Kraft Foods’ move to increase the cash component of its bid for Cadbury – and speculation over whether this would be enough to woo the UK firm’s shareholders – proved popular reading this week. In related news, Nestle took the M&A spotlight when it ruled itself out of the race for Cadbury having sold its stake in eye-care group Alcon and purchased Kraft’s frozen pizza business in North America. Meanwhile, Sainsbury’s CEO Justin King shared his – somewhat gloomy – assessment of the UK’s economic outlook and Beijing braced itself for a fresh dairy contamination scandal. Here are the top ten stories on just-food this week.
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UK: Cadbury rejects claims of search for “white knight”
Cadbury has today (7 January) insisted that it has no need for a “white knight” despite reports that the company’s directors have approached Hershey in a bid to derail Kraft Foods’ hostile bid.
UPDATE: UK: Kraft stands by revised Cadbury bid
Kraft Foods this morning (5 January) insisted it has not raised its bid for takeover target Cadbury but claimed the change to the “mix” of the offer would please investors in the UK confectioner.
INSIGHT: Sainsbury’s King issues warning on economy
UK retailer Sainsbury’s, which this morning (7 January) posted strong quarterly sales, has warned consumer confidence will be hit by higher taxes in 2010.
Where else will Nestle look for a pizza the action?
Nestle has grabbed the early M&A headlines in 2010 with a sale of its stake in eye-care firm Alcon and with the gobbling up of Kraft Foods’ pizza business across the Atlantic. The Swiss food giant’s deal with Kraft nixed any rumours that it would use the Alcon cash to fund a sortie for Cadbury but, as Michelle Russell reports, the acquisition has cast questions over the world’s largest food group’s commitment to health and wellness – and its future M&A ambitions.
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By GlobalDataCHILE: Nestlé opens global R&D centre
Swiss food giant Nestlé has opened a global R&D centre in Santiago de Chile designed to develop biscuits and cereal-based snacks.
UK: Nestlé to buy Kraft’s frozen pizza business
Swiss food giant Nestlé is to acquire Kraft Foods’ frozen pizza business in the US and Canada for US$3.7bn.
CHINA: Beijing faces second milk scare
Chinese reports have publicised a product recall after milk produced by Shanghai Panda Dairy Co. was found to be contaminated with the industrial chemical melamine.
CHINA: Latest melamine probe “undisclosed for months”
Fresh questions have been raised about China’s food safety policy after it emerged that officials waited almost a year before going public with its latest probe into alleged melamine contamination in milk.
UK: Government faces backlash over product placement rules
The UK government is facing fierce opposition from medical and campaign groups over its plans to allow product placement in television programmes.
UK: Government adviser calls for increased GM use
The Government’s chief scientific adviser has called for an increase in GM technology in the UK if the planet is to avoid future food shortages and alleviate climate change.
