Last week saw a swathe of the industry’s largest food companies updating their results. PepsiCo once again took a strong set of quarterly numbers as an opportunity to highlight the strengths of its strategy as a combined snacks and drinks business; Danone revealed that the recall of infant formula in Asia hit the French dairy group more than the market was expecting; and Nestle insisted that it is well-placed to grow in emerging markets in spite of an apparent slowdown. Meanwhile, retail giant Wal-Mart took a decidedly different take on emerging markets when it revealed that it is bringing its investment focus back to the US and scaling back growth in Brazil, India, China and Mexico.
AUS: Murray Goulburn submits highest bid for WarrnamboolAustralian dairy co-op Murray Goulburn has joined the bidding war for Warrnambool Cheese and Butter Factory with the highest bid yet.
In the spotlight: Wal-Mart brings investment focus homeWal-Mart Stores outlined its strategy for the coming fiscal year at its annual investment community meeting yesterday (16 October). The world’s largest retailer raised its capital expenditure forecast in the US while scaling back its international investment plans. Significantly, the company said it would close under performing stores in Brazil and China and reduce store openings in Mexico and India – possibly reflecting concerns over the growth outlook in emerging markets.
FRANCE: Danone lowers outlook after Q3 sales missFrench dairy giant Danone missed third-quarter sales expectations and lowered its full-year outlook, blaming the recall of infant formula in Asia sparked by Fonterra’s whey powder recall.
CHINA: Danone’s Dumex accepts “full accountability” in bribery scandalManagement within Danone’s Dumex China business have accepted “full accountability” for a scandal involving bribes paid to hospital staff in return for the promotion of infant formula.
US: PepsiCo posts YTD profit increasePepsiCo has posted a strong jump in year-to-date group profits, despite what it describes as “ongoing macro-economic volatility” in many of its markets.
On the money: Nestle optimistic over emerging market growthSwiss food giant Nestle has offered a positive outlook for future growth in the emerging markets, despite the region experiencing a continued economic slowdown.
ITALY: Ferrero “categorically denies” Nestle takeover approachItalian chocolate maker Ferrero Group has insisted it has not received a takeover approach from Swiss food giant Nestle.
WORLD RETAIL CONGRESS 2013: just the answer – Spar International MD Dr Gordon CampbellSymbol retailer Spar International has continued to expand its presence in emerging markets this year. The group entered into a partnership agreement in the Middle East earlier this year and more recently signed two licencing deals in Russia. Michelle Russell caught up with Spar MD Gordon Campbell at this year’s World Retail Congress in Paris
UK: Kerry silent over “Peperami talks” with UnileverIrish food manufacturer Kerry Group has declined to comment on reports it is in talks with Unilever over a potential deal for the group’s Peperami meat brand.
UK: Horsemeat report highlights fraud detection “weakness”A report into the handling of this year’s horsemeat scandal has claimed UK regulators lack “mature and effective” arrangements to detect food fraud.