Food Business News - August 2, 2011 - 1

August 2, 2011

FOODBUSINESS NEWS
NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY

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Yoplait enhances General Mills’ global presence
MINNEAPOLIS — The acquisition of a majority stake in Yoplait by General Mills, Inc. will add approximately $1.2 billion to the company’s International division’s sales during ﬁscal 2012. It is anticipated the operating proﬁt margin will be in the low double-digit range, said Chris O’Leary, chief operating ofﬁcer of General Mills’ International unit. Mr. O’Leary spoke July 13 at an investor’s meeting to discuss the company’s ﬁscal 2012 outlook. “This is really the ﬁrst time we have had a chance to talk about these businesses,” he said. In July, General Mills completed the acquisition of Yoplait for $1.2 billion. The Continued on Page 18

Seeds gaining large role as healthful food ingredient
s manufacturers continue to differentiate their products through taste and health and wellness attributes, using seeds may be a way that companies achieve a unique market position. “The beauty of seeds is they are a nutrition-dense food ingredient — they are packed with omega-3s,” said Nicole Dawes, chief executive ofﬁcer and cofounder of Late July Organic Snacks, Barnstable, Mass. “The challenge with many of them, like ﬂax, is they can have a bit of an aftertaste. There is always weighing how much you can include for the nutrition versus when it becomes a negative to the taste proﬁle.” Late July has several multigrain snack Continued on Page 40

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Whither the ethanol subsidies?
Congress considers ending or signiﬁcantly reducing primary federal supports to the ethanol sector

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s Congress seeks ways to slash federal spending, efforts to jettison ethanol subsidies have strengthened with both the Senate and House of Representatives recently adopting measures that if enacted would either end the principal subsidies to the ethanol sector or halt federal supports

for building corn ethanol infrastructure. The changing tide of debate encouraged ethanol advocates in the Senate to introduce legislation that would preserve federal support to the ethanol sector, albeit on a more limited basis. The principal targets of subsidy opponents in the Senate were the volumetric ethanol excise tax credit (VEETC) and the tariff on imported ethanol that effectively protects American manufacturers from foreign competition. Under the VEETC, ﬁrst authorized under the Jobs Creation Act of 2004 and extended under the 2008 farm act, fuel blenders receive a 45c tax credit per gallon of ethanol they blend and sell. The tariff on imported ethanol is 54c per gallon, which discourages imports from lower-cost producers such as Brazil, which manufactures ethanol from Continued on Page 26
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Food Business News - August 2, 2011

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