- The food business blog -
Dean Best's unique web log on the global food industry, key events, people and his own daily experiences. If you would like to offer your comments, opinions, suggest topics or just have a good rant, please feel free to email: Dean Best. |
Page number: 2 of 111 (1102 records)
Soil Association looks back for the future
12th November 2009 13:56
In London today (12 November), UK organic body The Soil Association has brought together organic food makers, academics, NGOs, government representatives and retailers to discuss what it is calling "the food crunch".
Or, in other words, to discuss how the world can continue to feed itself in the face of a number of pressing issues, including a warming planet and a growing population.
The message from this morning's session was stark - "business as usual" cannot continue.
However, as is to be expected when presented with perhaps the most wide-ranging set of problems and challenges ever faced by humanity, how to move away from "business as usual" is a matter of debate.
For some, we need to think 'local' in food production. Others believe tackling food waste is vital. There are those who believe big business is blocking the change that is needed. Others argue that political leaders across the world have yet to grasp the nettle - and that the imminent climate change conference in Copenhagen will yield few substantive results.
Patrick Holden, chief executive of The Soil Association, raised eyebrows; first, by agreeing with much of what his predecessor at the lectern Defra chief scientist Professor Bob Watson had to say on the issue (opposition to GM notwithstanding) - but also with his call for greater planning in how the food system works at local, regional and national levels.
Notably, Holden said all stakeholders needed to work together and likened the action needed to a "war effort".
Sections of industry spent the morning under attack from the World Development Movement, which claimed lobbying from big business had defined trade law and global food policy in its favour.
This afternoon, Asda puts its head above the parapet to suggest how industry can play a proactive role in enacting the change that is needed.
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Will Cupid's arrow strike for Kraft and Cadbury?
11th November 2009 15:04
There certainly is no love lost between Kraft Foods and Cadbury - of that there is little secret - and an end to the takeover saga may not come until a week before Valentine's Day.
After Cadbury's immediate rejection of Kraft's hostile takeover approach on Monday (9 November), industry watchers flicked through their calendars to pencil in the next likely sign-posts in the US food giant's pursuit of the Dairy Milk maker.
From Monday, Kraft has 28 days to publish its offer documents to Cadbury shareholders - and the UK firm has 14 days after that to publish a formal, written response to the bid. That would take us until 21 December.
The Christmas decorations would have come down before the next deadline for Cadbury. According to analysts at Jefferies International, Cadbury has until 15 January to publish any "material" new information - be it M&A (or more likely) a trading update.
A week later will come a critical day for Kraft: 22 January is the last date by which the Toblerone maker can revise its offer.
Kraft chairman and CEO Irene Rosenfeld then has until 5 February to get at a majority of Cadbury shareholders to accept her offer.
"We now believe this transaction will go to the wire," Jefferies equity analyst Simon Marshall-Lockyer writes.
"We suspect that Kraft made this low-end offer as a minimum official bid so as to remain in the running while buying time to achieve possible asset sales," Marshall-Lockyer adds - citing speculation that the group could sell its coffee units to Sara Lee.
Speculation of all kind continues to abound. As we reported yesterday, analysts agree that Kraft's offer is too low - but they are split on how far it should go in raising its offer.
There is also disagreement over whether a rival bid for Cadbury will emerge.
What is likely is that any end to this saga will come long after we have gobbled down our Christmas candy - and just before we send our love ones a box of Valentine's chocs.
Your Comments
If you want to voice your opinion on the takeover from the perspective that Kraft should back off just sign up to the Facebook Group:
Oi! Kraft. Keep your filthy hands off our Cadburys chocolate.
http://www.facebook.com/group.php?gid=205749918031
Thanks.
Morris Bagnall, United States
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McDonald's scores again with football deals - but who's cheering?
10th November 2009 12:38
First, a disclaimer. I am well aware of the time and money spent on CSR projects by food manufacturers and retailers not just in the UK but also worldwide.
And it is just that those who draw up the most innovative and impactful programmes are recognised for their endeavours (see the UK Food and Drink Federation's annual Community Partnership Awards).
However, the cynic in me (humour me, I'm a journalist) cannot help but raise an eyebrow when companies like McDonald's get involved in grassroots and kids sport.
Yesterday, the purveyor of Big Macs and milkshakes (yes, they sell salads, too) signed a deal with the Football Association to support football in England.
"I am delighted we have secured McDonald’s support for another four years and am confident that the investment and focus on driving up standards in English grassroots football will have a positive impact on young players, the coaches, the parents and ultimately the national game as a whole," the FA's chief executive Ian Watmore remarked.
Over in Thailand, McDonald's is reportedly looking for a similar "positive impact" within the nation's football community.
According to The Guardian newspaper, Thailand's top footballers will receive free burgers as part of a three-year sponsorship deal. The mind boggles.
As for the England deal, there were those who grumbled at Wembley Stadium's new arch replacing the famous old Twin Towers and becoming a central emblem of the game in the country. But what of the golden arches?
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All eyes on Illinois
9th November 2009 10:52
Welcome to the eleventh hour. At some point before 5pm today (9 November) US food giant Kraft Foods must either formalise its takeover bid for UK confectioner Cadbury or walk away from the proposal for at least six months.
News of the deal - and the increasingly antagonistic battle of words between the two food powerhouses - has dominated our headlines for some time. But last week, the tension was palpable as Kraft delivered what many commentators viewed as a pivotal trading update.
And while the world's second-largest food group hoped a better-than-expected jump in comparable profits and better margins would impress, the focus remained firmly on Kraft's lacklustre top-line, which was dented by lower pricing and poor volumes.
Kraft's poor sales performance will have done little to prove the value of Kraft's shares, which will partially fund the deal, or dispel Cadbury chairman Roger Carr's criticism of Kraft's "low growth model".
Although there has been mounting speculation that Kraft will back away from the deal - possibly returning in a year with a fresh proposal - reports in the UK's Sunday papers suggested that the Oreo-to-Dairylea maker would plough ahead regardless, turning its GBP10.2bn (US$16.7bn) plan into a hostile bid.
With the possibility that Kraft could increase the cash component of its offer, the question would then become whether Cadbury investors shared managements view that such a price "materially undervalues" the company and its prospects. Either way, the market is waiting with baited breath for an announcement out of Illinois.
In other news last week, we learnt that Dutch retail giant Ahold is positioning itself for expansion - both organic and acquisitive - by reorganising its operations in the US and Europe.
The company told just-food that the move would see it streamline and simplify its business, particularly in the US where it will combine the logistical operations of its four banners.
The move prompted speculation on the Continent that the Netherlands-based retail giant could be preparing a foray into Belgium and Germany.
While the company declined to confirm the rumours, a spokesperson told us: "We're keen to expand in new and existing markets and we've always said that we would look first at the adjacent market areas to the areas that we are present already."
We could well expect some exciting announcements from Amsterdam in the months to come.
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Private label star waning?
5th November 2009 16:55
We heard from two players on the US stage today (5 November) – one retailer and one manufacturer – both of whom bore the same message.
According to the management of meat-to-bakery group Sara Lee and supermarket operator Delhaize, the tide could be turning against private label in the US.
Delhaize admitted that increased promotional activity from national brands had slowed the growth of its private label sales in the country.
"When national brands fight for the growth of their top line with some very interesting promotions consumers are interested. We have seen a lesser increase in private label than in 2008 and early 2009," Delhaize CEO Pierre-Olivier Beckers said
In addition, the Belgium-based group said that consumers had been trading down within its three-tier private label offering.
Meanwhile, again pointing to increased promotional activity from branded producers, Sara Lee also flagged up the slowed growth of private label.
However, Sara Lee admitted that it has failed to benefit from this trend because it has been slower to invest in lowering prices than a number of its branded competitors.
This is something the group will look to address in the coming months.
Nevertheless, as Barnes cautioned: "The hardest thing to avoid is doing crazy things in the market place... We will not do crazy things to drive that volume up."
Click here to read more Sara Lee's plans to boost volumes, or here to check out Delhaize's take on trends in private label sales.
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M&S premieres GBP10m ad campaign
4th November 2009 17:33
UK retailer Marks and Spencer will fit mince pies, cashmere jumpers, “big juicy birds” and handbags into a top-dollar Christmas television advertisements over the coming months.
M&S today (4 November) gave journalists a sneak preview of a celebrity-led festive marketing campaign, called “Chistmas wouldn't be Christmas without...”.
The nine adverts feature celebrities including Stephen Fry, Joanna Lumley, Jennifer Saunders, Myleene Klass and Wallace & Gromit.
The campaign, due for screening from 11 November, cost around GBP10m to create, M&S' executive director, marketing, Chris Sharp, revealed at a media briefing in London today.
The marketing spend is roughly equal to last year, when M&S showcased pop group Take That in its Christmas ads.
M&S will be hoping the investment, together with a cold winter snap, will bolster sales for the rest of 2009, with a January 2010 VAT increase lurking in the background.
The company also announced the launch of branded grocery and household products today, coinciding with its interim earnings statement.
M&S boss Sir Stuart Rose said the roll out will not materially change the business of Marks and Spencer, but simply add extra convenience.
A successful trial at 54 Marks and Spencer stores suggests the changes will not be received with the 'love it or hate it' feeling of one of the brands it will stock – Marmite.
However, the retailer will begin by merely dipping its toe into the waters of branded food, opting for “400 rather than 10,000 brands”.
“Let's see how it goes, if it doesn't we'd be the first to stop it. If it does work and it works better than our expectations, then we'll have a think about what the implications are. But it's not earth-shattering.”
Joe Ayling, just-style
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Processed food sours the mood
2nd November 2009 17:41
We all know that junk food is bad for you. But probably only a few of us realise the affect that scoffing that burger, biscuit or fatty fry-up has could stretch well beyond our waistlines.
According to new research published today (2 November) in the British Journal of Psychiatry, people who have a poor diet that is high in fatty processed foods are “significantly” more likely to suffer from future depression.
Researchers from University College London, who compiled data on 3,500 middle-aged civil servants, found people whose diet is high in processed foods have a 58% greater risk of depression than those who opt for the carrot over the cake. Meanwhile, people who eat the most whole foods are 26% less likely to suffer from depression.
Responding to the report, Dr Andrew McCulloch, chief executive of the Mental Health Foundation, observed: “The UK population is consuming less nutritious, fresh produce and more saturated fats and sugars. Significant changes in the way food is produced and manufactured have reduced the amounts of essential fats, vitamins and minerals we consume. New substances, such as pesticides, additives and trans-fats have also been introduced to the diet. This imbalance combined with a lack of vitamins and minerals is associated with depression as well as concentration and memory problems.”
And, with mental health campaigners joining the ranks pressuring food manufacturers to improve the health profile of their products, this latest piece of research certainly gives the sector some more food for thought.
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EFFP sixth annual conference
2nd November 2009 15:24
Tomorrow (3 November), the English Farming and Food Partnership will hold its sixth annual conference in London headed ‘Routes out of Recession’.
Speakers include Marc Bolland, CEO of Morrisons, Peter Kendall, president of the NFU, Jonathan Warburton, chairman of Warburtons and Bill Bartlett, corporate affairs director of McCain Foods.
Topics expected to be covered include the future of the domestic supply of raw materials, which businesses have been successful in tackling the recession and whether there will be new investment opportunities in farming and food.
Of course just-food will be in attendance bringing you news from the speakers so check back tomorrow for more insight.
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Rieber & Søn shines spotlight on Russian strains
30th October 2009 17:49
Scandinavia's food companies have a rather pleasing habit of making their CEOs available at the drop of a hat and, this week, we got to speak to the boss of Norwegian food group Rieber & Søn.
After reporting a mixed set of nine-month and third-quarter numbers on Thursday (29 October), Rieber & Søn CEO Patrik Andersson walked us through the group's performance and recent moves to reshape the business.
You can read more of our interview with Andersson here but it was interesting to note his comments on Russia, a market in which Rieber & Søn has a significant presence.
We've discussed Russia's travails on these pages before but Andersson offered some numbers that illustrated just how the downturn over there has hit his business.
"If my calculations are right, I think we are down on volume 25-30% in the quarter," Andersson admitted.
That's a steep drop. But, given the turbulent economic conditions in Russia, Rieber & Søn is unlikely to be alone.
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Palm oil in the spotlight
28th October 2009 15:34
Today's (28 October) publication of the WWF "palm oil scorecard" has revealed that, while the likes of Sainsbury's, M&S, Unilever and Cadbury are making progress on sustainable sourcing, there are dozens of other companies where a lot more work is needed.
Or, as the green campaigners put it this morning, where some need to "up their game".
The structure of the palm oil supply chain and cost of sustainable sourcing are frequently held up as two obstacles by food manufacturers and retailers that have yet to makes changes to the way they buy palm oil.
However, as Adam Harrison, the WWF's senior policy officer for food and agriculture told just-food this afternoon, cost should not be an insurmountable barrier, while there are ways to resolve supply chain issues - and he pointed to the GreenPalm certificates recently embraced by M&S in the UK.
just-food will be running a full-length interview with Harrison tomorrow. Palm oil is high on the sustainability agenda and, with the annual Roundtable Meeting on Sustainable Palm Oil being held in Malaysia next week, it is an issue that needs to be faced head on by all in the sector.
Your Comments
Great news...it's about time the palm oil situation was brought to the forefront, urgent action is needed. I'll look forward to the interview.
Joanne Youl, United Kingdom
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What's this?
Your Comments
It's good to read about this discussion, and to see people taking it seriously. It is a huge subject, but'the ways of moving away from business as usual' that you have listed really aren't mutually exclusive. Increasing local food, lessening waste, recognising the role that big business play in blocking potential solutions, acknowledging that politicians still have a lot to learn etc., are all important issues in tackling the change needed and making our food systems more sustainable - so it's great that they are all being discussed together. The other exciting thing is that it is possible to make this change and that people want to do it.
helen, United Kingdom