Food Business News - Jun 10, 2008 - (Page 1)

FoodBusinessNews ® NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY June 10, 2008 J.M. Smucker acquiring Folgers coffee business from P.&G. Seeking nutrition label uniformity Transaction would nearly double the size of jellies and jams maker 37 Science and solutions: I.F.T. '08 51 urge Dark surge 68 MARKETT WATCH Monthly butter production in million lbs 175.0 2008 2007 ORRVILLE, OHIO - In its largest move yet to offer an array of prominent "center of store" brands, The J.M. Smucker Co. on June 4 signed an agreement to acquire the Folgers coffee business of the Procter & Gamble Co. in an allstock transaction valued at approximately $3.3 billion. As part of the transaction, Smucker will assume approximately $350 million of Folgers debt, and issue a one-time special dividend of $5 per share to Smucker shareholders before the purchase. For its part, P.&G. shareholders will receive a 53.5% stake in Smucker. The acquisition also includes the super-premium Millstone brand and the recently launched Dunkin' Donuts brand. In the most recent 52-week period ended May 18, P.&G. ground coffee sales totaled $731,188,300, accounting for nearly 33% of total category sales, while Dunkin' Donuts coffee sales were $76,803,400, or 3%, according to Information Resources, Inc. "Folgers is a perfect strategic fit within our portfolio of leading and iconic North American food brands," said Tim Smucker, chairman and co-chief executive officer of Smucker. "Folgers will become our tenth No. 1 brand in North America and will further enhance the high quality, great tasting, diverse product offerings that consumers expect from Smucker." Folgers was founded in San Francisco Continued on Page 18 162.5 150.0 Murky waters 137.5 125.0 Nov. Dec. Jan. Feb. March April Nestle executive seeks to clear misconceptions about bottled water Source: U.S. Department of Agriculture Production has been record high in each of the last six months. NEW YORK - Judging by media reports, an end to America's infatuation with bottled water would reduce wasteful production of plastic bottles, cut the amount of solid waste in landfills, raise consumer intake of tap water and improve public health, noted Kim E. Jeffery, chief executive officer of Nestle Waters North America. To Mr. Jeffery, each of these predictions is nothing short of fantasy. He sought to dispel several myths about bottled water in a keynote presentation May 21 at the Beverage Marketing Forum in New York. "If bottled water went away tomorrow, there would be no less plastic used, no less water used, no improvement in recycling rates and no reduction of our collective carbon footprint," he said. "I'm pretty sure we'd be fatter though, and I know Americans would have less Continued on Page 43

Table of Contents for the Digital Edition of Food Business News - Jun 10, 2008


Food Business News - Jun 10, 2008