• Unilever ready to focus on food growth
After steadily shedding food brands over the past few years, Unilever. said it is now ready to recover its position in the food category.
“The actions we’ve taken so far have stabilized performance, and we are ready to accelerate food beyond the 1.5% per year on average that we’ve done over the last five years,” CEO Paul Polman said during a Jan. 21 earnings call.
“Food remains a highly cash-generative business, and as our portfolio increasingly focuses on our big global brands and a clear way forward for spreads, it is increasingly becoming ready to grow again,” he added.
In 2011 Unilever disposed of the following food businesses: Mrs. Dash, Molly McButter, Sugar Twin, Baker’s Joy, Static Guard and Kleen Guard brands to Parsippany, N.J.-based B&G Foods for $325 million in cash.
The shedding continued in September 2012, when Unilever completed the sale of its Bertolli and P.F. Chang’s Home Menu frozen meals business to ConAgra Foods, Inc. for $267 million.
In January 2012, Unilever agreed to sell its Skippy peanut butter brand to Hormel Foods Corp. for $700 million. Unilever also completed the sale of its Wish-Bone and Western dressings brands to Pinnacle Foods, Inc. for $580 million in October.
“There are early encouraging signs that the new marketing strategy and our portfolio is in better shape following the disposals we’ve made.” Polman said.
He said going forward Unilever will proceed with fewer items, expecting flat growth in the U.S. while taking marketshare in margarine spreads.
• Smucker invests in Memphis plant
The J.M. Smucker Co. plans to invest an additional $40 million in a peanut butter plant in Memphis.
It’s been a year since Smucker announced plans to convert the Memphis facility, then a fruit spread facility, into a peanut butter plant. That move resulted in an initial investment of $55.6 million.
Since then Smucker determined another $40 million was needed for building modifications and additional machinery and equipment. The additional improvements will allow the company to expand peanut butter production for the company’s Jif, Laura, Scudders, Adams and Smucker’s brands.
• Dave Biegger to head up global supply chain for Campbell Soup
The Campbell Soup Co. said Dave Biegger was recently promoted to SVP and will head up global supply chain management, replacing David White, who is retiring from the company on April 1.
Biegger will be responsible for engineering, procurement, manufacturing, logistics, customer service, quality and facilities for the company. He joined Campbell in 2005 as vice-president of strategic planning for the company’s global supply chain. In 2007, he was promoted to vice-president of North America supply chain. He will maintain responsibility of the North America supply chain in his new role, according to the company.
“Dave will play a critical role in our key strategies by creating a demand-driven supply chain, delivering consumer-focused innovation and operations excellence while driving cost and margin management,” said Denise Morrison, president and chief executive officer of the company.
Before joining Campbell in 2005, Biegger spent nearly 24 years with Procter & Gamble.