This week, Emmi reported a rise in first half profits on the back of stronger margins while Petra Foods' profits suffered as a result of a slowing economy in Indonesia. We also took a look at what the easing of trade sanctions in Iran could mean for international food makers. Here is the week in quotes.
"This encouraging performance is mainly due to the range of measures that have been consistently applied since the beginning of the year, as well as enhanced earnings in the Europe and Americas business divisions. Our goal in the second half of the year is to keep the decline in sales within reasonable limits – particularly in Switzerland" – Emmi CEO Urs Riedener comments in the wake of the firm's first-half results announcement which detailed a rise in profits on the back of stronger margins.
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"With a slowing economy and fears of further contraction, Indonesian consumers have become more cautious with their spending and this has affected demand across most categories of consumer goods including chocolate confectionery. Our trade partners have reduced their inventory in response to the slower consumption and this had a negative effect on our sales." Petra Foods CEO John Chueng points out challenges in the Indonesian confectionery sector as the firm reports a fall in first-half profits.
"India is a key emerging market and Kellogg has been consistently investing in the Indian market. Our current sales in India will be approximately US$122m by this calendar year end and our goal is to triple our business in India over the next several years" – Kellogg announces plans to open a new research and development facility in India.
"Treats are okay in moderation. It’s important to understand portions so that you can make good decisions when it comes to the foods you eat" – Nicole Senior, accredited practising dietitian and nutritionist, comments on Nestle's news it is bringing back a reformulated version of its Allen's Jelly Tots product to the Australian market.
"The introduction of a tax for junk food will lead to mass bankruptcies in the food industry and financial problems of the majority of producers. There is a need to use a balanced approach, with the aim to protect the interests of both consumers and businesses…" Joan Velichkova, president, of the Bulgarian Soft Drinks Association comments on news that the Bulgarian parliament is scheduled to discuss the details of a new proposed "junk food" tax next month.
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By GlobalData"Uncompromising commitment to the highest quality, constant innovation, a clear market positioning in the premium chocolate segment and steady investment in both the brand and new technologies are the basis for the strategy, providing a solid platform for the group’s continuing growth" – Lindt & Sprungli says its "long-standing and successful business model is paying off" after booking a jump in profit for the first half as higher sales and market share gains enabled the Swiss chocolate maker to shrug off rising input costs and the negative impact of currency exchange.
"Anchor Kids’ Golden Milk targets this group who prefer milk from a high-quality milk source and with no sweeteners or additives.We’ve already reached a number three position in kids’ milks market share in eastern China hypermarkets. This new launch should help strengthen our position" – Manoj Namboodiri, business development director for brands in China at Fonterra on the launch of a 'nutritious' children's milk range in China under the Anchor brand.
"You need to have access to traditional retail markets – so the bazaars, the markets, the small mom-and-pop stores. If you are not able to have a wide distribution quite quickly it will be quite hard to establish your brand" – Miko Warschun, the head of AT Kearney's consumer industries and retail practice for the EMEA region, talks of the considerations international food players need to make to enter Iran, should the trade sanctions be eased.
"We managed to buck the trend during the recession, as we used it to find new opportunities and successfully grow. We are now backing ourselves with this new investment which will help us continue to improve and innovate new food products" – Ballymaguire MD Ed Spelmen on plans to expand its private label offering across the UK with the opening of a new plant
"There are many other needs for the development of disease-resistant, pest-resistant and climate resilient crops, where a GM method has a contribution to make. By banning their use in Scotland, this country would be prevented from benefiting from future innovations in agriculture, fisheries and healthcare" – Industry experts argue reasons against the introduction of a ban on GMOs in Scotland in a letter to rural affairs secretary Richard Lochhead.
