Milling & Baking News Corporate Profiles - 2015 - (Page 40)

Meat Industry andReview: Poultry Meat and Poultry Meat and poultry Leading companies focus on value-added products I t is safe to say executives working in the North American meat and poultry industry were on edge during 2015. Continued tight beef supplies created a difficult market situation for even the largest companies in the industry, and an outbreak of highly pathogenic avian influenza (A.I.) made biosecurity a top priority throughout the poultry sector. Egg producers felt the brunt of the fallout from the A.I. outbreak, but turkey processors were not left unscathed. Just as A.I. hit the leading egg producing state of Iowa the hardest, it also had a significant impact in Minnesota, the nation's leading turkey producing state. Nearly 20% of the 237.5 million turkeys slaughtered in 2014 came from Minnesota. The impact was enough to hinder the earnings of Hormel Foods, Austin, Minn., which owns and operates the Jennie-O Turkey Store brand of turkey. During the third quarter of fiscal 2015, ended July 26, Hormel Foods executives attributed a portion of the company's 4.2% decline in sales during the quarter to turkey supply shortages. Tight beef supplies had a similar impact on Tyson Foods, Inc., Springdale, Ark. For the third quarter ended July 27, Tyson Foods experienced an operating loss of $7 million in its Beef business unit, and it was one reason the company was forced to lower its full-year guidance LEADING REFRIGERATED SLICED lunchmeat vendors 1 2 3 4 5 6 7 8 9 Kraft Foods Group, Inc. Hillshire Brands Co. Land O'Frost, Inc. Bar-S Foods Co. Carl Buddig & Co. Hormel Foods L.L.C. Armour-Eckrich Meats L.L.C. Applegate Farms, Inc. Greenwood Packing Corp. Private label Total % change from Dollar sales year ago $2,082,963,456 3.7% $623,399,872 3.8% $437,326,240 -0.5% $197,201,840 5.1% $159,874,560 10.0% $126,109,328 3.3% $114,240,712 7.8% $105,732,696 30.9% $56,175,488 -6.0% $1,019,397,696 6.1% $5,584,499,712 4.0% for adjusted earnings from a range of $3.30 to $3.40 per share to $3.10 to $3.20. "In fresh meat, supply issues drove price increases, which in turn prompted dollar sales growth and volume declines for key fresh meat categories," said Mike Olson, associate client director with the Nielsen Perishables Group, Chicago. "While fresh meat is still a vital component of retail store health, accounting for 11% of store sales, consumers are shifting their purchasing behaviors and attitudes about meat as they assess the thickness of their wallets in light of pricing challenges. "While the compound annual dollar growth rate for fresh meat in the U.S. has increased 3% over the past five years, the growth was largely the result of rising prices." Amidst the challenges facing the category, a key trend during the year were efforts by the leading players to develop points of differentiation in the wake of shifting shopper patterns. "Areas of growth in the meat department reflect shoppers' evolving personal values," Mr. Olson said. "Product with attributes including organic/natural, animal care such as vegetarian or grass fed, religious treatment (e.g. kosher), and premium cuts and products all drive a premium price compared to their conventional counterparts, and are also facing rising prices. However, these products LEADING REFRIGERATED SLICED lunchmeat brands 1 2 3 4 5 6 7 8 9 Oscar Mayer Oscar Mayer Deli Fresh Hillshire Farm Deli Select Land O'Frost Premium Bar-S Oscar Mayer Deli Fresh Bold Hormel Natural Choice Buddig Eckrich Private label Total Dollar sales $1,048,779,264 $773,159,488 $472,787,328 $305,169,472 $196,569,728 $145,086,720 $115,508,760 $92,071,832 $82,384,680 $1,019,397,696 $5,584,499,712 % change from year ago 2.7% -4.9% -3.7% -4.0% 5.0% 141.4% 3.7% 9.9% 5.7% 6.1% 4.0% Data for 52 weeks ended Aug. 9, 2015 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 40 \ October 2015 Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - 2015

Milling & Baking News Corporate Profiles - 2015
Table of Contents
Editorial - With growth elusive, its pursuit only intensifies
Industry Review: Grain-based Foods
Industry Review: Packaged Foods
Can K-Cups kick-start soup?
Industry Review: Beverages
Industry Review: Meat and Poultry
Industry Review: Dairy
Industry Review: Confectionery
Industry Review: Food Service
Industry Review: Clean Label
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - The Hain Celestial Group, Inc.
Company Overview - The Hershey Co.

Milling & Baking News Corporate Profiles - 2015