Concerns over the grain crisis in Russia trickled down through the financial results this week, with companies like Nestle and Sara Lee hinting at possible price increases due to increased commodity prices. The war of words over Casey’s General Stores in the US continued, and does not look set to abate any time soon, while Fonterra fought off claims of another milk scandal in China. Here’s the best of what was said this week:
“Nestle does not lack scale in emerging markets – in fact, the opposite is true. Our scale is unmatched” – Nestle CFO Jim Singh defended Nestle’s position in developing markets
“It’s a logistical nightmare” – Russian Grain Union spokesperson Anton Shaparin on the Russian grain export ban.
“You can’t run a company without a board, this is a completely original way of running a company” – EBRD spokesperson Richard Wallis on Lenta’s appointment of Sergei Yuschenko as CEO.
“We recognise this is a key questions and a challenge for our business. However, based on past experience, we are confident our brands will be able to pass on the prices effectively, even though the ride might be bumpy quarter to quarter. We have prepared well for the headwinds we have faced today” – CJ Fraleigh, CEO Sara Lee North American retail and foodservice division on projected price hikes.
“While we are disappointed in our Southeast US sales numbers, we believe they are not reflective of the underlying strength and the long-term growth potential of the business” – Delhaize president and CEO Pierre-Olivier Beckers on the company’s weaker Q2 results
“Importantly, IDS will at the appropriate time enable Li & Fung to explore and better understand the food and beverage export market. The proposed acquisition gives Li & Fung the manpower with food experience to enter the market in sourcing and distribution of food products at a later date” – Li & Fung said of its move into the food industry.
“The Casey’s board and management are trying to take the decision regarding the future of the company away from the Casey’s shareholders by putting this expensive ‘poison put’ in place” – Couche-Tard said regarding Casey’s recapitalisation plan.
“We are seeing many industry experts also speak out about the lack of scientific evidence between infant formula and these claims” – Liang Zhang, Synutra CEO and chairman over claims the company’s infant milk has caused infants to prematurely develop breasts.
“This corn crop, as Donnie said, is in very good shape and again, couple that with the south American crops and we’re not really looking at a major feed grain shortage across the world, absent this drought situation in Russia which has accelerated the whole complex from a price standpoint” – Tyson COO Jim Lochner said of the company’s feed position.
“Diplom-Is has a strong position in the out-of-home segment such as amusement parks and ice cream bars, allowing Unilever to provide even greater offerings to customers and consumers” – Jens Voldmester, country lead, Unilever Denmark on its acquisition of Diplom-Is.