Consumer Packaged Goods Broker News: Is beef back? Industry awaits earnings reports

Post is set to buy protein and supplement company | Clorox posts quarterly income gain | Pilgrim's Pride earnings up 175% over a year ago

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August 5, 2013

News for the food, beverage and consumer packaged goods industry

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Post is set to buy protein and supplement company
Post Holdings has agreed to pay $180 million in cash for Premier Nutrition, maker of nutrition supplements and protein bars, cookies and shakes. Premier Nutrition, which sells products under the Premier Protein and Titan brands, will operate as a separate unit, with CEO David Ritterbush retaining that role. FoodBusinessNews.net (free registration) (8/2)

Clorox posts quarterly income gain
Fourth-quarter net income for Clorox increased 5%, to $183 million, while volume dipped 3% and revenue remained flat at $1.55 billion. The company credited higher prices and savings on overhead costs. Bloomberg Businessweek/The Associated Press (8/1)

Pilgrim's Pride earnings up 175% over a year ago
Chicken company Pilgrim's Pride posted quarterly net income of $190.7 million, a 175% increase over the same period in 2012. "We are large enough to have breadth in our product offerings, but we are also very agile in adapting to rapidly changing market conditions to enable us to optimize mix and price impact," said CEO and President Bill Lovette. FoodBusinessNews.net (free registration) (8/2)

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Trends

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Is beef back? Industry awaits earnings reports
Earnings reports from meat giants Cargill, Tyson Foods and Hillshire Brands are expected to shed light on whether consumers have been willing to pay higher prices for beef. Less-expensive chicken has been gaining favor with budget-conscious shoppers, particularly after a 2010 drought led to higher beef prices. The Wall Street Journal (tiered subscription model) (8/4)

Nielsen highlights buying power of U.S. Hispanic women
Hispanic women in the U.S. are more likely than men in their households to make food and drink purchasing decisions, finds a Nielsen report. "Not only are Latinas increasingly their family's breadwinner and decision maker, but they still embrace their traditional role as nurturer and family caretaker, and often espouse products that make themselves and their families look and feel their best." BeverageDaily.com (France) (8/2)

Individual portions get big in candy and snacks
Retailers and confectioners, looking to 2014, see increasing consumer interest in individually wrapped, portion-controlled candy and snacks. Shoppers are also looking for food with healthful ingredients, as well as strong, spicy flavors. Progressive Grocer (8/1)

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Advertising & Marketing

Cereal-makers post soggy sales
As Americans turn away from cereal, Kellogg's sales of "morning foods" dropped 3.3% for the quarter, and Post said sales of Honey Bunches of Oats are down 9%. "We recognize that sometimes consumers don't have time for a bowl of cereal and milk," said Paul Norman, senior vice president at Kellogg, which is introducing breakfast bars and drinks. Bloomberg Businessweek (8/2)

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Quarterly earnings up for Harris Teeter
Harris Teeter, which is merging with Kroger, reported a quarterly earnings increase of $31.1 million. While same-store sales were up 1.29%, the company said the grocery business remains "intensely competitive." American City Business Journals/Charlotte, N.C. (8/1), Progressive Grocer (8/2)

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Hot Topics

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Health & Wellness

Europe develops a taste for high-protein food, drinks
High-protein food and drinks, already popular in the U.S., are gaining traction in Europe, said Mintel, even though most Europeans get enough protein in their diets. European food and drink launches with high-protein claims have gone up from 12% in 2010 to 35% in 2012. NutraIngredients (8/2)

Government & Food Safety

FDA rule creates standards for gluten-free food labels
The FDA has issued rules to define the term "gluten-free," saying foods with that label must contain less than 20 parts per million of gluten. Food manufacturers will have one year to comply with the regulation, which has been in the works since 2007 and conforms with rules used in the EU and Canada. USA Today (8/2), The New York Times (tiered subscription model) (8/2), Progressive Grocer (8/2), CandyAndSnackToday.com (8/5), Advertising Age (tiered subscription model) (8/2)