Food Business News - Jun 27, 2006 - (Page 1)

FoodBusinessNews ® June 27, 2006 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Grover like vegetables 11 gives on-line groceries another try 28 Reformulating Coca-Cola 35 MARKET WATCH Nestle acquiring Jenny Craig business VEVEY, SWITZERLAND - Nestle S.A. has reached an agreement under which it will acquire Jenny Craig, a weight-loss company with operations that include the marketing of diet food products, from a private equity group. Nestle is paying about $600 million for Jenny Craig from an investor group that includes ACI Capital and MidOcean Partners. Jenny Craig sales exceeded $400 million in 2005 and were growing at a double-digit rate, Nestle said. In addition to operating 640 company-owned and franchised diet centers in the United States, Canada, Australia, New Zealand, Puerto Rico and Guam, the company offers a portfolio of 75 Jenny's Cuisine breakfast, lunch, dinner and snack products. Celebrity Kirstie Alley is a company spokesperson. The company estimates that more than 120,000 individuals follow the Jenny Craig program each week. It has 3,000 employees. For Nestle, the Jenny Craig transaction would be its second health and wellness related acquisition in as many months. In May, the company agreed to purchase from Burns Philp & Company Ltd. the Uncle Toby's cereals and nutritional snacks business in Australia. "With this strategic acquisition, the group takes another important step in its transformation process into a nutrition, health and wellness Continued on Page 14 Celebrity Kirstie Alley is a Jenny Craig spokesperson. Heart group urges trans fat limit of 1% of caloric intake New York September futures hit 15-year highs last week. DALLAS - Consumers should keep their daily trans fat intake under 1% of their overall energy intake, according to revised diet and lifestyle recommendations from the American Heart Association released June 19. Other national organizations and health groups, including the Institute of Medicine and the Dietary Guidelines for Americans 2005, instruct consumers to limit trans fat intake, but they stop short of setting a daily limit. In reaching its figure of under 1%, the A.H.A. pointed out both the 2005 Dietary Guidelines Advisory Committee and a recent U.S. Food and Drug Administration Food Advisory Committee, Nutrition Subcommittee recommended intake to be less than or equal to 1%. Besides limiting trans fat intake, the A.H.A. report "Diet and Lifestyle Recommendations Revision 2006: A Scientific Statement From the American Heart Association Nutrition Continued on Page 20

Table of Contents for the Digital Edition of Food Business News - Jun 27, 2006


Food Business News - Jun 27, 2006