Kellogg’s decision to move for Pringles raised eyebrows this week and, although the acquisition of the global snacks brand will boost its international business, CEO John Bryant was forced to respond to concerns that the deal comes at a time with the company’s cereal business under pressure. Elsewhere, politicians on both sides of the Atlantic cheered a trade deal on organic food, Nestle and Danone provided their financial forecasts for 2012 and Mars announced plans for a calorie cap on its chocolate bars.
“We have a strong core business. Our cereal business is a little bit soft but it’s a completely different business unit. We believe it’s the right time, the right asset and we can make this a very successful integration for the company” – Kellogg president and CEO John Bryant responds to concerns about the acquisition of Pringles coming as the cereal giant faces challenges elsewhere in its business.
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“This agreement comes with a double added-value” – EU agriculture commissioner Dacian Ciolos believes the bloc’s trade deal with the US on organic food will cut costs for business and give consumers more confidence in the products they buy.
“We believe the market will react well to the strong sales results and positive outlook on 2012, despite the margin miss. However, we remain cautious on sales momentum entering 2012” – Sanford Bernstein analyst Andrew Wood on Nestle’s 2011 financial results and its prospects in the year ahead.
“We basically want to maintain our margins. The existing difficult consumption context in Europe and the potential of our business in the emerging markets is going to require that we have a good level of support for our brands. We think it’s important we avoid any compromise if we want to keep delivering and building” – Danone CFO Pierre-Andre Terrisse explains why the company has forecast flat margins for 2012.
“These changes form part of our on-going efforts to encourage responsible consumption, and will come into effect globally by the end of next year” – a Mars Inc spokesperson explains why the confectionery giant is introducing a cap on the calories in its chocolate bars.
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By GlobalData“I am delighted that the Icelandic banks have recognised the importance of management to the continuing success of the business and have been supportive in giving us the exclusive right to pursue negotiations with them. I have every hope that we will be able to bring these to a successful conclusion within the coming weeks” – Malcolm Walker, the founder and CEO of Iceland Foods, after revealing he was in exclusive talks to buy 100% of the UK frozen food retailer.
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