This week, Hershey announced the acquisition of meat jerky brand, Krave. Post also revealed it was to acquire US cereal brand MOM. Elsewhere, Campbell announced a reorganisation of its business and JBS US said it would pump US$75m into its Utah plant. Here is the week in quotes
“Snacking… and portable snacking is not just a short term, this is really a trend and its becoming a habit” – Hershey CEO, John Bilbrey, comments in the wake of the group’s announcement it is to acquire meat jerky firm, Krave.
“The urgent need to close legal loopholes in the UK’s regulatory system” allowing companies to promote “unhealthy food and drink products to children both online and on TV during popular family TV shows” – The British Heart Foundation is campaigning to change regulation when it comes to junk food advertising as it reveals a third of children in the UK are overweight or obese.
“Here you have a highly cash generative business which strengthens their ability to deleverage in the future” – Stifel Nicolaus analyst Andrew Carter says Post’s move to acquire fellow US cereal brand, MOM, is motivated by the impact on cash flow and synergistic opportunities.
“Today’s announcement is a testament to our commitment to providing our customers with the best beef and ground beef products on the market and bolstering the long-term viability of this flagship facility” – Bill Rupp, president and COO of JBS USA Beef, comments on the firm’s announcement to invest US$75m in a Utah plant.
“It is the logical next step in our ongoing effort to shift our company’s centre of gravity, accelerate our growth” – Denise Morrison, CEO, Campbell discusses the firms plans to reorganise its business into three divisions.
“In order to compete with the discounters the big four retailers have had to invest significantly in lower retail price points for key staples, potatoes included, and this has led to price pressure down the whole supply chain” – Produce Investments said in a statement announcing its annual pre-tax profits would be below market expectations.
“Given the evidence presented by both parties to this lawsuit, whether either or both of Plaintiff’s ideas were novel and concrete are questions for the jury” – Judge Arthur Schwab directs a lawsuit involving Heinz to court, after mediation attempts fail.
“Under Herkemij’s leadership, Vion Food has seen an increase in operating profits for the first time in years as a result of a more commercial and customer-orientated approach. A lead has also been taken in making the entire industry more transparent” – Vion announces its CEO Michiel Herkemij is to step down.
21st century capitalism: Someone does it better than you? Don’t compete with them, ban them. Shame on Hershey’s” – A Twitter post criticising Hershey after it wins a lawsuit that alleged LBB Imports had been importing confectionery into the US that too closely resembled three of its own brands – and three brands it locally manufactures under licence.
“This is weak marketing, and Kellogg’s should have the corporate responsibility to not use an age old euphemism that offends families” – Kellogg comes under fire from campaign group One Million Moms after using an “offensive” double-entendre in a Pop Tarts ad.