Food Business News - Dec 13, 2005 - (Page 1)

FoodBusinessNews December 13, 2005 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Report urges industry to alter ads aimed at children, avoid government intervention Wells' Weight Watchers line grows Relief seen in sugar prices 20 21 WASHINGTON - A document issued Dec. 6 from the Institute of Medicine of the National Academies recommended ways the food, beverage and restaurant industries should shift the emphasis of TV advertising during children's programs to healthier products. If industry fails to take action voluntarily, Congress should enact legislation to mandate the change on both broadcast and cable television, the report said. Food and beverage manufacturers and restaurants should direct more resources to develop and market youth-oriented foods, drinks and meals that are higher in nutrients and lower in calories, fat, salt and added sugars, according to the report. Licensed characters, such as cartoon characters, should be used solely to promote products that support healthy diets, the report added. Government should consider the use of awards and tax incentives that encourage companies to develop and promote healthier products for youth. According to the report, the Children's Advertising Review Unit, a group created by the industry to monitor advertising directed toward children, should Animated characters should be used solely to promote expand. It should apply its volun- products that support healthy diets when they appear in tary guidelines to newer forms of advertising aimed at children, according to a report from the Institute of Medicine of the National Academies. Continued on Page 15 Staid brands, solid growth Serious attention to brands at Hormel fuels gains since early August. While most food processing companies compete in categories that could be described as mature, the statement is especially true for Austin, Minn.-based Hormel Foods Corp. One of the company's top executives earlier this year described Hormel's famed Spam brand as "the ultimate marketing challenge." Similarly, the turkey category in which Hormel is now the leading player has experienced limited consumption growth in the United States, in contrast to the trend in chicken demand. Whatever challenges Hormel faces in these categories, the company has been successful in achieving growth both in the top line and bottom line of its business. In the year ended Oct. 30, the company's earnings were up 9% from fiscal 2004. Fourthquarter earnings jumped 17%. Growth at the company has been achieved across all of its business segments. Even the venerable Spam brand has contributed to the company's gains. Joel W. Johnson, who is retiring Dec. 31 as chairman and chief executive officer, has Continued on Page 30

Table of Contents for the Digital Edition of Food Business News - Dec 13, 2005


Food Business News - Dec 13, 2005