An ingredient recall from Fonterra kept the debate over safety in the infant formula sector going this week. The results of China’s probe into the fixing of infant formula prices was published – with six companies fined. Elsewhere, Danone bought US yoghurt maker YoCrunch and results continued to pour in from the likes of Mondelez, Dean Foods, Nestle and Kerry Group. Here are a selection of quotes from this week’s news and insight.
“There is definitely work to be done to restore our reputation, but we are going to work hard on this” – Fonterra CEO Theo Spierings reflects on the whey protein botulism scare that prompted product recalls across Asia and the Middle East.
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“The intended partnership follows a series of highly successful joint ventures between CRE and other multi-national corporations and is consistent with Tesco’s stated strategy of focusing on profitable routes to growth in fast-growing but less mature markets, with a disciplined approach to the allocation of capital” – Tesco and China Resources Enterprise confirm they are in exclusive talks to combine their Chinese retail operations in China.
“Some of my colleagues are optimistic that we can make that number but it is not going to be easy. It is going to be a stretch” – Nestle CFO Wan Ling Martello says in order to hit its FY organic sales target, it would require second-half organic sales growth to rise to around 6%.
Nestle was spared a fine by China’s China’s National Development and Reform Commission into price fixing, because it took the “initiative to report the situation on monopoly agreement, provided important evidence and carried out rectification”, the NDRC said.
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“This acquisition will advance Danone’s ambition to further develop yoghurt consumption by notably expanding the various ways in which Americans can enjoy yoghurt” – Danone says its acqusition of US yoghurt maker YoCrunch will drive continued growth in the highly competitive US yoghurt category.
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By GlobalData“China Resources already has a presence in Hong Kong with its Vanguard supermarkets, as well as some convenience store and other specialty retail formats” – Torsten Stocker, partner at consulting firm A.T. Kearney, offers his views on potential bidders for Hutchison Whampoa’s ParknShop supermarket chain.
“There’s no question we have to work harder in the phase of some of these category slowdowns, but the strength of our brand the investments that we’re putting behind brand equity as well as route to market is what will carry us” – Mondelez chairman and CEO Irene Rosenfeld on its outlook for emerging markets and how it expects to perform during the rest of the year.
“Obviously consumer confidence has been affected … shopping habits have continued to respond to the change in the economic environment and with the levels of propositions which have not abated, we have to remain competitive from that perspective” – Kerry Group CEO Stan McCarthy says it is in the UK and Ireland that McCarthy said Kerry had “lost focus” on its brands.
“We love competition. It makes us better. We get to respond and innovate and grow. So bring it on” – Whole Foods co-CEO Walter Robb says on a call to discuss Whole Foods’ third-quarter results when asked about the competitive landscape in the sector.
“Our focus remains clear: we continue to work to extend our competitive advantage, beginning with costs and efficiency” – Dean Foods CEO Gregg Tanner says its efforts to reduce costs and drive efficiencies will enable it to further extend its competitive advantage.
