SEATTLE — Howard Schultz, who returned to Starbucks Corp. as interim chief executive officer on April 4, will remain in that role through the first quarter of fiscal 2023 as the company continues its search for its next permanent CEO, Starbucks said on June 6. The company said it is on track to name a new CEO in the coming months.
Starbucks said the timeline provides the company “the ideal runway for a seamless transition and continuity of leadership through the 2022 holiday season, as the business transformation continues.”
“Since returning as interim CEO on April 4, Schultz has engaged deeply with partners (employees) of all levels of the company, working directly with the leadership team to shape a strategic plan for the future of a reimagined Starbucks Coffee Co.,” the company said. “The reinvention plan is being designed through co-creation across the organization with a focus on exceeding the expectations of both partners and customers.”
Kevin Johnson stepped down as president and CEO of Starbucks on April 4. At that time, Schultz agreed to return to the company. Schultz previously was CEO from 1986 to 2000, and again from 2008 to 2017.
Post Holdings will acquire Bob Evans for in a transaction valued at approximately $1.5 billion.
ST. LOUIS — Post Holdings, Inc. said it will acquire Bob Evans Farms, Inc. for $77 per share in a transaction valued at approximately $1.5 billion. The combination is expected to expand Post’s presence in higher-growth packaged foods categories.
Based in New Albany, Ohio, Bob Evans is a producer and distributor of refrigerated potato, pasta and vegetable side dishes, pork sausage, and refrigerated and frozen products under the Bob Evans, Owens, Country Creek and Pineland Farms brands. The company also has a growing food service business that represents approximately 35 percent of volume.
Earlier this year, Bob Evans Farms sold its restaurant business to Golden Gate Capital following mounting investor pressure.
The addition of Bob Evans is expected to strengthen Post’s footprint in food service and is highly complementary to its portfolio of ready-to-eat cereal brands, including Pebbles, Honey Bunches of Oats, Malt-O-Meal and Weetabix; active nutrition brands, including PowerBar, Premier Protein and Dymatize; and value-add egg, potato and cheese brands, including Crystal Farms, Better’n Eggs, Simply Potatoes and All Whites.
Rob Vitale, president and CEO of Post Holdings
“We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create,” said Rob Vitale, president and CEO of Post Holdings. “Combining with Bob Evans expands our portfolio of top brands and gives Post a leading position in the perimeter of the store. We look forward to welcoming the talented Bob Evans team to Post and working to create a successful future together.”
The transaction was approved by the boards of directors of both companies and is expected to be completed early next year. Upon closing of the deal, Post plans to combine its existing Michael Foods Group refrigerated egg, potato and cheese business with Bob Evans to establish a refrigerated retail business within the company under the leadership of Mike Townsley, Bob Evans’ current president and CEO Jim Dwyer who will remain in his current role as president and CEO of the Michael Foods Group, managing the commercial food service egg, potato and pasta businesses, which will include the Bob Evans food service business.
The purchase price represents a 15 percent premium on the 30-day volume weighted average of Bob Evans shares. Post management expects the acquisition to be immediately accretive to Post’s top-line growth.
Mike Townsley, Bob Evans’ president and CEO
“We are pleased to join the Post family, combining our complementary portfolios to the benefit of all of our stakeholders,” Townsley said. “This transaction creates enhanced and certain value for our stockholders, while providing further resources and reach to deliver the Bob Evans experience to a broader audience of consumers and retailers. We are very proud of our 70-year history as a beloved brand and eager to begin this next chapter of growth.”
SEATTLE — Starbucks Corp. pulled its new breakfast chicken sandwich less than a week after launching the item nationwide. The company issued a voluntary stop sell for its chicken, maple butter and egg sandwich on June 26, saying it failed to meet quality standards.
Employees were instructed not to donate, sell or allow anyone to eat any of the product, according to the company. The product debuted on menus across the country on June 21.
“We issued a voluntary stop sell and discard on the chicken, maple butter and egg sandwich because the product didn’t meet Starbucks quality standards,” a Starbucks spokesperson told Food Business News the sister publication of MEAT+POULTRY. “We are committed to a high level of quality in the products that we serve and always act with an abundance of caution whenever a product or quality issue is raised.”
Unverified reports that the sandwich made employees and customers feel ill have circulated on social media. Starbucks said claims the item caused specific illness are false.
“This is not an FDA issued recall nor is it related to Salmonella or Listeria contamination,” the spokesperson said. “The quality issue that was identified by Starbucks would not lead to foodborne illness and any reports linking the stop sale to illness are inaccurate.”
The chicken sandwich was part of a broader pushto improve food sales for the Seattle-based company. Increasing orders that couple food with drinks is one way Starbucks aims to improve its average ticket size. Food sales in the second quarter ended March 31 grew 25% year-over-year, contributing to a 7% increase in average ticket.
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.”
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.
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.
MINONG, WIS. – Two classic brands partnered on one-of-a-kind meat snacks with the release of Jack Link’s WILD Dr Pepper-inspired flavored meat stick and Jack Link’s Dr Pepper-inspired flavored beef jerky.
“Pairing two flavor icons like Jack Link’s and Dr Pepper is sure to provide a delicious treat that snack fans are going to love,” said Holly LaVallie, senior vice president of marketing at Jack Link’s. “For loyal consumers of Jack Link’s jerky and meat sticks products who are looking for a completely new flavor in the meat snack aisle, this one is for you. I am incredibly excited to get this in the hands of our consumers to deliver a new sweet and savory snack taste.”
Jack Link’s WILD Dr Pepper-inspired flavored meat sticks debuted on retailer shelves during January 2024 at Circle K Convenience, gas stations and Amazon.com. Jack Link’s Dr Pepper-inspired flavored beef jerky will hit retailers’ shelves sometime in June 2024.
“We are excited to team up with Jack Link’s to create a one-of-a-kind flavor and craveable snack,” shared John Alvarado, senior vice president of Dr Pepper Brand Marketing. “We can’t wait for our fans to see this on shelves and have another way to enjoy Dr Pepper’s flavor.”
DECATUR, ILL. — ADM has opened its new North America microbiology laboratory at the ADM specialty manufacturing facility in Decatur, Ill. The new facility doubles ADM’s current microbiology laboratory footprint and reflects “a significant expansion of its testing capabilities, as well as its footprint in the Decatur community,” the company said.
“This new facility will drive productivity and collaboration, accelerate innovation and bring even more high-level science and research employment opportunities to Decatur,” said Veronica Braker, senior vice president of global operations at ADM.
ADM’s microbiology laboratory is responsible for testing finished product from North America for lot release to the market. Initially opened in the late 1960s, the laboratory has expanded five times through the years, most recently in 2006.
The new facility will provide testing services to more than 26 ADM manufacturing facilities located throughout North America. It features technology providing access to the latest laboratory and testing innovation as well as the ability to process an exponentially higher volume of tests, according to ADM. The new laboratory also will allow the company to conduct advanced testing in-house such as kill-step validations for processing plants, including automation applications.
In addition, ADM said the laboratory will become ISO 17025 accredited for the top five quality testing methods in early 2023 and will continue to expand its certification for other methods. A laboratory information management system also will be implemented at the new location in late 2023, allowing faster reporting to ADM clients.
“We are very excited for this expansion because it enables greater innovation to unlock the power of nature in order to enrich the quality of life,” said Lee Perry, vice president of quality and food safety at ADM. “The development of this state-of-the-art laboratory directly aligns with our mission and vision to strive for operational excellence, partner with operations to provide testing solutions and drive analytical performance.”