Trading volume was unusually high and the share price fell significantly.
Year: 2024
Jeff Tripician named CEO of Meatable
LEIDEN, NETHERLANDS — The Netherlands-based cultivated meat company Meatable announced the appointment of Jeff (“Trip”) Tripician as its new chief executive officer, effective June 17. Tripician will lead the company in its US market expansion plans.
The expansion will come on the heels of Meatable’s planned commercial launch in Singapore later this year, which is key to the company’s long-term strategy of reaching the broader Asian market.
“I am thrilled to welcome Trip to Meatable, as he is incredibly well qualified to lead us into this very exciting and important phase of growth for the company,” said Cees de Jong, chairman of the board of directors at Meatable. “With our launch in Asia planned for the fall, the next critical part of Meatable’s growth strategy is to drive expansion into the US, and we believe that Trip’s long and successful experience in the organic and natural meat industry will be invaluable in helping Meatable achieve those global commercialization and growth goals. We look forward to his immediate impact as we take Meatable to new heights in Asia, the US and beyond.”
Tripician is an industry veteran with over 25 years of experience across the US meat market, including organic and natural meat markets, with deep expertise in the US supply chain, marketing of sustainable meat products, fundraising and M&A.
Most recently, he served as CEO of Grass Fed Foods, where he orchestrated a successful merger between Teton Waters Ranch and SunFed Ranch to position the company as the one of the largest grass fed beef platforms in the United States. Prior to that, Tripician served as president of Perdue Premium Meat Co., where he spearheaded the company’s growth in premium meat brands like Niman Ranch, Coleman Natural and Sious-Preme.
“Meatable is a one-of-kind food tech innovator with patented technology that can produce real and delicious meat at unprecedented speed, allowing product to be produced at lower costs than any other player in the industry,” Tripician said. “With global population growth stressing the world’s ability to meet accelerating demand for sustainable proteins, Meatable is positioned to lead the industry in a paradigm shift that will address key global issues including climate change, water use, soil quality, humane animal care, food security, and, importantly, consumer acceptance, delivering an affordable and remarkable eating experience that could change the world.”
Tripician succeeds current Meatable CEO and co-founder Krijn de Nood, who will continue to serve on the board of directors.
“I want to thank Krijn for establishing Meatable as the leader in cultivated pork and the innovator it is today,” de Jong said. “Krijn has always agreed that at this stage of the company’s evolution, it is important for us to have a leader in the critical US market and relocating was not an option for him. However, I look forward to continuing to work with him and receive his valuable contributions as a member of the board of directors. We are exceedingly grateful for his continued leadership and guidance.”
In addition to Tripician’s appointment, Meatable elected Dean Banks, former president and CEO of Tyson Foods, to its board of directors.
Banks is currently the CEO-partner of Flagship Pioneering, a leading biotechnology company, and CEO of Indigo Ag. Previously, he served on the leadership team at X (an Alphabet company, formerly known as Google [X]).
“Meatable has enormous potential to disrupt the cultivated meat space with its unique approach to product development and commercialization,” Banks said. “I look forward to leveraging my expertise in food, technology, and biology to work with Jeff and the rest of the Board to help Meatable gear up for its launch in the US.”
CVS to transition to cage-free eggs by year’s end
WOONSOCKET RI. – In its recently published Environmental, Social and Governance (ESG) Report, CVS Health Corp. announced it has stepped up its goal to transition to selling 100% cage-free eggs. In 2015 the company announced it would make the transition by 2025, but as of April 1, it said the goal would be achieved by the end of 2022 at its 9,900 pharmacy-based stores.
“In the last couple of years, as the supply chain and offering of these eggs has increased and consumer choice has evolved, we made the decision to accelerate that goal,” the company said.
The decision to make the transition early was lauded by the animal rights organization, The Humane League, which CVS consulted with and helped the company establish standards for its corporate animal welfare policies. The organization lauded the company’s efforts and encouraged other retailers, including CVS competitor, Walgreens, to follow suit. Currently, Walgreens has committed to going to cage-free eggs by 2025.
“We applaud CVS for recognizing that they could switch to cage-free eggs much quicker than anticipated and taking that significant step to reduce the suffering of egg-laying hens as soon as possible,” said Vicky Bond, president of the Humane League. Socially responsible companies like CVS will no longer source egg hens kept in cruel battery cages, and we hope that Walgreens will follow their lead and do the same.”
Chick-fil-A names Susannah Frost president
ATLANTA — On Aug. 15, Chick-fil-A Inc. announced the appointment of Susannah Frost as president of the company, making her the sixth person to hold this leadership position since the company’s founding in 1967. Additionally, Cliff Robinson was named chief operating officer of Chick-fil-A. Frost and Robinson will assume their new roles Oct. 1.
As president, Frost will focus on providing strategic clarity and alignment in the core business so that Chick-fil-A can sustain healthy growth and market leadership. She will also lead the executive committee.
“Susannah has demonstrated tremendous leadership throughout the business and has the range of expertise that will help the company continue growing with care and confidence,” said Andrew T. Cathy, chief executive officer of Chick-fil-A and the grandson of founder Truett Cathy. “Having served as the CEO for three years, the timing is right to expand our leadership capabilities to include a president who will work closely with me and our executive committee to steward our domestic and global expansion.”
Frost joined Chick-fil-A in 2007, assuming higher degrees of responsibility during her tenure within the legal department. Currently, she leads the company’s restaurant development and field operations, overseeing Chick-fil-A’s real estate portfolio and leading field operations for more than 3,000 restaurants domestically. Previously, she was a real estate attorney at Troutman Sanders, advancing to partner.
Frost earned her bachelor’s degree in mathematics from The University of Georgia and a law degree from Emory University. She also completed executive education programs at Columbia University and Harvard University.
“The future continues to offer so much potential and promise as we look to grow our opportunities to provide care and great food as well as live out our corporate purpose,” Frost said. “We have the opportunity to scale care with excellence across 3,000-plus restaurants and international markets. I look forward to working alongside Andrew, our leaders, operators and staff to provide this to customers in the communities we serve.”
In Robinson’s promotion from chief people officer to COO, he will expand his responsibilities to include leading field operations and restaurant development. As COO, he will continue to ensure talent remains a competitive advantage, while overseeing operations and the company’s continued expansion.
Robinson began working at Chick-fil-A at a young age as the son of a Chick-fil-A restaurant owner-operator. He joined the company corporate support center staff in 1990 and has held increasing roles of responsibility since then.
Hodie Meats to implement new ERP software
MILL CREEK, WASH. — Hodie Meats entered a deal with Northlake Partners (NLP) to implement its NorthScope ERP software.
NLP developed the software to specifically support processors, food manufacturers and food distributors.
“The team at Hodie Meats was looking for a cohesive system built for the food industry, and we’re happy NorthScope can meet their needs by providing the full traceability of their product that is crucial to their business paired with the functionality and flexibility to scale as their business grows,” said Vince Pluhacek, NLP sales manager.
Accompanying Hodie Meats’ implementation of new software, NLP will provide training, configuration, report layout, design and customization, as well as go-live and post go-live support. Hodie Meats plans to use NorthScope’s financial, general ledger, accounts payable, accounts receivable, sales and inventory functional features.
Hodie Meats said NorthScope will support its USDA-inspected, fresh-in, fresh-out further meat processing business that recently opened in Georgia in December 2022.
Can Russia scale up barter trading to skirt sanctions?
Russia and its trading partners are mulling the use of a barter trade system to ease payment bottlenecks caused by US sanctions, yet experts warn Russian firms will likely be exposed to significant transaction risks.
Last month, Pakistan’s Prime Minister Shehbaz Sharif “emphasised the need to overcome financial and other banking issues” during a meeting with Russian President Vladimir Putin and suggested they expand barter trade.
Sharif recalled how historically Pakistan and the Soviet Union swapped goods such as machinery, textiles and leather, and urged the two nations to “enhance” their overall trade volumes of nearly US$1bn, a July 3 statement from Pakistan’s Ministry of Information and Broadcast shows.
In recent weeks, Reuters reported that Moscow is developing regulations for barter trading and that Russian and Chinese companies may begin bartering goods – initially agricultural products – by as early as Q4 this year.
Moscow’s renewed focus on barter trade, popular during the 1990s until Russian banks were drawn into the global financial system, comes amid heightened payment difficulties for Russian exporters and importers, which are battling the effects of secondary US sanctions first imposed in late 2023.
Fearful of losing access to the US dollar system, many foreign lenders who had continued to finance trade with Russia after the invasion of Ukraine, notably in China, have stopped facilitating Russian imports and exports.
Experts flag that Russia may seek to use barter trade to obtain products it requires for its war on Ukraine, while Beijing may use the arrangement to obtain natural resources such as oil and grain.
“The fundamental issue which has got us here is an overall reluctance on the part of Chinese banks to accept Russian trade-related payments,” James Willn, a partner at law firm Reed Smith, tells GTR.
Pointing to the impact of secondary US sanctions, he says the avenues for Russian firms to receive or send payments have “become sparse” and so a “goods for goods” arrangement with China would “not be unusual”.
“China is a net importer of crude and petroleum products where Russia has an abundance of both. It is an easy trade.”
Ajay Kuntamukkala, co-director of Hogan Lovells’ international trade and investment practice, says “what Russia wants is machinery, electronics, products that are necessary for its war machine”.
“I think [barter trading] will apply to not just state-owned entities, but also private companies in Russia would be interested in this as well.”
Russia’s trade with China has boomed since its full-scale invasion of Ukraine in 2022, surging by over 26% to a record US$240bn last year. Russia also overtook Saudi Arabia as Beijing’s largest source of crude oil.
Willn says that Russia may look to engage in barter trade with state-owned entities in countries beyond China, nations that are “not concerned as to any impact of Western sanctions”.
“The likes of Iran and North Korea come to mind, given they are heavily sanctioned by the US anyway and North Korea, much like China, is a net importer of oil.”
Potential scale?
Question marks remain over the potential scale of Russia’s mooted barter trading system and its efficacy as a sanctions-busting tool.
According to Willn, barter trade will “likely be more effective” for state-owned companies as opposed to commercial entities.
Before private firms can engage in barter trading, Russia will have to devise a complex regulatory framework likely covering the collection of taxes on imports, valuation of stamp duties and dispute processes, Kuntamukkala notes.
But he says there are various “practical difficulties” that Russian importers and exporters may struggle with.
“Maybe for a transaction here and there,” Kuntamukkala tells GTR. “But the idea the private sector is going to adopt barter trading, I’m sceptical. You’ll likely see some state-sponsored transactions and then some encouragement to companies to engage in that sort of trade. But I do not think it will scale very quickly.”
Meanwhile, there could be issues over the valuation of goods or the allocation of risk, should there be any instances of non-delivery or non-payment.
“Usually, one party sells an item and gets currency in return, there is a whole system of trade financing to allow for the transaction, whether it is letter of credit or another form of financing. There is a way to mitigate the risk of non-payment.”
To circumvent US secondary sanctions, Russian companies have increasingly sought new payment methods. Crypto and stablecoins are also being used to settle cross-border trade payments.
However, in May, the Russian Central Bank said US secondary sanctions are taking their toll on local firms, forcing “counterparties from friendly states to mitigate their risks”.
“More complicated supply chains and payment schemes are making imports more expensive, increasing input costs and disrupting supplies, which is reducing the profit margin on Russian companies’ products and their competitiveness in international markets,” the central bank said.
The post Can Russia scale up barter trading to skirt sanctions? appeared first on Global Trade Review (GTR).
Cautious consumers add pressure to Conagra Brands
CHICAGO — Consumer purchasing behaviors that emphasized value continued to impact Conagra Brands Inc.’s financial performance during the second quarter of fiscal 2023. As a result, the company lowered its full-year guidance to reflect what is turning out to be a longer-than-expected downturn.
“After tremendous initial resilience in the face of a record inflation super cycle, US consumer behavior shifts did emerge last spring in our industry as the cumulative effect of inflation caused consumers to begin to stretch their budgets,” said Sean M. Connolly, president and chief executive officer, during a Jan. 4 conference call with securities analysts. “This resulted in a reprioritization of food choices as shoppers adjusted purchase behavior towards more stretchable meals.
“At that time, we told you that we expected these trends to be transitory. We still believe that to be the case. But the pace of the shift back to normal consumer behavior has been slower than we initially expected, and that pressured our volume, performance and mix in the second quarter.”
Connolly’s sentiments echoed those of Jeffrey L. Harmening, the chairman and CEO of General Mills Inc. when he discussed his company’s second-quarter results on Dec. 20. And like Conagra Brands, General Mills also lowered its full-year guidance.
Conagra Brands’ net income for the second quarter ended Nov. 26 was $286.2 million, equal to 60¢ per share on the common stock, and down 25% from the same period last year when the company earned $381.9 million, or 80¢ per share.
Quarterly sales fell 3.2% to $3.21 billion from $3.31 billion the year before.
Conagra’s Refrigerated & Frozen business unit had a sales decrease of 5.8% during the quarter to $1.3 billion. Unit volume fell 3.3% due to lower consumption trends and price/mix decreased 2.5% during the quarter. The price/mix decline was partially attributable to an increase in investments, according to the company.
In the Grocery & Snacks segment, quarterly volumes fell 3.7% and price mix ticked down 0.4%. As a result, quarterly sales fell to $1.3 billion.
The company’s International and Foodservice business units fared better during the quarter, seeing sales rise 8.1% and 4.3%, respectively. International segment sales reached $280 million, reflecting a 5.6% increase in organic net sales and a 2.5% favorable impact on foreign exchange. Volumes increased 3.3% during the quarter while price/mix contributed 2.3%.
Foodservice sales reached $295 million due to strong price/mix recovery of 6.8%. Volume sales decreased 2.5% during the quarter.
For the year, Conagra Brands lowered its organic net sales growth guidance from 1% to a decrease of 1% to 2%. Adjusted earnings per share are now forecast to be in a range of $2.60 to $2.65 per share, down from the original guidance of $2.70 to $2.75 per share.
“… From a planning posture standpoint, we are not banking on major improvement in the macro consumer environment or signing up for a huge consumer response,” Connolly said. “So, one might interpret that as we’ve got the investment in there, but what we’re banking on in return is conservative.
“Look, in this current environment, that’s probably not a bad posture to be in because this volume recovery has been more elongated than people expected. But I think that is a fair characterization of kind of what we’re looking at.”
Conagra’s net income for the first six months of fiscal 2023 rose 99% to $605.9 million, equal to $1.27 per share, and up from $304.4 million, or 63¢ per share the year before. During the first quarter of fiscal 2022, Conagra Brands recorded a loss of $77.5 million. An impairment charge of $244 million associated with the Birds Eye business contributed to the loss.
Sales for the first six months of fiscal 2023 fell 1.7% to $6.11 billion from $6.22 billion.
Exclusive news and research on the wine, spirits and beer business
Whisky Advocate On SirDavis, The New Brand From Moët Hennessy And Beyoncé
Yesterday, SND reported the launch of SirDavis, a new American whiskey brand being launched by singer and actress Beyoncé Knowles-Carter in partnership with Moët Hennessy.The 44% abv whiskey retails at $90 and is set to roll out nationally next month. Whisky Advocate takes a closer look at the story behind the new partnership, and what’s in the bottle.
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Walmart customers eligible for cash payments from class action suit
TAMPA, FLA. — After preliminary approval of a class action settlement involving Walmart Inc., frequenters of the retailer may be eligible for a cash payment.
Denying any wrongdoing, Walmart agreed to pay $45 million to settle the class action lawsuit alleging the retailer used deceptive business practices.
The complaint accused the company of falsely inflating product weight, mislabeling weight of bagged produce and overcharging of sold-by-weight clearance products. Walmart customers who purchased certain sold-by-weight meat, poultry, pork and seafood products as well as certain organic oranges, grapefruit, tangerines and navel oranges allegedly paid more than the lowest in-store advertised price for those products.
Consumers who purchased such products between Oct. 19, 2018, and Jan. 19, 2024, at a Walmart Store in the United States or Puerto Rico are eligible to receive compensation.
To receive a cash payment, consumers must submit a claim by June 5.
The amount that an individual will receive depends on the amount of weighted goods or bagged citrus they purchased during the settlement class period. It also depends on the number of people who submit valid claim forms.
Eligible consumers without proof of purchase could receive between $10 to $25, depending on the quantity of goods they attest to buying during the settlement class period. Those with receipts or other documentation could receive up to 2% of the total products’ cost, up to $500.
A final approval hearing will be held June 12. Objections and comments are welcomed through May 22.
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