Food industry news of the week – TreeHouse, Kellogg, Kraft Heinz
Kraft Heinz details job cuts as earnings fall
TreeHouse Foods confirmed that it will acquire ConAgra's private brands business for US$2.7bn. Kellogg revealed further declines at its US cereal business. The Kraft Heinz Co. reported its first results as a combined group – and detailed further job cuts. Here are the highlights from just-food this week.
TreeHouse's acquisition of ConAgra private brands – 10 things to learn
TreeHouse Foods confirmed what many suspected yesterday (2 November) when it announced a deal to acquire ConAgra's private brands business for US$2.7bn. The acquisition will almost double TreeHouse's size, creating an enlarged business with sales of around $7bn spanning more than 20 categories.
Kraft Heinz to close seven US, Canada plants, 2600 jobs to go
Kraft Heinz is to close seven plants in the US and Canada, a move which sees 2,600 jobs axed.
Arab Dairy targets growth of 30-35% in Egypt and beyond
Arab Dairy, the Egyptian dairy firm owned by Pioneers Holding, has an ambitious growth target. The company intends to expand its sales by “at least” 30-35% per year for the next five years, export director Wael Morsy tells just-food. This will be achieved by reinvigorating its cheese business in Egypt and expanding its international sales.
Too early for Kellogg to claim "cereal recovery"
Kellogg once again insisted its struggling US cereal division has turned the corner and that a return to growth is imminent. But despite recent innovations and its Special K repositioning attempt, Kellogg posted yet another quarter of declining cereal sales. Hannah Abdulla suggests that even if Kellogg's cereal business is on the road to recovery, the journey ahead is likely to be a long one.
Kerry consumer foods unit continues to feel price squeeze
Kerry Group was able to grow volumes at its consumer foods unit during the first nine months of the year but pricing was forced down in an environment where the Irish food group said retailers remain firmly focused on price.
ABF profits hit by food commodity price deflation
ABF welcomed an increase in full-year operating profit at its grocery division but noted food commodity price deflation weighed on sales and hampered profitability at its sugar arm, dragging down the group result.
Indonesia dairy - a challenging "dark horse"
Indonesia's dairy market has enjoyed solid expansion in the last decade. With China's economy cooling, more attention is being paid to other markets in south-east Asia, suggesting Indonesia could become of growing interest. However, the country has seen its own economic slowdown and its dairy sector has a series of significant challenges to surmount.
Sectors: Bakery, Canned food, Cereal, Chilled foods, Commodities & ingredients, Condiments, dressings & sauces, Confectionery, Dairy, Dried foods, Emerging markets, Financials, Frozen, Mergers & acquisitions, NPD & innovation, Private label, Snacks
The company plans to maintain its focus on the foodservice channel, working on its alliances with large consumer foodservice operators throughout Mexico....
Kraft Heinz was established in July 2015 following the formal approval by shareholders of Heinz and Kraft to merge the two companies, as announced in March 2015....
Heinz Wattie’s Ltd is expected to maintain its strong position in packaged food by leading new product development, with a key focus on domestically sourced and produced products....
Following its acquisition of HJ Heinz in June 2013, 3G Capital fundamentally reshaped the US packaged food landscape in March 2015, when it announced that it was merging with Kraft Foods Group....
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