Little surprise that some of the choicest quotes of the week focused on Kraft Foods’ pursuit of Cadbury. The US food giant faced criticism from UK union officials of its perceived lack of commitment over Cadbury jobs should it succeed in its quest for the confectioner. Supplier criticism was also revealed to be a key factor in the decision of First Milk’s chief to leave the UK dairy co-op, while key dairy supplier, packaging giant Tetra Pak, warned the recession means consumer behaviour will never be the same again.
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“We remain confident that the unique combination of Kraft Foods and Cadbury would create a significant growth opportunity for both businesses. That’s why we believe this offer is in the best interest of both companies’ shareholders” – Kraft chairman and CEO Irene Rosenfeld stands by the company’s offer for the Dairy Milk maker.
“We believe that there is compelling logic for both Nestle and Hershey to seek to structure an alternative to the current offer for Cadbury from Kraft” – Nomura analysts David Hayes, Alex Smith and Guillaume Delmas believe a rival bid for Cadbury should emerge.
“I have to say that I can not accept this; you clearly have enough information to persuade you to make a bid worth GBP10bn (US$16.5bn) and, as we pointed out in the meeting, in the context of the overall bid the assurances we are seeking are not a major commitment on the part of Kraft” – Jennie Formby, the chief union representative for Cadbury’s workers, hits out at Kraft over the future for UK jobs – if the US group buys the confectioner.
“People like to focus on key people in the organisation and [Humphreys] had quite a bit of criticism” – First Milk reveals that chief executive Peter Humphreys, who is set to leave the company in March, faced some flak over the UK dairy co-op’s milk prices.
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By GlobalData“I don’t think there’s a way back. This is here to stay. That’s something we have to accept and live with” – Tetra Pak president and CEO Dennis Jönsson says the recession has permanently changed how consumers shop.
“When we look at competing against larger players, they may have scale but when you get down to the business, it’s a brand issue and each one of our brands plays an important role in those categories” – Del Monte Foods boss Richard Wolford prepares for a push behind the US food group’s brands.
“Our mediocre rating in the WWF’s palm oil buyers’ scorecard 2009 has toughened our resolve. We can and we will meet this ambitious target” – Waitrose MD Mark Price admits pressure from lobbyists was a factor in the UK retailer’s palm oil pledge.
“While consumer confidence remains weak, we are actively positioning X5 to benefit from future economic recovery” – X5 Retail Group CEO Lev Khasis says Russia’s largest retailer is ready for when the country’s economy bounces back.
“Our top-line growth numbers have not been as buoyant as some of our best-in-class competitors and we believe that is something we need and should address” – Delhaize chief Pierre-Olivier Beckers lays down the guantlet for the retailer as it unveils its “new game plan”.
“The agency’s proposals are a challenge for the industry” – Clair Baynton, head of nutrition at the UK’s Food Standards Agency acknowledges the impact the watchdog’s proposals on salt and portion sizes.
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