ASX-listed food manufacturer Goodman Fielder has this afternoon given an update on progress of the divestment of their commercial fats and oils business. The firm announced plans to sell the business earlier this year in the wake of a strategic review so that they could focus more heavily on their consumer brands, and has since sounded out offers from interested parties. “The company has undertaken a sale process, receiving a number of offers for the business,” they advised in a statement.... ...Read more »

PepsiCo has continued in its bid to acquire its two US anchor bottlers Pepsi Bottling Group and PepsiAmericas, and remains convinced that there are annual synergies of at least $200 million. After rejections from both bottlers last month, who claim the proposal undervalues their worth, PepsiCo believes there is no justification for the estimates that PBG released yesterday of purported annual synergies of $750 million to $850 million. By way of comparison, PBG previously communicated to PepsiCo that... ...Read more »

PepsiCo announced overnight that it would sue Pepsi Bottling Group (PBG) and some of its directors. The news comes in the wake of PBG, Pepsi’s largest bottler, declining a takeover proposal from PepsiCo. The suit alleges that the defendants intentionally failed to provide notice of a recent PBG Board meeting to the PBG directors affiliated with PepsiCo. At that meeting, the directors in attendance claim to have adopted a “poison pill”, implemented certain new executive compensation... ...Read more »

PepsiCo’s bid to regain control over their distribution in the US has received another blow overnight with bottler Pepsi Americas rejecting their takeover offer. Last month PepsiCo made a takeover proposal to their two largest bottlers, Pepsi Bottling Group (PBG) and Pepsi Americas (PAS), in a move designed to allow them to react quicker to market changes by taking over distribution. The offer has now been rejected by both bottlers, who claim the proposal undervalues their worth. PepsiCo currently... ...Read more »

Australia’s largest food group has announced that it will be shifting their strategic direction to increase focus on consumer brands. The changes will see Goodman Fielder look for suitable buyers of their commercial fats and oils business – which includes the Crisco brand. “As a consequence of our decision to focus on our consumer brand portfolio, we will be exploring options for the divestment of our Commercial edible fats and oils business,” Managing Director, Peter Margin,... ...Read more »

Nestlé’s focus on becoming a health and wellness food group is resonating with consumers, their CEO has told investors at their Annual General Meeting in Switzerland. “The main force behind our performance is our brands,” CEO Paul Bulcke explained. “Their success is increasingly derived from their inherent nutritional credentials. Our Company’s commitment to growing our brands towards consumers is demonstrated by a 7.5% increase in consumer-facing marketing spend in... ...Read more »

PepsiCo has proposed to acquire all of the outstanding shares of common stock it does not already own in its two largest anchor bottlers, The Pepsi Bottling Group and PepsiAmericas, in a move that has surprised analysts. The offer, which represents a premium of 17.1 per cent over the closing price of each company on April 17, has been made to provide the world’s second largest non-alcoholic beverage group with greater control over distribution and to cut costs. The total value of the deals... ...Read more »

Liquorland, Wesfarmers’ largest alcohol chain, has permanently cut their prices in an endeavour to reposition the brand. A Liquorland spokesman told the Australian Financial Review that the price cut represented “an integral part of our strategy to deliver better value to our customers.” The move has been made following a review of liquor operations since the purchase of Coles Group by Wesfarmers last year. Since the review they have also managed to lure former Dan Murphy’s... ...Read more »

The winners of the prestigious 2008 IGD Food Industry Awards were recently announced, highlighting achievements in a wide range of areas from sustainability, health and wellness, supply chain excellence, and outstanding performance of small businesses. “All of the finalists show that, even in challenging times, innovation and best practice are at the forefront of the food and grocery industry. These awards recognise the best in class, and demonstrate some of the most exciting new thinking in... ...Read more »

Kraft Foods Inc. has announced positive third-quarter 2008 results as the company executes its three-year turnaround plan. Strong organic net revenue growth of 7.1 per cent was, in part, driven by pricing actions to offset significantly higher input costs. Pricing contributed 8.4 percentage points, but an unfavorable mix reduced net revenue by 0.4 percentage points and volume was down 0.9 percent – reflecting the impact of significant cost-driven pricing actions. “Kraft had a strong quarter... ...Read more »