Food Business News - Sep 15, 2009 - (Page 1)

FoodBusinessNews ® NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY F.D.A.'s F.D.A Reportable Repo Food Registry opens open 12 Wal-Mart's t's Yiannas discussess food safety ety 4 43 Improved performance 66 MARKET WATCH U.S. soybean production September 15, 2009 Kraft sets sights on Cadbury A merger would reshape the global snack, confectionery markets NORTHFIELD, ILL. - In a move that would bolster its position in the snacking segment while expanding its presence in emerging markets around the world, Kraft sclosed it was pur Foods Inc. on Sept. 7 disclosed pureover of Cadsuing a $16.7 billion takeover bury P.L.C. The board off Londonmarily based Cadbury summarily raft rejected the bid, and Kraft o said it would continue to pursue the acquisition. Kraft proposed paying 300 pence ($4.95) in cash and 0.2589 in new Kraft Foods shares per Cadbury share. The offer would value each Cadbury e share at 745 pence ($12.29) and values the entire issued share capital of Cadbury at £10.2 billion ($16.7 billion). Cadbury issued a tersely worded statement rejecting the Kraft offer. "The board is confident in Cadbury's standalone strategy and growth prospects as a result of its strong brands, unique category and geographic scope and the continued successful delivery of its Vision into Action plan, Cadbury said plan," in the Sept. 7 statem ment. "The board b believes that the p proposal fundam mentally underv values the group a its prospects." and At $16.7 billion the transaction lion, wou be the fourth would larges ever for a food largest process processing company, but Cadbury's rejection generspeculat ated speculation that the price may go up with Kraft raising its comp bid further, a competitive bid or bids emerging, or some combination of the two. After the announcement, Cadbury shares climbed 41% to 803.5 pence at midday on Continued on Page 24 in million bus 3,245 2009 2008 2007 2006 2,959 2,677 3,197 Source: U.S. Department of Agriculture Soybean crop is seen up 10% from 2008 and record large. Trying to make sense of sugar U.S. futures prices ease but Mexican prices soar to record highs KANSAS CITY - The usually staid domestic sugar market has been anything but quiet this year and it appears the rollercoaster ride is not yet over, even as the U.S. sugar beet harvest begins with the promise of bringing some supply relief. The domestic sugar market, which usually is insulated from the less predictable world market by the U.S. Department of Agriculture run sugar program, this year has followed world prices sharply higher. But that's only one piece of the complicated picture that includes a controversial U.S. 2009-10 demand projection, recent reports Brazil plans to double sugar cane production in six years and a major shortfall in Mexico after that country missed production forecasts by 10% and shipped about 25% of its outturn to the United States. The U.S.D.A. in its Sept. 11 World Agricultural Supply and Demand Estimates forecast U.S. 2009-10 sugar production at Continued on Page 42

Table of Contents for the Digital Edition of Food Business News - Sep 15, 2009


Food Business News - Sep 15, 2009