This week, Fonterra said it was reducing capital expenditure plans to mitigate pricing pressure in dairy. Kellogg announced its first half-results and committed to plans to remove artificial colours and flavours from its branded cereals in North America by 2018. Elsewhere, Tyrrells acquired Yarra Valley Snack Foods in Australia and Unilever came under fire in India. Here is the week in quotes
"Current prices are unsustainably low and we are seeing them beginning to impact production levels globally. The range of possible scenarios is contributing to the uncertainty we are seeing today. We know the global dairy market will improve. The hard thing to call at the moment is exactly when and how quickly" – Fonterra chairman John Wilson on the imbalance between supply and demand that Fonterra says is a global issue driving down dairy prices.
Go deeper with GlobalData
"Given a robust Pringles platform, it seems possible Kellogg could seek a way out of its current predicament by leading a roll-up of the US snacking segment – perhaps starting with Diamond Foods and potentially supporting this with smaller acquisitions of emerging challenger brands. Snacks are inherently stronger categories than cereals and this could work if executed well" – Alexia Howard, analyst at Sanford Bernstein, suggests one way Kellogg could boost its US snack performance is through M&A.
"We know consumers are looking for foods with simpler ingredients and work is well underway to answer that call. Already in North America, 75% of our cereals are made without artificial colours, and more than half are made without artificial flavours. Further, we have been working to remove artificial colours and flavours across Kellogg's branded cereals and a variety of Kellogg's branded snack bars as well as Eggo frozen foods. Our goal is to complete this transition by the end of 2018" – Paul Norman, senior vice president for Kellogg's North American operations, says the company has set a three-year target to remove artificial colours and flavours from its branded cereals in North America.
"After ten years, some early Natural Balance Foods shareholders are amicably considering retirement. Therefore the remaining shareholders, including founders Greg and Jamie Combs, are considering options. This is a private matter" – a spokesperson for Natural Balance Foods tells just-food the UK firm's shareholders are considering options for the business in the wake of speculation it had received takeover offers.
"We're having conversations with a few different people. We're speaking with financial guys, with consultants who are food and drink specialists, we are speaking to some people in the trade. The key thing is we still haven't made any decision about which market and which region we are going into yet" – Giles Brook, a partner in Bear snacks owner Urban Fresh Foods, says the UK group is exploring ways to expand internationally.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"We launched in Australia over a year ago and a result of our success in the market, it was a natural next step to investigate local manufacture and expansion options. The company reflects our brand values of premium quality and provenance – it’s a natural fit" – David Milner, CEO of UK crisp maker Tyrrells, on why it has snapped up Australian organic snacks company Yarra Valley Snack Foods.
"Short of putting food into our mouths, technology is upending the way dining out works. Electronic wizardry once hummed quietly in the background … but now we're immersed in "front-facing technology" or "guest-facing technology": all sorts of devices and programmes that interface directly with the consumer" – International food and restaurant consultants Baum + Whiteman believe the integration of consumer-facing tech is key to innovation in foodservice.
The report confirms cocoa-growing households are slowly moving away from child labour but the number of households producing cocoa is ever more numerous and the amount of cocoa being produced compared to the baseline year is significantly greater, and so the challenge grows even though our progress in tackling the challenge is encouraging" – Nick Weatherill, executive director of multi-stakeholder body the International Cocoa Initiative, says a decrease in the average number of child labourers per metric tonne of cocoa produced in Ghana and Cote d'Ivoire is a sign efforts to address the child labour issue are working.
"Senators Hoeven and Stabenow's proposal in no way reflects Canada’s voluntary labelling regime – any suggestion of this is blatantly false. A voluntary regime as they propose does not require legislation. Should the United States move forward with their short-sighted proposal, Canada will have no choice but to impose billions of dollars of retaliatory tariffs on United States exports" – Canada's Agriculture Minister, Gerry Ritz, has warned the US an introduction of a voluntary scheme for country-of-origin labels on meat would be met with tariffs on imports.
"Unilever came and left devastation as they exposed the land to contamination. The environment is polluted still. Your clean-up was a sham — there’s poison in the air" – Lyrics from a YouTube rap video that alleges Unilever dumped toxic waste in India.
