The results continued to roll in this week as the likes of Kellogg and Kraft Foods Group revealed their sales and profits in the first six months of the year. The CEOs of both Kellogg and Kraft explained plans to boost volumes in the second half. Elsewhere, UK crisp firm Tyrrells got a new private-equity owner in the shape of Bahrain-based Investcorp.
“We’re confident we can grow cereal and leverage our strong brand to other formats. If we do this well we can get ourselves back to volume growth as a company” – Kellogg CEO John Bryant cited a range of initiatives the company was looking at to try to boost sales volumes in the second half.
“It is not enough to simply grow market share. We have an obligation to our customers to drive volume and category growth” – Kraft Foods Group CEO Anthony Vernon says it did not make enough progress on its top line in the first half.
“The nature of our business, the fact that we have been present in these markets for a relatively short time – not 100 years like some of our competitors – puts us in a situation where we have more potential and ranges that are adapted to the current generation” – Danone CFO Pierre-André Terisse said the company benefited from the relative youth of its emerging markets businesses in the first half.
“The premium snacks market is very dynamic and attractive. Tyrrells’ offering is unique and the business has an excellent position in the UK and a rapidly growing international footprint” – Carsten Hagenbucher, principal in Investcorp’s European corporate investments team on the firm’s purchase of crisp maker Tyrrells.
“Our outstanding operational performance is funding our growth, and our new stores are creating a cycle of innovation across the company” – Whole Foods Market co-CEO Walter Robb claims the US retailer sees the potential to triple its store count in the US.
“We think it is high time that our industry collectively was recognised both as a key part of the economy in terms of employment and strategically in terms of meeting our need for food, but also in terms of growth potential” – Andrew Kuyk, sustainability director at the Food and Drink Federation, believes it’s critical an EU strategy dealing with agricultural innovation and technology recognises the potential of the agri-food business, not just to provide sustenance but as an engine for economic growth.
“The amendment … in respect of small industry will bring in a balance between the business exigencies of the multi-brand retail trading entity and [the] intent of the policy, which is to extend the benefits of the FDI policy in multi-brand retail trading to a larger constituency of small industries” – the Indian government eases restrictions on foreign investment into the multi-brand retail sector, almost a year after opening initial reforms were introduced.
“Unlike other food products… country of origin labelling is not mandatory on dairy products and we think that it should be” – a spokesperson for Dairy Crest says it is calling on the EU to tighten regulations governing country-of-origin labelling in the category.
“We’re happy to have a conversation but it doesn’t mean to say we’ll supply them because we are not looking to get hammered on our margin or suddenly become a slave to their production because we know there’s so much exciting business to be scooped up elsewhere, without having to compromise ourselves” – Founder of UK snacks firm New York Delhi, Nina Uppal, says the company prefers to look outside the supermarket channel to grow its business.