This week, the Barclays Global Consumer Staples Conference took place in Boston with presentations from Mondelez International and Tyson Foods. Nomad Foods also presented and indicated plans to focus on cost-cutting with funds re-invested in the business for growth. Elsewhere, Flowers Foods announced its second acquisition in under a month in organic bread and McCormick & Co. pledged to increase the number of organic and Non-GMO products it sells in the US over the next year. Here is the week in quotes.
"We intend to become the global leader in well-being snacks, with 50% of our portfolio in the well-being space by 2020, up from more than a third of total revenue today. Our goal is to simplify and enhance the ingredient and nutritional profile of our base business while also focusing on breakthrough innovation to address consumers' well-being needs" – Mondelez International chief growth officer Mark Clouse announces the company is aiming for half its portfolio to be in the well-being space by 2020.
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By GlobalData"It is absolutely critical that we respond to pressures from private label. Today they are doing well. We know what we have to do, it is going to take some time, we don't want to cut corners. But yes, we are in a position to save so cost-cutting will come back to Iglo – Iglo lost it a bit over the last few years but we can do better" – Nomad Foods CEO Stefan Descheemaeker outlines the firm's plan to re-invest savings, with cost-cutting and "disciplined" cost management used as tools to fund top-line growth.
"In the coming years, we have our sights set on selling more branded, protein-centric food, than any other company in the world. Our focus is to accelerate profitable growth through best in class brand building and innovation in the fastest growing categories in food" – Tom Hayes, Tyson Foods' chief commercial officer and president of its foodservice division, says the company wants to become the world's largest seller of protein-based brands.
"The owners' development of the Norwegian market for this type of product is impressive. In this acquisition, we see growth opportunities and the company is a good fit with our positions in the liquorice and confectionery segments" – Jeanette Hauan Fladby, the CEO of Orkla's Norwegian snacks and confectionery business, comments on the firm's latest acquisition of liquorice firm Lakrisgutta.
"Alpine Valley Bread Co. will further strengthen our company. With its extensive portfolio of on-trend organic products, Alpine Valley has a deeply rooted culture of excellence, service, and commitment. We are especially pleased to welcome Alpine's team members who will bring expertise in the development, production, and delivery of organic breads to Flowers" – Allen Shiver, Flowers Foods president and CEO, comments on the company's purchase of Alpine Valley Bread Co., its second acquisition in weeks in the organic space.
"Our oatmeal products were not meeting performance expectations, and as a result, some major retailers decided to no longer carry the product. We are no longer producing any new oatmeal. We are currently shipping the last of our inventory to retailers now with our final shipments expected in October" – General Mills pulls the plug on its gluten-free Chex Oatmeal product, just a year after its US launch.
"Our consumers are increasingly interested in quality flavours with pure ingredients in their food. Our effort to increase our organic and Non-GMO offerings proves that we are listening to consumers and are committed to continuing to evolve" – Lawrence Kurzius, McCormick's president and COO, comments on the firm's news that it is to "significantly increase" the number of organic and Non-GMO products it puts on sale in the US over the next 12 months.
"Since its acquisition in 2000, HUL has strengthened the Modern business, driven consistent top-line growth and significantly improved profitability. Having turned around the business and built a sustainable growth model, we believe that the sale to Everstone will unlock the full potential of the Modern brand" – Sanjiv Mehta, the CEO and managing director of Hindustan Unilever, says the company's move to sell its bakery unit in India is part of its strategy to exit non-core businesses.
"We have an appetite to make acquisitions and this strategy will be supported by our recently announced GBP74m funding package. We also continue to be focused on organic growth and will further develop our retail and trade partnerships, as well as expand our international customer network in markets including Australia, China, Japan, Korea and the United States" – Karro Food Group's executive chair, Di Walker, signals the company's interest in acquisitions as it reported a continued improvement in profitability for the year.
"Our company will build a transparent global supply chain by mapping our palm oil supply back to the plantations of origin, and will require our suppliers to commit to producing and sourcing palm oil from companies that comply with our policies throughout their entire operations and land holding" – Grupo Bimbo chief procurement officer David Hernandez elaborates on the company's announcement to source palm oil "responsibly".
