Food Business News - Jan 24, 2006 - (Page 1)

FoodBusinessNews January 24, 2006 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Nestle takes control of Dreyer's, becomes global ice cream leader Tyson builds bacon business 13 Cargill's earnings climb under Staley's watch 16 Emulsifiers enhance product attributes 30 VEVEY, SWITZERLAND - Nestle S.A. achieved full ownership of Dreyer's Grand Ice Cream Holdings, Oakland, Calif., last week, making it the leader in the global ice cream market. The transaction follows the 2003 merger of Nestle's U.S. ice cream business with Dreyer's that resulted in Nestle owning 67% of the combined company. "Wednesday's events in the U.S. are the culmination of a long-standing strategy to achieve leadership in the world's largest ice cream market," said Peter Brabeck-Letmathe, chairman and chief executive officer of Nestle. "I am gratified the Dreyer's business has consistently translated technical innovations into tangible market share gains in the U.S." Dreyer's portfolio of brands in the U.S. includes Dreyer's, Edy's, HaagenDazs, Starbucks (ice cream) and Skinny Cow. Taking into account the proposed acquisition of Delta Ice Cream in Greece, which Nestle announced last month, the company now has an estimated 17.5% of the world ice cream market. "I am also very pleased with market share performance in other markets which, coupled with Dreyer's success has brought Nestle to the global leadership position for the firs time," said Mr. BrabeckLetmathe. "As we continue to introduce Continued on Page 10 MARKET WATCH Mixed signals Assessing what baby boomers want Dec. 1, 2005, soybean stocks were record high. What will baby boomers want? Marketers of consumer goods consider the answer to be worth millions or, perhaps, billions of dollars. With a population of approximately 78 million, baby boomers, those consumers aged 41 to 60, represent nearly one out of every three adults in the U.S. Over the next few years, as 17 mil- lion boomers turn 50, they are expected to spend nearly $2 trillion on consumer goods and services, according to The Boomer Project, 2005. As the boomer generation continues to get older, the conventional wisdom is they will demand more health and wellness products to slow the onset of aging, improve their quality of life and extend their lives. But data from a variety of sources shows the leading edge of the boomer generation, those between 55 and 60, are not changing their dietary habits. "The biggest misconception about baby boomers is they think they are Continued on Page 20

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Food Business News - Jan 24, 2006