ABN AMRO Bank, the third-largest Dutch bank, has gone live using Commercial Banking Applications AS (CBA)’s IBAS transaction due diligence functionality, to help combat financial crime and ensure full regulatory compliance.
The platform underpinning this implementation is CBA’s IBAS GBF (Global Banking Factory), a software solution designed to streamline and automate end-to-end banking processes. The ABN AMRO Bank worked with CBA to apply this software across its global trade finance operations.
To enhance the bank’s capability to combat financial crime, satisfy internal and external audit requirements, and ensure regulatory compliance, the software includes:
Automatic monitoring: Tracks all trade finance transactions for suspicious activity.
Customisable rules: Allows banks to design and optimise due diligence structures.
Regulatory compliance: Meets both local and international regulatory requirements.
Audit trail: Provides a complete record of all due diligence activities.
Flexibility: Can be used alongside various IBAS banking products.
Frans Westdorp, Product Owner of Trade Finance at ABN AMRO Bank, said, “There are lots of new requirements and demands on the trade finance industry for which we have relied on our close partnership with CBA in evolving IBAS.
“By automatically monitoring all trade finance transactions for consistency against historical information, we can quickly flag up anything suspicious that requires investigation and show a complete audit trail.”
The implementation follows a five-year agreement signed between CBA and ABN AMRO Bank in 2023, reflecting the bank’s attempts towards innovation in trade finance.
This partnership between ABN AMRO Bank and CBA represents a significant step towards enhancing compliance and risk management in the trade finance sector, setting a precedent for other financial institutions facing similar regulatory challenges.
Rolf Hauge, CEO of CBA, said, “Transaction due diligence is something every bank will need in the future as requirements from domestic and international regulators increase. ABN AMRO Bank is forward-thinking in using IBAS to automate the transaction monitoring and compliance process.”
Pizza becomes a high-protein meal when a proprietary Parmesan chicken crust is used instead of a traditional flour, corn or rice base.
As one of the best sources of high-quality protein, innovative food manufacturers are getting creative with ways to incorporate meat and poultry into all types of foods. Often their objective is to displace carbohydrates, making the product attractive to specialty dieters, such as those following paleo and Whole30.
That’s one of the appeals of the latest offering from Real Good Food Co., Los Angeles. New Real Good Pizza is a disrupter in the frozen pizza category. It’s made using a proprietary parmesan chicken crust instead of a traditional flour, corn or rice base. The gluten-free pizza provides a mere 4 grams of carbs and a whopping 25 grams of protein per serving.
The crust is made using all-natural antibiotic-free chicken breast, which gets combined with all-natural parmesan cheese into a smooth mixture. This gets pressed and formed into a crust with the baked product not possessing any of the stringy, fibrous attributes of cooked whole chicken breast.
Real Good Pizza’s Parmesan chicken crust does not have any of the stringy, fibrous attributes of cooked whole chicken breast.
The frozen pizza comes in three traditional varieties — Three Cheese, Pepperoni and Supreme (sausage, pepperoni and vegetables). The same crust is also used to make breakfast pizzas, which include scrambled eggs and cheese along with bacon, pepperoni or sausage.
Launched in 2016, the company was inspired to create “real food you feel good about eating.” All offerings are high protein, low carb and naturally gluten free. Also in the company’s product portfolio is Real Good Enchiladas, which are made with parmesan chicken tortillas. Varieties are: Shredded Beef, Cheese, Chicken and Pork.
Grand Rapids, Michigan-based Meijer recently introduced some hearty dips ideal for Super Bowl snacking. Merchandised in the self-service deli department, the “fresh from Meijer” line of meat-infused dairy-based dips come in All American, Buffalo Style Chicken and Pepperoni Pizza varieties.
Having meat as the number-one ingredient keeps calories and fat content down while boosting the protein content of what is normally a high-fat chip accompaniment.
The All American Dip is the most unique. It has fully cooked beef crumbles as its first ingredient. The dip description is “hearty dip made with beef patty mix, cheese sauce, cream cheese and bacon.” Sold in 7-oz. clear plastic containers, with a callout to serve hot or cold, having meat as the number-one ingredient keeps calories and fat content down while boosting the protein content of what is normally a high-fat chip accompaniment. A 2-tablespoon serving (28 grams) contains 50 calories, 3 grams of fat, 2 grams of carbohydrates and 3 grams of protein. This is not your typical chip dip. It’s a paleo follower’s indulgence.
All the dips carry a US Dept. of Agriculture (USDA) inspection stamp of approval because of the meat ingredients. It is important for non-meat processors to note that including meat and poultry ingredients in non-meat foods often requires USDA inspection.
The regulations exempt meat and poultry products from inspection if they contain very small quantities of meat and/or poultry ingredients. These quantities are 3 percent or less raw meat; less than 2 percent cooked meat or other portions of the carcass; or 30 percent or less fat, tallow or meat extract, alone or in combination. In the case of poultry, these quantities are less than 2 percent cooked poultry meat; less than 10 percent cooked poultry skins, giblets or fat, separately; or less than 10 percent cooked poultry skins, giblets, fat and poultry meat (limited to less than 2 percent) in any combination.
Non-meat companies bringing meat into their facilities to produce protein snacks may require U.S. inspection.
For dried products containing poultry, these percentages are computed based on the moist cooked chicken in the ready-to-serve product when prepared according to the directions on the consumer package. Also, these are not international exemptions; therefore, foreign countries may require USDA inspection stamps if a product contains any amount of meat or poultry ingredients.
GARDABAER, ICELAND – Marel announced on Dec. 13 that it received another unsolicited non-binding offer from John Bean Technologies (JBT) Corp. to acquire the food equipment company.
JBT made its first offer in November but it was rejected by the board of directors of Marel.
“Marel will review the proposal with due care and process to assess its merits, consistent with the long-term interests of the company and all shareholders,” the company said in a statement on its website. “At this time, there is no certainty whether the proposal will lead to a binding offer, or the terms on which such an offer might be made.”
According to updates by JBT and Marel, the proposal looks at an irrevocable undertaking of shares owned by Eyrir Invest hf., which holds 24.7% of the shares in Marel.
The proposal also said that JBT offered 3.4 euros ($3.71) per share for all outstanding shares in Marel. This would include absorbing Marel’s existing debt of 827 million euros.
“JBT has long admired Marel, and there is significant strategic, cultural, and operational alignment between the companies. We are confident that the contemplated merger would bring substantial benefits to both companies’ customers, employees, local communities, partners and shareholders,” said Brian Deck, president and chief executive officer of JBT Corp. “Together, our companies would be best positioned to meaningfully help customers create efficient, higher quality end products with a combined focus on sustainable solutions that make better use of the world’s precious food, beverage, water, and energy resources. JBT remains open to further dialogue with the Board of Marel to design a win-win outcome.”
In its latest proposal, JBT said it would commit to a European headquarters in Gardabaer, Iceland, along with the corporate headquarters in Chicago.
JBT added that it would contemplate a stock exchange listing on the New York Stock Exchange along with a secondary listing in Iceland.
Marel engaged JP Morgan as its financial advisor, and Baker McKenzie, BBA/Fjeldco and Osborne Clarke for legal advice about the proposal.
“Marel will update the market in a timely manner regarding any material developments, consistent with its statutory disclosure obligations,” the company said.
CAMDEN, NJ. — Campbell Soup Co. expects to complete its acquisition of Sovos Brands Inc. in March, which bodes well for future quarterly financial results.
In the second quarter ended Jan. 28, Campbell Soup had net earnings of $203 million, equal to 68¢ per share on the common stock, which marked a 12% decrease from $232 million, or 78¢ per share, in the previous year’s second quarter.
Net sales fell 1% to $2.46 billion from $2.49 billion. Organic sales also were down 1%. Volume/mix decreased 2%, which offset a net price realization benefit of 1%.
“While it is true that category trends have slowed over the last year, I’m encouraged by a variety of stabilizing consumer indicators like consumer sentiment, household penetration and average categories purchased,” said Mark A. Clouse, president and chief executive officer, in a March 6 earnings call. “However, we are also continuing to see economic pressure impacting select categories and certain consumer demographics. While we expect these trends to improve over time, we’re certainly not there yet.”
Campbell Soup reaffirmed its full-year outlook of net sales in a range of down 0.5% to up 1.5% when compared to fiscal 2023. The outlook did not include the pending acquisition of Sovos Brands.
“We are eagerly anticipating the closing of the Sovos Brands acquisition in the coming week, adding the best volume-driven growth story in food to our portfolio,” Clouse said.
Plans were announced in August 2023 to acquire Sovos Brands, which manufactures sauces, yogurts and frozen prepared foods marketed under brands such as Rao’s, noosa and Michael Angelo’s. The US Federal Trade Commission in late October sent a second letter to Campbell Soup Co. asking for additional information on the transaction. Both companies have complied with the second request, Clouse said March 6.
Within the company’s Meals & Beverages business, second-quarter sales of $1.38 billion were down 2% from $1.41 billion. Gains in Canada and foodservice partially offset declines in US retail products, primarily in US soup, beverages and Pace Mexican sauces.
Sovos Brands would become part of the Meals & Beverages business.
“When paired with our Meals & Beverages iconic category-leading brands and our distinctive fast-growing Pacific Foods brand, the Sovos Brands portfolio will strengthen the division for years to come,” Clouse said. “In fact, although not an apples-to-apples comparison, if we were to simply overlay Sovos results in the last quarter with our Meals & Beverages results, we would have gained approximately four points of organic top-line growth.”
Within Snacks, sales of $1.07 billion were flat compared to $1.08 billion in the previous year’s second quarter. Excluding the impact from the divestiture of the Emerald nuts business, organic net sales rose 1%, driven by increases in cookies and crackers, primarily Goldfish crackers and Lance sandwich crackers, and in salty snacks. Within salty snacks, sales increases in Kettle Brand and Cape Cod potato chips more than offset declines in Pop Secret popcorn and Late July snacks.
In the six months ended Jan. 28 companywide, net earnings of $437 million, or $1.47 per share on the common stock, were down 17% from $529 million, or $1.77 per share, in the same time of the previous year. Net sales declined 2% to $4.97 billion from $5.06 billion.
CHICAGO — General Mills Inc., the former Kellogg Co., Kraft Heinz Co. and Nestle USA Inc. all will receive damages after a jury in a US district court on Nov. 20 ruled in their favor in a lawsuit over the price of eggs.
The verdict came in the US District Court for the Northern District of Illinois in Chicago. Beginning Nov. 29, the court will meet to decide upon the damages. Among the defendants are Cal-Maine Foods Inc., Rose Acre Farms Inc., the United Egg Producers Inc. and the United States Egg Marketers Inc.
The lawsuit originally was filed on Dec. 12, 2011, which was before Kraft Foods and Heinz merged and before Kellogg Co. spun off into WK Kellogg Co. and Kellanova. The plaintiffs alleged the defendants, starting in at least 1999, engaged in a conspiracy to control supply and artificially maintain and increase the price of eggs. The lawsuit indicated the defendants undertook the alleged conspiracy through a series of collective actions, including short-term measures, control through the United Egg Producers’ Certified Guidelines and coordinated, large-scale exports.
Cal-Maine Foods plans to contest the plaintiffs’ presentation of purported damages and will assess the decision and options for appeal. The company pointed out the plaintiffs alleged a conspiracy running from 1998-2008 with damages extending through 2012, but the jury determined any alleged damages would be limited to 2004-2008.
“We are incredibly pleased by the jury’s decision to hold egg producers Cal-Maine Foods and Rose Acre Farms accountable alongside United Egg Producers and United States Egg Marketers for conspiring to inflate the price of eggs,” said Brandon Fox, a partner for Jenner & Block LLP representing the food companies. “For the first time, the defendants have been held liable for their antitrust violations. We are now going to turn our attention to the damages phase.”
Natural labeling attracts shoppers. Refrigerated, frozen, ready-to-eat or ready-for-cooking, all types of meat and poultry increase their chance of purchase when the package sports a natural claim, even when the claim comes with a higher price.
All natural draws the highest awareness among shoppers who have seen production claims on packages of fresh meat and poultry, according to the Power of Meat 2018 report. On the other hand, as important as claims of being humanely raised and vegetarian-fed are to some shoppers, these claims have gone unnoticed by the majority of shoppers.
“Natural is the largest segment with the highest awareness,” says Anne-Marie Roerink, principal, 210 Analytics, San Antonio, Texas, and author of the report. “Dollar sales for natural meat and poultry are nearly four times that of the organic segment, with sizeable sales across all proteins. Organic has the second-highest awareness, despite being a small segment. It is likely that awareness is affected by organic availability.
“Claim awareness is the first step in potentially justifying a price differential and building a point of differentiation for the retailer or brand,” she says. “For each claim, the share of shoppers who would be more likely to buy it when they see it is higher than the share who say the claim has no impact on their likelihood to purchase. The gaps are particularly significant for humanely raised, hormone-free, antibiotic-free and all natural.”
Making a claim
Unlike for most foods where no definition for the term natural exists, the US Dept. of Agriculture (USDA) has defined natural as it pertains to meat and poultry. The definition, however, can be confusing and at times even misleading. The USDA states that meat and poultry products can be labeled natural if they are only minimally processed and don’t have any artificial flavorings, colorings, preservatives or other additives.
So what’s minimally processed? Some argue that deboning chicken breast is more than a minimal process. What are “artificial other additives?” There’s a great deal of latitude with interpretation of that one.
For many marketers, humanely raised, hormone-free, antibiotic-free and similar claims are part of their justification of a natural claim. Research has also shown that consumers tend to associate natural meat and poultry labels with local, family farms.
“The ingredient label is still a major consideration for consumers who want to steer clear of things with chemical-sounding names,” says Tom Rourke, director of business development, Corbion, Lenexa, Kansas. “Even if they don’t know what might be unhealthy about some of those more traditional ingredients, they are still not comfortable with them. Many natural solutions make successful replacements for synthetic options in terms of efficacy, flavor, functionality and cost-in-use.”
Flavor and texture adventure
The USDA specifically prohibits the use of artificial flavors in meat and poultry labeled as natural. Identifying natural options that deliver on flavor throughout shelf life, and after cooking, if applicable, can be challenging.
“Functionally natural flavors perform very similarly to artificial flavors, though some artificial flavors are difficult to replicate using natural flavors,” says Roger Lane, marketing manager, savory flavors, Sensient Flavors, Hoffman Estates, Illinois.
Yeast extracts are often part of a seasoning mix, as they enhance flavor and may be considered a clean-label alternative to monosodium glutamate. Yeast are microorganisms consumers are familiar with.
Many yeast extracts in the market are made from strains of baker’s yeast. The yeast grows and ferments a sugar source, and is then exposed to enzymes that break the yeast cell wall, a natural process called autolysis. This allows the flavor components of protein and amino acids from the yeast cell to be extracted.
“Yeast extracts can provide taste enhancement when less clean ingredients are removed,” Lane says. “Since we produce our own yeast extracts, we’re able to meet the unique needs of each of our customers. If a manufacturer wants to go even cleaner than flavor or yeast extract, we also have a range of from-the-named-source extracts that are labeled as natural extract.
“Most taste issues can be solved either with a yeast extract alone or a combination of yeast extract and natural flavor,” he says.
Flavors and seasonings are often delivered through breadings and batters. Manufacturers must be mindful of the multiple ingredients that go into coating the protein.
“In the process of breading a protein, the three basic steps include a pre-dust, the batter and the breading itself. Egg white proteins can aid with binding the breading to the protein substrate,” says Elisa Maloberti, director, egg product marketing, American Egg Board, Chicago. “Egg white works well in a high-adhesion pre-dust at levels of 5 to 7 percent.”
Egg whites are a clean-label alternative to chemical-sounding ingredients. They are a natural option and labeled simply as egg white on the ingredient statement.
Succulence and safety
Phosphates and modified food starches have long been used to bind moisture in proteins, improving succulence. They are very effective, however, they are not considered label friendly by some shoppers.
Plum ingredients are an alternative. They also possess other functional properties that can help clean up labels.
“Because of their high antioxidant levels, plum ingredients can improve display appearance and reduce lipid oxidation,” says Kate Leahy, spokesperson for Sunsweet Ingredients, Yuba City, California. “Plum ingredients enhance browning, eliminating the need for caramel color. They also enhance the taste of seasonings, so formulators find they can reduce total sodium and spices in a product to reach a more balanced flavor. By reducing the amount of seasoning necessary, the cost of switching to plum ingredients often balances out.”
For whole-muscle cuts, such as steaks, ribs or roasts, adding 1 percent fresh plum concentrate to a marinade, either through an injection or vacuum-tumbling process, will bind moisture and provide shelf life benefits. With cuts such as boneless, skinless chicken breasts that will be sold already cooked, the same concentration of fresh plum concentrate can be used, but it works best when also combined with a natural fruit powder to ensure moisture stays in the muscle.
“With sausages, adding 1 percent to 2 percent plum puree to the meat matrix during the emulsification process will bind moisture in both cooked and fresh sausages,” Leahy says. “An additional benefit of using prune puree in sausage making is it allows for fat reduction without a loss of texture and flavor.
“For light-colored sausages, we recommend using 1 percent to 1.5 percent fresh plum concentrate. It binds moisture without darkening the meat,” she says. “The concentrate will help brown the meat as it is cooked, enhancing taste and appearance.”
Meat snacks may also benefit from prune ingredients. Prune puree, for example, can help reduce both sodium and sugar while slowing lipid oxidation, improving texture and chew, and replacing caramel color.
“As meat snacks – both in snack bar and jerky forms – continue to gain interest among consumers, the challenge becomes making these products palatable, with good flavor and texture, while also being lower in sodium and sugar,” Leahy says. “Natural, functional ingredients, like prune-based ingredients, can go a long way in improving the flavor, appearance and acceptance of these foods.”
For prepared meats containing modified corn starches, functional native starches are also an option to enhance texture and viscosity while allowing for a natural claim.
“We offer a functional native potato starch that provides water-holding capacity, purge control and stability, comparable to traditional modified starches in cooked meat and sausage applications,” says Melissa Machen, senior technical services specialist, Cargill Texturizing Solutions, Minneapolis. “It appears on ingredient statements as simply ‘potato starch.’”
Isolated fiber ingredients are also a natural alternative. Not only do they bind water, they add fiber to otherwise fiber-void foods.
“Chicory root fiber offers meat processors a label-friendly option to retain water in processed meats, improving the product’s sensory characteristics and boosting yields through cook cycles,” Machen says. “It may also be used as a fat replacer in low-fat meat applications.”
“Many natural solutions make a successful replacement for synthetic options in terms of efficacy, flavor, functionality and cost-in-use.” – Tom Rourke
Jefferson, Georgia-based World Technology Ingredients (WTI) Inc., has a lemon juice and vinegar blend, as well as a rice flour and lemon juice product to replace phosphates, while delivering excellent yields with great flavor profiles.
“Our natural phosphate alternatives achieve very comparable yields at around 1.0 percent usage rate in sausage, poultry and red meat applications, compared to traditional phosphates,” says Klaus Kreuzner, director of sales at WTI.
Wenda Ingredients, Naperville, Illinois, offers a phosphate replacer that is a blend of brewer’s yeast extract and citrus extracts. It is labeled simply “yeast extract, natural flavors.”
“It can be used in injected or tumbled applications, as well as in ground and emulsified meats,” says Brian Metzger, vice president of sales and business development.
Food safety and shelf life extension ingredients may also be cleaned up to allow for a natural claim. Rourke suggests replacing lactate or diacetate with vinegar for pathogen control and replacing propionate and benzoate with a cultured sugar ingredient. The latter is a natural option for inhibiting the growth of spoilage organisms and thus extending shelf life.
“While manufacturers are pushing for effective food safety solutions, consumers are also demanding familiar ingredients to do the job,” says Travis Krause, proteins business manager, Kemin Food Technologies, Des Moines, Iowa. Kemin recently launched a reduced-flavor dry vinegar to round out its vinegar ingredient portfolio. It’s available in liquid, dry, high-concentration and as organic.
“Use rates of 0.4 percent to 0.8 percent will inhibit microbial spoilage organisms in fresh meats and will inhibit Listeria in ready-to-eat meats,” Krause says. “It can even be topically sprayed onto fresh meat cuts to extend days of packaged shelf life.”
Plant extracts are often used for shelf life extension, as they are inherent sources of antioxidants.
“Acerola extract blends with rosemary and green tea allow for color and flavor protection compared to straight acerola, which controls color specifically,” Krause says. “This blend can be used in naturally cured meat products as a cure accelerator to improve cure color.”
Dollar sales for the natural segment is nearly four times that of the organic segment, according to Anne-Marie Roerink, author of the 2018 Power of Meat study.
Camlin Fine Sciences, Urbandale, Iowa, uses rosemary, green tea, mixed tocopherols and acerola, as well as clean-label chelators, such as ascorbic acid, to create synergistic combinations tailored for specific applications.
“Our natural offerings can replace synthetic antioxidants and, in most cases, provide equal or better shelf life management,” says Jennifer Igou, general manager, North America at Camlin. “When comparing these clean-label products versus traditional antioxidants, the natural options do tend to be more expensive.
“Not only is the price-per-pound more, but typically a higher application rate is needed to get the shelf life that is desired,” she says. “We work closely with the customer to understand all the needs including cost limitations when recommending a product.”
In an application such as fresh ground chicken meat, the use of a natural shelf management product is common. In both a raw or cooked form, oxidation needs to be mitigated.
“The use of rosemary extract or a rosemary and green tea blend can significantly increase the shelf life by keeping oxidative by-products low, improving flavor and other sensory attributes of the ground meat,” Igou says. “Pork sausage is an application where synthetic antioxidants are still very much being used. However, by switching to plant extracts, oftentimes an increase in shelf life can be achieved.”
That’s because synthetic antioxidants have limitations on their application rates, while for the most part, there is no upper limit restriction for their natural counterparts. Higher application rates can be used without impacting the flavor profile.
Wenda Ingredient’s chemical antioxidant replacement solution combines sea salt with fruit and spice extracts. It is labeled “sea salt, natural flavors” and extends shelf life by protecting fresh meats from color degradation, spoilage microorganisms and oxidation. It protects against pathogens, too, according to Metzger.
“We also offer a true ‘uncured’ meat solution,” Metzger says. “Fruit and spice extracts with polyphenols and flavonoid antioxidants fix the iron in the meat myoglobin and create cured color and flavor with no or very miniscule amounts of residual nitrites. This all-in-one solution eliminates chemical nitrates and nitrites, erythorbate, celery powder, lactates, diacetate, and cherry powder, and eliminates the need for high-pressure processing.
Using ingredients sourced from food rather than concocted in a lab assists with natural label claims.
“Brands and processors who proactively offer consumers cleaner, more natural, delicious meat and poultry products have an opportunity to elevate their brand and capture market share in this faster growing market segment,” Metzger concludes.
Bob Evans is the leading producer of refrigerated side dishes.
ST. LOUIS — The pending acquisition of Bob Evans Farms expands Post Holdings’ presence in the perimeter of the grocery store, where more consumers are shopping in pursuit of perceived fresher fare. Bob Evans is the leading producer of refrigerated side dishes, a high-growth category, said Robert V. Vitale, president and CEO of Post Holdings.
Post Holdings on Sept. 19 announced plans to acquire Bob Evans Farms for $77 per share in a transaction valued at approximately $1.5 billion. The deal is expected to close early next year.
Robert Vitale, president and CEO of Post Holdings
“Bob Evans’ portfolio is aligned with key themes in food, both heat and eat and convenience,” Vitale said during a Sept. 19 conference call with securities analysts. “It increases our exposure to the attractive high-growth perimeter of the store, which is on trend with secular consumer trends. We anticipate Bob Evans will form the foundation of our refrigerated retail platform, and we see further growth opportunities and expansion across the perimeter of the store.”
Much of Post’s portfolio is focused on the slower-growth center-store categories, with more than a third of sales in ready-to-eat cereal. Another piece of Post’s business is private label peanut butter and granola, and protein bars, powders and shakes.
That leaves the Michael Foods Group unit, which includes value-added egg, potato and cheese products under the Crystal Farms, Better’n Eggs, Simply Potatoes and All Whites brands. Post acquired Michael Foods Group in 2014 for $2.45 billion, which at the time marked its largest transaction to date. But the business has remained challenged by the aftereffects of an avian influenza outbreak that devastated the egg market in 2015. The addition of Bob Evans’ portfolio, which includes refrigerated potato, pasta and vegetable side dishes and pork sausage, is expected to strengthen that business.
Post plans to combine the refigerated retail businesses of Michael Foods Group and Bob Evans.
Once the acquisition of Bob Evans is finalized, Post plans to combine the refrigerated retail businesses of Michael Foods Group and Bob Evans under the leadership of Mike Townsley, Bob Evans’ current president and CEO. The commercial food service businesses of Bob Evans and Michael Foods will be combined and led by Jim Dwyer, current president and CEO of the Michael Foods Group.
“We believe this organizational structure will facilitate growth and synergy realization and allow each business to focus on their respective strength and capabilities,” Vitale said.
Bob Evans Farms, which earlier this year sold its restaurant business to a private equity firm, has a growing food service business that represents approximately 35 percent of volume. Post sees opportunities to expand Bob Evans’ food service business, Vitale said.
Bob Evans Farms has a growing food service business that represents approximately 35 percent of volume.
“I think they had had some opportunities inhibited by the perception that they had a kind of a channel conflict being a restaurant operator,” he said. “So we think that some of that will naturally open up and some of it will open up by virtue of us having broader scale.”
He added, “…when we bought Michael, what we saw was a tremendously valuable food service franchise and an interesting and growing retail business. With this transaction, what we do is take that interesting retail business and really turn it into a competitively advantaged refrigerated retail platform. And that option was created by the Michael acquisition and realized with the Bob acquisition.”
In addition to top-line growth opportunities, the deal brings cost synergies of approximately $25 million, which is expected to be realized by the third full fiscal year following the closing of the acquisition, Vitale said.
“First, synergies will result from elimination of duplicate public company costs,” he said. “We believe there are meaningful cost synergy opportunities through leveraging each other’s manufacturing and supply chains where we overlap, as well as combining our procurement purchases. Additional opportunities include eliminating redundant costs across support function capabilities.”
The Bob Evans acquisition is Post’s second major deal this year. In April, the company entered into an agreement to acquire the Weetabix Food Co., the United Kingdom-based manufacturer of cereals, mueslis, oat granolas, breakfast drinks and nutrition bars sold under such brands as Weetabix, Oatibix, Alpen and Barbara’s, for £1.4 billion ($1.77 billion).
Vitale said while Post isn’t actively seeking additional transactions in the near term, “I never want to say that we’re out of the market.”
“But our priority right now is to digest these two material acquisitions and consider what our next move is, not actively beating the bushes for new ones,” he said.
VEVEY, SWITZERLAND — Tombstone, a pizza brand of Nestle SA, is launching tavern-style pizza.
The new offering comes in two varieties: the Primo, which features pepperoni, sausage, banana peppers, red onion, tomato sauce and mozzarella cheese on top of thin crust; and Let’s Meat Up, which features pepperoni, pork belly crumble, tomato sauce, rich cheddar and mozzarella cheese on top of a thin crust.
The Tombstone tavern-style pizza will be available at select retailers starting in April and will expand availability in July for a manufacturer’s suggested retail price of $6.99.
ROCKVILLE, Md. – Stakeholders of all sizes in the pet products segment are feeling the Amazon effect, and they are unlikely to feel relief any time soon, according to a report by market research firm Packaged Facts.
In its “Amazon Strategies and the Amazon Shopper” report, Packaged Facts expects sales of pet products through Amazon to continue to grow with the launch of the online retailer’s private-label Wag brand of dry dog food that is delivered via Prime. Amazon’s sales of pet products reached $2 billion, a 40 percent increase from 2016.
Amazon is the leading online pet product retailer, according to Packaged Facts. In its “US Pet Market Outlook, 2018-2019,” Amazon led the pack of websites for pet product purchases garnering 55 percent of those who purchased pet products online, followed by Chewy at 26 percent, PetSmart at 19 percent, Petco at 17 percent, and Walmart/Sam’s Club at 14 percent.
“Pet products are among the fastest-growing online retail categories and Amazon is leading the way,” said David Sprinkle, research director for Packaged Facts. “The scariest part for competitors is that recent news indicates the e-commerce juggernaut is still coming on strong and unabated in the US pet industry, reaffirming its commitment to pet products and now pet food.”
Amazon’s Wag joins the online retailer’s list of private-label brands in more than 70 markets available for purchase only by Amazon Prime members. The product slightly undercuts the price of similar meat-first, grain-free premium brands such as Blue Wilderness although it is priced to compete in the premium dog food segment, according to Packaged Facts.
“Competitors received a foretaste of Amazon’s growth strategy in the pet market not long after the company’s acquisition of Whole Foods,” Packaged Facts noted. “Following the acquisition, Amazon quickly began offering Whole Food’s Whole Paws pet food online.”