General Mills loads up to $2bn for bolt-on acquisition target

General Mills’ corporate headquarters in Minneapolis, Minnesota, 26 October 2019. Credit: smoothsails / Shutterstock.com

US group General Mills is eyeing a sizeable acquisition as it prepares to leave the yogurt category.

Chairman and CEO Jeff Harmening said he is positioned to release $1-2bn from General Mills’ pocket book in pursuit of “options to strengthen our growth profile”.

Reporting the company’s first-quarter results, Harmening added the size of the potential M&A would be similar to what the US company paid for US food manufacturer Annie’s and Tyson Foods’ pet-treats businesses in 2014 and 2021, respectively, but not in the echelon of the deal for Blue Buffalo in 2018.

The former two deals went through for less than the bolt-on M&A now proposed, to the tune of $820m and $1.2bn, but much less than the $8bn forked out for Blue Buffalo. The sale of the North American yogurt business to Lactalis and Sodiaal –announced last week – is set to raise $2.1bn.

Harmening said General Mills “didn’t find any acquisition candidates that we really liked” last year – fiscal 2024 – so instead the business returned cash to shareholders. This year looks different, however, as he indicated the company is capable of repeating shareholder payments, as well as instigating M&A.

“When it comes to this year, our balance sheet is in a great place,” Harmening responded to the inevitable questioning on M&A during today’s Q&A call session.

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“With this divestiture of our North American yogurt businesses, we felt it important to make sure that all of our investors know what we intend to do with those proceeds.”

He also emphasised flexibility if the right deal appeared in the investment window.

“Certainly, if something bigger came along that we don’t see now, we could entertain the notion.

“But it seems like our focus right now, on what we see in the marketplace, is probably more availability of smaller-size assets that we could bolt-on that would enhance our growth, but bolted on to businesses we already own,” Harmening explained.

While Harmening was quite precise on what he is willing to pay for a target acquisition this fiscal year, he was reluctant to give too much more away, albeit trying to give analysts some sense of direction.

“It’s going to be things that bolt-on to our existing categories. A category where you have a right to win, which in a large degree are our global businesses.

“So you look at what we’ve done in acquisitions in pet or snacking, or what we’ve done in foodservice, I would expect more of those, both on the priority businesses, where we have a right to win and where we see growth. And it could be international, it could be domestic,” Harmening said.

“Where we have a competitive advantage, where we see growth, maybe get a little synergy along the way, those are the places where we will continue to look.”

Delving into the company’s first-quarter performance, Harmening said General Mills made progress in “improving our competitiveness, reshaping our portfolio, and delivering on our financial goals”.

The numbers for the opening three months of the company’s new fiscal year were “broadly in line with our expectations”, he said.

“As we entered fiscal 2025, we outlined three factors that we expected would impact our operating environment and our ability to deliver on our priorities, including value-seeking behaviours from consumers, continued inflation and a stabilisation of global supply chains,” Harmening added.

“And with three months behind us, we’re broadly seeing the environment evolve as we anticipated.”

Both reported and organic net sales were down 1% at $4.8bn. Group volumes were flat, while price/mix fell one percentage point in organic terms.

Operating profit dropped 11% to $832m and was 4% lower on an adjusted basis at $865m.

Net profit declined 14% to $580m and diluted EPS decreased 10% to $1.03.

Guidance for the full year was kept unchanged – organic sales growth of flat to up 1% and adjusted operating profit flat to down 2%.

“We have more work to do to achieve our goals, and we expect to drive further improvement in our competitiveness and our top- and bottom-line growth for the remainder of the year,” Harmening said in his prepared comments.

He added during the Q&A: “I think the theme of the day is probably progress, and continued work to do, which we intend to do to improve our competitiveness throughout the year.

“My belief is that we’ll keep getting better as the year progresses, starting in Q2 with our competitiveness. And that’s what I would expect given the first quarter played out as we thought.”






Harris Teeter challenges restaurants with new ready-made meals line

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Dive Brief:

  • Harris Teeter announced the launch of its HT Traders Ready Made Meals line on Tuesday.
  • The private label line, which features ready-made individual and family-sized meals and sides, is available in the fresh foods department in all of the chain’s stores.
  • Private label has played a key role lately in helping grocers provide consumers with quick and easy meal solutions.

Dive Insight:

Harris Teeter’s new line of ready-made meals comes at a time when grocers have been ramping up foodservice offerings to nab consumers’ dining dollars.

SpartanNash, for example, at the start of this year launched a premium private brand focused on “gourmet flavors” with products including frozen pizzas and pasta. Giant Food has ramped up its focus on foodservice this year as well, noting at a store opening in January that it is dedicating more space and cases to meal options in new stores.

The HT Traders Ready Made Meals line spans cuisines such as homestyle cooking, Southwestern and Italian. Offerings include chicken alfredo, Italian sausage, macaroni and cheese, blackened chicken strips, enchiladas, fajita chicken with yellow rice, and meatloaf with redskin potatoes. Consumers can prepare the items at home in the microwave or oven.

“Our customers lead busy lives, and we at Harris Teeter understand the importance of convenience in the grocery shopping experience,” Danna Robinson, director of corporate affairs at Harris Teeter, said in the announcement. “Our new line of ready-made meals makes it easier than ever for our customers to indulge in a delicious meal.”

Harris Teeter said that prices for the items range from $6.99 for smaller side dishes to $19.99 for family-sized entrees. Most individual meals are priced at $9.99.

In May, Harris Teeter started offering a rotating selection of prepared foods for $5 at a dozen stores in the Washington, D.C., area.

Kroger-owned Harris Teeter has more than 260 grocery stores across eight states.




Dunkin’, Bark release batch of dog toys

Bark (makers of Bark Box) and Dunkin’ have released a fresh batch of dog toys. Together, Bark and Dunkin’ have raised more than $10 million for the Dunkin’ Joy in Childhood Foundation since launching their partnership in 2020, according to a press release.

  • Toys include:
    Dunkin’ Signature Latte Toy: A fluff-packed squeaker toy with crazy crinkle and a tuggable t-shirt rope for dogs available with a $15 donation.
  • Dunkin’ Snackin’ Bacon Dog Toy: A multi-part toy with two squeakers available with a $13 donation.
  • Dunkin’ Pumpkin Donut Dog Toy: Features a hidden surprise toy inside — a pumpkin pie-scented Super Chewer donut made with natural rubber, for dogs who play tough, available with a $15 donation.
  • Dunkin’ Mocha Latte Dog Toy: For dogs into more traditional coffee flavors, this toy features crazy crinkle, a tuggable t-shirt rope and a surprise toy inside, available with a $15 donation.

Donations benefit the Joy in Childhood Foundation’s impact programs that provide joy to kids battling hunger or illness, including the Dogs for Joy program. Dogs for Joy was introduced in 2018 to bring full-time facility dogs to children’s hospitals, where the dogs serve as a source of happiness for pediatric patients.

“We’re excited to continue our Dunkin’ and Joy in Childhood Foundation partnership for the fifth year in a row and create more custom dog toys inspired by Dunkin’s iconic brand that support a good cause,” Dave Stangle, VP of brand marketing at BARK, said in the press release. “This collaboration allows us to connect with more dogs and dog parents by tapping into daily rituals many people bring their dog on, like coffee runs. For the first time, dogs can join in on the pumpkin spice fandom we see towards the end of every summer and get their pumpkin spice fix, just like humans.”

Mollie Collum, director of the Dunkin’ Joy in Childhood Foundation, said: “While Dunkin’ guests are fueling up for the day, they can also share the pumpkin spice fun with their dogs by picking up the new, seasonal BARK toy, knowing their donation helps support children in need. Together with BARK, we’ve raised more than $10 million to bring joy to kids facing hunger and illness. This latest collection will expand our reach and deepen the nationwide impact of our foundation’s programs.”

Dunkin’ operates more than 13,700 restaurants in nearly 40 global markets.




Jarrett Foods Names Chantel Carrillo as Quality Assurance Manager

Jarrett Foods, a leading custom poultry processing solutions provider, has named Chantel Carrillo as the new quality assurance manager.

With nearly two decades of experience in quality control within the food processing industry, Carrillo brings a wealth of knowledge to her new role.

“We are thrilled to welcome Chantel Carrillo to the Jarrett Foods team,” says Terry Willis, Jarrett Foods president. “Her extensive experience and expertise in quality control will be invaluable as we continue to provide our customers with the industry’s highest quality custom poultry products.”

Carrillo’s background includes working with several large food processing companies, where she has consistently demonstrated her commitment to maintaining the highest quality and safety standards. Her dedication to excellence earned her certifications in Hazard Analysis and Critical Control Points (HAACP) and Safe Quality Food (SQF).

As quality assurance manager, Carrillo will oversee and implement quality control measures throughout the poultry processing operation. Her primary focus will be ensuring that all products meet or exceed industry standards while adhering to strict regulatory guidelines.




Researchers argue US regulatory frameworks are outdated, lag behind advancements in toxicology – Food Packaging Forum

In a recent peer-reviewed opinion piece published in Frontiers in Toxicology, researchers Maricel Maffini and Laura Vandenberg argue that while scientific advancements in toxicology have surged forward, regulatory frameworks in the United States have not kept pace. The authors argue that this disconnect between science and regulation could have dire consequences for public health, particularly in how the risks of synthetic chemicals like endocrine disruptors and persistent chemicals are managed. 

Maffini and Vandenberg highlight that “current hazard identification approaches” overseen by agencies such as the Food and Drug Administration and Environmental Protection Agency, “rely on outdated principles and expectations. For example, common testing approaches assume that chemicals are quickly eliminated from the body, something that many PFAS and other persistent organic pollutants have disproven.” 

Other assumptions in hazard testing that they argue are erroneous include “that testing chemicals one at a time is appropriate to understand how chemicals act under real-world conditions”, and that “testing on adult animals (or in cultured cells) has been proven to predict effects on developing animals”. Other research backs up their claims (FPF reported).   

These assumptions and others in the current regulatory hazard testing regime fail to capture the full range of health impacts associated with modern chemical exposures. They argue that “long-held assumptions… should be complemented—if not completely replaced—with modern scientific principles of toxicology including mixture toxicology, endocrinology, physiology, and immunology.” 

The authors call for an urgent modernization of risk management systems, advocating for “nimbler” testing “to account for the growth in knowledge of these fields over the last three decades and the new knowledge that is yet to come as well as the complexity of chemical exposures and new chemistries.” They caution that without such updates, the public remains vulnerable to the subtle yet significant effects of chemical exposures that the current testing regime may overlook. 

The article urges “periodic reassessment” to bridge the gap between evolving scientific insights and regulatory practices to ensure that public health is adequately safeguarded in the face of new and emerging chemical risks. “The problems we describe here illustrate a common paradox in US regulatory agencies: they are mandated to make safety decisions based on science that is constantly evolving while the risk management is commonly static.” 

 

Reference 

Maricel, M. and Vandenberg, L. (2024). “Science evolves but outdated testing and static risk management in the US delay protection to human health.” Frontiers in Toxicology. DOI: 10.3389/ftox.2024.1444024 




Low Mississippi River water levels disrupt barge shipping for third consecutive year

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Dive Brief:

  • Shrinking water levels are pushing barge operators to restrict shipments on the Mississippi River for a third consecutive year, pushing up transportation prices as grain harvests get underway.
  • Operators have reduced tow size, or the amount of barges that can be towed, by up to 34% as of Sept. 12, according to the American Commercial Barge Line. Southbound freight rates at multiple points along the river are up by double-digit percentages compared to the three-year average, according to the U.S. Department of Agriculture.
  • Rain from Hurricane Francine brought some temporary relief over the weekend, with areas like Mississippi exiting the National Water Prediction Service’s low water threshold. However, levels are expected to dip back below the threshold later this month.

Dive Insight:

Just as farmers kick off corn and soybean harvests, operational and pricing disruptions are pressuring shippers along the Mississippi River, one of the most important transportation channels for Midwest grain exporters.

Southbound freight rates at St. Louis are 15% higher than last year’s elevated rates and 53% above the three-year average, according to the U.S. Department of Agriculture’s grain transportation report.

Roughly two-thirds of grain exports are transported on the Mississippi River, and low water levels have created delays of up to two days, per ACBL.

Volatile conditions along the Mississippi have become a new normal for shippers. This is the third year of dry conditions, and comes just months after the river was flooded from excessive rainfall across the Upper Midwest.

Shipping restrictions along the Mississippi could be more of a headache for exporters than last year, when farmers were moving less grain. Around that time, lower commodity prices pushed farms to store their grain for longer, a trend unlikely to take place this year as growers expect a depressed financial environment to continue.

Shipments have already been on the rise compared to last year. Barged grain movements the week of Sept. 7 were 128% above the same period in 2023.




Port International expands Exclusive Partner Program in Peru

Port International, a leading supplier of premium fruits and vegetables headquartered in Hamburg, has expanded its Exclusive Partner Program in Peru. The selected Peruvian producers specialize in growing organic and Fairtrade bananas of the highest quality for the European market.

The expansion of the Exclusive Partners Program in Peru marks another step in the long-standing partnership between Port International and Peruvian producers. This partnership offers growers planning security and allows Port International to offer a unique product that is available exclusively through the company.

Port International’s long-term support has contributed significantly to the development of agricultural conditions in the region. “It is only through long-term partnerships that sustainable change and success can be achieved. Our Exclusive Partner Program is an excellent example of a successful collaboration that benefits all parties involved,” emphasizes Karlsson Port, CEO of Port International Bananas.

For more than two decades, Port International has been importing bananas from Peru, valuing the country’s high quality standards. Bananas from the South American country are known for their particularly careful production, resulting in minimal imperfections.

The proximity of the growing areas to the port of Paita, with the fruit arriving at the port in a maximum of one and a half hours, further contributes to the excellent quality of the products.

What makes Peruvian banana production special is the large number of small farmers who grow bananas on a total area of more than 750 hectares. More than 700 small farmers manage an average of just 1 hectare of land each, overseeing the entire production process with great dedication and expertise.

This sustainable farming method is 100% certified organic and almost exclusively Fairtrade certified.

Peruvian bananas. Credits: Port International

Optimal conditions in the Chira Valley

The Chira Valley and particularly the Sullana region offer ideal soil and climatic conditions for organic banana cultivation. The dry, temperate, and warm climate allows for organic production that harmonizes with nature.

Clean water from the Andes and the nearby Poechos reservoir guarantees a year-round water supply, which contributes to sustainable agriculture.

On-site quality assurance

To meet the high-quality standards of its customers, Port International has established its own quality team in Peru. The seven team members supervise the entire production process, evaluate the farms, and optimize the packaging process.

Their continuous on-site presence ensures that only the best quality products reach European customers. The team’s efforts also facilitate the implementation of special packaging solutions in the South American country.

Peruvian producers have more than 20 years of experience in growing organic bananas, one of the most sustainable agricultural methods. In collaboration with cooperatives, Port International implemented several sustainability projects, such as recycling wash water for the irrigation of neem trees. In addition, the cooperatives independently decide how to use Fairtrade premiums to bring about positive changes at the local level.




Posted on Author Categories Fruits

How a passion for farming led to success



Nigel Benjamin, CEO of RansBriya Greenhouse Producers Limited, is about to embark on a $200-million expansion of his Douglas Castle, Clarendon, farm as he seeks to make his operation more efficient to meet demand for his products, the latest in his journey into a career he said he developed a passion for when he was a child.

“I grew up in a farming community in northern Clarendon, a community known as Douglas Castle, close to Kellits. I grew up watching my father who was a farmer and from then I had a passion for farming,” Benjamin told the Jamaica Observer in an interview Tuesday.

He said while growing up he would help his father around the farm and was even given his own half-acre plot to grow his own vegetables which he tended to before he went to school each day and after he returned home. His father, who has since retired from farming due to advancing years and has since opened a farm store in Kellits, supplied hotels and other places with produce and made a good life from it, though, according to Benjamin, he had no tertiary-level education.

“After leaving high school, I didn’t further my education, I went straight into farming where I started to farm for myself and supply restaurants and hotels in Montego Bay,” he said, acknowledging that he followed his father’s footsteps.

Read more on Jamaica Observer.

Publication date:




AIMS calls for new EU veterinary agreement as ‘urgent priority’

The Association of Independent Meat Suppliers (AIMS) has warned that inconsistent post-Brexit veterinary controls and inaccurate certification processes have left UK businesses at risk of economic loss, waste and increasingly unmanageable bureaucracy.

It is therefore urging the UK Government to negotiate a veterinary agreement with the EU as an urgent priority. 

Defra ministers have committed to seeking a new veterinary agreement with the EU as part of its ‘new deal with farmers’, which could have significant implications for the UK’s trade in meat products, although the negotiations are likely to be complex and will take a long time.

AIMS said that since Brexit, the UK’s Border Control Posts (BCPs) have exhibited wide variability in how veterinary controls are applied, with individual veterinary decisions creating inconsistent outcomes.

This has exposed importers to unnecessary risks, with different standards being enforced across BCPs. This is ‘not only adding complexity but also causing financial harm, as delays and rejections at the border lead to product spoilage and significant waste, it said, pointing out that a single wrong decision at a BCP can result in millions of pounds in lost revenue, placing both small and large meat processors in a precarious position.

“The situation is untenable,” said Jason Aldiss, head of external affairs at the association. “We are seeing a complete failure in the consistency of veterinary controls, which is compounded by the inaccuracy of the manual, outdated export certification system. Errors in veterinary certification are causing substantial losses for the industry, and without immediate action, these inefficiencies will continue to destabilise the meat sector.

“Furthermore, the additional paperwork and compliance costs for each lorry carrying an export load can be up to £1,500.00 whilst UK importers are being charged up to £870 per truck in customs fees, even when only 2% of consignments are inspected​. A cost that is no doubt passed on in the first place to industry and ultimately the consumer”.

Veterinary decisions

The inconsistencies in veterinary decision-making across the country and at BCPs exacerbate these issues, leading to further inefficiency, supply chain disruptions and possibly avoidable food spoilage, he added.

“Inaccurate veterinary certification is another ongoing issue, with the manual, antiquated system in place for export health certificates (EHCs) also prone to human error,” Mr Aldiss added.

“We are regularly hearing of incorrect documentation that results in shipment rejections. These mistakes are costly to businesses and contribute to waste, as perishable products are delayed beyond their usable life.

“AIMS’ view is that veterinary agreement with the EU is urgently needed. It would address these critical issues by aligning veterinary standards, removing the need for EHCs, and ensuring that veterinary controls are applied uniformly across the UK. This would dramatically reduce costs, prevent delays, and restore the efficiency that existed before Brexit”.

“It is essential that the UK Government acts now. Inconsistency and inaccuracy in veterinary controls are crippling our industry. We need a comprehensive veterinary agreement with the EU to ensure the competitiveness and sustainability of the UK meat sector.”

Benefits

Research by Jun Du, Gregory Messenger and Oleksandr Shepotylo at Aston Business School, in Birmingham, has concluded that a new veterinary agreement could deliver significant benefits for trade. It indicated that the conclusion of an EU-UK veterinary agreement could lead to a 22.5% increase in agri-food exports and a 5.6% increase in imports, while also adding 0.22% to the agricultural sector’s value added.

UK farming and livestock sectors are very much in favour of a new veterinary agreement, although they have warned that any removal of export health certificates and related checks must not increase the risk of importing diseases like African swine fever (ASF).

Defra confirmed, as part the government’s work to reset its relationship with the EU to tackle barriers to trade, it will seek to negotiate a veterinary agreement to prevent unnecessary border checks and help to tackle the cost of food.

However, acknowledging that delivering new agreements will take time, it is not putting a deadline on this work.




Posted on Author Categories Meat
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