Food Business News - Apr 17, 2007 - (Page 1)

FoodBusinessNews ® April 17, 2007 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Magazine to lead Gatorade Nestle acquiring Gerber from Novartis for $5.5 billion 11 Freeze pushes wheat prices higher 16 Pet food recall embroils the F.D.A. 24 MARKET WATCH VEVEY, SWITZERLAND - In its most dramatic step yet toward building its Nutrition business, Nestle S.A. on April 12 reached an agreement to acquire the Gerber business of Novartis AG for $5.5 billion. When completed, the acquisition would cap a buying binge nearly doubling the size of the Nestle Nutrition business to $8.5 billion in annual sales from $4.4 billion in 2006. At the higher level, Nutrition would account for 10% of total Nestle sales. Peter Brabeck-Letmathe, Nestle chairman and chief executive officer, is pinning the company's future on the growth of its health and wellness business. Gerber fits well into this future, he said. "The acquisition of Gerber is the perfect complementary fit," Mr. Brabeck-Letmathe said. "It not only gives Nestle the leadership position in baby food, but it also Continued on Page 10 AP WIDE WORLD PHOTOS Retail gasoline prices per gallon $3.00 $2.75 $2.50 $2.25 $2.00 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 2006 2007 Source: Energy Information Adminstration Retail gasoline prices soared to their highest level since October. Putting the spotlight on salt Global efforts support salt reduction to improve public health The debate in the United States regarding the benefits of consuming less sodium has heated up in recent years, but for all the efforts under way in the U.S., they remain a drop in the bucket compared to more broad-based actions taking place globally to drive down sodium consumption. The World Health Organization this past week published "Reducing Salt Intake in Populations," a report calling for population-wide strategies to reduce salt consumption as a cost-effective way of lowering blood pressure, preventing heart disease, stroke and other health problems. The report, which arose from a committee convened by the W.H.O. this past October, urges governments around the world to reduce average sodium consumption to 2,000 milligrams per day, about half of what Americans consume now. In an opening session at the meeting, Dr. Michel Chauliac, coordinator of the French Nutrition and Health Plan at the Ministry of Health, elaborated on efforts under way in France to reduce salt intake. In 2004, the French parliament adopted a Public Health Continued on Page 27

Table of Contents for the Digital Edition of Food Business News - Apr 17, 2007


Food Business News - Apr 17, 2007