Quote, unquote: just-food's week in words
PepsiCo CEO Indra Nooyi
This week shares dipped in both Premier Foods plc and ConAgra Foods after the firms said they were likely to miss earnings forecasts for their respective quarters. Elsewhere, PepsiCo and Mondelez both showed their commitment to R&D through the opening of new facilities. Danone debuted its desserts range in the US, but in the UK was in hot water with the advertising watchdog, which claimed a company ad implied the health of kids that did not consume its Growing Up Milk would suffer. Here is the week in quotes.
"A Q2 decline in power brand sales is disappointing. The extra cost savings means profit forecasts still look fine, but a re-rating of the stock needs better brand management, which we expect will come. If it doesn't we wonder whether, with the hard work done, Premier starts to look ripe for a take-out." Panmure Gordon analysts Graham Jones and Damian McNeela suggest Premier Foods could become a takeover target if its performance does not improve.
"We are in the process of gradually strengthening several areas of our company. We anticipate fiscal 2015 to be a year of stabilisation and recovery" - Shares in ConAgra Foods plummeted as the firm announced it would miss fourth quarter earnings expectations.
"There is significant appetite from retailers overseas for the premium British brands and niche brands from smaller producers that we sell in our UK shops" - Waitrose has announced it is developing an export business for smaller UK brands such as Doves' Farm and Cornish Sea Salt.
"Expanding into the dessert market and evening day part is a necessary next step to continue to grow the dairy category" - Danone's chief marketing officer, Sergio Fuster, on the launch of the Dannon desserts launch in the US.
"Rather than focusing on feeding 23m Australians, the company is setting itself up to feed 1.6bn Asian consumers, aligning innovation and marketing assets to take advantage of the Asian century" - Mondelez International has kicked off the second stage of construction of its Australian R&D centre committed to developing products for the Asian markets.
"We're very fortunate not to have any serious injuries - I really think we had a textbook situation on how to handle an emergency" - a spokesperson for Smithfield Foods on the aftermath of a tank explosion which caused an ammonia leak and power disruption across the plant.
"It was not our intention to imply that a young child's intake of vitamin D, and as a result, their health, could be affected if they did not consume Growing Up Milk" - A spokesperson for Danone responds to the UK Advertising Standards Authority's verdict that a website advert of its Growing Up Milk implied a child's health could be affected if they did not consume the product.
"We will not accept milk from the BC Milk Marketing Board supplied by this farm until we are fully satisfied that strict animal welfare practices are in place" - Saputo has announced it is not accepting milk from Chilliwack Cattle Sales following the release of images capturing the abuse of cattle.
"Act 120 imposes burdensome new speech requirements - and restrictions - that will affect, by Vermont's count, eight out of every ten foods at the grocery store. Yet Vermont has effectively conceded this law has no basis in health, safety, or science" - US food industry groups have filed a lawsuit in Vermont in a bid to overturn a new law requiring manufacturers to label products made using genetically modified ingredients, a measure the Grocery Manufacturers Association said was "senseless".
"Mexico is an attractive food and beverage market with great potential for future growth. Mexico is a cradle of innovation for PepsiCo globally and this new center will fuel a wide range of exciting new PepsiCo products" - PepsiCo CEO Indra Nooyi comments on the firm's latest move to open a baking innovation centre in Mexico.
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