Food industry quotes of the week - Mondelez, Happy Family, Nestle
Happy Family CEO Shazi Visram
This week, Mondelez International reported its first-half results and cited the benefits of pricing and productivity on its margins. In the UK, Young's Seafood announced a potential revised restructuring plan that could ease the impact on jobs at two plants. Nestle appointed a new MD for its under-fire India arm and just-food caught up with the CEO of Danone's US organic baby food unit, Happy Family, as it ventures into adult snacks.
"We used to price once a year. Now we're pricing far more frequently, particularly in a number of the more volatile markets. But for the most part, we are pricing to recover our cost increases, and you're seeing that play through in the margins, as well as in the revenue" - Mondelez International CEO Irene Rosenfeld, speaking as the Cadbury owner announced its second-quarter results, says the company has "gotten a lot better about executing pricing actions".
"The announcement by Mondelez is not a surprise and validates exactly what the BCTGM said when we met with its representatives in May that the company had already decided that it was going to put the new production lines in Mexico" - Jethro Head, vice president of The Bakery, Confectionery, Tobacco Workers and Grain Millers international arm comments on Mondelez's decision to invest in four new lines at a plant in Mexico. The move will result in 600 job losses at its Chicago plant.
"Nestle India is facing an extraordinary situation which is [why] we have brought in Suresh Narayanan who can reinvigorate the efforts to resolve this crisis. One of the strengths of Nestle is our pool of talented leaders, like Suresh, whom we can call upon in times like this" - a spokesperson for Nestle on the appointment of Suresh Narayanan as MD of its India business.
"It is a large market across the world so there are plenty of additional opportunities. It is very exciting times for us as an ice cream company" - Kevin Havelock, the head of Unilever's ice cream business, says the world's largest ice cream maker still sees mileage for growth in the category.
"A lot of consumers here want to know what is in their food. Sure we might miss a launch date because we couldn't source something on time but it's absolutely worth it. It's the reason we exist, it's worth the hassle, it's the platform for who we are and what we do and it's one of the challenges we willingly accept as a part of our business. We believe organics are the future and they need to be for protecting pre-natal and infancy. We take it very seriously. Non-organic is not an option for us" - Happy Family CEO Shazi Visram comments on the importance of organic sourcing to her business.
"The company is committed to constructive engagement with all stakeholders in a transparent way to explore all and every option to retain as many jobs as is feasible. I would like to thank all of the stakeholders present for their commitment and also recognise the on-going commitment of the workforce in these difficult circumstances" - Young's Seafood CEO Peter Ward discusses news that a number of jobs could be saved at its Fraserburgh and Greytown on Spey plants following a revised restructure plan.
"If consumers in Canada have the right to know where their food comes from through a voluntary labelling system, then American consumers should have the same. This bill is a path forward and will encourage international trade while giving families peace of mind" - Democrat Senator for Michigan, Debbie Stabenow, comments on news the US Senate will consider legislation to establish a system of voluntary country-of-origin labelling (COOL) for meat products
"I think the growth of the gluten free category from a space perspective is probably close to topping out" - Mrs Crimble's international commercial director Gareth Toms tells just-food there will be pressure on gluten-free brands in the UK amid growing competition and retail interest in own label.
"With average income in China actually growing, consumers in these areas, just like their counterparts in first tier cities, have the money and are eager to invest in health" - Shen Bohong, marketing director at Chinese bakery group Dongguan Kam Tai Foods, explains why there is an opportunity for branded food companies in tier-two cities in China.
"The sales potential for baby food made in Germany is very good in those markets. When it comes to baby food, German productions standards are among the toughest in the world. We believe that customers will appreciate this" - a spokesperson for Alete comments on the group's plans for international expansion and says Eastern Europe, Russia and China are a focus.
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