2024 – Page 112

Shippers, industry groups urge resolution ahead of Canada rail strike

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With contract talks between Canada’s major railroads and its union workers at an impasse, the prospects of a work stoppage starting Thursday looms closer to reality.

Logistics experts have warned of supply chain disruptions should Canada’s major rail carriers Canadian Pacific Kansas City and Canadian National shut down.

While contingency planning across all transportation modes is underway to avert service disruptions, business leaders and representatives from U.S. and Canada-based organizations seek a quick resolution to the crisis, with some calling for government intervention.

Below are some excerpts on what industry leaders are saying about the looming Canadian railroad workers strike.

Vancouver Fraser Port Authority

“The impact to the Port of Vancouver will be significant, with approximately two-thirds of all cargo volumes at the port moved by rail, including 90% of international exports,” the port told Supply Chain Dive in an email. “Trade through the Port of Vancouver plays a vital role supporting Canada and our economic prosperity, with approximately $1 of every $3 of Canada’s trade in goods outside of North America moving through the Port of Vancouver.

“It took many months to clear the backlog of congestion from the 13-day strike by B.C. longshore workers in 2023 at the Port of Vancouver, with delayed shipments and overburdened infrastructure struggling to restore normalcy.”

Retail Industry Leaders Association VP for Supply Chain Jessica Dankert

“As with any supply chain disruption, retailers are concerned with the expected congestion and delays, and potential ripple effects — including impacts on U.S.-based networks. Retailers have been focused on implementing contingency plans to mitigate the impact on consumers. We urge both parties to keep negotiating until a deal is reached that prevents a shutdown,” Dankert wrote in an email.

Canadian Chamber of Commerce President and CEO Perrin Beatty

“After the labour disruptions at our ports in British Columbia and the St-Lawrence Seaway, a strike at both of our Class 1 railways would be a terrible blow to Canada’s diminishing reputation as a reliable place to do business. We simply don’t have the capacity to replace the movement of goods by rail.”

“With trade accounting for more than two thirds of Canada’s GDP, our ability to get goods to and from market determines whether we will be competitive in the global economy, but our supply chains are only as strong as their weakest link. This is not the time to put further strain on an already fragile system; we need to ensure our supply chains are reliable and resilient.”

“We respect the right to collective bargaining and believe sincerely that the best deals are reached at the table. These repeated work stoppages are damaging the economy, jeopardizing predictability for businesses, and escalating uncertainty for Canadian families who are contending with an increased cost of living.”

Retail Council of Canada

“Rail shipments are vital to retail supply chains as our industry gears up for back-to-school and the holiday shopping season. A shutdown of Canada’s two main railway companies would be a one-two punch to retailers that could result in empty shelves across the country. RCC urges the parties to come to an immediate resolution and for the federal government to step in immediately if they do not.”

“RCC has joined a chorus of 80+ business associations in calling for immediate action by the Prime Minister and government to avert a disastrous shutdown of Canada’s rail network. Retailers need reliable rail to ensure Canadians have access to all the goods they need for their daily lives.”

National Grain and Feed Association

“Operational railroads are essential on both sides of the border for the integrated North American supply chain. While we believe a negotiated solution is always the preferred outcome, the government should be prepared to move quickly if negotiations fail.”

National Institute of Supply Chain Leaders BC

“Should a lockout occur, it will likely precipitate substantial disruptions throughout the province. Expected impacts include delays in transportation and a considerable backlog affecting the movement of goods both into and out of the region, as well as within the province. We strongly advise businesses and consumers to proactively prepare for these potential disruptions. Where feasible, consider alternative transportation options to mitigate the effects of any delays,” the institute wrote in an email.

National Retail Federation

”NRF encourages the negotiating parties to remain at the table until a new deal is reached. We are already starting to see embargoes for certain commodities, and a shutdown of cross-border rail service would negatively impact retailers during the height of peak shipping season. We continue to see supply chain disruptions caused by a variety of issues. It is critical we avoid self-inflicted disruptions that result in a shutdown of services and hinder the transport of goods to market in a timely manner. The overall impact won’t just be a shutdown, but also the time it takes to recover from a shutdown,” Jonathan Gold, VP of supply chain and customs policy, wrote in an email.

Union Pacific Railroad

“For Union Pacific, a rail stoppage in Canada would mean thousands of cars per day not moving across the border. Everything from grain and fertilizer during the critical summer season, and lumber for building homes could be impacted. A prolonged shutdown could have even more significant implications. As Union Pacific adheres to embargoes related to the potential lockout, we are working to minimize impact to our customers and the U.S. supply chain. We remain in close communication with the Canadian railroads,” the railroad wrote in an email.

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U.S. supports global plastic production caps and chemical bans in ‘major’ policy shift

According to Reuters, the United States will support a global treaty to cap and restrict new plastic production, as well a list of controlled chemicals, in what is described as a ‘major policy shift’.

An unnamed source ‘close to U.S. negotiations’ is cited in Reuters’ claims that, in order to avoid a ‘patchwork’ of rules that differ from country to country, the U.S. will now back the creation of international criteria, including lists of harmful chemicals and ‘avoidable’ plastic products.

Reuters explains that the shift will bring the country into closer alignment with EU Member States, South Korea, Canada, Rwanda, Peru, and other ‘high-ambition countries’. Collectively, they have encouraged the introduction of a cap and reduction on plastic production, as well as restrictions on so-called ‘chemicals of concern’.

Countries like China and Saudi Arabia have argued that individual nations should be able to establish their own rules surrounding plastic production; before its shift in policy, the U.S. echoed this stance. Such differences in opinion caused delays at INC-4 in Ottawa back in April, with the so-called ‘Like-Minded Countries’ protesting against production caps in favour downstream measures – improved waste management, redesigning packaging, etc.

Now those in favour of plastic production targets fear that these disagreements over the treaty’s scope will make it difficult to close negotiations at INC-5 in Busan, South Korea later this year. The Bridge to Busan Declaration – signed by the European Union earlier this month – seeks to preserve plastic production targets, although it is currently unclear whether the U.S. will offer its support.

Environmental groups have voiced their ‘cautious’ support for the policy shift, described by Greenpeace as a “watershed moment” in the fight against plastic pollution. Greenpeace USA Ocean’s campaign director, John Hocevar, considers it “a welcome signal that [the government] are finally listening to the demands of the American people.”

However, industry groups have criticized the move. The American Chemistry Council (ACC) argues that the Biden administration has “caved” to environmental groups and, while it supports a global treaty, it does not agree with caps or lists of controlled chemicals.

“With today’s shift in position to support plastic production caps and regulate chemicals via the UN Plastics Agreement, the White House has signalled it is willing to betray U.S. manufacturing and the hundreds of thousands of jobs it supports,” said Chris Jahn, president of the ACC.

INC-5 will be held after the upcoming presidential election on 5^th November, in which former President Donald Trump – who previously withdrew the U.S. from the United Nations’ Paris Agreement on climate change – will run against current Vice President Kamala Harris.

The Biden-Harris Administration recently announced that, if elected again, it plans to phase out all single-use plastics across US federal government agencies by 2035 and all single-use plastic products in foodservice, packaging, and events by 2027. It is claimed that this landmark strategy marks the first time the federal government has formally acknowledged the severity of the plastic waste crisis and the large-scale effort needed to combat it.

In other news, a Notice of Intent has been issued by the U.S. Department of Commerce opening a competition for new R&D deliveries to secure and drive domestic capacity for semiconductor advanced packaging. The CHIPS for America programme is expected to award $150 million in federal funding to five R&D areas and leverage private sector investments from industry and academia to support prototype development opportunities.

If you liked this story, you might also enjoy:

How are the top brands progressing on packaging sustainability?

Sustainable Innovation Report 2024: Current trends and future priorities

Reuse vs. single use – which is better for the environment?

The ultimate guide to global plastic sustainability regulation

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Wayne-Sanderson stops operations to prepare for Hurricane Debby

MOULTRIE, GA. — Wayne-Sanderson Farms announced in a Facebook post that it will not operate any shifts on Aug. 5 at its Moultrie, Ga., plant due to severe weather forecast for the area. Normal operations will resume on Aug. 6.

“Please stay safe and tuned to your local news stations for further weather related updates,” Wayne-Sanderson said.

According to the National Weather Service, a tropical storm warning remains in effect for Moultrie with a potential for wind between 39 and 57 miles per hour. A flood watch is likewise in effect. Peak rain amounts are predicted at 3-6 inches, with locally higher amounts. The National Weather Service noted that the conditions are also somewhat favorable for tornadoes.

In a series of posts on X, NWS Tallahassee said the storm — dubbed Hurricane Debby — is beginning to slow down as it heads across northern Florida into southern Georgia. The weather service predicts Debby to turn into a tropical storm; however, rainfall does not appear to be letting up. Max amount of rainfall has generally been 8-11 inches so far.

Hurricane Debby made landfall around 7 a.m. ET on Aug. 5 near Steinhatchee, Fla.

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Commodity trader loses appeal in Singapore LC fraud case

Our privacy commitments

This Privacy Policy outlines the information we may collect about you in relation to your use of our websites, events, related publications and services (“personal data”) and how we may use that personal data. It also outlines the methods by which we and our service providers may (subject to necessary consents) monitor your online behaviour to deliver customised advertisements, marketing materials and other tailored services. This Privacy Policy also tells you how you can verify the accuracy of your personal data and how you can request that we delete or update it.

This Privacy Policy applies to all websites operated by Exporta Publishing & Events Ltd (as indicated on the relevant website).

This privacy statement does not cover the activities of third parties, and you should consult those third-party sites’ privacy policies for information on how your data is used by them.

Any questions regarding this Policy and our privacy practices should be sent by e-mail to privacy@gtreview.com or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

Who are we?

Established in 2002 and with offices in London and Singapore, Exporta Publishing & Events Ltd is the world’s leading trade and trade finance media company, offering information, news, events and services for companies and individuals involved in global trade.

Our principal business activities are:

Business-to-Business financial publishing. We provide a range of products and services focused on international commodities, export, supply chain and trade finance markets including magazines, newsletters, electronic information and data

Organisers of seminars, conferences, training courses and exhibitions for the finance industry

Exporta Publishing & Events Ltd is a company registered in the United Kingdom with company number 4407327 | VAT Registration: 799 1585 59

Data Protection Policy

This Data Protection Policy explains when and why we collect personal information about people who visit our website, how we use it, the conditions under which we may disclose it to others and how we keep it secure.

Why do we collect information from you?

Our primary goal in collecting personal data from you is to give you an enjoyable customised experience whilst allowing us to provide services and features that will meet your needs.

We collect certain personal data from you, which you give to us when using our Site and/or registering or subscribing for our products and services. However, we also give you the option to access our Sites’ home pages without subscribing or registering or disclosing your personal data.

We also collect certain personal data from other group companies to whom you have given information through their websites (including, by way of example, Exporta Publishing & Events Ltd and subsidiaries, in accordance with the purposes listed below). Should we discover that any such personal data has been delivered to any of the Sites, we will remove that information as soon as possible.

Why this policy exists

This Data Protection Policy ensures Exporta Publishing & Events Ltd:

Complies with data protection law and follow good practice

Protects the rights of staff, customers and partners

Is open about how it stores and processes individuals’ data

pretexts itself from the risk of a data breach

We may change this Policy from time to time so please check this page occasionally to ensure that you’re happy with any changes. By using our website, you’re agreeing to be bound by this Policy.

Data protection law

The Data Protection Act 1998 described how organisations – including Exporta Publishing & Events Ltd – must collect, handle and store personal information. These rules apply regardless of whether data is stored electronically, on paper or on other materials. To comply with the law, personal information collected must be stored safely, not disclosed unlawfully and used fairly.

The Data Protection Act is underpinned by eight important principles. These say that personal data must:

Be processed fairly and lawfully

Be obtained only for specific, lawful purposes

Be adequate, relevant and not excessive

Be accurate and kept up to date

Not be held for any longer than necessary

Processed in accordance with the rights of data subjects

Be protected in appropriate ways

Not be transferred outside the European Economic Area (EEA), unless that country of territory also ensures an adequate level of protection

How do we collect information from you?

We obtain information about you when you use our website, for example, when you contact us about products and services, when you register for an event, register to receive eNewsletters, subscribe or register for a trial to our GTR magazine/website.

Types of Personal Data Held and its Use

1. Customer Services and Administration

On some Sites, Exporta Publishing & Events Ltd collects personal data such as your name, job title, department, company, e-mail, phone, work and/or home address, in order to register you for access to certain content, subscriptions and events. In addition, we may also store information including IP address and page analytics, including information regarding what pages are accessed, by whom and when.

This information is used to administer and deliver to you the products and/or services you have requested, to operate our Sites efficiently and improve our service to you, and to retain records of our business transactions and communications. By using the Sites and submitting personal information through the registration process you are agreeing that we may collect, hold, process and use your information (including personal information) for the purpose of providing you with the Site services and developing our business, which shall include (without limitation) the purposes described in the below paragraphs.

2. Monitoring use of our Sites

Where, as part of our Site services, we enable you to post information or materials on our Site, we may access and monitor any information which you upload or input, including in any password-protected sections. Subject to any necessary consents, we also monitor and/or record the different Sites you visit and actions taken on those Sites, e.g. content viewed or searched for. If you are a registered user (e.g. a subscriber or taking a trial), when you log on, this places a cookie on your machine. This enables your access to content and services that

are not publicly available. Once you are logged on, the actions you take – for example, viewing an article – will be recorded (subject to any necessary consents). We may use technology or a service provider to do this for us. This information may be used for one or more of the following purposes:

to fulfil our obligations to you;

to improve the efficiency, quality and design of our Sites and services;

to see which articles, features and services are most read and used

to track compliance with our terms and conditions of use, e.g. to ensure that you are acting within the scope of your user licence;

for marketing purposes (subject to your rights to opt-in and opt-out of receiving certain marketing communications) – see paragraph 3 below;

for advertising purposes, although the information used for these purposes does not identify you personally. Please see paragraph 5 below for more details;

to protect or comply with our legal rights and obligations; and

to enable our journalists to contact and interact with you online in connection with any content you may post to our Sites.

Please see paragraph 5 below for more information on cookies and similar technologies and a link to a page where you can turn them on or off.

3. Marketing

Some of your personal data collected under paragraphs 1 and 2 above may be used by us to contact you by e-mail, telephone and/or post for sending information or promotional material on our products and/or services and/or those of our other group companies.
We give you the opportunity to opt-out of receiving marketing communications. Further detail can be found on the applicable Site and in the footer of each marketing communication sent by us, our group companies or service providers. See also “Consents and opt-outs” section below.
We will not share your information with third parties for marketing purposes.

4. Profiling

We may analyse your personal information to create a profile of your interests and preferences so that we can contact you with information relevant to you.

5. Cookies and similar technologies

All our Sites use cookies and similar technical tools to collect information about your access to the Site and the services we provide.

What is a cookie?

When you enter some sites, your computer will be issued with a cookie. Cookies are text files that identify your computer to servers. Cookies in themselves do not identify the individual user, just the computer used.

Many sites do this whenever a user visits their site in order to track traffic flows, recording those areas of the site that have been visited by the computer in question, and for how long.

Users have the opportunity to set their computers to accept all cookies, to notify them when a cookie is issued, or not to receive cookies at any time. Selecting not to receive means that certain personalised services Exporta Publishing & Events Ltd offers cannot then be provided to that user.

Why do we use cookies?

Log In – Where we provide log in mechanisms for site users a cookie is created at login and for the duration of the session. Each cookie contains a unique reference number only (no personal information) which is used to confirm you are authorised.

Analytics – To allow us to keep track of traffic to our website we use cookies. The cookies simply tell us if you have previously visited our website so we can get more accurate figures for New vs Returning visitors.

Find and control your cookies

All of the major browser providers offer advice on setting up and using the privacy and security functions for their products. If you require technical advice or support for a specific browser/version please contact the provider or visit their website for further details:
www.microsoft.com / www.mozilla.com / www.apple.com
/ www.opera.com / www.aol.com / www.netscape.com
/ www.flock.com / www.google.com.

We may use cookies to:

remember that you have used the Site before; this means we can identify the number of unique visitors we receive to different parts of the Site. This allows us to make sure we have enough capacity for the number of users that we get and make sure that the Site runs fast enough

remember your login session so you can move from one page to another within the Site;

store your preferences or your user name and password so that you do not need to input these details every time you visit the Site;

customise elements of the layout and/or content of the pages of Site for you;

record activity on our Sites so that we understand how you use our Sites enabling us to better tailor our content, services and marketing to your needs;

collect statistical information about how you use the Site so that we can improve the Site; and

gather information about the pages on the Site that you visit, and other information about other websites that you visit, so as to place you in a “market segment”. This information is only collected by reference to the IP address that you are using, but does include information about the county and city you are in, together with the name of your internet service provider.

Most web browsers automatically accept cookies but, if you prefer, you can change your browser to prevent that, or to notify you each time a cookie is set. You can also learn more about cookies in general by visiting www.allaboutcookies.org which includes additional useful information on cookies and how to block cookies using different types of browser. Please note however, that by blocking, deleting or turning off cookies used on the Site you may not be able to take full advantage of the Site.

6. E-mail tracking

E-mail tracking is a method for monitoring the e-mail delivery to those subscribers who have opted-in to receive marketing e-mails from GTR, including GTR Africa, GTR Asia, GTR Americas, GTR Europe, GTR Mena, GTR eNews, Third party e-mails and GTR Ventures.

Why do we track e-mails?

So that we can better understand our users’ needs, we track responses, subscription behaviour and engagement to our e-mails – for example, to see which links are the most popular in newsletters. They enable us to understand the consumers journey through metrics including open rate, click-through rate, bounces and unsubscribes. Any other purposes for which Exporta Publishing & Events Ltd wishes to use your personal data will be notified to you and your personal data will not be used for any such purpose without obtaining your prior consent.

How do you track GTR eNewsletters?

To do this, we use pixel GIFs, also known as “pixel tags” – these are small image files that are placed within the body of our e-mail messages. When that image is downloaded from our web servers, the e-mail is recorded as being opened. By using some form of digitally time-stamped record to reveal the exact time and date that an e-mail was received or opened, as well the IP address of the recipient.

7. Consents and opt-outs

You can give your consent to opt-out of all or any particular uses of your data as indicated above by:

Indicating at the point on the relevant Site where personal data is collected

Informing us by e-mail, post or phone

Updating your preferences on the applicable Site or eNewsletter (unsubscribe and preference options are available in the footer of each eNewsletter)

To turn cookies and similar technologies on and off, see the information in paragraph 5 above.
Any questions regarding consents and opt-outs should be sent by e-mail to privacy@gtreview.com or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

8. Disclosures

Information collected at one Site may be shared between Exporta Publishing & Events Ltd and other group companies for the purposes listed above.

We may transfer, sell or assign any of the information described in this policy to third parties as a result of a sale, merger, consolidation, change of control, transfer of assets or reorganisation of our business.

9. Public forums, message boards and blogs

Some of our Sites may have a message board, blogs or other facilities for user generated content available and users can participate in these facilities. Any information that is disclosed in these areas becomes public information and you should always be careful when deciding to disclose your personal information.

10. Data outside the EEA

Services on the Internet are accessible globally so collection and transmission of personal data is not always limited to one country. Exporta Publishing & Events Ltd may transfer your personal data, for the above-listed purposes to other third parties, which may be located outside the European Economic Area and/or with a different level of personal data protection. However, when conducting transfers, we take all necessary steps to ensure that your data is treated reasonably, securely and in accordance with this Privacy Statement.

Who has access to your information?

Confidentiality and Security of Your Personal Data

We are committed to keeping the data you provide us secure and will take reasonable precautions to protect your personal data from loss, misuse or alteration.

However, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our Site; any transmission is at your own risk. Once we have received your information, we will use strict procedures and security features described above to try to prevent unauthorised access.

We have implemented information security policies, rules and technical measures to protect the personal data that we have under our control from:

unauthorised access

improper use or disclosure

unauthorised modification

unlawful destruction or accidental loss

All our employees, contractors and data processors (i.e. those who process your personal data on our behalf, for the purposes listed above), who have access to, and are associated with the processing of your personal data, are obliged to keep the information confidential and not use it for any other purpose than to carry out the services they are performing for us.

Responsibilities

Everyone who works for or with Exporta Publishing & Events Ltd has some responsibility for ensuring data is collected, stored and handled appropriately. Each team handling personal data must ensure that it is handled and processed in line with this policy and data protection principles. However, the following people have key areas of responsibility.
The board of directors is ultimately responsible for ensuring that Exporta Publishing & Events Ltd meets its legal obligations.

Name of Data Controller

The Data Controller is Exporta Publishing & Events Ltd. Exporta Publishing & Events Ltd is subject to the UK Data Protection Act 1998 and is registered in the UK with the Information Commissioner`s Office.

How to access, update and erase your personal information

If you wish to know whether we are keeping personal data about you, or if you have an enquiry about our privacy policy or your personal data held by us, in relation to any of the Sites, you can contact the Data Protection Officer via:

By writing to this address: Data Protection Officer, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, UK

Telephone: +44 (0) 20 8673 9666

E-mail: privacy@gtreview.com

Upon request, we will provide you with a readable copy of the personal data which we keep about you. We may require proof of your identity and may charge a small fee (not exceeding the statutory maximum fee that can be charged) to cover administration and postage.

Exporta Publishing & Events Ltd allows you to challenge the data that we hold about you and, where appropriate in accordance with applicable laws, you may have your personal information:

erased

rectified or amended

completed

Disclosing data for other reasons

In certain circumstances, the Data Protection Act allows personal data to be disclosed to law enforcement agencies without the consent of the data subject. Under these circumstances, Exporta Publishing & Events Ltd, will disclose requested data. However, the Data Controller will ensure the request is legitimate, seeking assistance from the board and from the company’s legal advisors where necessary.

Changes to this Privacy Statement

We will occasionally update this Privacy Statement to reflect new legislation or industry practice, group company changes and customer feedback. We encourage you to review this Privacy Statement periodically to be informed of how we are protecting your personal data.

Providing information

Exporta Publishing & Events Ltd aims to ensure that individuals are aware that their data is being processed, and that they understand.

How the data is being used

How to exercise their rights

To this end, the company has a privacy statement, setting out how data relating to individuals is used by the company. This is available on request and available on the company’s website.

Review of this policy

We keep this Policy under regular review. This Privacy Statement was last updated in April 2018.

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General Mills achieves financial goals for fifth consecutive year

MINNEAPOLIS — While the company celebrated multiple financial successes achieved in fiscal 2023, weak volume trends at General Mills Inc. loomed ominously at the start of the company’s new fiscal year.

Executives at the company spoke hopefully about prospects for stemming the decrease in sales volume in fiscal 2024, but the investment community appeared skeptical. In trading on Wall Street June 29, General Mills’ shares dropped 5%, closing at $76.72, down $4.18 from the day before. At the closing price, the company’s shares were down 16% from the recent high of $90.89 reached in mid-May.

Net income at General Mills in the year ended May 28 was $2.59 billion, equal to $4.36 per share on the common stock, down 4% from $2.71 billion, or $4.46 per share, in fiscal 2022. Net sales were $20.09 billion, up 6% from $18.99 billion the year before. Adjusted earnings per share rose 10% in constant currency.

While sales for the year were up 6% from fiscal 2022, volume was down 8%, with price/mix contributing 15 points of growth and foreign exchange a 1% headwind.

“We delivered excellent results in fiscal 2023, including generating double-digit growth in organic net sales and constant-currency adjusted diluted EPS and exceeding $20 billion in annual net sales for the first time in our company’s history,” said Jeffrey L. Harmening, chairman and chief executive officer of General Mills.

In comments June 29 to investment analysts, Harmening noted that fiscal 2023 was the fifth straight year General Mills has achieved or topped its targets for sales and earnings growth. Reviewing the company’s results last year, he said General Mills pursued its Accelerate strategy relying on competing effectively in its categories, investing in the future and continuing to reshape its portfolio.

The company said it held or gained share “in 53% of our priority businesses globally,” though the figure incorporated an adjustment for “an unusual competitive dynamic in cereal last year” and viewed the category on a two-year basis. The company’s largest competitor, Kellogg Co., endured supply disruptions because of a fire and then a work stoppage in 2021 and 2022, skewing the comparison.

With the adjustment, Harmening said General Mills gained share in cereal, refrigerated dough, fruit snacks, hot snacks, soup and seasonings.

In terms of investing for the future, Harmening said the company’s media spend in fiscal 2023 was 35% greater than before the pandemic and that General Mills added production capacity for “constrained platforms,” including fruit snacks, pet foods and hot snacks.

Since fiscal 2018, General Mills has “reshaped more than 20% of our portfolio,” Harmening said. The past year featured one acquisition and two divestitures.

For fiscal 2024, General Mills is predicting net sales growth of 3% to 4%, adjusting operating profit growth of 4% to 6% and adjusted earnings per share growth of 4% to 6%, from a base of $4.30 in fiscal 2023.

Keys to the company’s performance in the new year will be the economic health of consumers, easing cost inflation and a more stable supply chain environment, the company said.

“For the full year, input cost inflation is expected to be 5% of total cost of goods sold, driven primarily by labor inflation that continues to impact sourcing, manufacturing, and logistics costs,” the company said.

Harmening pointed out the 5% cost inflation projected for this year compares with 13% in fiscal 2022.

“While certain commodity spot prices are down from their highs, we continue to see labor as the main source of ongoing inflation, showing up in our suppliers’ conversion costs, at our co-packers facilities, in our own plants and downstream in our warehousing and logistics network,” he said.

He said supply chains are currently in line with pre-pandemic levels, adding that General Mills’ customer service levels have climbed to the low 90% range. Capacity constraints in products such as fruit snacks, cereal and hot snacks have kept service levels from reaching the upper 90% range, Harmening said.

Kofi A. Bruce, chief financial officer, drilled more deeply into sales volume trends and offered an upbeat view of prospects for the new year. He said a reduction in retailer inventory was a significant headwind for volume in fiscal 2023, shaving three points from the company’s sales growth in the fourth quarter alone. He and Harmening said such reductions were not expected to be a problem this year.

Price/mix contributions to sales growth will be smaller in fiscal 2024 than in fiscal 2023, Bruce said. Some benefits in the new year will be gained from pricing actions taken later in fiscal 2023. Volume trends should benefit from easing inflation and other factors, he said.

“We see three key drivers of improved organic pound volume performance in fiscal 2024 relative to the decline we posted in fiscal 2023,” he said. “First, we expect less of a headwind from pricing as our price/mix steps down significantly from fiscal ‘23 to fiscal ‘24. Second, a more stable supply chain should allow for much stronger commercial activity, including increased distribution, innovation, brand building investment and quality merchandising. Third, we have added capacity on many constrained platforms, including fruit snacks, pet food and hot snacks.”

Several analysts posed questions about expectations for volume in the new year. Harmening predicted volume decreases in fiscal 2024 would be more modest than in fiscal 2023.

“We said our top line will grow 3% to 4% (in fiscal 2024), and we’ll have mid-single-digit inflation, roughly 5%,” he said. “And so we do see pricing this year. I’m confident that our pounds will be better in fiscal ‘24 than they were in fiscal ‘23, which is to say they’ll certainly decline less. Whether they get to positive or not? We’ll see. That’s a really difficult thing to call, especially because of the mix factor involved.”

In the fourth quarter of fiscal 2023, General Mills’ net income was $614.9 million, or $1.04 per share, down 24% from $822.8 million, or $1.36 per share. Sales were $5.03 billion, up 3%. Adjusted net income was up 1% in constant currency. Sales volume fell 6% in the fourth quarter, with a 10% positive contribution from price/mix and a 1-point decrease from foreign exchange.

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Chipotle customers remain even with price increases

NEWPORT BEACH, CALIF. — Higher-income consumers continue to eat at Chipotle Mexican Grill Inc. despite recent menu price increases, while lower-income individuals are buying fewer burritos, said Brian R. Niccol, chairman and chief executive officer.

“While it is difficult to predict the macro impact on future spending trends, we know our value proposition remains strong, and we experienced minimal resistance to our price increase in the quarter,” Niccol said during an Oct. 25 earnings call. “To put it into perspective, our average chicken burrito bowl, which makes up about 50% of our orders across the US, is below $9 in our restaurants. This is a tremendous value when you consider the quality of our food, including our food with integrity standards, the fresh preparation utilizing classic cooking techniques, the customization, generous portions and of course, the convenience and speed.”

Earlier in October, the fast-casual chain raised prices in approximately 700 restaurants to address pockets of outsized wage inflation, said John R. Hartung, chief financial officer.

“Menu prices in each restaurant increased between 2% and 3%, which had a company-wide impact of about 0.5% overall,” he said. “The benefit of menu price increases offset elevated costs across the board, most notably in dairy, packaging and tortillas.”

In the fourth quarter, executives expect the cost of sales to remain at about the same level as the benefit from the menu price increases will be offset by higher beef, chicken, dairy and tortilla costs, Hartung said.

Cooking oil remains pressured by the Russia-Ukraine conflict, he added.

“Paper and packaging, that’s driven significantly by the cost of freight because most of the packaging comes from overseas, from Asia, and it looks like some of the crazy freight costs that we’ve been paying in the past are easing,” Hartung said. “Dairy has been elevated, and so we’re optimistic that there will be some additional supply into next year. So, there’s kind of some pluses and some minuses.

“Overall, what we’re hoping is for mostly stabilization. So, if some of the softening in commodity costs can offset some of the pressure we’re seeing, especially in beef and cooking oil, and if we could break even for a while and not have to see either margins degrade or have to consider another price increase, that would be fantastic to be in that position for a while.”

Net income for the third quarter ended Sept. 30 was $257.1 million, or $9.26 per share on the common stock, an increase from $204.4 million, or $7.26, in the prior-year period. Unusual expenses in the quarter related to one-time employee separation expenses, corporate and restaurant asset impairments, corporate restructuring and performance share modification expenses.

Revenue totaled $2.2 billion, up 14% from $2 billion the year before.

Comparable restaurant sales increased 7.6%. Hartung noted an increase in traffic and a decrease in transaction size.

“As we’re seeing customers kind of return to more normal habits … it’s less digital, more in-restaurant, and even in the in-restaurant channel, there’s a slight decline in the group size,” Hartung said. “What seems to be happening is people rather than working from home and going with family, for example, were bringing dinner home for their family. They’re kind of back to eating more on their own as an individual that they might be out with a group of four people, but they’re all paying for their own lunch.”

During the quarter, the company opened 43 new restaurants and remains on track to open between 235 and 250 new restaurants this year. Additionally, management anticipates opening between 255 to 285 restaurants next year, with a focus on small towns across the United States.

“Overall, small-town restaurants have comparable margins and returns to the company average, and we’re excited about the growth opportunity, which is included in our 7,000 long-term restaurant target,” Niccol said.

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Caymus Just Released a 50-Year Anniversary Cabernet Sauvignon, and We Tried It

Love it or love to hate it, everyone knows Caymus. The iconic Napa Valley winery, founded by the Wagner family in 1972, recently celebrated its commendable 50 years of operation. Despite its contentious reputation among sommeliers and wine nerds, the continued success of the family-owned brand is irrefutably impressive. From its signature Cabernet Sauvignon to its esteemed Special Selection bottling and even its second label Bonanza (affectionately referred to as “baby Caymus”), the brand and its wines are wildly popular across the U.S.

To commemorate its half-century of winemaking, the Wagner family added another bottle to the Caymus portfolio: the 50th Anniversary Caymus Vineyards Napa Valley Cabernet Sauvignon from the 2022 vintage. It’s unclear if there’s anything concrete that differentiates this wine from a typical bottle of Caymus Cab, aside from the family photo and sentimenal message from Caymus owner and winemaker Chuck Wagner printed on its label. To see how it stacks up against the rest of the line, we tasted the special release. Here’s what we thought.

Caymus is known for its bold wines, and as expected, this liquid appears dark in the glass. The nose is jammy with dark plum and blackberry notes coated in a layer of vanilla. Together, the aromas are reminiscent of stewed plums, or a somewhat nostalgic throwback to puréed, fruit-based baby food.

The palate is plush and fruit-forward (and yes, maybe a little saccharine) with more dark fruit notes accented by a touch of oak. The website states that the tasting notes show “evidence of French oak,” but doesn’t divulge whether or not the wine is actually aged in French oak. Even though the hefty fruit flavors and 14.6-percent ABV suggest the wine would be powerful on the palate, it lands surprisingly soft. Grippy tannins crowd the tongue on first contact, but quickly dissipate.

One thing’s for sure: this wine stays true to the brand’s signature style, which has kept the winery going for 50 years.

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Foster Farms increases entry-level wage at Washington plant

KELSO, WASH. – Foster Farms announced on Aug. 9 that it increased its entry-level wage to $19 per hour at its Kelso, Wash., poultry processing plant.

The Livingston, Calif.-based poultry company added that employees also qualify for a comprehensive health care plan and for disability and life insurance coverage.

“We want to hire and retain the best talent,” said Jason Gentemann, Foster Farms’ Kelso complex manager. “That means ensuring that wages and benefits are competitive in our industry and our community, particularly at a time when we are all being impacted by a challenging economy.”

Foster Farms said the Kelso facility employs 720 workers and is currently hiring to fill around 300 open positions in different shifts.

Foster Farms also proposed improving other worker benefits related to vacation and holidays, but the United Food and Commercial Workers declined to re-open the existing collective bargaining agreement to discuss those proposals.

In June, the company was purchased by private equity firm Atlas Holdings and named Donnie Smith as chairman of the board and chief executive officer.

During July, Foster Farms raised the entry level wages to $20 per hour at its Livingston complex.

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Pressure mounts to fix nitrate contamination in drinking water

Environmental justice advocates are growing frustrated with California’s pace in solving one of the most perplexing water problems in the West. Nitrates in fertilizer and from dairy manure—some decades old—have led to groundwater contamination in drinking water wells in the San Joaquin Valley.

Yet state officials worry a heavy-handed approach would drive farms out of business.

In 2019 the State Water Resources Control Board gave the green light to a regional salt and nitrate control program known as CV-SALTS, knowing it could take as long as 35 years for certain areas to reach compliance. Five years later, the regional water board for the Central Valley has yet to pin down the magnitude of the problem and how exactly to address it.

That has led to frustrations from Laurel Firestone, a state water board member and former environmental justice advocate for community drinking water issues. She co-founded the Community Water Center in 2004.

“We’re not doing enough to make sure people without safe drinking water now impacted by nitrates have safe water,” said Firestone, during a recent state water board hearing on CV-SALTS. “We need to figure out how we make that, how we do justice to the problem and the people that we’re trying to address.”

After sampling wells throughout the valley, the state has determined that around 3,800 are above the safe level of 10 milligrams of nitrates per liter of water, with at least 7,000 people affected. About half receive bottled water or have access to filling stations in their communities.

Officials and advocates alike recognized the Herculean effort to implement CV-SALTS. The regional water board designated six nitrate management zones spanning more than 1.4 million irrigated acres and encompassing more than a thousand permitted dischargers—from farms and dairies to wineries, food processors and wastewater treatment facilities. Those dischargers established five nonprofit organizations to manage the plans and to develop the necessary funding mechanisms, hire technical consultants, conduct outreach, test wells and deliver bottled water, according to Tess Dunham, a water quality attorney for Kahn, Soares & Conway who has engaged in the issue for more than a decade.

“It’s just astonishing when you think about what the management zones have accomplished in a very short timeframe,” said Dunham.

Tess Dunham, Kahn, Soares & Conway

State water board member Sean Maguire was excited about the activity and the potential solutions to come, but acknowledged the “huge lift” the state faces with reigning in water quality issues more broadly. In June the state water board published a drinking water needs assessment that detailed a funding gap of $5.5 billion over the next five years for clean water grants and a nearly $14 billion cost to communities and private well owners to achieve the state’s goal of providing safe and affordable water to all Californians.

Dunham cautioned the nitrate issue is “far more complicated” than simply developing long-term solutions for impacted residents. Nitrates may be just one of a variety of artificial or naturally occurring contaminants, and each area has its own unique set of problems, she explained.

Firestone, however, believed the management zones could accelerate the outcomes if they leverage resources already available through the state water board’s drinking water program and through closer collaboration with local groundwater sustainability agencies as they assess aquifers.

“The more we remain in our silos and programs, it just slows it down and leads to frustration,” she said.

Board chair Joaquin Esquivel pointed out that California is decades ahead of other states in tackling nitrates and acknowledged the breadth of issues at play.

“Nitrates are one slice of what is a complex pie out there,” said Esquivel, who, like Firestone, probed for ways to speed up the process. “Of the solutions here, what’s appropriate so that it doesn’t lag behind here?”

Patrick Pulupa, executive officer of the Central Valley board, responded that staff are still in the midst of negotiating implementation plans for the highest priority management zones.

“We’re currently going back and forth to figure out whether those are reasonable, whether they can be accelerated in some areas or not,” said Pulupa, who explained how a small staff is tackling a significant workload. “We’re eating the whale one bite at a time on our end.”

While the regional board’s traditional “wheelhouse” has been to find ways to reduce the nitrate load, it has also been racing to test wells and deliver replacement water to impacted communities.

“We’ll figure out the rest—the funding packages, the long-term solutions—later,” he said, while stressing the need to prevent any potentially life-threatening disorders from water contamination. “The last thing we want is a child with methemoglobinemia to show up in the valley. That is our single driving effort.”

Pulupa also took heat from environmental justice advocates over the timeline.

“We need to figure out how to stop the pollution and clean up the basin,” said Jennifer Clary, state director at Clean Water Action. “We have to start taking action quickly, because the longer we take to start moving the needle, the more of a problem we’ll have to solve.”

Clary pushed for more enforcement and a tighter timeline.

“How can a dairy be required to reach a nutrient balance in 10 years, but then still take 35 to reach compliance?” she asked.

Her colleague Kjia Rivers, a policy advocate at the Community Water Center, called that approach “neither aggressive nor justified,” since the dairies would not need any new technologies to reach an earlier milestone.

“I do beg to differ there,” responded Pulupa, who argued it would be “detrimental to the valley as a whole” to force farmers to cut their fertilizer applications in half by next year. “If you did that, you would see dramatic reductions in crop productivity across virtually all sectors of the agricultural industry in California.”

He asserted that no technology is available to enable farmers to comply while maintaining productivity. He assured the board his team is trying “our very best to make sure that the applicable timeframes are as short as practicable for every single sector.”

Firestone, however, maintained that collaboration has eroded in CV-SALTS as private entities in the management zones have taken the program out of the public eye and created a process more antagonistic to environmental justice communities.

“We really need to think about holistically doing a reset on dynamics here,” said Firestone. “I am troubled by the way I feel things have not been inclusive.”

Pulupa noted that many community voices have expressed gratitude for the program and that the regional board tries to be as open as possible.

“We’re doing our best to rectify the problem with the tools we have,” he said.

For more news, go to Agri-Pulse.com.

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Zespri to deliver strong value back to growers

Zespri has released its first full forecast for the 2024-25 season, with forecast per hectare returns up from last season for all categories, reaching record levels for Green and Organic Green.

The full forecast follows the indicative ranges released in June for per-tray and per-hectare returns.

Zespri CEO, Jason Te Brake says the latest forecast reflects both the strong season start and the competition seen more recently in markets, including from summer fruit.

“The industry put a lot of work into getting off to a really strong start to the season to meet early season demand and that’s set us up well in a year where we have a lot more fruit to sell.

“Although strong competition is always challenging around this time of the year, we’re already seeing signs that this fruit is moving off shelves and we expect this trend to continue over the next few weeks.

“The fact we’re on track for a strong lift in per hectare returns across all varieties this season, and record returns for Green and Organic Green growers, is a testament to the hard work the industry has put in following a really challenging period.”

Te Brake confirmed that with a total crop of more than 190 million trays to sell, Zespri was focused on finishing the second half of the season strongly.

“This season’s improved growing conditions have meant grower yields have increased and we’ve got a lot more fruit to sell. But quality and demand are strong and we’re well placed to deliver a strong result to growers.

“That will also be supported by the exciting campaigns our in-market teams have developed featuring our Kiwi Brothers as we look to take advantage of strong demand for our fruit and maximize the value we return to growers.”

Mr Te Brake said increasing competition reinforced the importance of Zespri’s Global Supply (ZGS) strategy, set up by growers more than 20 years ago. ZGS involves Zespri working with offshore growers in Italy, France, Japan, Korea, and Greece to provide kiwifruit for 12 months of the year. This allows Zespri to have a counter-seasonal supply in place to complement the New Zealand season and drive value for New Zealand growers.

With the maximum 5,000 hectares of offshore SunGold plantings now allocated and the gap between supply and demand growing, the industry is discussing the potential expansion of its ZGS program to protect value for the industry.

“We’ve had some good conversations with the industry in recent months on the importance of ZGS and its role in protecting grower value as we face increasing competition.

“The next stage of these conversations over the coming months will look at what a potential expansion of our ZGS program might look like, as we decide an industry on how ZGS can continue to deliver value for our industry.”

Zespri is now seeking industry feedback on potentially expanding the current 5,000-hectare cap by up to 420 additional hectares of SunGold Kiwifruit per year over six years across Italy, France, Japan, South Korea, and Greece.

Te Brake says that depending on the nature of those conversations over the next few months, Zespri may consider formally seeking grower support for expanding ZGS via a Producer Vote which would require 75% support to proceed.

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