Food Business News - October 8, 2013 - (Page 1)

October 8, 2013 FOODBUSINESS NEWS NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Nix or fix: Changes are ahead for Nestle VEVEY, SWITZERLAND — Major challenges may yield major changes for Nestle S.A. During an Oct. 1 investor seminar, executives described the economic slowing that is occurring in emerging markets, crises in developed markets and “new dimensions of competition” that have spurred the company to make some strategic decisions. “Divestitures: we’re going to have some,” said Paul Bulcke, chief executive officer. “We’re not going to give figures on this, as you can imagine. But certain things that are not — that we can see — all of our strategy and all that — but we cannot enjoy the business. We want to be Continued on Page 10 Cocoa market in transition KANSAS CITY — For nearly the past five years cocoa powder has driven the cocoa market, rising to historic highs in 2011, in part due to the global economic slowdown that created strong demand for (then) lower-priced powder over traditionally higher-priced cocoa butter. But the market appears to have returned to its more traditional scenario with cocoa butter in the driver’s seat and cocoa powder fading somewhat into the background. To set the stage, when the global economy sank in 2008, demand for higher-price chocolate products, which use cocoa butter, fell, especially in Europe, which has the highest per capita Continued on Page 27 Story on Page 18 Shareholder agitating for Bob Evans to break up COLUMBUS, OHIO — Sandell Asset Management Corp., a shareholder with approximately 5.1% of Bob Evans Farms, Inc.’s shares, is calling for the company to consider a variety of strategies to increase shareholder value. At least two of the strategies would require the breakup of the company. In a letter to Bob Evans’ board of directors, Thomas E. Sandell, chief executive officer of Sandell Asset Management, recommended three potential strategies. These include spinning off the food business; unlocking the real estate value embedded in Bob Evans’ many owned restaurant properties through a sale-leaseback transaction; or implementing a large self-tender with most of the proceeds generated from the first two recommended strategies. Bob Evans Farms confirmed receipt of Mr. Sandell’s letter and said in a statement, “We welcome our shareholders expressing their views to us, and we take into consideration their concerns and suggestions.” The Bob Evans Restaurant division Continued on Page 19 ®

Table of Contents for the Digital Edition of Food Business News - October 8, 2013

Food Business News - October 8, 2013
Nix or fix: Changes are ahead for Nestle
Cocoa market in transition
Shareholder agitating for Bob Evans to break up
Table of Contents
Web Contents
Editorial - Evolution’s role in guiding food industry
Golden State Foods acquires KanPak U.S.
John Simons selected as new AdvancePierre Foods c.e.o.
Private equity firm to buy Campbell E.U. simple meals business
Burger King unveils reduced fat fries
Rodney McMullen selected to lead The Kroger Co.
McDonald’s to add fruit, salads as value menu option
Safeway introducing Hispanic-themed store brand
Inventure to buy frozen vegetable processor
Dairy Farmers of America building plant in Michigan
Shuanghui International Holdings closes Smithfield acquisition
Schwan chief executive steps down abruptly
Nestle USA to invest $72 million in Indiana plan
Consumers remain confused about nutrition, functional foods
ConAgra Foods reformulating recipe for growth
Bob Evans shuttering sausage plant
Darden dealing with difficulties
Diamond Foods suffers loss due to litigation, nut business
Washington - Easy to understand nutrition labeling proposed
Senators take steps to limit energy beverage marketing
Food Safety - Back to Basics
Cyclospora outbreaks continue to confound investigators
Two face federal charges for 2011 Listeria outbreak
Ingredient Innovations - Making organic last
U.S., Japan reach organic trade agreement
Dairy Business News - Innovation through inclusions
New Food Products
Ingredient Market Trends - Shutdown hobbles but does not end nation’s food safety efforts
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 8, 2013