A swathe of third-quarter results dominated our pages last week, and a number made for grim reading. Cereal giant Kellogg lowered its full-year outlook and unveiled plans to cut 7% of its workforce while sweet snack giant Mondelez International also lowered its guidance, this time on concerns over its Chinese performance. Times are hard and many food industry majors are cutting non-core assets lose in order to focus on fewer, bigger brands. In this context, it should come as little surprise that Nestle has inked a deal to sell weight management business Jenny Craig. Here are the highlights on just-food this week.
On the money: Kellogg targets cereal for focus of reinvestment
Kellogg has said its core cereal business will be a key focus of the reinvestment from its four-year cost-cutting programme, which includes plans to cut 7% of the workforce.
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Interview: ABF expects lower sugar profits offset by grocery, Primark
Concern over the outlook for Associated British Food’s sugar business has weighed on the company’s share price in spite of a jump in full-year earnings. While the outlook for sugar remains challenging, ABF expects an upswing at its grocery and Primark businesses to continue to propel profits in the coming year, FD John Bason tells just-food.
UK: Premier seeking bread partner
Premier Foods Plc has engaged the services of a financial advisory firm as it looks at “developing investment options” for its struggling bread business, which could potentially include co-investment from a partner.
Focus: Nestle likely to further streamline portfolio after Jenny Craig sale
Nestle has announced a deal to sell-off the bulk of its Jenny Craig weight management business for an undisclosed sum. The move comes as the Swiss food giant looks to become a “more agile” organisation and it seems likely that further disposals could be on the horizon. Katy Askew reports.
US: FDA prepares clamp-down on “unsafe” trans fats
The US Food and Drug Administration signalled its intention to reduce trans fats in processed foods today (7 November), when the regulator suggested artificial trans fats are “not generally recognised as safe” for use in food.
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By GlobalDataFocus: Mexican move heralds new test for nutrient taxes
The Mexican government is set to become the latest to attempt to stem the tide of rising obesity through a tax on high-calorie foods and sugary drinks following a landmark decision by the Mexican Senate last week. Ben Cooper reports.
US: Flowers sales, earnings rise but share price hit
Flowers Foods has booked an increase in sales and earnings during the first nine months of the year, but shares sank today (7 November) when the group failed to hit analyst forecasts.
In the spotlight: Morrisons making positive strides, but LFL sales continue descent
The UK’s fourth largest supermarket, Morrisons, today (7 November) showed further signs that its sales are struggling amid tough competition in the marketplace. The grocer is continuing to make positive strides, but the questions over whether this is enough and whether Morrisons has its proposition right still linger. Michelle Russell reports.
Talking shop: Marks and Spencer – a house divided
Marks and Spencer’s first-half results paint a picture of a company divided. One the one hand, its food business is performing well, with rising like-for-like sales and improved profit margins. On the other, general merchandise continues to struggle, booking lacklustre sales and lower margins. With a swathe of plans to accelerate food growth, that side of the business looks ship-shape. However, a question mark hangs over whether its non-food performance is turning a corner. Katy Askew reports.
US: Mondelez lowers FY sales guidance
Cadbury and Oreo owner Mondelez International has lowered its full-year sales guidance as it booked lower-than-expected revenues in the third quarter.
