All news articles for February 2005

Fairtrade Foundation appeals to generous Brits as sales top £140 million

Sales of food and drink products carrying the Fairtrade mark in the UK reached £140 million in 2004, more than 50 per cent more than in the year before, but this year's Fairtrade Fortnight will seek to push this figure higher still by highlighting the economic plight of many food producers, writes Chris Jones.

Fairtrade Foundation appeals to generous Brits as sales top £140 million

Sales of food and drink products carrying the Fairtrade mark in the UK reached £140 million in 2004, more than 50 per cent more than in the year before, but this year's Fairtrade Fortnight will seek to push this figure higher still by highlighting the economic plight of many food producers, writes Chris Jones.

PepsiCo joins companies reducing ads to kids

PepsiCo has become the latest company to bow to pressure on the food industry from the rising tide of obesity, introducing voluntary restrictions on its advertising to children, according to an article in today's London-based Financial Times.

Drinks groups step up investments

Italian spirit maker Campari has today confirmed that it is increasing its stake in US unit Skyy Spirits, while earlier in the week it was the turn of brewer SABMiller to increase its stake in Italy's Peroni group, writes Chris Jones.

SA targets US wine market, US focuses on Europe

South African winemakers are keen to capitalise on growing interest in their wines from US consumers - and on the predicted growth in the market there. Their US counterparts, meanwhile, continue to focus on Europe, where sales have grown strongly despite strong competition from Old World producers, writes Chris Jones.

WBD merges beverage businesses to cut costs

Russia's leading dairy and juice producer Wimm-Bill-Dann has announced it will merge its juice and water businesses as part of a restructuring plan devised to stop rising transport and raw materials costs from damaging profits, reports Chris Mercer.

Food safety to protect against mounting litigation

Despite firm traceability rules and constantly improved food safety systems the threat of litigation hangs in the air for the food industry: in the UK a prepared foods firm faces up to €1.4 million to settle a food poisoning court case.

Nestlé sees profit growth despite sales downturn

Disposals and currency exchange rates pushed down full-year sales at Nestlé, the world's biggest food producer, but the decline had no impact on profitability, which grew by a healthy 8.1 per cent during 2004. IN order to stay ahead of the pack, increased expenditure on R&D and marketing was needed, however, writes Chris Jones.

Brewers to focus on premium brands, cutting costs

Three of Europe's biggest beer makers have reported mixed results this week, with Scottish & Newcastle, Carlsberg and Heineken all underlining the need to cut costs and increase advertising expenditure, especially for premium brands in sluggish western European markets, writes Chris Jones.

Cadbury Schweppes back on track after reshuffle

British confectionery and soft drinks group Cadbury Schweppes is back on the path to growth after the acquisition of confectionery group Adams and a complete overhaul of its US beverage business. Cost reductions, investment in confectionery innovation and a strong performance in the difficult US soft drinks market all contributed to a major bounce back in 2004, writes Chris Jones.

Thorntons boosted by wider retail sales

British confectionery manufacturer and retailer Thorntons suffered along with most of the UK's retail sector over the Christmas period, but its first half results were buoyed by an otherwise solid performance from products sold through other retail outlets. But the company remains clear that its future lies in improving its own network of stores and range of products, writes Chris Jones.

CCHBC announces Vlasinka acquisition

Coca-Cola's Greek bottling subsidiary has announced it will buy its way into Serbia's bottled water market as the trend towards healthy living increases the importance of non-carbonated soft drinks, reports Chris Mercer.

Convenience keeps supermarkets on top in CEE

Supermarkets remain the most favoured type of the store in the CEE region, despite the large number of western players entering the region with hypermarket or discount formats. But the popularity of supermarkets is built mainly on their convenient locations, suggesting that other formats could start to win greater market share by focusing on elements such as price, Chris Jones writes.

Troubled waters for Danone

Danone's troubled expansion into the bottled water business continues to hit the headlines, with news late last week that the French dairy group was close to selling its stake in its North American joint venture with Coca-Cola. With profits also taking a big hit as a result of charges relating to its water cooler partnership with Suntory, does this spell the beginning of the end for Danone's dip into the water market, asks Chris Jones.

Tesco accused of delaying supplier probe

Britain's biggest food retailer Tesco is being accused of delaying an investigation by the Office of Fair Trading into the oft-fraught relationship between food suppliers and their retail customers, reports Chris Jones.

Warburtons chases GI health trend

Warburtons has laid down the gauntlet to its mainstream UK rivals by developing white bread with a low glycaemic index as both consumers and producers become more aware of the benefits 'GI' can have in controlling diabetes, obesity and energy levels, writes Chris Mercer.

Diageo growth curbed by currency impact

Diageo, the world's biggest spirit group, has announced a drop in first half profits, caused by foreign exchange rates, weak demand in Europe and the continued decline of the ready-to-drink segment, writes Chris Jones.

Rewe expands in eastern Europe

German retailer Rewe has made two acquisitions in eastern Europe this week, strengthening its position in the Slovak and Croat supermarket sectors, writes Chris Jones.

Feta labelling row reaches European high court

A legal action brought by a northern English cheese producer against the European Commission over the right to use the label feta on its products has finally reached the European Court of Justice - the UK, however, has declined to send an official legal representative, possibly pre-empting an unfavourable outcome, Tom Armitage reports.

Openings in product development for convenient breakfast foods

There are rich pickings for food makers focusing on innovative products for the breakfast market, as a UK think tank finds less than one in five consumers actually enjoys the first meal of the day.

Italian drinks group joins the list of Chinese investors

International drinks groups have been lining up to invest in China in recent years, but almost all of their acquisitions have been in the beer sector where there are literally hundreds of potential takeover targets. But China's wine sector has been largely overlooked, despite its potential - until now.

Swiss chocolatiers lose market share to rising foreign imports

The number of imported chocolate products into Switzerland has increased for the fourth year running - but will the EU's looming CAP reforms soon bring this burgeoning trend to an end, asks Tom Armitage.

Back-from-the-brink Merrydown agrees sale to SHS

Merrydown, the British beverage group whose focus on adult soft drinks has helped it overcome the declining fortunes of cider, has agreed to a takeover by SHS, a consumer goods sales and marketing specialist. The group hopes that the greater financial clout of its new owner will help it build on the good work of the last few years, in particular for the Shloer brand, writes Chris Jones.

Ter Beke looks to consolidate Benelux dominance

Ter Beke is reported to be interested in buying some of Sara Lee's French and Benelux charcuterie businesses, a move that would further consolidate the Belgian food processor's market presence in Northern Europe.

InBev concedes defeat in battle for Slovenian Union

InBev has spread rapidly beyond the borders of its native Belgium in the last few years, with major acquisitions in Asia, Latin America and Europe. But the world's biggest brewer is not always successful in its takeover bids, as the recent David vs. Goliath battle over Slovenia's Pivovarna Union clearly shows. Chris Jones reports.

Arla voices concern over Campina merger

Committee members of Danish-Swedish dairy co-operative Arla Foods have voiced concerns over a financial technicality which could throw its approaching merger with Campina into disarray, Tom Armitage reports.

Industry nutrition labels clash with government plans

The British arm of Nestlé has become the latest food producer to revamp its nutrition labels, yet the country's food industry is on rocky ground by entrenching its support for guideline daily amounts against the government's wishes, argues Chris Mercer.

National Starch improves profits for ICI

Sales are down but profits have perked up for chemical giant Imperial Chemical Industries (ICI) with National Starch bringing a considerable chunk to the growth.

Danone weathers water cooler write down as net profits slide

Danone, the French dairy conglomerate, announced today that net profits had plummeted 62 per cent, following the costly €600 million write down of its water-cooler business last month, Tom Armitage reports.

Unilever rejigs management as core brand sales flag

Anglo-Dutch consumer giant Unilever is set to overhaul its management structure - a move which it claims will help restore top-line sales growth and allow it to draw a line under what it called an "unsatisfactory" 2004 performance, Tom Armitage reports.

Lack of integration hobbles four-fifths of manufacturers

A piecemeal approach to investing in a global web of suppliers, producers and distributors can result in significant loss of potential profit, claims a new report.

Krispy Kreme crisis prompts redundancies

The cash-stricken Krispy Kreme doughnut company is to shed a quarter of its workforce in an attempt to overhaul losses as over-expansion and a lack of new products to appease health-conscious consumers threaten to send the firm under, reports Chris Mercer.

Taste innovation to bring growth to UK cheese market

Cheese manufacturers operating in the UK's £2.6 billion cheese market could benefit from increased product diversity on the supermarket shelves, finds a recent industry - consumer event organised by dairy ingredients firm DSM, reports Lindsey Partos.

PET continues to bite into rivals market share

Non-refillable PET is strengthening its grip on the global beverage packaging market, according to industry analyst Canadean.

RHM workers may strike over pension reform

One of Britain's biggest trade unions has asked workers at food producer RHM if they wish to vote on strike action after the company became the latest in the UK to announce an overhaul of its pension scheme due to funding problems, reports Chris Mercer.

Norwegian co-op dismisses unfair competition accusations

Leading Norwegian dairy co-operative Tine is being investigated for allegedly abusing its market position after it was said to have paid a grocery chain to force a competitor's products off its shelves, Tom Armitage reports.

US health trend fails to dent PepsiCo snacks

The growth of PepsiCo's savoury snacks business helped the firm to a solid earnings rise in 2004 and also raises new questions about the damage healthy eating trends will inflict on the food industry's snack giants, argues Chris Mercer.

Coca-Cola to use Splenda logo on new Diet Coke

Sales and consumer awareness of sweetener from UK manufacturer Tate & Lyle look set to rise as number one global soft drinks player launches a new version of Diet Coke, complete with Splenda sucralose logo on the packaging, writes Lindsey Partos.

Australian wine, French anis take shine off Pernod Ricard sales

A substantial drop in organic sales growth in Asia and continued problems with its eponymous anis brands were the only low points in an otherwise impressive set of financial results for Pernod Ricard in 2004, writes Chris Jones.

Yakult to set up research centre in Belgium

Japanese probiotic drink maker Yakult Honsha will open its first research centre outside of its home market in Belgium this year, demonstrating a commitment to the European market.

Coca-Cola threatens legal action over juice packaging

Coca-Cola is suing rival US beverage manufacturer Florida's Natural because it believes the company has infringed on the patented plastic carafe used by its Minute Maid Simply Orange juice brand.

Dairygold, Glanbia to sign Irish dairy deal

Irish food group Glanbia has picked up a €10.5 million contract to operate Dairygold's CMP branded liquid milk and cream business, allowing Dairygold to focus on consolidating sales across its branded product line-up, Tom Armitage reports.

McDonald's plans to double Russian presence

Fast-food chain McDonald's, which this week celebrated 15 years in Russia, plans to almost double its number of restaurants there over the next three years - recognising the country as one of the world's strongest emerging markets and offering opportunities to suppliers, reports Chris Mercer.

Ter Beke expands Dutch presence with Langeveld aquisition

Ter Beke's acquisition of the Dutch Langeveld Sleegers, a market leader in the field of processed meats slicing and pre-packaging, could be of great strategic importance to the company, writes Anthony Fletcher.

Support for French winemakers fails to tackle overproduction issue

The French authorities have come up with a €70 million rescue package for ailing wine producers, but as Kim Hunter Gordon and Chris Jones report, they have once again failed to tackle the principal problem - massive overproduction of poor quality wines.

Absolut buoyed by US market growth

Sweden's Absolut vodka has consolidated its position as the world's third-largest international spirit brand with a 5 per cent increase in shipments in 2004 - buoyed in particular by an excellent performance in its most important market, the US. Chris Jones reports.

Convenience beats price for British shoppers

Britain's leading supermarket groups have been moving rapidly into the convenience store sector in the last two years, seeing real opportunities for growth by bringing their low price offer closer to their customer base. Yet a new report suggests that it is the convenience - and not the low prices - which really attracts shoppers, reports Chris Jones.

Wrigley lifted by innovation and acquisitions

Continuing moves into new segments of the confectionery market have helped US gum maker Wrigley end 2004 with record sales and profits. And the acquisition of Spain's Joyco, with strong market shares in India and China, should continue to drive growth in emerging markets in 2005, writes Chris Jones.

DFOB ponders future UK dairy strategy

The UK's third largest dairy processor claims that up to 60 per cent of British dairy farmers are failing to make a profit, despite announcing in its interim results yesterday that it had notched up an increase in pre-tax profits of 47 per cent, Tom Armitage reports.

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