Dean Best's food industry blog - from just-food.com

Innovation, innovation, innovation, says General Mills

Thu, 02 Jul 2009 11:53:00 GMT

It's obvious: when you've got a good story to tell, you want to go to great lengths to shout about it.

General Mills, the US food giant behind brands like Old El Paso and Haagen-Dazs, certainly followed that maxim yesterday (1 July) when it outlined its annual results.

Its conference with analysts, broadcast over the Internet, was lengthy, even by the standards of most results presentations.

Indeed, the plug had to be pulled on the Internet broadcast when the conference broke the 90-minute mark - even though the General Mills management was still ploughing through questions.

Aside from record US retail sales and a robust performance from its international business (notwithstanding the whack the General Mills' overseas figures took from the strong dollar), the company was keen to demonstrate that, even in recession, innovation remains key to its future.

While some industry watchers have questioned the merits of launching products in a recession, General Mills boss Ken Powell insisted it was a "great time to launch new products".

However, when one eagle-eyed analyst (dontcha just love them) pointed out that the number of new products set to be launched by General Mills in the next six months was actually down on the first half of its previous fiscal year, it cast some doubt on the company's boldness.

Nevertheless, Ian Friendly, the COO of General Mills' US retail division, had a response ready. The company, he said, wants "bigger and better ideas as opposed to large numbers of ideas".

Innovation is always a gamble. But, General Mills's shares closed up almost 4% yesterday. Investors must like the sound of Progresso High Fiber soups, Yoplait Delights parfait and frozen entrees under the Chinese cuisine brand Wanchai Ferry.

Who to turn to for the perfect soundbite? Simply D Best

Wed, 01 Jul 2009 11:06:00 GMT

A number of eagle-eyed readers out there have already spotted the appearance last night of our very own Dean Best on the BBC's Money Programme.

In the fourth programme of a series on the recession, Masterchef's Gregg Wallace was looking into the effect of the downturn on the British food economy, and our managing editor was given ample time on air to give us his pearls of wisdom.

There is little doubt by the end of the programme that consumers have significantly altered the way that they shop for food in the UK. And, the large supermarkets have been forced to respond to consumer demands in an unprecedented way in the last 12 months.

As those proverbial green shoots of recovery threaten to show themselves, the question supermarket strategists are now asking is whether these new shopping patterns are here to stay?

I'll leave it to a soundbite from last night from our new resident media star to answer that: "This downturn has had a profound impact on the way we shop. Consumers are realising they can get a kick out of finding a bargain and I don't think that will go when the economy recovers."

If you would like to see the whole star performance, click here.

Chris Brook-Carter - editorial director

Continental consolidation

Mon, 29 Jun 2009 16:13:00 GMT

After months of speculation, news reached us on Friday (26 June) that struggling UK prepared meals company Uniq has entered into a binding agreement over the sale of its French business, Marie, to LDC.

Following regulatory and shareholder approval, LDC would acquire 100% of Marie in a deal worth EUR60m (US$84.5m). The French poultry group would also assume responsibility for Marie's net debt of EUR13m.

According to Investec analyst Nicola Mallard, the deal offers Uniq "a solid price" as "trading has not been easy in the French market". Indeed, in the first quarter Marie announced a 7.6% sales decline.

Uniq told just-food that proceeds from the sale would be used to pay down debt and address a pension deficit. The remainder would then be reinvested in Uniq's other businesses.

While the market broadly expects Uniq to announce a further sale of its remaining continental interests, a spokesperson for the company insisted that a decision is yet to be made on the way forward for its units in northern Europe. According to Uniq, the possibility of further investment and the establishment of a joint venture still on the cards.

The agreement also sees LDC consolidate its position on the highly fragmented French ready meals market. Phillip Galin, MD of fresh meals at LDC, said that the acquisition would provide the company with a crucial foothold in the branded prepared foods sector.

"Five years ago we said we aimed to develop chilled brands but we didn't have a great brand. With Marie, it is for us a way to have such a position on the French market and develop categories of products," he told just-food.

Meanwhile, further consolidation in the French food sector could also be in the offing, with rumours abound that embattled dairy group Entremont Alliance has attracted the acquisitive eye of Lactalis, among others.

France's food sector is made up of a patchwork of smaller players. As the current trading environment places increasing pressure on weaker companies, it seems we could well be in for a swathe of M&A news from across the channel in the months to come.

Sourcing criticism sours Dean's Alpro acquisition

Mon, 22 Jun 2009 12:00:00 GMT

After months of speculation - and, let's face it, M&A rumours have been pretty thin on the ground recently - soy business Alpro has joined Silk soy milk and UK organic dairy business Rachel's in the stable of Dean Foods, the largest dairy processor in the US.

Dean Foods chief Gregg Engels called the EUR325m (US$449.9m) deal a "winning acquisition" for the company and labelled Belgium-based Alpro "the most strategic asset we could have acquired in the world".

On paper, the acquisition looks a good piece of business for Dean Foods. The US company gets an established business, one that has a strong presence in Europe (a market in which Dean Foods is under-represented) and one that, as executives at Dean Foods pointed out, can help the group boost its soy business back home.

Nonetheless, a company the size of Dean Foods is, for some, there to be shot at. US research group The Cornucopia Institute took some of the gloss off the Alpro buy last week with some fierce criticism of Dean Foods' sourcing practices. Cornucopia accused Dean Foods of "refusing" to work with US organic soybean farmers, of looking abroad for cheaper imports and of even using "toxic" chemicals in certain Silk products.

Dean Foods was quick to defend its sourcing policies, claiming Cornucopia's research proved an "inherent bias and lack of objectivity". Dean Foods is often in Cornucopia's firing line but the latest spat demonstrates once again that food manufacturers, so keen to emphasise their CSR strategies, are constantly scrutinised by a range of stakeholders in our sector - as the recent Greenpeace investigation into Brazilian beef sourcing also highlighted.

Last week, Kellogg was keen to promote its work on the environment in a briefing in London. Some may question the industry's commitment to green initiatives during a recession but Greg Peterson, the head of Kellogg's business in the UK, was quick to point that consumers still "care" about such issues. Kellogg, meanwhile, insisted it was also tackling another issue close to the heart of cost-conscious consumers - value. Innovation and promotions were key to meeting the threat of private label head on, Kellogg claimed, as the business looks to protect a brand that has lasted for over a century.

UK retailer Sainsbury's, 140 years old this year, has leaned on nostalgia in its recent ad campaigns but, last week, the company chose to look forward - and outlined some ambitious expansion plans, despite the downturn. And retailer expansion remains on the agenda elsewhere - with Carrefour last week opening its first hypermarket in Russia and management consultants A. T. Kearney proclaiming India's the world's most attractive retail market.

Who said the summer is silly season?

Branding and being green

Fri, 19 Jun 2009 16:10:00 GMT

Brands can be bold and brands can be brash, so to have the Museum of Brands housed in a small mews in London's Notting Hill district seemed a slightly incogruous setting.

Nevertheless, Kellogg's UK arm chose the museum to host its annual business update and, amid trading conditions that have seen the rise of private label (even in relatively resilient categories like cereal), a building that celebrated the history of brands seemed fitting.

One Kellogg official told just-food the move was "a statement of intent". To sit in on a briefing in a room surrounded by Kellogg's packaging and brand campaigns past and present was certainly that.

The Kellogg's brand remains central to the group's strategy of riding out the downturn. Innovation and value are two weapons at Kellogg's disposal and the company outlined a number of examples where it said it was managing to grow despite the bleak economic landscape.

Notably, however, and perhaps as befits a brand and a business that has lasted over a century, the company was keen to demonstrate that it is looking forward.

Kellogg UK managing director Greg Peterson set down the cereal giant's moves to mitigate its impact on the environment. Their commitments on waste to landfill, carbon dioxide emissions and water usage are mirrored by many in the industry but there was no doubting Peterson's determination that Kellogg meets its targets.

It's clear that there is a business imperative to such moves, even in recession. The old trade-off between economy and environment no longer applies (witness the performance of the UK's Green Party during the recent EU elections) and consumer concerns over the environment are sticking.

"Consumers still care about it even in the midst of recession," Peterson said.

Still, as we have shown on our pages this week, companies need to tread carefully when they look to convince consumers of their commitment to the environment.

One false move could threaten that well-crafted and lucrative brand image.

Deliciously bold

Thu, 18 Jun 2009 15:35:00 GMT

The bold and the bizarre are always guaranteed to turn out for Ladies Day at Ascot, but this year, the most unusual yet came from a lady sporting an edible 99 Cadbury's Flake hat.

In celebration of the 10th anniversary of "Britain's most iconic ice cream", Fredericks Ice Cream commissioned milliner Judy Bentinck to create a four-foot cone hat.

Made of mesh and satin, the 4ft headwear includes real chocolate flake pieces that racing fans can sample.

Freya Berry was the lucky (or should I say unlucky?) model chosen to wear the hat.

Let's just hope the sun doesn't make an appearance or she may well be sampling the hat herself.whether she likes it or not.

Sainsbury's swaps nostalgia for looking forward

Thu, 18 Jun 2009 09:42:00 GMT

A recent ad campaign from UK grocer Sainsbury's was loaded with nostalgia, celebrating the company's 140th birthday.

Yesterday (17 June), however, Sainsbury's chief executive Justin King opted to look forward rather than look back with the unveiling of ambitious expansion plans for the country's third-largest food retailer.

Riding the back of the City's recognition of Sainsbury's recent strong performance, King asked investors to provide GBP445m (US$725.4m) for the grocer's expansion.

By the end of the day, Sainsbury's hailed a "successful" share and bond issue, the funds from which it plans to use to grow its floor space by 15% - or 2.5m sq ft - by March 2011.

Sainsbury's shares may have tumbled on news of the fund-raising but that was an expected short-term reaction; in the long term, investors should be upbeat about the retailer's prospects.

The company's sales growth remains far ahead of Tesco and only slightly behind the levels being achieved at Asda and Morrisons - two more value-driven rivals.

Sainsbury's is planning an assault on the UK's fast-growing convenience channel. Last week, convenience director Dido Harding told the British Retail Consortium's annual conference that Sainsbury's is opening one c-store a week and aims to increase that rate to two outlets a week next year.

Nonetheless, King naturally knows that a lot of hard work remains, despite Sainsbury's obvious recovery.

He told analysts yesterday that Sainsbury's needs to "work harder" to convince UK consumers that it can offer value on branded products, as well as its fast-growing, own-label Basics range.

However, the way the business has performed in the five years since King took the reins means you would not bet against the Sainsbury's boss cracking that nut, too.

Ocado float admission raises eyebrows

Wed, 17 Jun 2009 15:30:00 GMT

Today's (17 June) admission from Ocado, the UK online food retailer, that is aiming to float on the stock exchange next year came as a surprise.

Ocado has already proved an attractive investment for at least industry player, Procter & Gamble, which bought a stake in the business last year.

However, Ocado operates in a buoyant channel but it is facing fierce competition from the likes of Tesco and Sainsbury's and is yet to turn a profit.

What's more, one of the company's founders, Jason Gissing, is reported, in the not-too-distant past, to have been opposed to a possible float.

According to The Times, Gissing said last year: "I would rather shoot myself than be FD of a listed company. I didn't start Ocado to sit in a room full of suits and have them abuse me about quarterly earnings."

Cadbury plays Cupid in Brazil

Wed, 17 Jun 2009 10:31:00 GMT

In London, the subway (locally known, of course, as the Tube) is hardly the place where you would expect to meet the love of your life.

Despite the best efforts of London Mayor Boris Johnson, the Tube is still renowned for being a place for late-night revellers to rest after a night out - and, despite the drinking ban, there remain scores of sightings of surreptitious slurps from clandestine cans of Stella.

However, as with many aspects of life, things are different in Brazil.

This weekend, confectionery giant Cadbury is launching the next stage of its campaign for new gum Trident Fresh. This next stage involves the roulette wheel of romance that is speed dating - and the UK group is using the subway of one of Brazil's largest cities to host the event.

"On Saturday night, 24 men and 24 women will meet on a Porto Alegre subway station to 'date' inside a train," a Cadbury Brasil spokesperson tells us.

"Women will be seated, and men will circulate, changing wagon every time the train stops. The objective is that people know each other promoting "speed datings" with no more than 3 minutes. About 576 'datings' will happen."

The Cadbury Brasil spokesperson said the idea for the speed dating came from one of the ads the company is using to plug Trident Fresh in the new campaign.

It's worth wondering, however, if those that take part in the speed dating will be as glamorous as the actors in the ad.

But, still, this is Brazil we're talking about. Not Brixton.

Back in London, however, Cadbury has been further demonstrating its willingness to push the boundaries of its ads campaigns.

The company is currently running a campaign for its Cadbury Creme Egg Twisted bar and is once again harnessing the power of the public for impact.

The campaign revolves around the premise that Cadbury's Twisted bars are loose in the UK and will attempt to "goo" 16 high profile targets.

Members of the public have been asked to sign up as secret agents of the Cadbury Intelligence Agency (CIA, if you hadn't worked it out) and identify the targets.

In the hope of winning a cash prize, entrants have been filming their chase across the country and posting their efforts on youtube.

As you can imagine the entries have ranged from the peculiar to the outright surreal.

Here is just one.

Be prepared - for frugality

Tue, 16 Jun 2009 16:25:00 GMT

As well as the debate over green shoots, there has been a lot of discussion on how consumers will behave when the recovery finally comes.

Some, like Aldi UK and Ireland boss Paul Foley and Poundland chief Jim McCarthy, reckon this recession has changed consumer behaviour for good.

Others believe that some UK consumers could revert back to something approaching a 21st century Loadsamoney.

Now, there is an element of bullishness in statement from the discounters that some of the changes to the way consumers perceive value will be "sticky". After the growth of the last 12 months, the discounters will be keeping everything crossed that shoppers will still like a bargain.

Industry watches Rabobank certainly think so. In a new podcast, Rabobank ponders whether the way consumer habits have changed will be "secular" - i.e. permanent - or cyclical.

Rabobank's Stephen Rannekleiv has put his chips on the former. "An economic recovery would help loosen up consumer purse strings, and improve some of the consumer confidence levels.

"But many of the pre-recession spending trends were somewhat unsustainable. I think consumers have changed. "Food and beverage companies need to be prepared for more frugality from consumers."

The question is: are you?

Are we on the road to recovery?

Mon, 15 Jun 2009 14:16:00 GMT

Some might say the sun has gone to their heads but, last week, there were a number of influential voices who dared to discuss the 'r' word - recovery.

Despite UK retail sales falling 0.8% on a like-for-like basis in May, some industry watchers were prepared to offer some optimism that the numbers could suggest that better times lay, if not around the corner, then just a few blocks away.

While admitting there was "a long way to go" before a fully-fledged recovery, IGD chief executive Joanne Denney-Finch betrayed a note of optimism. "Some sources are beginning to report signs of economic stabilisation: the stock market is strengthening, the pound is up and confidence seems to be improving."

Two days later, Tesco boss Sir Terry Leahy echoed those tones, when he said UK consumer confidence was "slowly seeping back". Leahy acknowledged that the situation remained "fluid" and spoke of the "dark cloud" of unemployment - but he urged the industry to "think about recovery now".

If you plan to follow Sir Terry's advice, just-food's relaunched jobs site can help you plan for recovery by finding the brightest talent in our industry. The site, which goes live today, aims to help recruiters find the right candidate - and job-seekers find the right job - within the global food industry.

For some, the downturn has proved a boon for their business. In the UK, retailers like Aldi, Poundland and Iceland have all benefited from the cash-strapped consumer's frantic search for value. It could be said, therefore, that any recovery could stall their growth.

Not so, Aldi and Poundland argued last week. Addressing the British Retail Consortium's annual conference, Paul Foley, head of Aldi's operations in the UK and Ireland, insisted shoppers will still be swayed by value even when the economy recovers. "Nobody likes to feel like they paid more for an item than they should have. That principle will survive," Foley argued. Poundland boss Jim McCarthy insisted the changes in consumer behaviour seen during the recession "will remain sticky".

Meanwhile, Iceland, the frozen food retailer, issued a set of buoyant annual results last week. Its sales have flourished during the downturn and chief executive Malcolm Walker signalled the retailer's confidence in the future with plans to open 20 new stores and convert 51 former Woolworths outlets in the year ahead. But with the revival of frozen food sales coming as the state of the economy has worsened, it is reasonable to ask whether a chill will return to the sector once the recovery emerges.

Mars shows how to grab bigger chunk of sales

Thu, 11 Jun 2009 13:16:00 GMT

We've broken for lunch at the British Retail Consortium's annual conference in London today (11 June) and, as you'd expect, this morning's discussions have provided plenty of food for thought.

After an assertive speech from Tesco boss Sir Terry Leahy (he even coined the retail giant's "Every Little Helps" strapline as he outlined ways retailers could help the country's cash-strapped consumers), it was the turn of one of the UK's biggest suppliers to brave a retail-dominated audience.

Fiona Dawson, head of Mars Chocolate UK, admitted feeling a little "trepidation" as she sat in the audience ahead of her appearance on stage.

However, she forcefully presented a series of ways in which the awkward bedfellows of retailers and suppliers could work together to beat the downturn - and, notably, demonstrated just how the big brand-owners can grab market share during the recession.

As well as emphasising the importance of product availability and the significance of getting promotions right, Dawson's comments on SKU proliferation provoked some raised eyebrows.

Dawson said that, over the last two years, there had been a "huge proliferation" in the number of SKUs sold in store. Quite reasonably, she pointed out that the jump in the number of lines in store tied up growing amounts of a retailer's working capital - a critical consideration in these credit-crunched times.

Working with suppliers to cut the number of SKUs on shelf would reduce consumer confusion and increase sales, Dawson argued.

"If you take a category like confectionery, where people spend four seconds - four seconds - making their choice, then we need to make sure we're absolutely visible and clear to our consumers," Dawson said.

That visibility is critical for a company like Mars. Less SKUs mean fierce competition among suppliers for shelf space - which benefits suppliers the size of Mars, who can meet retailers' demands for lower prices and benefit from brands which are the number one or two in their category, such as Mars Bars.

For smaller suppliers, or brands that retailers feel they can do without, trimming SKUs can mean the loss of valuable listings. Leaving more room for the Mars stable.

"We've seen an up to 14% increase in sales by limiting down the number of SKUs," Dawson revealed.

Now, that's what we call a win-win for the likes of Mars!

Be sure to check out just-food's Twitter page for the latest views from the conference

For those who are squeamish, look away now...

Wed, 10 Jun 2009 15:23:00 GMT

Consumers around the world have scare stories about finding "foreign" bodies in their food.

Often, however, it's tricky to grasp the level of distress or shock caused to shoppers when one simply reads about the latest "I found a pin in my soup" story in the local newspaper.

Today (10 June) the BBC presented us with graphic evidence of what confronted one shopper in Northern Ireland when he bought a malt loaf at a local supermarket.

Nice, eh?!

Future looks sweet for Green & Black's

Tue, 09 Jun 2009 12:46:00 GMT

just-food was invited to the Green & Black's head office yesterday (9 June) to speak with the force behind the organic chocolate maker, managing director Dominic Lowe.

Much chocolate tasting later and a lengthy chat and it soon became clear why the Cadbury-owned brand has managed to establish itself in the premium sector so firmly.

Chocolate bars that are now being packaged in Poland are being sent back due to creasing on the inner foil and the careful choice of Trinitario cocoa beans for its bars will give you an idea of the attention to detail on its products.

Already building momentum in the US, Canada and Asia Pacific, Lowe said the company is now looking at targeting other markets as well as developing a number of new products. Recession? What recession?

A visit to the company's 'development' room allowed just-food the opportunity to taste a "possible" peanut cluster-style product at an initial testing stage. Talk of a popcorn-style product was also mentioned.

The downturn appears not to have hit the Green & Black's house yet and it doesn't look likely the company will stand still long enough for it to either.

With organic sales in the UK inching up 1.7% in 2008 to over GBP2.1bn (US$3.47bn), Green & Black's is obviously keen to push forward and NPD is clearly key.

Keep your eyes peeled on just-food's pages in the days ahead for our full-length interview with Lowe.

Michelle Russell, reporter

Don't green shoot the messenger

Tue, 09 Jun 2009 12:15:00 GMT

The phrase "green shoots of recovery" has become something of a clich� here in the UK. Certainly any politician that has used it recently has been shot down quickly by detractors who claim the individual must be wildly out of touch with reality, mad or both.

That said, businessmen, politicians and commentators alike are still desperately searching for any signs the proverbial shoots exist.

On first view, today's figures on retail sales values in May offer little good news on that front.

Facing a strong comparison with figures in the same month last year, UK retail sales values fell in May, despite a boost from warm weather and the bank holidays.

Sales fell 0.8% on a like-for-like basis and rose only 0.8% on a total basis, from May 2008, when sales rose strongly in the sunny weather. Food sales slowed after a strong Easter boost in April.

Usually, we wouldn't take much notice of monthly figures as they can be wildly unrelated to the overall trend. That said there was enough in the figures for Joanne Denney-Finch, chief executive, of IGD, to offer some optimism, and that, these days, is worth a comment.

"At last, some sources are beginning to report signs of economic stabilisation: the stock market is strengthening, the pound is up and confidence seems to be improving. Even the weather was good in May, especially in the second half," she said.

Wisely, though, she quickly dampened down any thoughts she may stray into green shoot territories.

"There is a long way to go, however, and the difficult climate is being reflected in shopping choices. IGD research shows that 28% of shoppers have changed their grocery shopping habits and most say they will not change back, regardless of any economic recovery."

Crisis and consolidation

Mon, 08 Jun 2009 18:45:00 GMT

The international dairy sector is facing a state of crisis. Oversupply and waning demand have caused prices to plummet on the global market for dairy commodities, while the cost of production has continued to rise.

Profitability across the sector has been put under extreme pressure and globally we are likely to see increasing consolidation at all levels of dairy production, as weaker players fall by the wayside.

Indeed, last week in the UK came the news that Dairy Farmers of Britain had entered administration.

Efficiency issues at the farmer-owned cooperative, which supplies 10% of the UK's milk, meant that the group found itself unable to remain competitive as its larger rivals slashed prices. DFB was also unable to digest its 2004 acquisition of Associated Co-operative Creameries, the Co-operative Group's dairy business. The Creameries business required investment - cash that DFB was unable to raise.

DFB's move into receivership leaves the future of the co-operative's 2,200 staff and 1,800 farmer members up in the air.

According to DFB's administrators, PricewaterhouseCoopers, there has been "strong interest" in the group, news that will be welcome for DFB's farmers, who must now find new buyers for their milk.

Across the channel, French dairy farmers and processors were able to reach a deal on milk prices, brokered by the French government.

The agreement brings an end to several weeks of protests by farmers, who succeeded in disrupting industrial production and distribution.

However, as a spokesperson for Lactalis told just-food, the dairy companies were forced to offer farmers considerable concessions, raising prices to an annual average price of EUR280 (US$396.29) per 1,000 litres.

"I suppose one can say it's a compromise and like all comprises no one is left entirely satisfied.. That said, French dairy firms are going to be paying around EUR20/1,000 litres more than their counterparts in Germany and the Netherlands, for example," the spokesperson said.

However, the deal provided little respite for the beleaguered French dairy industry, it seems. News reached us today (8 June) of further disruption to France's dairy supply, with farmers in the west of the country - particularly in the Finist�re, Sarthe, and Loire-Atlantique - blockading retailers, who they blame for the low price of dairy goods.

Meanwhile, on the international stage, the row over dairy export subsides took another turn this weekend. On Sunday, Australian Trade Minister Simon Crean said the country would protest "very strongly" the export subsidies put in place by the US and EU.

With no easy solution to the problem of dairy oversupply, we can expect to see more turmoil and increasing levels of conflict in the dairy sector in the months to come.

Katy Humphries, Deputy Editor

EU subsidy liberalisers in the ascendancy

Thu, 04 Jun 2009 15:40:00 GMT

Supporters of liberalising the EU's common agriculture policy (CAP) and other food subsidy regimes can expect a helping hand from the new Swedish presidency of the EU from 1 July.

Sweden has traditionally allied itself with Britain, the Netherlands, and eastern European liberalisers in the EU Council of Ministers, which it will chair for six months until the end of this year.

And in a 27-member state EU, the power of the presidency in controlling debates and agendas, while brokering agreements, means that these days it has a lot more influence than in the past. Then, in a smaller EU, like-minded countries - notably Germany and France - were able to stitch up many deals to reflect the historic compromise behind the former European Economic Community: Brussels subsidies for French food producers in return for German access to European markets for its industrial goods.

This deal has largely held over the years, but with 27 member states, food industry liberalisers now have a much greater say.

As a result, recent statements from Sweden's agriculture minister Eskil Erlandsson at a recent meeting of EU agriculture ministers will encourage the UK and its allies. He said his government would push general rural development spending at the expense of food production subsidies. "It's very important to have a common agricultural policy but it will have less money," he warned.

These coupled with recent European Commission-Sweden talks on how to push ahead with the World Trade Organisation (WTO) Doha Development Round (where a deal will inevitably further cut EU food subsidies) are a clear sign that liberalisers will be in the ascendancy in Brussels in late 2009.

And this is especially good news for them given the beating received by the free competition model during the current recession.

Keith Nuthall, reporter

Business turns sour for Dairy Farmers of Britain

Wed, 03 Jun 2009 15:05:00 GMT

The outlook looks sour for UK dairy co-operative Dairy Farmers of Britain and its 2,000-plus farmer members.

DFB's management held talks this afternoon (3 June) to discuss the co-op's plight - with a possible move into administration likely.

But why has DFB, one of the UK's largest dairy co-ops, fallen on hard times?

In short, DFB's plight is a reflection of the tough trading environment in the dairy sector.

Despite recent moves to cut the price it pays its suppliers, DFB has faced fierce competition in the liquid milk and cheese sectors.

Losing a contract to supply fresh milk to UK retailer The Co-operative Group was a big blow to DFB and the future for the business remains uncertain.

DFB's management has led a strategic review of the business, which led to the company being split into two divisions - milk supply and cheese.

Industry watchers speculated that the revamp would make the company more attractive to potential buyers. Two weeks ago, DFB sold dairy ingredient business Nene Valley Foods.

The whole business could now face a sale - while its thousands of farmer-members could be forced to find new buyers for their milk.

007 lolly gets Del Monte hot under the collar

Tue, 02 Jun 2009 15:31:00 GMT

The news that James Bond is being immortalised as an ice lolly caught the UK's attention as a heatwave swept across the country - representing something of a PR coup for the Del Monte brand.

Imagine our surprise when US food group Del Monte Foods issued a rather cool press release onto the wires overnight insisting the company was "not affiliated" to the Daniel Craig lolly.

A quick call to the PR agency handling the product launch in the UK and it became clear that someone in San Francisco got their wires crossed.

"There was some internal confusion at Del Monte and this release is being taken off their website," admitted our contact.

Given the way the UK's female population swooned at the news of the launch, Fredericks Ice Cream, the manufacturer that holds the licence for Del Monte's ice treats in the country, seems to have got it licked.

Licence to chill...

Mon, 01 Jun 2009 15:48:00 GMT

For many women, the infamous scene of Daniel Craig's sculpted torso emerging from the sea in Casino Royale will be ingrained in our memories forever.

Well it seems that now, we can have a taste of what the lucky Eva Green experienced in the film thanks to Del Monte.

The US food group have immortalised the James Bond star's naked torso in a limited-edition frozen smoothie on a stick on sale in the UK to mark National Ice Cream Week.

The creation came after the star was voted Britain's Coolest Smoothie in a poll of over 1,000 women across the UK, beating stiff competition from the likes of Jude Law, Hugh Grant and Tom Jones.

The lollies were also commissioned to launch the new Del Monte Superfruit Smoothie, a blend of blueberries, pomegranate and are under 100 calories each - as if you're even going to care about the calorie content while you're licking away!

However, not all women seem to be as excited about the launch. On calling for the release, a less than enthused lady on the receiving line sighed: "Is it about the lollies..?"

Clearly Daniel Craig isn't everyone's cup of tea. Or maybe she was just disappointed the Welsh crooner didn't make the cut.

Feast your eyes on the delicious image ladies and decide for yourselves.

Michelle Russell, reporter