Milling & Baking News Corporate Profiles - October 2011 - (Page 59)

Confectionery Coast once that nation’s first presidential election in a decade was finalized earlier in the year. Exports of cocoa beans, cocoa products and coffee were banned during most of the first quarter of 2011 from the Ivory Coast, which is the world’s largest cocoa bean producer. Once exports resumed, shipments were strong and actually ended the marketing year record higher. Cocoa futures prices fell from record or near record highs that characterized the market early in 2011. But like sugar, cash cocoa powder prices remained firm. Higher sugar and cocoa prices also became a potent driver behind product development trends as companies turned to fillers and inclusions to bulk up their products and keep costs in line. Higher prices didn’t dissuade consumers from indulging in their favorite confections, especially chocolates. For the 52 weeks ended Aug. 7, the chocolate candy category registered $5,630,574,000 in sales, up 6% from 2010, according to SymphonyIRI Group. Data did not include Wal-Mart. Unit sales reached 3,289,977,000, an advance of 5%. Non-chocolate candy recorded $2,763,998,000 in sales. Unit sales for the category advanced 0.2% to 1,834,431,000 units compared with a year ago. In the gum category, which includes sugarless and regular gum, sales totaled $1,403,785,000, an increase of 0.2% from a year ago, according to SymphonyIRI. Unit sales were 961,363,300,000, down 2% from a year ago. Regular gum sales retreated 5% to $179,089,500. Unit sales were 147,783,700, down 8% from last year. However, sugarless gum fared slightly better with $1,224,696,000 in sales, which represented an increase of 1%. Unit sales were 813,579,600, down 0.8% from a year ago. Financial results among confectioners were mixed. Some confectioners saw their bottom lines negatively impacted by volatile market conditions and rising commodity prices while other companies seemed to thrive. Vevey, Switzerland-based Nestle S.A. profits retreated 14% in the first half of fiscal 2011. The company reported a profit of 4,703 million Swiss francs ($6,480 million) during the first half, compared with 5,450 million Swiss francs during the same period of the previous year. Rising commodity prices, volatile markets and a strong Swiss franc were named as factors behind the profit decline. Paul Bulcke, chief executive officer of Nestle, said the company made good progress despite political and economic upheaval, natural disasters and rising commodity prices. “This has made for an extremely tough, volatile and competitive environment,” Mr. Bulcke said. “But by leveraging our competitive advantages, investing behind our growth drivers and excelling in operational efficiency and effectiveness, we managed to drive growth not only in emerging markets but also in developed countries, especially in Europe.” The board of directors of Kraft Foods Inc., Northfield, Ill., announced in August plans to split into two publicly traded companies, with one focusing on global snacks and the other on Kraft’s North American grocery business. The global snacks company will include the company’s confectionery business with brands such as Cadbury and Milka chocolates and Trident gum. “With the addition of the Cadbury business, the North American snacks portfolio now has the opportunity to pursue many of the same growth drivers, and to become a truly ubiquitous snacking powerhouse,” said Irene Rosenfeld, chairman and c.e.o. of Kraft. “Specifically, it will leverage our global innovation platforms in biscuits, chocolate, gum and candy, and will also deliver significant growth from investments in direct-store delivery and in instant consumption channels.” In the second quarter ended June 30, Kraft’s U.S. snacks business had an operating profit of $192 million, down 20% from $240 million in the same period a year ago. Net revenues in U.S. snacks eased to $1,510 sugarless gum vendors 1 2 3 4 5 6 7 8 9 Wm. Wrigley Jr. Co. Kraft Foods Inc. Perfetti Van Melle The Hershey Co. GlaxoSmithKline Rockstar International Discus Dental, Inc. Strauss California Breath Clinics Private label Total Dollar sales $698,256,000 $437,039,100 $45,942,890 $38,627,240 $1,978,402 $584,704 $243,552 $206,256 $121,721 $923,937 $1,224,696,000 LEADING % change from year ago 3.8% -4.0% 31.5% -11.9% 31.9% 83.1% -52.2% -2.6% -2.7% -22.9% 1.0% sugarless gum brands 1 2 3 4 5 6 7 8 9 10 Dollar sales Orbit $196,954,700 Trident $148,300,000 Wrigley’s Extra $118,118,300 Wrigley’s $96,484,140 Wrigley’s Eclipse $92,886,500 Stride $63,140,780 Trident Layers $51,819,160 Trident White $48,582,340 Dentyne Ice $44,401,200 Wrigley’s Extra Dessert Delights $37,897,900 Total $1,224,696,000 LEADING % change from year ago 4.3% -3.2% 5.8% -19.3% -4.5% -30.9% 2.4% -12.1% 33.1% NA 1.0% Data for 52 weeks ended Aug. 7, 2011 Total U.S. - Supermarkets, Drugstores and Mass Merchandisers excluding Wal-Mart Source: SymphonyIRI Corporate Proﬁles Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry October 2011 / 59

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Milling & Baking News Corporate Profiles - October 2011