Food Business News - Aug 07, 2007 - (Page 1)

FoodBusinessNews ® August 7, 2007 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Bottled water's functional side 22 Farm bill debate shifts to Senate 32 Comparing protein sources 54 MARKET WATCH Health and wellness continues to dominate I.F.T. Annual Meeting and Food Expo CHICAGO - The momentum behind the burgeoning health and wellness trend was on display during the Institute of Food Technologists 67th Annual Meeting and Food Expo, held July 28 to Aug. 1 at McCormick Place. As in past years, the topic was woven throughout the meeting's numerous general and scientific sessions and prominent at many suppliers' booths on the exposition floor. Representatives from some of the food industry's largest companies gathered for a general session on July 30 to discuss how health and wellness has changed their companies and provide their perspective on where they see the trend going. "What is really driving health and wellness is changing demographics," said Y. Marc Belton, executive vicepresident of worldwide health, brand Continued on Page 40 Y. Marc Belton, executive vice-president of worldwide health, brand and new business development for General Mills, Inc., speaks during the Institute of Food Technologists Annual Meeting and Food Expo. New York crude oil futures per barrel $80 Kraft quarterly profit climbs 4% as company makes progress on growth plan $70 $60 March 2007 April May June July Aug. Source: New York Mercantile Exchange Sept. crude oil closed at a record high $78.21 per barrel on July 31. NORTHFIELD, ILL. - The benefits of share buybacks, a lower tax rate and the implementation of price increases helped lift earnings at Kraft Foods Inc. in the second quarter ended June 30. More importantly, Irene Rosenfeld, chairman and chief executive officer, said the implementation of the company's transformation plan laid out in February has left her "more confident that our plan is sound and that its execution will enable us to restore Kraft to reliable growth." During an Aug. 1 conference call with financial analysts, Ms. Rosenfeld cited three reasons for her optimism: early investments have produced sequential top-line improvement; confidence that actions already taken will lay the foundation for improved results; and lastly, efforts are in place to further enhance shareholder returns. Net income in the quarter was $707 million, equal to 45c per share on the common stock, up 4% from $682 million, or 41c per share, in the second quarter of fiscal 2006. During the most recent quarter, Kraft incurred $157 million in asset impairment, exit and implementation costs from its restructuring program. To date, cumulative savings from the Continued on Page 20

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Food Business News - Aug 07, 2007