DENVER — Following a trip to Indonesia supported by the National Pork Board, the US Meat Export Federation (USMEF) reported strong potential for growing demand for US pork in the country.
With Indonesia being a primarily Muslim country, a large portion of the population does not eat pork. However, USMEF Chair Randy Spronk still sees a significant market for pork in the nation.
He estimated the population size to total 275 to 280 million people, of which approximately 85-87% are Muslim. The remaining percentage equates to around 35 to 36 million people.
“That’s Canada,” Spronk said, noting the size of the market for potential pork consumers. “And so, there’s still a lot of opportunity.”
Spronk views Indonesia as a long-term growth market.
“I think we were 1.13 kg per capita consumption,” he said. “It reminds me of Colombia, where you were low teens per capita consumption, where you actually came in and doubled the consumption over a 10-year period. I think it’s got great opportunities to be able to do that.”
There is currently no free trade agreement with Indonesia and a 5% tariff rate.
Finding success in the Indonesian market are Indiana soy growers, who have built strong relationships for providing protein in the market. Spronk believes this could be beneficial for US pork producers.
“Talking to the importer of the soybeans, they already have the logistics there to distribute soybeans to a multitude of islands to be able to have them process daily on each one of these items,” Spronk said. “That company was actually looking to get their beef import licenses, so I think that firm there has the logistics, has the infrastructure there.”
Though current volumes of US pork exports to Indonesia are negligible, USMEF reported an increase of market share from 11.5% in 2023 to 38.5% in 2024, largely due to reduced supply from the European Union.
DALLAS – Brinker International announced on May 16 that Wyman Roberts will retire as chief executive officer and president of the company. This includes leaving his position as president of Chili’s Grill & Bar and member of the board of directors starting on June 5.
Kevin Hochman was appointed president and chief executive officer of Brinker along with the other posts held by Roberts.
Roberts served as CEO and president at the company since 2013. Before that he held various roles with Brinker starting in 2005 including chief marketing officer of Brinker and president of Maggiano’s Little Italy. He will continue to serve the company in an advisory role for 12 months as part of the company’s succession plan.
“Since starting with Brinker 17 years ago, I have been inspired by the passion for making guests feel special about what our ChiliHeads, Maggiano’s Teammates and BrinkerHeads bring to our restaurants every single day,” Roberts said. “It has been a privilege to lead and be a part of this great company. I am impressed with Kevin’s character and leadership skills, and I look forward to seeing him take our company to the next level of success as we make this transition.”
Prior to joining Brinker, Hochman worked as the president and chief concept officer for KFC US. From December 2019 until January 2022, he also worked as president of Pizza Hut US at the same time. Before working at Pizza Hut and KFC, Hochman spent 18 years at various brand management and marketing roles at Procter & Gamble.
“I am honored to be appointed Brinker’s president and CEO and appreciate the support of Wyman and the Board,” Hochman said. “I’ve been very impressed with our operations and technology and see huge potential for growing our iconic Chili’s and Maggiano’s brands. Brinker’s mission is about making people feel special, and that’s something I’ve tried to do throughout my career.”
Brinker owns, operates or franchises more than 1,600 restaurants in 29 countries and two US territories.
NEW YORK — While upbeat directionally about General Mills Inc.’s business, the company’s top executive said reaching its long-term sales growth target in the just-started fiscal year may be a stretch.
Jeffrey L. Harmening, chairman and chief executive officer, offered an update on many aspects of the company’s business in a May 29 discussion with Alexia J.B. Howard, senior analyst with Sanford C. Bernstein & Co. The discussion was part of the Sanford C. Bernstein Strategic Decisions Conference.
Declining to offer specific financial guidance for fiscal year 2025, Harmening said it may be tough for General Mills to hit sales growth of 2% to 3%, the company’s long-term target.
“Our goal will be to be competitive within our categories, and I think we can achieve that in this coming year,” he said. “As we have, by the way, the last four years. We’ve grown in 50% of our categories our market shares.”
While unit volume trends remain weak, Harmening said there is good cause for optimism.
He noted that volumes in the company’s categories were down 3% in the first quarter of 2023 and only 1% in 2022. Decreases at General Mills specifically were steeper but have been improving, too.
Key to trends going positive will be consumers adjusting to cost inflation totaling more than 30% over the past three years, Harmening said.
“Consumers are stretched financially right now,” he said.
When they “feel more economically sound” and acclimate to the higher pricing, market conditions in the food and other industries will improve, Harmening said.
“It’s probably a 12- to 18-month process before consumers really land on, okay, what is the true price of this good going to be?” he said. “And I think it’s particularly difficult for consumers.”
Even as discussions about health and wellness and concerns about ultra-processed foods may have intensified, the most important driver of consumer demand remains taste, Harmening said.
“It’s not to say that consumers don’t care about nutrition as well, but I don’t want to get lost in the conversation,” he said. “News flash — people like food that tastes really good. One of the things that General Mills does really well is make food that tastes good and is good for you. And to the extent that consumers are looking at ingredients more closely, I think that’s a benefit for us, and I think that’s going to be an opportunity for us.”
Regenerative agriculture is important to General Mills “because the climate is changing,” Harmening said.
“We depend on the climate, and particularly certain crops like wheat, for example, for flour, or oats, which we make Cheerios and Nature Valley,” he said. “And so regenerative agriculture is a really important step for us because it improves soil health, takes carbon out of the atmosphere, sequesters carbon better, keeps nutrients better, just makes the whole cycle more resilient.
“And so we have a goal of getting to 1 million acres of regenerative agriculture by 2030. We’re more than halfway there, and we set this goal only a few years ago. So we’ve made great progress. There’s more progress yet to make.”
For context, Harmening said 1 million acres equates to a fourth of the land mass required for the company’s ingredient needs.
“It’s not an inconsequential level of space,” he said.
Capping off the presentation was a discussion of why investors should find ownership of General Mills’ shares appealing. Harmening said General Mills has distinguished itself by an ability to “pivot faster than many of our peers” during challenging times.
“If you think the environment ahead of us is going to be really stable, maybe that doesn’t matter,” he said. “If you think that the environment ahead of us is rocky, either because of climate change or geopolitics or say the consumer is influx or that inflation we may or may not know what’s coming, if you think that there’s an air of volatility ahead of us, I think you should bet on us.”
NEWPORT BEACH, CALIF. — Earlier this year, Chipotle Mexican Grill Inc. unveiled a new menu offering inspired by two TikTok content creators. The digital-exclusive fajita quesadilla adds peppers and onions, plus a side of the chipotle-honey vinaigrette customarily served with its salads, to the standard quesadilla, which typically features cheese and pork, beef, chicken or tofu.
The genius of the now-permanent addition to Chipotle’s menu, said Brian R. Niccol, chairman and chief executive officer, is the product is made with existing ingredients in the restaurants’ kitchens. Only a few tweaks to the digital ordering technology were required.
“For the most part, this was a really easy one for operators to execute,” Niccol said during an April 25 earnings call. “So, the team is doing some work to figure out other opportunities like that within our menu and maybe could apply for both the frontline and the digital line. I do believe there’s still a lot of hidden gems within the Chipotle menu. And I think we have the opportunity to talk about them in a more visible way.”
The launch of the fajita quesadilla resulted in a near doubling of total quesadilla sales and “two of our top digital sales days of all time,” he added.
As management continues to focus on the fundamentals of its operations, opportunities to introduce innovation with little complexity are a priority. A limited-time offering of chicken al pastor, as another example, combines the brand’s grilled chicken with a spicy marinade. That item has been “broadly appealing” to both new and existing customers, Niccol said.
Net income for the first quarter ended March 31 was $291.6 million, equal to $10.56 per share on the common stock, up 84% from $158.3 million, or $5.64, in the prior-year period. Restaurant-level margin benefited from higher sales, labor efficiencies and lower avocado prices, said John R. Hartung, chief financial officer.
Total revenue increased 17% to $2.4 billion from $2 billion.
Comparable restaurant sales increased 11%, as in-store sales grew 23% over the last year, and digital sales represented 39% of sales. The company opened 41 new restaurants during the quarter.
Executives expect second-quarter and full-year comparable restaurant sales growth in the mid- to high-single-digit range and are planning 255 to 285 new restaurant openings in 2023.
Shares of Chipotle Mexican Grill on the New York Stock Exchange were trading as high as $2,047.31 on April 26, up 15% from the day before.
SEATTLE — Over 400,000 Washington households are set to receive financial restitution totaling $40.6 million following the settlement of Attorney General Bob Ferguson’s antitrust lawsuit against tuna and chicken producers for price fixing.
According to a press release from Ferguson’s office, 15% of the state of Washington — the equivalent of 1.2 million Washingtonians — will receive checks in the mail. Checks will be dispersed to households whose income is at or below 175% of the federal poverty level, with single-person households receiving $50 and multiple-person households receiving $120.
“Washington families were cheated by corporate price-fixing conspiracies they knew nothing about — and now those who felt this gouging most severely are receiving checks from my office,” Ferguson said.
Through a 2021 price fixing lawsuit, Ferguson’s office received $35.5 million as a result of resolutions with 15 of 19 broiler chicken producers named in the case. The 19 producers represent 95% of the US broiler chicken market.
According to the allegations against the companies, the producers drove up the price of chicken since 2008 through a conspiracy to inflate and manipulate the market.
A trial against the three remaining producers — Foster Farms, Wayne-Sanderson Farms and House of Raeford Farms — is scheduled for October 2024.
Funds for the restitution checks also come from cases against major tuna companies, contributing over $5.1 million. The cases include a $4.1 million resolution with StarKist, a $500,000 resolution with Chicken of the Sea, a $100,000 resolution with former Bumble Bee Tuna chief executive officer Christopher Lischewski and $450,000 in sanctions against Dongwon, the parent company of StarKist.
According to Feguson’s allegations, the companies exchanged internal company policies and data.
“Lischewski complained to other tuna executives before they began the price-fixing scheme that canned tuna was ‘too cheap’ and he wanted the price artificially increased on consumers,” according to the press release from the Washington’s Attorney General Office. “Two of Lischewski’s subordinates testified that he gave ‘a very clear, direct’ order to fix canned tuna prices.”
DALLAS — The virtual brand It’s Just Wings helped Brinker International, Inc., the owner of Chili’s and Maggiano’s, get through the worst times of COVID-19. The brand will stick around, although in a smaller format, as the pandemic’s effects lessen.
“So let me just start with virtual brands will continue to play a meaningful role in our business,” said Kevin Hochman, president and chief executive officer of Brinker, in an Aug. 24 call to discuss fiscal-year results. “I mean they’re currently about 6% of mix. So, they’re a part of our business now. That said, we do need to right-size the time and attention and investment for a sales layer that’s 6% of the business.
“So specifically, we have to make sure that we’re right-sizing the amount of incremental pantry SKU (stock-keeping unit) ingredients that we need to service these brands. For example, on the Maggiano’s virtual brand, it’s currently 26 unique SKUs to service about 2% of the business. That is just too much, right? So we’ve got to make sure that we cut that number probably by more than half.”
Brinker will switch around some of the It’s Just Wings menu items. A smoked wing item will be eliminated. Chicken tenders, offered by Chili’s, could join the It’s Just Wings menu. Chicken wing flavors and curly fries from It’s Just Wings could join the Chili’s menu.
“The core Chili’s does about 24 times the sales of It’s Just Wings,” Hochman said. “So why not take these amazing flavors and these amazing curly fries, put them into the Chili’s business as a premium at the bar. We are very bullish on what that could mean for the business.”
Dallas-based Brinker International in the fiscal year ended June 29 reported net income of $117.6 million, equal to $2.62 per share on the common stock, which was down 11% from $131.6 million, or $2.89 per share, in the previous fiscal year, which had 53 weeks instead of 52. Revenues rose 14% to $3.80 billion from $3.34 billion. Comparable restaurant sales increased 8.6% at Chili’s and 53% at Maggiano’s.
Brinker’s stock price on the New York Stock Exchange closed at $28.84 on Aug. 24, which was down 4.9% from a close of $30.34 on Aug. 23.
In the fourth quarter, net income of $40.2 million, or 92¢ per share on the common stock, was down 46% from $75 million, or $1.64 per share, in the previous year’s fourth quarter. Revenue increased 1.3% to $1.02 billion from $1.01 billion
“Traffic was negative at Chili’s for the quarter and decelerated throughout as some guests appear to react to the challenging inflationary environment, particularly during the weeks of very elevated gas prices,” said Joseph G. Taylor, chief financial officer. “We also experienced approximately a 1% negative sales impact to the quarter as some restaurants were not able to fully open dining rooms, particularly at peak times or had to throttle back online orders giving limited staff availability.
“I would note that Chili’s traffic trends since the end of the quarter saw sequential improvement into August, although they remain in the mid-single-digit negative territory.”
Inflation in the fourth quarter was close to 15%, he added.
For the current fiscal year Brinker executives expect revenues in the range of $3.9 billion to $4 billion.
“Our cautious view of economic conditions, particularly for our value-oriented guests, reflects negative traffic expectations in the low single digits for Chili’s,” Taylor said. “We believe the significant headwinds from commodity inflation will lessen as we move through the year, a trend that could continue for a period beyond the current fiscal year.”
Brinker plans to take near-term pricing for both Chili’s and Maggiano’s.
“Chili’s is expected to exit the first quarter at close to 8% price, a level the brand will maintain throughout the fiscal year,” Taylor said. “Maggiano’s will exit the first quarter in the mid-5% range and is anticipated to average closer to 7% for the year.”
MINNEAPOLIS — Target Corp. announced Amy Tu will join the company as chief legal and compliance officer and corporate secretary, effective Aug. 25. She succeeds Don Liu, who recently announced his upcoming retirement and will transition to a strategic advisory role.
In her new role with Target, Tu will lead the retail giant’s legal, compliance and corporate governance functions. She joins the leadership team and will report to Brian Cornell, chair and chief executive officer of Target.
“For years, I have admired the strength of Target’s brand and the vibrancy of its team culture, and I am honored to have the opportunity to lead these best-in-class legal affairs and compliance teams,” Tu said. “Their work enables so much of what makes Target a special place for millions of consumers and hundreds of thousands of team members. I look forward to joining the leadership team to build on that legacy, and to support Target’s winning strategy and sustainable growth for years to come.”
Tu most recently served as president of Tyson Foods’ $2.5 billion international business segment. She oversaw 19,000 team members operating in 16 countries and serving customers in more than 140 countries.
Tu joined the meat processor in 2017 as general counsel. Later, she was named executive vice president, chief legal officer and secretary of Global Governance & Corporate Affairs at Tyson.
Prior to her tenure at Tyson Foods, Tu worked for Boeing, where she held leadership roles in law, corporate development and strategy, and served as chief counsel for global law affairs and the commercial airplanes and aviation services divisions.
She started her career in retail with senior legal roles at Walmart and The Gap.
“Amy’s experience, both in legal and business leadership, offers strong continuity at the top of our legal affairs and compliance teams,” Cornell said. “Her stewardship will help our strong and tenured leaders in legal affairs sustain their role in serving our stakeholders and growing our business. Amy’s growth mindset, her passion for the law and her skill as a business counselor make her a great addition as our leadership team drives Target’s roadmap for growth and enterprise priorities.”
Liu will transition to a strategic advisory role through May 2025. He joined Target in 2016 and throughout his tenure became a trusted advisor to many across the company.
He is a co-founder and board member of the Alliance for Asian American Justice, a board member of Invesco Mortgage Capital, and a member of the American Law Institute and the National Asian Pacific American Bar Association.
“Over the course of his distinguished career, Don has made an incredible impact on Target and the legal industry,” Cornell said. “As a member of our leadership team, he was an advocate for our company strategy, served as a mentor to teammates and peers and is regarded as a trailblazer for diversity, equity and inclusion within the legal profession. We’re grateful for his many contributions and wish him nothing but the best.”
AMESBURY, MASS. — Munters Corp. announced plans to build a new 400,000-square-foot flagship facility in Amesbury, Mass., which is expected to be fully operational by 2024.
“Munters has been part of the Amesbury community for 60 years,” said Andrew Cook, senior vice president, Americas, AirTech. “Our business has flourished here, and we continue to grow. We’re the largest employer in the community, and many of our employees live in Amesbury or the surrounding area, so being able to bring the entire workforce to our new site – plus expand it – is absolutely fantastic.”
Munters is partnering with Global Property Developers Corp. to develop the facility.
With growing demand for the precise temperature and humidity control that desiccant dehumidification technology provides, Munters hopes its new operation will better help serve its target markets, including lithium-ion battery production and food processing.
The facility will increase production capacity, improve workflow and offer added comfort for employees. It will house fabrication, assembly, rotor production, a new R&D lab and a service training academy. Munters added that equipment will align with the company’s sustainability goals by using renewable energy sources for electricity.
“Munters is again making important investments in our global footprint, and in our growing markets,” said Henrik Teiwik, group vice president and president, Business Area, AirTech. “Our dedication to providing outstanding customer experiences with our core dehumidification products, solutions and services in the Americas region is clear. This new facility will have reduced carbon dioxide emissions, increased energy efficiency, and a significant share of renewable electricity for our operations, supporting Munters’ journey toward a sustainable world.”
Sustainability is no longer just a buzzword – consumers, corporate boards, and retailers have declared it a priority. More than 136 countries and 1200 companies have pledged to reach net-zero emissions by 2030. Canada, France, Spain, the UK, and India have banned single-use plastics.
While the most critical function of meat packaging is to protect the product and extend shelf life, increasing the recovery of packaging materials post-consumer and using fewer materials when producing the package improves package sustainability. Any package change may have tradeoffs such as higher cost, lower shelf life, and heavier weight. “We have the tools and know-how to help processors navigate a very complex process,” says Gregg Poffenbarger, business unity director of Materials for MULTIVAC Group.
SUSTAINABLE MEAT PACKAGING IS A HUGE OPPORTUNITY
Large retailers are driving the sustainability push. For example, by 2025, Walmart plans to use 100% recyclable, reusable, or industrially compostable packaging with a minimum of 17% post-consumer recycled content for its private brands. Similarly, ALDI announced that by 2025, 100% of ALDI-exclusive products would have reusable, recyclable, or compostable packaging and use 20% post-consumer recycled content. Virtually every leading grocer in the United States has announced sustainability initiatives for reducing packaging and food waste. A 2021 PMMI Study found that 80% of CPG manufacturers minimize packaging to reduce waste and 89% design recyclable packaging.
HORMEL FOODS REDUCE MATERIALS IN PACKAGING
One of Hormel Foods’ 20 By 30 goals focuses on improving packaging sustainability with research, innovation, on-package communications, optimizing package weight, and shipping efficiencies.
“When we looked at the original Jennie-O ground turkey packaging, we knew we could improve it, not only from a sustainability perspective but also from a retailer and consumer point of view,” says Kim Anderson, brand manager of Retail Marketing for Hormel Foods. “For example, the paperboard sleeve was not ideal for retailers as a refrigerated environment could sometimes cause issues with tearing.”
Hormel Foods takes a team approach to packaging design. A dedicated group of employees consistently looks for minimization opportunities, collaborates with other departments, and examines the entire supply chain for sustainability initiatives. “MULTIVAC was involved in the project from the very start,” says Doug Muzik, plant manager at the Jennie-O Turkey Store plant in Montevideo, MN.
“We communicated our vision and what we were looking for from a product appearance standpoint,” says Muzik. “Through numerous meetings and line trials, MULTIVAC helped us get the (thermoformed) tray we were looking for, and we achieved line throughput speeds comparable to our previous foam trays.”
The final solution was a thermoformed tray with a printed plastic lidding film. By printing directly on the film, Hormel could eliminate the paperboard sleeve. “For this specific project, our team was able to reduce both plastic and paper packaging, saving 1.5 million pounds of material annually,” says Anderson.
Source: Jennie-O
There are also indirect benefits to choosing a thermoformed package. “Because thermoforming equipment uses rollstock, rather than ready-made trays, our customers typically benefit from lower shipping costs and reduced storage space needs,” says Poffenbarger.
Collaboration is critical to introducing more sustainable meat packaging. “We’ve seen that collaboration drives innovation in other packaged-food industries, such as beverage and shelf-stable goods,” says Kachook.
Auras concurs. “R&D, marketing, engineering, and operations all play a crucial role in understanding the impact and the tradeoffs of the product, product loss and waste, and the packaging systems to implement for achieving sustainable development,” he says. “Without complete integration of these members, it’s tough to fully comprehend the benefits of implementing sustainable packaging and avoiding greenwashing.”
“MULTIVAC was very hands-on from start to finish, and we could count on them to have a representative present at all meetings and line trials,” says Muzik. “They had numerous techs on site to officially install the new lines ensuring the smoothest startup possible. MULTIVAC has continued providing great support whenever we need it.”
Unfortunately, not all clients involve equipment suppliers early on. “When we aren’t involved until late in the game, the process becomes more challenging,” explains Poffenbarger. “Material changes can change functionality such as opening features, shelf life, or puncture resistance.”
“Manufacturers of machinery and equipment are critical partners in developing sustainable packaging because they can help determine the necessary specifications and performance of packaging,” says Kachook. “Manufacturers can help brands understand how to navigate tradeoffs like cost, shelf life, and barrier properties as they look for packaging options that are more sustainable with recycled content or compostable films.”
INCREASING USE OF RECYCLED MATERIALS
Many processes are looking at replacing multilayered plastics with mono materials, including PP (polypropylene) and APET (amorphous polyethylene terephthalate) to improve recyclability. “It’s important to consider the change in barrier properties compared with composite materials,” says Poffenbarger. Adjusting running parameters on the packaging machine must be considered when switching to mono materials.
Packs and trays made from APET and other mono materials are already being used instead of composite materials to pack fresh products. “To achieve reliable packaging results, upper webs with a thin sealing medium are used,” says Poffenbarger.
Source: Multivac US
A HOLISTIC APPROACH TO SUSTAINABILITY
Close cooperation with material manufacturers is fundamental to developing successful sustainable packaging. According to Poffenbarger, MULTIVAC works with leading material manufacturers consistently. To help with the essential task of testing, MULTIVAC’s Innovation Center has the capabilities to support customers in rolling out new concepts. “Our sales and technical support teams are ready to help processors step up to the opportunities in front of them,” says Poffenbarger. “MULTIVAC is fully committed to more sustainable packaging solutions.”
When evaluating various packaging concepts, processors need to recognize that the recyclability of packs is linked to the existing recycling structure. Achieving targets for recyclability should maintain product protection, especially with a high-value product like meat. Learn more about sustainable packaging solutions by contacting the MULTIVAC Group at 1-800-800-8552 or by visiting our website at multivac.com.
SEATTLE — Laxman Narasimhan will be the next chief executive officer of Starbucks Corp. He initially will serve as incoming CEO effective Oct. 1 and work with Starbucks’ interim CEO Howard Schultz. He is scheduled to take over as CEO on April 1, 2023.
Narasimhan will step down from his role as CEO of the Reckitt Benckiser Group PLC, London, on Sept. 30. Prior to leading Reckitt Benckiser, he held leadership roles with PepsiCo Inc. and McKinsey & Co.
“When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter,” Schultz said. “He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets.”
Mellody Hobson, independent Starbucks board of directors chair, added, “Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks growth and capture the opportunities ahead of us. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders.”
