, deriving from the Latin word for world, and delez, a fanciful expression of delicious. In addition, International captures the global nature of the business. Mondelez International will become a $35-billion business with 80% of its sales outside North Americawhen it comes into being before the end of 2012.

“The Kraft brand is a perfect fit for the North American grocery business and gives it a wonderful platform on which to build an exciting future,” said chairman and chief executive Irene Rosenfeld. “For the new global snacks company, we wanted to find a new name that could serve as an umbrella for our iconic brands, reinforce the truly global nature of this business and build on our higher purpose – to ‘make today delicious.’ Mondelez perfectly captures the idea of a ‘delicious world’ and will serve as a solid foundation for the strong relationships we want to create with our consumers, customers, employees and shareholders.”

Last year, Kraft Foods invited employees from around the world to suggest names for the new global snacks company. As part of this co-creation process, more than 1,000 employees participated, submitting more than 1,700 names for consideration. Mondelez International was inspired by separate suggestions from two employees, one in Europe and another in North America.

Posted in NewsComments Off on Mondelez International is New Name For Kraft’s Global Snacks Business

Kellogg Company to Acquire Pringles For $2.7 Billion


Kellogg Company has agreed to acquire Procter & Gamble’s Pringles business for $2.695 billion. Pringles is an excellent strategic fit for Kellogg and significantly advances the company’s goal of building a global snacks business on par with its global cereal business.

Pringles is the world’s second largest player in savoury snacks, with $1.5 billion in sales across more than 140 countries and manufacturing operations in the US, Europe and Asia. The stacked potato crisp has been a mainstay in supermarket snack aisles for more than four decades and is immediately identified by snack lovers worldwide by its unique saddle shape and distinct canister packaging.

Kellogg has established a strong US-based snacks business since its successful acquisition of Keebler more than a decade ago. With the acquisition of Pringles, the company will build a truly global snacks platform and organisation for further growth.

Pringles’ brand strength and consumer appeal fit well with Kellogg Company’s core strengths in brand-building and innovation, adding a complementary product to its high-quality snacks brands, most notably Keebler, Cheez-It and Special K Cracker Chips. In the US, the acquisition provides a new source of growth for the company’s already strong presence in the snacks category.

Internationally, Pringles provides a strong brand and an established platform from which Kellogg can more aggressively leverage its brands in the international snacks category. Kellogg will benefit from the collective expertise of more than 1,700 Pringles employees.

Kellogg and P&G expect to complete the transaction in the summer of 2012, pending necessary regulatory approvals.

“Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savory snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company,” says John Bryant, president and chief executive of Kellogg Company.

US-based snack foods group Diamond Foods had agreed to acquire Pringles from Procter & Gamble in April 2011. However, the $2.35 billion deal, which was expected to close in December 2011, was deferred following the decision to investigate an accounting irregularity at Diamond Foods. This investigation recently resulted in Diamond Foods announcing that its financial statements for 2010 and 2011 could not be relied on and would need to be restated. It also placed its president and chief executive, Michael Mendes, and chief financial officer, Steven Neil, on administrative leave and commenced a search for their permanent replacements.

Posted in NewsComments Off on Kellogg Company to Acquire Pringles For $2.7 Billion

Major Restructuring at PepsiCo to Maintain Profitable Growth


With worldwide snacks and beverage volumes rising by 8% and 5% respectively, PepsiCo has increased operating profit by 16% to $9.63 billion on net revenue up 15% to $66.5 million for 2011. Reported net income rose by 2% to $6.46 billion.

The results reflect top-line gains across its worldwide snacks and beverage businesses, the acquisition of Wimm-Bill-Dann in Russia, gains from sales of certain businesses and the favorable impact of an extra reporting week offset by high commodity costs.

“In 2011, we delivered solid top- and bottom-line growth,” says PepsiCo chairman and chief executive Indra Nooyi. “We continued to stimulate strong consumer demand for our products, and our successful pricing and productivity programs partially offset the impacts of inflation. Importantly, in a year characterised by a challenging macroeconomic environment and political turbulence, we took advantage of gains from strategic adjustments to our portfolio to reinvest in key capabilities and markets.”

Full-year worldwide snacks volume increased 2.5% on an organic basis, reflecting broad-based gains in the snacks portfolio. Full-year worldwide beverage volume increased 1% on an organic basis. The volume performance was led by growth in emerging markets, where volume increased 8% in snacks and 3% in beverages on an organic basis.

In Europe, volume increased in double-digits for both snacks and beverages, including the impact of the WBD acquisition. Net revenue increased by 41%, and by 12% excluding the impact of the WBD acquisition. Full-year operating profit advanced by 18%.

PepsiCo chairman and chief executive Indra Nooyi.

To maintain its growth momentum, PepsiCo has unveiled a major restructuring and productivity program with the savings being invested in its brands. Entailing the shedding of about 8,700 jobs or 3% of the global workforce, PepsiCo’s new multi-year productivity program is expected to generate $1.5 billion of incremental cost savings by 2014 through optimisation of operating practices and organisation structure. PepsiCo plans to increase advertising and marketing support behind its global brands by $500-$600 million in 2012, with particular focus on North America. Going forward, it expects to maintain or increase that rate of support as a percentage of revenues.

As a result of the productivity programme, PepsiCo incurred pre-tax non-core restructuring charges of $383 million in the fourth quarter of 2011 and it anticipates additional charges of approximately $425 million in 2012 and another $100 million from 2013 through 2015. These charges resulted in cash expenditures of $30 million in the fourth quarter of 2011, and the company anticipates approximately $550 million of related cash expenditures during 2012, with the balance of approximately $175 million of related cash expenditures in 2013 through 2015.

Posted in NewsComments Off on Major Restructuring at PepsiCo to Maintain Profitable Growth

New Head of Marketing at Intersnack UK


Intersnack, the UK savoury snack supplier and owner of the Pom-Bear and Penn State brands, has appointed Dave Wilson to the new role of head of marketing. Previously brand marketing manager at Northern Foods, Dave Wilson is an experienced international marketer who cut his teeth in the FMCG environment with Vileda Germany before moving into the food industry.

Dave Wilson will lead a marketing team of five. He has already worked with the company for nine months in a consultancy capacity, during which he has helped the Intersnack team to formulate a new brand and business marketing strategy. A significant milestone in this process will be reached this month with the announcement of a major relaunch for Intersnack’s signature Penn State brand.

Dave Wilson.

Dave Wilson comments: “Snacks is a particularly fascinating category because it is so varied, with something to offer everyone regardless of age, background or lifestyle. Intersnack is a business with the capacity, ambition and passion to deliver new growth and excitement to snacks in the UK and also agile enough to build innovative and proactive relationships to bring real benefit to our trade partners.” Intersnack expects to roll out further brand and product developments during 2012 together with an upweighted programme of marketing investment.

With turnover currently around £80 million, Intersnack has expanded substantially in the past three years through a combination of organic growth and acquisition. Headquartered in Stanley, County Durham, the business also has manufacturing sites at Corby and Haverhill and employs a total of around 400 people. Intersnack in the UK is part of the family-owned Intersnack Group, Europe’s number two snack manufacturer, producing 400,000 tonnes of snack products a year with businesses in 14 European countries and employing over 6,000 people.

Posted in NewsComments Off on New Head of Marketing at Intersnack UK

United Biscuits to be Split Up


Private equity firms Blackstone Group and PAI Partners are reported to be considering splitting their United Biscuits business into two elements – one centred on biscuits and the other on bagged snacks. Blackstone and PAI offered the entire business for sale with a price tag of about £2 billion in 2010 but to no avail, although at one period they were in exclusive negotiations with Chinese food group Bright Foods.

 

The biscuits element of United Biscuits accounts for about 75% of sales and includes the McVitie’s brand. The snacks business incorporates brands such as Hula Hoops and McCoy’s crisps.

 

United Biscuits achieved EBITDA of £230.8 million on revenues of £1.3 billion in 2010 but had net debt of £1.14 billion. The snacks side of United Biscuits is estimated to be worth in the region of £500 million.

Posted in NewsComments Off on United Biscuits to be Split Up

Irene Rosenfeld to Lead Kraft’s Global Snacks Company


In the next step toward dividing into two public companies, Kraft Foods has announced the appointments of the heads of the future global snacks and North American grocery businesses. Irene Rosenfeld (pictured), currently chairman and chief executive of Kraft Foods, will be chairman and chief executive of the global snacks company, which will have $31 billion in estimated revenue and a significant presence in numerous fast-growing, international markets.

 

Anthony Vernon, currently executive vice president and president of Kraft Foods North America, will become chief executive of the $17 billion North American grocery company. Kraft Foods expects to complete the spin-off by the end of 2012.

 

As chief executive of Kraft Foods since 2006 and chairman since 2007, Irene Rosenfeld has led Kraft Foods’ transformation. She has thirty years of accomplishments in the food and beverage industry. These include integrating Nabisco; leading Kraft Foods through its spin-off from Altria to emerge as a strong, independent company; and devising strategies that included the transformative LU and Cadbury acquisitions.

Posted in NewsComments Off on Irene Rosenfeld to Lead Kraft’s Global Snacks Company

Kraft Foods to Split into Two Businesses


Kraft Foods intends to spin-off of its North American grocery business to shareholders. The move will create two independent public companies – a high-growth global snacks business with estimated revenue of about $32 billion and a high-margin North American grocery business with estimated revenue of approximately $16 billion. The target is to launch the new companies before year-end 2012.

 

Over the last several years, Kraft Foods has transformed its portfolio by expanding geographically and by building its presence in the fast-growing snacking category. A series of strategic acquisitions, notably of LU biscuit from Danone and of Cadbury, together with the strong organic growth of its ‘power brands’, have made Kraft Foods the world’s leading snacks company. At the same time, the company has continued to invest in product quality, marketing and innovation behind its iconic North American brands, while implementing a series of cost management initiatives.

 

Having successfully executed its transformation plan, and 18 months into the Cadbury integration, the company has, in fact, built a global snacking platform and a North American grocery business that now differ in their future strategic priorities, growth profiles and operational focus.

 

Kraft Foods’ snacks business is focused largely on capitalising on global consumer snacking trends, building its strength in fast-growing developing markets and in instant consumption channels. The North American grocery business is investing to grow revenue in line with its categories in traditional grocery channels through product innovation and world-class marketing, while driving superior margins and cash flows.

 

Irene Rosenfeld, chairman and chief executive of Kraft Foods.

Chairman and chief executive Irene Rosenfeld explains: “We have built two strong, but distinct, portfolios. Our strategic actions have put us in a position to create two great companies, each with the leadership, resources and strong market positions to realize their full potential. The next phase of our development recognizes the distinct priorities within our portfolio. The global snacks business has tremendous opportunities for growth as consumer demand for snacks increases around the world. The North American grocery business has a remarkable set of iconic brands, industry-leading margins, and the clear ability to generate significant cash flow.”

 

Global snacks will consist of the current Kraft Foods Europe and Developing Markets units as well as the North American snacks and confectionery businesses. As an independent company, global snacks would have estimated revenues of approximately $32 billion and a strong growth profile across numerous fast-growing, attractive markets. Approximately 75 percent of revenues would be from snacks around the world, and approximately 42 percent would come from developing markets, including a diversified presence in numerous highly attractive emerging markets. The business would have a strong presence in the fast-growing and high-margin instant consumption channel. The non-snacks portion of the portfolio would consist primarily of powdered beverages and coffee, which have a strong growth and margin profile in developing markets andEurope. Key brands would include Oreo and LU biscuits, Cadbury and Milka chocolates, Trident gum, Jacobs coffee,and Tang powdered beverages.

 

The North American grocery business would consist of the current US Beverages, Cheese, Convenient Meals and Grocery segments and the non-snack categories inCanadaand Food Service. With approximately $16 billion in estimated revenue, this business would be one of the largest food and beverage companies inNorth America. Its portfolio would include many of the most popular food brands on the continent, with leadership positions in virtually every category in which it competes. ey brands would include Kraft macaroni and cheese, Oscar Mayer meats, Philadelphiacream cheese, Maxwell House coffee,CapriSun beverages, Jell-O desserts and Miracle Whip salad dressing.

Posted in NewsComments Off on Kraft Foods to Split into Two Businesses

Record Confectionery Performance Lifts Zetar


Despite the difficult trading environment, Zetar, the UK confectionery and snack food group, increased revenue by 2% to £135.0m and adjusted operating profit by 3% to £7.5m for the year ended 30th April 2011. Adjusted profit before tax rose 6% to £6.7m and EBITDA increased from £9.6m to £9.8m.

The results reflect a record performance by the confectionery division due to continued increase in everyday sales and an improved mix of higher margin products allied to further cost efficiencies. The natural snacks division was impacted by rising raw materials costs but the operating margin improved during the second half from 2.6% to 4.5% as price increases were implemented and more branded products were sold.

“We have set ambitious plans for the group to enhance revenue and margin over the next three years. Our key focus is to drive sales of premium private label and branded products across both divisions,” says Ian Blackburn, chief executive of Zetar. “The group’s strong financial base provides the resource to realise this strategy.”

Posted in NewsComments Off on Record Confectionery Performance Lifts Zetar

PepsiCo Launches European Search for Emerging Communications and Technology Companies


PepsiCo has announced an open call for digital entrepreneurs across Europe to apply to take part in ‘PepsiCo10’, an innovation incubator program designed to discover and support emerging technology companies whose ideas and solutions can be applied to drive business value for the global soft drinks and snacks group.

Launched successfully in the United States last June, PepsiCo has now expanded PepsiCo10 to Europe. The goal of the PepsiCo10 Europe program is to identify up to 10 of the most promising companies and give them the opportunity to work with PepsiCo in the UK to deliver pilots of their technologies, whilst receiving the support and guidance from industry-leading mentors.

PepsiCo is looking to identify businesses with ‘ready-to-go’ technologies across five categories; social media; mobile marketing; place based technology; digital video; and gaming or learning platforms. Highland Capital Partners, OMD and Weber Shandwick will continue to serve as advisors to PepsiCo throughout the program.

Selected applicants will undergo a series of rigorous assessments, and a subset will be invited to participate in a second round and submit video presentations, which will be judged by senior brand representatives from PepsiCo brands Pepsi, Walkers, Tropicana and Quaker. Companies’ ideas and solutions will be evaluated on their potential ability to impact PepsiCo’s business and to deliver on ‘Performance with Purpose’, the company’s commitment to finding innovative ways to minimise its impact on the environment; to provide a great workplace for its associates; and to respect, support and invest in the local communities where it operates.  Prospective applicants can find out more about the program and apply online until July 15, 2011 at www.pepsico10.com.

Near completion, PepsiCo10’s pilot programs in the US have resulted in the execution of successful digital marketing activations across US brands. These winning technologies include: Tongal, a video sharing platform that is currently sourcing animation video for the Brisk Tea brand; BreakOut Band, a collaboration music platform that worked with Pepsi MAX to execute at the 2011 South by Southwest Interactive and Music conference; and Evil Genius Designs, a mobile gaming platform with which PepsiCo has worked to develop a virtual reality video game featuring products across the PepsiCo portfolio.

“There is a huge appetite amongst consumers for new and exciting social media technologies and for us as a business, digital is a dynamic and increasingly important area for innovation,” points out Ian Ellington, general manager for Walkers Crisps, one of the brands which will benefit from the PepsiCo10 technologies. “We’ve already used digital and social media to great success in our past campaigns, such as Walkers’ Do Us A Flavour campaign and we now look forward to harnessing the emerging tech and start-up landscape and cultivating the next generation of digital pioneers.”

CAPTION:

PepsiCo10 winner BreakoutBand brought an interactive music beat maker to the Pepsi MAX Lot at SXSW Interactive 2011, giving music fans a chance to mix their own beats on-site, form virtual bands and create original songs via their mobile phones.

Posted in NewsComments Off on PepsiCo Launches European Search for Emerging Communications and Technology Companies

Zetar Expands Confectionery Business


Zetar, the UK confectionery and snack foods company, has acquired Derwent Lynton for a maximum consideration of up to £0.8m. Based in Derby, Derwent Lynton is a chocolate confectionery manufacturer specialising in solid milk chocolate and chocolate flavour balls and eggs, hollow milk chocolate shapes, sugar-coated milk chocolate products including eggs & beans and chocolate drops.

Its operations will form part of Zetar’s confectionery division. In the year ended 30th June 2010, Derwent Lynton had sales of £4.2m and an operating profit of £114,000. At 30th June 2010 net assets amounted to £0.6 million.

“The acquisition of Derwent Lynton is complementary to our existing confectionery business, providing access to new customers. Its additional manufacturing capability will also give Zetar the flexibility to offer new product variants to our existing customers,” comments Ian Blackburn, chief executive of Zetar. “This relatively small acquisition is Zetar’s first acquisition since 2007. We are continuing to review other small opportunities.”

Posted in NewsComments Off on Zetar Expands Confectionery Business

Diamond Foods Bags Pringles in $2.4 Billion Deal


US-based snacks group Diamond Foods is acquiring the Pringles business from Procter & Gamble in a deal worth $2.35b. Pringles is the world’s largest potato crisp brand with sales in over 140 countries and manufacturing operations in the US, Europe and Asia. The brand has been built over 45 years with a combination of proprietary products, unique package design and significant advertising investment.

Pringles will join Diamond Foods’ portfolio of brands, which includes Diamond of California and Emerald nuts, Pop Secret microwave popcorn and Kettle potato chips, creating a premium snack focused company with total revenues of approximately $2.4b. Diamond acquired the Kettle Foods businesses in both the US and the UK from private equity group Lion Capital for $615m in cash last year.

The addition of Pringles will more than triple the size of Diamond’s snack business and leverage its sales and distribution infrastructure through a more than doubling of snack sales in the US and UK, which are Pringles’ two largest markets.

The deal will also allow Diamond to gain a broader global manufacturing and supply chain platform, with access into key growth markets around the world, including Asia, Latin America and Central Europe. International sales will account for approximately 49% of the enlarged Diamond’s revenues on a pro forma basis.

Diamond has a history of building, acquiring and developing brands through product and package innovation, efficient distribution and brand investment. The company’s total revenues have doubled and earnings per share have grown more than four-fold in the past five years.

“Pringles is an iconic, billion dollar snack brand with significant global manufacturing and supply chain infrastructure,” says Michael Mendes, chairman, president and chief executive of Diamond Foods. “Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products. Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come.”

Under the terms of a split-merge transaction, P&G shareholders can elect to exchange P&G shares for shares of Diamond. The value of the deal is $2.35b, comprising $1.5b in Diamond common stock for approximately 57% of the combined company, and the assumption of $850m of Pringles debt. Diamond’s existing shareholders would continue to own approximately 43% of the combined company.

Diamond expects to incur one-time costs of approximately $100m related to the transaction over the next two years. P&G also will provide Diamond transition services for up to 12 months after closing.

Posted in NewsComments Off on Diamond Foods Bags Pringles in $2.4 Billion Deal

Bright Food Group Favourite For Yoplait Stake


Chinese food conglomerate Bright Food Group is reported to be in pole position in the race to acquire PAI Partners’ 50% stake in Yoplait. Rivals for the shareholding in the French and international yoghurt producer are believed to include Switzerland-based Nestle and General Mills of the US. The other 50% of Yoplait is owned by Sodiaal, the French farmers co-operative.

Last year, Bright Food Group held exclusive talks to acquire United Biscuits, the British and international biscuits and snacks manufacturer which is owned by PAI Partners and another private equity firm Blackstone Group, but these ended with no formal offer forthcoming. PAI Partners and Blackstone Group put United Biscuits up for auction earlier in 2010.

Posted in NewsComments Off on Bright Food Group Favourite For Yoplait Stake

New Head at United Biscuits


Benoit Testard, group chief executive of United Biscuits.

United Biscuits, leading European manufacturer of biscuits and snacks, has appointed Benoit Testard as its group chief executive, effective from Monday, 21st February. Formerly, Benoit Testard successfully led the group’s Northern Europe operations and then from 2004 the UK region, which represents 70% of United Biscuits’ business.

Prior to joining UB in March 1999 as managing director of UB France, he spent 13 years with Fromageries BEL, where he began as marketing manager, moving into a sales director role and later becoming head of business.

David Fish, currently executive chairman of United Biscuits, will move to the role of non-executive chairman.

Posted in NewsComments Off on New Head at United Biscuits

Raisio in Middle of Growth Phase


Raisio, the Finnish food and functional food ingredients group, increased net sales by 17.9% to Eur443.0m in 2010. EBIDTA fell from Eur37.5m (excluding one off items) in 2009 to Eur35.3m last year. EBIT was Eur19.4m (Eur20.5m excluding one-off items), which accounts for 4.4% (5.5%) of net sales, which is in accordance with Raisio’s all-year guidance.

“Raisio is in the middle of the growth phase which we expect to last two years. During the growth phase, we aim to increase net sales and our international activities,” points out Matti Rihko, chief executive of Raisio.”

Matti Rihko, chief executive of Raisio.

In the first half of 2010, Raisio acquired Glisten to enter the snacks and confectionery market in Great Britain. Since its year end, Raisio has acquired Big Bear Group for Eur95.3m to gain a stronger branded foothold in the snacks and breakfast cereals markets in Great-Britain and Western Europe. The acquisition supports Raisio’s growth strategy to become the leading provider of healthy snacks in Europe.

Matti Rihko continues: “We will continue to be active in the acquisitions front. The group’s strong balance sheet and cash flow provide a good foundation for acquisition activities as far as there are suitable companies available fitting our strategy and meeting our preset criteria. During the growth phase, Raisio aims to maintain the earlier 4-5% level of profitability.”

Great-Britain has now become the largest market area for Raisio’s food business with Eur140-150m of net annual sales.

Posted in NewsComments Off on Raisio in Middle of Growth Phase

Surge in Sales at PepsiCo


Driven by gains across its worldwide snacks and beverage businesses, and from the acquisitions of its anchor bottlers earlier in the year, PepsiCo has reported a 34% surge in net revenue to $57.84b for 2010 with net income up 6% to $6.34b and ahead by 15% on a constant currency basis.

The successful integration of its two anchor bottlers to create more-efficient and effective beverage businesses in its key North American market and in Europe, allowed PepsiCo to deliver more than $150m in synergies from the acquisitions in 2010, above target for the year. The strong pace of synergy realisation and the identification of additional synergies have led PepsiCo to increase expectations for total synergies through 2012 to more than $550m.

During the year, the US-based soft drinks and snacks group acquired Wimm-Bill-Dann, Russia’s preeminent food and beverage company, to significantly strengthen its competitive position in Russia and Eastern Europe, while also providing a strong foothold in the attractive dairy category.

Indra Nooyi, chairman and chief executive of PepsiCo.

“The underlying performance of our businesses remained solid despite a challenging macroeconomic environment,” says Indra Nooyi, chairman and chief executive of PepsiCo. “We posted broad-based worldwide gains in both snacks and beverages, our businesses deftly balanced a delicate price-value consumer equation, and we aggressively managed costs and productivity to deliver top-tier financial results.”

She continues: “Importantly, we are entering 2011 an even-stronger, more-capable organisation. Our core global snacks and beverage businesses benefit from strong brands, world class go-to-market systems, and innovative and differentiated products and we strengthened these advantages in 2010 through targeted investments.”

While encouraged by the momentum of the businesses entering 2011, she is mindful of a weak consumer landscape given the poor macroeconomic picture, especially in key developed markets, the high levels of cost inflation for the coming year, driven by broad and pronounced commodity inflation, and a potentially difficult competitive pricing environment, particularly in beverages.

Posted in NewsComments Off on Surge in Sales at PepsiCo

Diamond Foods to Expand UK Kettle Foods Plant


US-based snacks group Diamond Foods is investing $10m to expand of its UK production facility in Norwich to meet increasing demand for Kettle Chips. The Kettle brand has experienced significant growth driven by the introduction of its new Kettle Ridge Crisp line, the expansion of its Kettle Chip sharing, single serve and multi-pack lines and an increased penetration in both the impulse channel and international markets.

“We are continuing to drive strong growth in a tough marketplace and see a lot of opportunity to sustain this trend,” says Jeremy Bradley, managing director of Kettle Foods Europe. “It’s a credit to the work of the Norwich team that Diamond is making this investment, which supports our plans for growth and will create a number of new jobs for the region.”

The expansion is anticipated to get underway in the spring and includes new packaging lines, an increase in multi-packing capability and enhancements to employee facilities.

Diamond Foods acquired the Kettle Foods businesses in both the US and the UK from private equity group Lion Capital for $615m in cash last year. In addition to Kettle Chips, Diamond Foods’ other brands include Emerald snack nuts, Pop Secret popcorn, and Diamond of California culinary and snack nuts.

Posted in NewsComments Off on Diamond Foods to Expand UK Kettle Foods Plant

PepsiCo to Acquire 66% of Wimm-Bill-Dann For $3.8 Billion


PepsiCo is acquiring a 66% stake in Wimm-Bill-Dann Foods, Russia’s leading branded food and beverages company, for $3.8b, pending the required government approvals. Wimm-Bill-Dann is a leader in both traditional and value-added dairy products, with a solid position in juice.

The transaction will establish PepsiCo as the largest food-and-beverage business in Russia, make it a leader in the country’s fast-growing dairy category and build its presence in key markets in Eastern Europe and Central Asia. It will also raise PepsiCo’s annual global revenues from nutritious and functional foods from approximately $10b today to nearly $13b. This moves the US-based beverages and snacks group closer to its strategic goal of building a $30b nutrition business by 2020.

“Adding Wimm-Bill-Dann to PepsiCo’s portfolio is financially attractive and gives us a strong, high-growth platform in the dairy category,” says Indra Nooyi, chairman and chief executive of PepsiCo. “It also gives us clear leadership in the food and beverage industry in Russia, a fast-growing, strategically important market offering abundant opportunity. At the same time, Wimm-Bill-Dann’s strong, value-added dairy business immediately advances our global nutrition strategy to provide consumers around the world nutritious foods and beverages that are accessible, affordable and advantaged by science. Dairy has a huge, untapped potential to bridge snacks and beverages. We see the emerging opportunity to ‘snackify’ beverages and ‘drinkify’ snacks as the next frontier in food and beverage convenience.”

Wimm-Bill-Dann was founded just 18 years ago with a handful of employees. Today the group employs over 16,000 people and operates 38 production facilities.

The integration of Wimm Bill Dann is expected to yield pre-tax annual synergies of approximately $100m by 2014. The completed transaction will bring together PepsiCo’s large global food and beverage brands (Pepsi-Cola, Lipton and Lay’s), its Russian juice and water brands (Fruktovi Sad, Ya, Tonus, Hrusteam and Aqua Minerale) and Wimm-Bill-Dann’s portfolio of leading dairy and juice brands (Domik v Dorevne, Chudo, Imunele, J7, Lubimy Sad, 100% Gold Premium and Agusha).

Upon completion of the full Wimm-Bill-Dann acquisition, PepsiCo’s brands will rank first among food and beverage companies operating in Russia, with approximately $5b in revenue. PepsiCo will have six of the twenty largest food and beverage brands in Russia.

PepsiCo will be approximately twice the size of its nearest food and beverage competitor in Russia, with an unmatched distribution platform for its products. PepsiCo will employ approximately 31,000 people in Russia, Ukraine and Central Asia and have 49 manufacturing facilities, making the company one of the largest food and beverage employers in the region.

Posted in NewsComments Off on PepsiCo to Acquire 66% of Wimm-Bill-Dann For $3.8 Billion

United Biscuits Sale Talks End


The exclusive talks to acquire United Biscuits, the British and international biscuits and snacks manufacturer, between its owners and Chinese food conglomerate Bright Food Group are reported to have ended with no formal offer forthcoming. The co-owners of United Biscuits, private equity firms Blackstone Group and PAI Partners, have now opened talks with other potential bidders as they seek to auction off the business. Blackstone Group and PAI Partners acquired United Biscuits for £1.6b four years ago but put is up for sale earlier this year.

United Biscuits is one of the world’s leading branded biscuits and snacks businesses. The group’s products range from biscuits and crackers to cakes and savoury snacks and its portfolio of brands includes McVitie’s, Jacob’s, Carr’s, McCoy’s, Hula Hoops, McVitie’s Jaffa Cakes, KP, Mini Cheddars, go ahead!, Verkade, Sultana, BN, and Delacre. In 2009, United Biscuits increased EBITDA by 13.7% to £223.4m on turnover up 5% to £1.26b.

The group has £1.2b of debt and the asking price is believed to be in the region of £2b. Potential suitors for United Biscuits include Campbell Soup, Krafts Foods, PepsiCo and Kellogg.

Posted in NewsComments Off on United Biscuits Sale Talks End

United Biscuits Sale Talks Close to Collapse


The exclusive talks to acquire United Biscuits, the British and international biscuits and snacks manufacturer, between its owners and Chinese food conglomerate Bright Food Group are reported to have stalled over the asking price of around £2b. United Biscuits was put up for sale earlier this year by its private equity owners Blackstone Group and PAI Partners, which acquired the business for £1.6b four years ago.

United Biscuits is one of the world’s leading branded biscuits and snacks businesses. The group’s products range from biscuits and crackers to cakes and savoury snacks and its portfolio of brands includes McVitie’s, Jacob’s, Carr’s, McCoy’s, Hula Hoops, McVitie’s Jaffa Cakes, KP, Mini Cheddars, go ahead!, Verkade, Sultana, BN, and Delacre. In 2009, United Biscuits increased EBITDA by 13.7% to £223.4m on turnover up 5% to £1.26b.

Posted in NewsComments Off on United Biscuits Sale Talks Close to Collapse

PepsiCo Plans to Revolutionise its Farming with New i-crop Technology


PepsiCo plans to roll-out globally its new i-crop farming technology that will enable the soft drinks and snacks group’s farmers around the world to monitor, manage and reduce their water use and carbon emissions, while also maximizing potential yield and quality. The web-based crop management system was developed by PepsiCo in conjunction with Cambridge University in the UK.

Trials of i-crop are currently underway at 22 farms in the UK, where PepsiCo has ambitious plans to reduce carbon emissions and water usage by 50% across the farming of its core crops in the next five years.

The technology will be rolled-out throughout Europe during 2011, with planned introductions in Holland, France, Germany, Belgium, Spain, Portugal and Turkey. The company hopes to take it to India, China, Mexico and Australia by 2012.

As one of the world’s largest food and beverage businesses, with brands including Quaker, Tropicana, Gatorade, Pepsi-Cola and Frito-Lay, PepsiCo is a major investor in global farming. In 2010, the company announced 15 global goals and commitments to guide its work to protect the Earth’s natural resources through innovation and more efficient use of land, energy, water and packaging.

In the UK, the company is the largest purchaser of British potatoes and one of the largest purchasers of British oats and apples, using 100% British produce in Walkers crisps, Copella English Apple juice, Quaker Oats, Oatso Simple and Scott’s porridge.

“Farming is in the DNA of our business – we rely on fresh produce every day. Finding ways to produce more food with less environmental impact is essential to our future,” explains Richard Evans, president of PepsiCo UK and Ireland. “I-crop has the potential to revolutionise the way we farm, enabling our farmers to save costs and water and carbon consumption, while at the same time improving their yields.”

In its first ‘Sustainable Farming Report’, PepsiCo UK outlined how it is working in partnership with its 350 British farmers to reach its aim of ‘50 in 5’. Other initiatives announced include trials of new low-carbon fertilizers and plans to replace more than 75% of PepsiCo UK’s current potato stock with varieties that will significantly improve farmers’ yields and decrease wastage by 2015.

Commenting on the PepsiCo UK sustainable farming report, Richard Perkins, senior commodities adviser at WWF says: “The food industry is starting to recognize that in order to fully embed sustainability and biodiversity in its business practices, a large part of the focus must be on the agricultural supply chain. In this respect PepsiCo UK has taken a leadership role in recognising that it is, at its heart, an agricultural business. The focus of the business on improving its key environmental impacts, such as greenhouse gas emissions – in the field and on the farm – is most welcome.”

Posted in NewsComments Off on PepsiCo Plans to Revolutionise its Farming with New i-crop Technology

PepsiCo Plans to Invest $140 Million in New Beverage Plant in Russia


Global soft drinks and snacks giant PepsiCo plans to invest $140m to build its tenth plant in Russia. The new plant will be constructed in the city of Azov, where the company recently completed a snacks plant.

Indra Nooyi, chairman and chief executive of PepsiCo.

Both plants in Azov are part of PepsiCo’s $1b investment programme in Russia, announced in 2009. In the previous ten years, PepsiCo invested $3b in Russia. Placing both plants on the same property will allow for more efficient logistics and leverage the advantages of production processes and technologies that save water and energy.

“Russia is one of our most exciting growth opportunities, and our $250m total investment in two plants in the Rostov region reflects our commitment to this key market,” says Indra Nooyi, chairman and chief executive of PepsiCo. “Our goal is to build a premier food and beverages company in Russia, and we are actively investing in manufacturing and logistics infrastructure to achieve that. Consistent with our ’Performance with Purpose’ vision, we also are broadening our portfolio by adding healthier products, implementing new environmental initiatives and taking steps to support the growth and development of our employees.”

Posted in NewsComments Off on PepsiCo Plans to Invest $140 Million in New Beverage Plant in Russia

Chinese Food Group Eyes United Biscuits


Chinese food conglomerate Bright Food Group is reported to be holding exclusive talks to acquire United Biscuits, the British and international biscuits and snacks manufacturer, for more than £2b. Private equity owners Blackstone Group and PAI Partners put United Biscuits up for sale earlier this year.

United Biscuits is one of the world’s leading branded biscuits and snacks businesses. The group’s products range from biscuits and crackers to cakes and savoury snacks and its portfolio of brands includes McVitie’s, Jacob’s, Carr’s, McCoy’s, Hula Hoops, McVitie’s Jaffa Cakes, KP, Mini Cheddars, go ahead!, Verkade, Sultana, BN, and Delacre. In 2009, United Biscuits increased EBITDA by 13.7% to £223.4m on turnover up 5% to £1.26b.

Meanwhile, the Chinese group’s dairy business Bright Dairy & Food is acquiring 51% of Synlait Milk, the New Zealand dairy company, for $82m, paving the way for the construction of a second milk powder plant to begin operations within 12 months. The plant will produce value added products, such as infant formula and other high specification formulated milk powders, and is part of Synlait’s ambition of tapping the Chinese market.

Posted in NewsComments Off on Chinese Food Group Eyes United Biscuits

Consolidation in UK Vending Machines Market


SnackTime, one of the UK’s largest national operators of snack and chilled drink vending machines, has acquired Vendia UK for a maximum consideration of £10.98m. Vendia UK’s core operation is a traditional vending business specialising in the sale of hot beverages, which complements SnackTime’s confectionery and chilled drinks operations.

For the year ended December 31st 2009, Vendia UK reported revenues of £19.7m and adjusted EBITDA of £2.1m. The acquisition is in line with SnackTime’s strategic objective to increase its critical mass and substantially improve its hot beverage offering. The enlarged group will have over 30,000 customers being serviced by more than 450 employees, agents and franchisees and will be the UK’s fourth largest vending company by revenue.

Posted in NewsComments Off on Consolidation in UK Vending Machines Market

Grupo Siro Opens €6m R&D Centre


Spanish food group Grupo Siro has opened a new Eur6m research and development facility at El Espinar in northern Spain. The 3,000 sq m facility, which will house a team of 30 researchers, will focus on new product development. It will also undertake contracts for other food manufacturers. Grupo Siro operates across five food categories – pasta, biscuits, snacks, bakery/cakes, bread and patisserie.

Posted in NewsComments Off on Grupo Siro Opens €6m R&D Centre

Seabrook Crisps Plans New English Factory


Seabrook Crisps, the north of England-based snacks manufacturer, is planning to build a new factory in the south of the country as part of its five year development plan to expand its geographical coverage and to increase sales to £200m by 2022. The family run company, which has increased turnover by 130% to £28m in the last two years, currently holds 5.6% pf the UK crisps market but expects to claim a 10% share by 2015. The company is 65 years old.

According to John Tague, managing director of Seabrook Crisps, the proposed new snacks factory would be built by 2012 or 2013 in Northamptonshire. “We don’t know what the economy is going to be like in five years but, as things stand, there is no financial problem at Seabrook and we are very confident about expansion,” he states. “With our heritage and crinkle-cut style, we offer something different and retailers recognise there is space for another brand to make it big.”

Posted in NewsComments Off on Seabrook Crisps Plans New English Factory

Campbell Considering Bid For United Biscuits


US-based Campbell, the world’s largest soup company, is reported to be preparing a £1.5b break-up bid for United Biscuits, the British and international biscuits and snacks manufacturer. Campbell’s interest is in the biscuits part of United Biscuits, which includes the McVitie’s, Penguin, Jaffa Cakes and HobNobs brands. United Biscuits is also a major snacks manufacturer with a brands portfolio that incorporates McCoy’s crisps, Hula Hoops, KP Nuts and Twiglets.

In 2009, United Biscuits increased EBITDA by 13.7% to £223.4m on turnover up 5% to £1.26b. Current owners, private equity firms Blackstone Group and PAI Partners, which acquired United Biscuits for £1.6b four years ago, have put the company up for auction.

Three other US-based food groups – Krafts Foods, PepsiCo and Kellogg – are also believed to be potential bidders for United Biscuits.

Posted in NewsComments Off on Campbell Considering Bid For United Biscuits

United Biscuits Offered For Sale


Private equity firms Blackstone Group and PAI Partners are reported to be seeking to sell British and international biscuits and snacks manufacturer United Biscuits for £2b or more. In 2009, United Biscuits increased EBITDA by 13.7% to £223.4m on turnover up 5% to £1.26b.

United Biscuits is one of the world’s leading branded biscuits and snacks businesses. The group’s products range from biscuits and crackers to cakes and savoury snacks and its portfolio of brands includes McVitie’s, Jacob’s, Carr’s, McCoy’s, Hula Hoops, McVitie’s Jaffa Cakes, KP, Mini Cheddars, go ahead!, Verkade, Sultana, BN, and Delacre.

United Biscuits holds leading or strong number two positions in its core markets of the United Kingdom, the Netherlands, France, Belgium and Ireland. Moreover its brands and products have global appeal, and the group’s rapidly growing international business unit serves consumers from North America to the Middle East, Africa, and Australia.

The sale process is due to begin in the autumn and to be concluded early next year. Blackstone Group and PAI Partners acquired United Biscuits for £1.6b four years ago.

Posted in NewsComments Off on United Biscuits Offered For Sale




Food & Drink Business Conference & Exhibition 2015

Food & Drink Event Videos

Upcoming Events

  • February 25, 2017Golositalia & Aliment & Equipment
  • February 26, 2017Gulfood
  • March 3, 2017DETROP 2017
  • March 6, 2017Sibab Portugual 2017
AEC v1.0.4

Jobs: Food Packaging

Jobs: New Product Development

Jobs: Finance

Jobs: Project Management

Jobs: Logistics

The Magazine

F&D Business Preferred Suppliers

Advertisements