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Food finance and prices

The food industry is in constant financial motion; there’s always some company snapping up the assets of another, not to mention grappling with fluctuating costs of commodities. The latest money moves can have a big impact on ingredient supply, so it pays to keep up to date.

Wrigley and Kraft opt for smaller gum packs for cash-strapped US consumers

25-Oct-2011 - Gum titans Wrigley and Kraft Foods plan to introduce smaller five-piece chewing gum packs at reduced rates to boost US sales and reflect consumer spending trends.

Harvard debate: ‘Judged by its impact on health, the American food supply is a disaster’

24-Oct-2011 - Spending taxpayers’ money on helping low-income shoppers buy “mostly junk and soda” is “nuts” and inexcusable, delegates were told at a lively debate between leading academics and economists on how government policy impacts the food supply at Harvard last week.

Bakers hail CFTC vote as ‘step in right direction’ to stop index funds sending commodity markets into a spin

21-Oct-2011 - Moves to impose position limits on non-commercial hedgers in commodity markets mark an important step in the right direction to tackle volatility in wheat futures, says the American Bakers Association (ABA).

Healthier foods drive healthier profits, report suggests

18-Oct-2011 - ‘Better-for-you’ foods and beverages may also be better for the bottom line, according to a new report from policy research organization the Hudson Institute.

Cargill earnings down 66% on global economic turmoil

11-Oct-2011 - Cargill has reported a ‘tough quarter’ for Q1 2012 with dramatically tighter margins, citing global economic turmoil and volatile commodity markets.

Ferrero and Hershey partnership targets supply chain efficiencies

07-Oct-2011 - The Ferrero Group and The Hershey Company have announced a partnership under which they will share North American supply chain processes in order to reduce costs and carbon emissions.

More meat and poultry price rises likely, says Rabobank

29-Sep-2011 - US meat and poultry prices are likely to rise next year as domestic production enters a period of sharp decline, according to a new report from financial services provider Rabobank.

Sugar prices kept artificially high, say US bakers and confectioners on reform path

27-Sep-2011 - Last week, hundreds of confectioners and bakers gathered on Capitol Hill, the meeting place of the US congress, to call for an end to the sugar price support programme, which they claim is keeping sugar prices artificially high and forcing food companies out of business.

New yogurt stabilisers address soaring gelatin prices: Cargill

20-Sep-2011 - Cargill has unveiled a new stabiliser system that it says will help dairy food manufacturers avoid the rising cost of gelatin in yogurt production.

Frutarom enters US savory flavors market with latest acquisition

14-Sep-2011 - Israeli flavor firm Frutarom has agreed to acquire Cincinnati, Ohio-based Flavor Systems International for up to $45.3m, the company has said.

‘Highly confident’ ConAgra to Ralcorp: Our $94/share offer stands until Monday

13-Sep-2011 - ConAgra Foods has called on Ralcorp to look again at its $94-a-share takeover offer after talking to shareholders at the private label giant who believe their board acted too hastily in rejecting ConAgra's advances.

Food makers beginning to pass on commodity costs, says Purdue economist

12-Sep-2011 - Food manufacturers are beginning to pass on rising commodity costs to consumers, meaning higher grocery prices for the rest of this year and into 2012, according to a Purdue University agricultural economist.

New Kraft companies ‘well-positioned to outperform’ rivals, says Rosenfeld

09-Sep-2011 - Kraft Foods’ CEO Irene Rosenfeld defended the company’s decision to split into two separate entities during a presentation at the Barclay’s Back-to-School Consumer Conference in Boston on Wednesday, saying that both companies will have the scale to succeed.

Is ‘taciturn’ Ralcorp acting in its shareholders’ best interests?

07-Sep-2011 - It may well be that Ralcorp was right to spurn ConAgra’s latest $94/share takeover offer. But its failure to explain why is troubling, according to corporate governance expert ISS Governance.

MGP Ingredients attributes Q4 loss to ‘extreme corn price volatility’

07-Sep-2011 - MGP Ingredients has reported a net loss of $10.26m in the fourth quarter, which the company has attributed to extreme corn price volatility.

Analyst: Campbell must invest in its brands if it is to right its ship

06-Sep-2011 - Analysts have welcomed Campbell Soup’s new focus on innovation and brand building to reverse its flagging fortunes in the soup fixture, but warned it could take time before the strategy delivers tangible results.

ADM invests US$4.4m to boost cocoa production in Ivory Coast

29-Aug-2011 - Global confectionery supplier Archer Daniels Midland (ADM) is injecting US$4.4m (€3m) into its Ivory Coast cocoa programme as the country tries to recover from its recent civil turmoil and an EU ban on one of the region’s most important exports.

Heinz: Entry price point matters more than price per ounce for value consumer

24-Aug-2011 - Heinz is exploring new pack sizes and products with a lower entry price point in the US market as consumer confidence hits new lows.

Supply chain squeezed by higher grain commodity prices

23-Aug-2011 - Prices of key grain commodities have been climbing rapidly but so far food manufacturers have absorbed much of the cost, according to an analyst at the USDA’s Economic Research Service (ERS).

$4bn Chinese investment is just the beginning, says Coca-Cola

23-Aug-2011 - Soft drinks giant Coca-Cola is investing $4bn (€2.8) in China in a bid to double revenues in the region by 2020.

Can we expect more M&A in bakery? ‘Absolutely yes’, says Flowers Foods

18-Aug-2011 - Punishing rises in input costs, cautious consumers and a predicted rise in capital gains tax will drive further consolidation in the US bakery sector this year and next, packaged bakery giant Flowers Foods has predicted.

NutraCea narrows Q2 loss

17-Aug-2011 - Stabilized rice bran (SRB) supplier NutraCea has narrowed its loss in the second quarter of 2011 and increased revenues 29 percent, although sales of rice bran for food and feed applications did not grow as quickly as anticipated, the company said.