Consumer Packaged Goods Broker News: Hormel moves into protein beverages with $450M CytoSport deal

Pinnacle, Hillshire deal canceled | Hormel moves into protein beverages with $450M CytoSport deal | Nestle narrows its product lineup in the U.S.

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July 1, 2014

News for the food, beverage and consumer packaged goods industry

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Pinnacle, Hillshire deal canceled
Pinnacle Foods has agreed to terminate its merger agreement with Hillshire Brands in exchange for a $163 million fee, which the company says it will use to reduce debt. The deal was ended to allow Hillshire to move forward with a $7.7 billion takeover bid from Tyson Foods. The New York Times (tiered subscription model)/DealBook blog (6/30), Bloomberg (7/1), The Wall Street Journal (tiered subscription model) (6/30)

Hormel moves into protein beverages with $450M CytoSport deal
Hormel Foods will purchase CytoSport Holdings, which makes Muscle Milk, in a $450 million deal. The athletic protein drink is at the top of its $1 billion category, and the acquisition will allow Hormel to expand into protein products meant to attract younger consumers. Bloomberg (7/1), The Wall Street Journal (tiered subscription model) (6/30), Star Tribune (Minneapolis-St. Paul, Minn.) (7/1)

Nestle narrows its product lineup in the U.S.
Nestle has reduced the number of product variations it makes by 43% since Paul Grimwood took over U.S. operations in 2013. Lean Cuisine is among those brands the company is looking to fix, Grimwood said, with a makeover planned to refocus on healthy living instead of losing weight. The Wall Street Journal (tiered subscription model) (6/30)

Consumer Segments: What They Say vs. What They Do.

What percentage of consumers say they "avoid or are consuming less soda" vs. the percentage that actually buy? Find out the answer to these and other questions that reveal the difference between what consumers say vs. what they do in this fascinating online infographic. It's all part of the Sweetener360 research results you'll find on CornNaturally.com.

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Children's gluten-free is next big trend, Mintel says
Gluten-free products geared towards children are on track for major growth, according to Mintel. In Europe, 42% of new baby products are labeled gluten-free and 10.7% of children's food is gluten-free, up from 5.3% in 2010. "Gluten-free specialists were the first to launch kids' ranges. Mainstream brands have yet to capitalize on this opportunity," said Yannick Troalen, Mintel consultant. BakeryAndSnacks.com (France) (6/30)

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SmartBrief Originals

Behind the Scenes: Tips and best practices on management and operations from SmartBrief

Food pioneers stay a step ahead of the trends
Food-world visionaries are the ones who innovate and create new foundations while rivals fight them out for market share, Harvey Hartman writes. Chef Alice Waters pioneered a fresh, local, seasonal food movement in the early 1970s whose effects can be seen at restaurants, supermarkets and farmers markets today. More recently, chefs Daniel Patterson and Rene Redzepi have been using technology to tweak our ideas of food. SmartBrief/SmartBlog on Food & Beverage (7/1)

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Corporate Social Responsibility

TV show details TerraCycle's recycling efforts
TerraCycle's work to improve recycling rates and boost packaging sustainability will be showcased on a new television show, "Human Resources." The show is part of the Recycle Right campaign, a joint effort between Recycle Across America and Participant Media to increase global recycling and encourage use of sustainable packaging. FoodProductionDaily.com (France) (6/26)

Advertising & Marketing

Wheaties uses fitness-app voting to extend its reach
General Mills is adding an interactive element to Wheaties in an attempt to engage young, active consumers who follow nontraditional sports such as motocross, lacrosse and mixed martial arts. The Wheaties Next Challenge allows consumers to vote on which athletes will appear on its box by logging their workouts in a MapMyFitness mobile application. The New York Times (tiered subscription model) (6/30)

Retail Spotlight

Grocery-makers face obstacles to an e-commerce future
Grocery manufacturers aren't seeing much revenue from e-commerce, and are reluctant to adopt best practices such as more appealing packaging and targeted online marketing. E-commerce is expected to make up 5% of sales for items such as personal-care products and food and drinks in 2016, according to Kantar Worldpanel. Reuters (7/1)