The news today (26 February) that Diamond Foods is to buy crisp maker Kettle Foods garnered some positive reactions from the analyst community. Elsewhere, firms churned out their annual results as well as addressing their strategies for the year ahead. The Woolworths Ltd chief executive talked of cost savings and lowering prices, while Loblaw is maintaining its focus on the Canadian retailer’s turnaround. And at the start of Fairtrade Fortnight in the UK, just-food caught up with executive director Harriet Lamb for her thoughts on the impact of big brands on the Fairtrade mark.
“This is a big transformative acquisition for Diamond Foods as it takes the company from a hybrid commodity-nut, branded snack-nut company to a full-fledged CPG foods business with two-thirds of revenue coming from branded snack foods business” – Mark Argento, senior research analyst at Craig-Hallum Capital Group, believes Diamond’s acquisition of Kettle Foods will improve the business.
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“Whilst we still have some head room in continuing to become more efficient, we are now in the position to employ the retail double-loop. That enables us to reinvest savings in cost – and savings that we generate through gross-margin management – into lower prices to drive volume and hence profit” – Woolworths CEO Michael Luscombe (pictured) talks up the efficiency of the Australian retailer’s business model.
“I don’t want any jubilation or any excitement. I just want it to be boring” – Loblaw boss Allan Leighton wants the company to focus on getting on with the Canadian retailer’s turnaround.
“With private label having had a bit of heyday here, the CPG world is interested in driving their units and are therefore more accommodating” – Safeway Inc chief Steve Burd hints that suppliers are sharing the promotional burden.
In the process of finding a new CEO, it has been a very important subject – and it would be a very strange outcome if we had a new CEO who has different ideas about the future” – Wessanen CEO Frans Koffrie insists the Dutch food group’s incoming chief supports the company’s focus on organic food in Europe.
“All categories don’t necessarily perform at their best to start with, but we’re optimistic [sandwiches] will grow…some categories grow into a mighty oak and some don’t but that is the nature of business” – Maple Leaf CEO Michael McCain’s adopts a philosophical tone about the growth prospects at the Canadian company.
“We are concerned that even those who will keep their jobs – with considerably worse employment and payment terms – will only do so until Carrefour determines on a new direction. There have been no assurances from the company in this regard” – the Setca union in Belgium representing Carrefour shop workers
“If you waited until every company was perfect until they could go Fairtrade, then I think you’d be waiting a rather long time” – Harriet Lamb, executive director of the Fairtrade Foundation, insists her focus is on how committed the likes of Nestle are to Fairtrade.
“Copenhagen was maybe not so negative as it is sometimes presented. At least it was the first time that we had countries on board which so far were not involved, like the US and China. Of course we could have expected a stronger commitment from those countries but at least it’s a first step” – Pascal Gréverath, chairman of the CIAA’s Environment Committee, looks back pragmatically at the Climate Change Conference in Copenhagen.
“An increase in turnover, market share and jobs – and in one years of pervasive economic crisis. I think we can be rightly proud of what we have done in the past year” – Frank Hensel, CEO of Rewe International, praises the German retailer’s performance overseas.
