Food Business News - Jul 10, 2007 - (Page 1)

FoodBusinessNews ® NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY July 10, 2007 Core brands drive ConAgra Kraft to acquire Danone's global biscuit business China tackles food safety issues 32 I.F.T. to test 'Foodsmarts' 45 MARKET WATCH NORTHFIELD, ILL. - Kraft Foods Inc. has made an offer to acquire the global biscuit business of Groupe Danone for €5.3 billion ($7.2 billion) in cash. "This proposed acquisition makes great sense for Kraft," said Irene Rosenfeld, chairman and chief executive officer, Kraft Foods. "It will increase our presence in snacks - our fastest growing global segment - and transform our international business. This growing, high-margin business will give Kraft another core growth category in Europe, a cornerstone for faster growth in emerging markets, and the best portfolio of iconic biscuit brands in the world." French law requires Danone to consult with its Works Council before entering into a definitive agreement, but both companies expect the transaction to Continued on Page 10 AP WIDE WORLD PHOTOS 22 Groupe Danone chief executive Franck Riboud, left, with Kraft Foods chairman and chief executive officer Irene Rosenfeld following the announcement Kraft Foods intends to acquire Danone's biscuit and cereal division. High-heat nonfat dry milk per lb $2.04 July 2007 January 2007 July 2006 November 1989 $1.08 Taking issue with the rules Potential F.S.I.S. 'natural' claims modification sparks industry feedback $0.88 $1.95 Nonfat dry milk prices are up 89% since Jan. 1 and are record high. Nine months after Austin, Minn.-based Hormel Foods Corp. filed a petition with the Food Safety and Inspection Service of the U.S. Department of Agriculture objecting to modifications to "natural" claims, the jury is still out on the next step in the rulemaking process. At the heart of Hormel's Oct. 9 com- plaint was the F.S.I.S.'s decision to allow sodium lactate to be present in products labeled "natural." Hormel said sodium lactate was a preservative, with preservatives being prohibited both by the original "natural" policy established in 1982 and by the 2005 version, which retained the two basic premises - product must not contain an artificial flavor, coloring ingredient or chemical preservative, or any other artificial or synthetic ingredient, and product may not be more than "minimally processed" - established in 1982. The F.S.I.S. allows sodium lactate to be present in a meat or poultry product as a flavoring at up to 2% of product content. The agency also has established 4.8% content as an upper limit for sodium lactate to be used as a preservative (but not in Continued on Page 39

Table of Contents for the Digital Edition of Food Business News - Jul 10, 2007


Food Business News - Jul 10, 2007