Food Business News - September 25, 2012 - 12

Itochu Corp. to acquire Dole Food businesses
believe this proposed transaction accomplishes that. We are realizing a premium valuation for our worldwide packaged foods and Asia fresh produce businesses and will retain a strong fresh produce business that has increased ﬁnancial ﬂexibility to grow.” The transaction is subject to stockholder and regulatory approval and is expected to be completed in the fourth quarter of ﬁscal 2012. Dole Worldwide Packaged Foods produces canned pineapple, canned pineapple juice, fruit juice concentrate, fruit in plastic cups, jars and pouches, as well as fruit parfaits, healthy snack foods and frozen fruit. Dole Asia Fresh Produce grows and distributes fresh fruit and vegetables primarily in Asia. The businesses had combined revenue of about $2.5 billion in 2011. Dole will remain an international company as it will keep its North American fresh vegetables business as well as its fresh fruit businesses in North America, Latin America, Europe and Africa. The businesses had about $4.2 billion in revenue in ﬁscal 2011. Also with the transaction the company said it will recapitalize its debt structure and adopt cost-savings initiatives and corporate restructuring. “The consummation of this transaction will result in a more focused Dole that retains signiﬁcant scale with more than $4 billion in revenue and a rich asset base,” said David H. Murdock, chairman of Dole. “With a substantial reduction in debt and the expected cost savings, Dole will also be well positioned to take advantage of growth opportunities within the fresh produce category.” Based in Tokyo, Itochu Corp. has investments in a variety of industries, including textile, machinery, metals, minerals, energy, chemicals and food. Its food holdings feature companies such as Prima Meat Packers, Japan Foods Co., Itochu Sugar and Yayoi Foods. Itochu’s food businesses generated approximately $3.5 billion in sales during ﬁscal year 2012. FBN

WESTLAKE VILLAGE, CALIF. — Japanbased Itochu Corp. has entered an agreement to acquire the worldwide packaged foods and Asia fresh produce businesses of Dole Food Company, Inc. for $1.685 billion. “When we announced our strategic business review in May, we stated we would review a broad range of strategic alternatives for our businesses with the goal of enhancing shareholder value,” said David A. DeLorenzo, president and chief executive ofﬁcer of Dole. “We

F.D.A.: Too early to know if action needed on arsenic in rice
WASHINGTON — Amid mounting media coverage about arsenic levels in rice and rice products, the Food and Drug Administration has not yet found enough supportive scientiﬁc data to recommend changes to consumers in regard to consumption of such products. The conclusion is based on the ﬁrst set of 200 samples collected by the agency out of about 1,200 samples of rice and rice products in the marketplace. The data collection is expected to be completed by the end of 2012. The F.D.A. statement comes after the publication of a Consumer Reports article saying there is a need for federal standards for arsenic levels and recommending limiting rice consumption. “We understand consumers are concerned about this matter,” said Margaret A. Hamburg, F.D.A. commissioner. “That’s why the F.D.A. has prioritized analyzing arsenic levels in rice. The F.D.A. is committed to ensuring we understand the extent to which substances such as arsenic are present in our foods, what risks they may pose, whether these risks can be minimized and to sharing what we know. Our advice right now is consumers should continue to eat a balanced diet that includes a wide variety of grains — not only for good nutrition but also to minimize any potential consequences from consuming any one particular food.” There are two types of arsenic compounds — organic and inorganic. The F.D.A.’s ﬁndings show average levels of inorganic arsenic for rice and rice products to be 3.5 to 6.7 micrograms per serving. The F.D.A. data are consistent with the results published by Consumer Reports, but the F.D.A. said more information is needed, because there are many different types of rice and rice products that are grown in different areas and under different conditions. “It is critical to not get ahead of the science,” said Michael Taylor, deputy commissioner for foods at the F.D.A. “The F.D.A.’s ongoing data collection and other assessments will give us a solid scientiﬁc basis for determining what action levels and/or other steps are needed to reduce exposure to arsenic in rice and rice products.” The U.S.A. Rice Federation said the Consumer Reports article is incomplete, inaccurate and offers consumption advice without addressing all of the relevant health issues. “We are aware of concerns about the level of arsenic in food, but are not aware of any established studies directly connecting rice consumption and adverse health effects,” the Rice Federation said. “In fact, populations with high rice consumption are associated with less overall disease rates and with better health, and scientiﬁc studies show that people who eat rice have healthier diets.” FBN

FOODBUSINESS NEWS

September 25, 2012

Food Business News - September 25, 2012

Table of Contents for the Digital Edition of Food Business News - September 25, 2012