Food Business News - May 27, 2008 - (Page 1)

FoodBusinessNews ® NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY U.S.D.A. weighs in on food vs. fuel debate 14 Fuel costs spike to record highs 22 The sweet side of organics 39 MARKET KET WATCH Midwest beet sugar refined, bulk, cents per lb 32 30 28 26 24 22 June Aug. Oct. Dec. Feb. April 2007 2008 Reduced beet plantings have pushed sugar prices higher. May 27, 2008 Beverage industry boosts commitment to marketing to children Review, report on implementation to take place by end of 2009 BRUSSELS, BELGIUM - The International Council of Beverages Associations (I.C.B.A.), the trade association established in 1995 to represent the non-alcoholic beverage industry on a global level, has adopted guidelines on marketing to children. The guidelines, which Atlanta-based The Coca-Cola Co. and Purchase, N.Y.-based PepsiCo, Inc. have agreed to implement by the end of 2008, are intended to address marketing practices with respect to children under the age of 12. Under the terms of the guidelines, any beverage company that commits to the initiative voluntarily agrees to eliminate the advertising and marketing of a wide range of beverages, including carbonated soft drinks, to any audience that is comprised predominantly of children under 12. The policy includes media outlets such as television, radio, print, Internet, phone messaging and cinema. Also, as part of the guidelines, the I.C.B.A. said it will review other forms of marketing, including the use of licensed characters, sponsorships, presence in Continued on Page 8 Food and beverage companies deal with rising costs A gainst the backdrop of a flurry of corporate financials released in recent weeks, a point of emphasis for nearly every company has been the impact of rising commodity costs. Results have run the gamut, from several food and beverage companies continuing to churn out strong earnings growth to those hit hard, with profits disappearing in a wave of higher wheat, corn and fuel costs. Others have managed to stave off the onslaught, passing along costs while chalking up respectable results for investors. The repercussions of higher ingredient costs on the food industry, particularly grain-based foods companies, have been unprecedented in its severity, said Mitchell B. Pinheiro, senior vice-president of Janney Montgomery Scott, Philadelphia. "This commodity market volatility has had the biggest impact on grain-based foods earnings than any issue I've ever encountered," Mr. Pinheiro said. "You have J&J Snack Foods hit by 27c a share earnings Continued on Page 24

Table of Contents for the Digital Edition of Food Business News - May 27, 2008


Food Business News - May 27, 2008