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ConAgra to buy frozen foods maker American Pie
6/14/2010

ConAgra to buy frozen foods maker American Pie

ConAgra to buy frozen foods maker American Pie

ConAgra Foods Inc. said Monday it's acquiring American Pie LLC, a maker of desserts and frozen dinners under the Marie Callender's and Claim Jumper brand names.

Terms of the deal were not disclosed. The acquisition is expected to close in 30 days.

American Pie makes pies, fruit cobblers and pie crusts under license from Marie Callender's and Claim Jumper. It also makes frozen dinners, pot pies and appetizers under the Claim Jumper brand.

The acquisition will add desserts to ConAgra's existing Marie Callendar's frozen food business of pot pies, frozen dinners and entrees. ConAgra has a license agreement with Marie Callender's Pie Shops Inc.

The purchase includes a production plant in Torrance, Calif. American Pie is headquartered in Woodbury, N.Y. All of American Pie's 125 employees are expected to join ConAgra.
Dole’s research operations move into new home in Kannapolis North Carolina
6/11/2010

Dole’s research operations move into new home in Kannapolis North Carolina

Dole’s research operations move into new home in Kannapolis North Carolina

Dole Food Co. Inc. has moved its nutrition research to Kannapolis from California.

The world’s largest seller of fruits and vegetables opened a 10,000-square-foot laboratory at the N.C. Research Campus last month.

The Dole Nutrition Research Institute focuses on research that can help educate consumers about the benefits of fruits and vegetables in their diet, says Nick Gillitt, director.

Westlake Village, Calif.-based Dole joins the growing list of private companies at the 350-acre life-sciences hub. Others include agricultural giant Monsanto Co. and General Mills Inc., the world’s sixth-largest food company.
ConAgra sells Gilroy Foods unit for $250M
6/7/2010

ConAgra sells Gilroy Foods unit for $250M

ConAgra Foods Inc. said Monday it agreed to sell its Gilroy Foods & Flavors business to Olam International for $250 million.

Gilroy Foods makes dehydrated and vegetable products, and ConAgra said it had about $300 million in revenue in fiscal 2010. The deal includes manufacturing facilities in California, Nevada, New Mexico, and Oregon, and a warehouse in California. The sale is expected to close in 30 to 60 days, pending regulatory approval.

The assets being sold include Gilroy Foods & Flavors' dehydrated garlic, onion, capsicum and Controlled Moisture, GardenFrost, Redi-Made and fresh vegetable businesses. ConAgra said it will keep the seasoning blends and flavors business and plant operations related to the Gilroy business.

Almost all the employees in Gilroy's Omaha, Neb., headquarters and other Gilroy Foods locations will be transferred to Olam, ConAgra said. It said the sale does not alter long-term financial guidance. The businesses that are being sold will be counted as discontinued operations in the fiscal fourth quarter.

P&G, Newell Rubbermaid Takeover Talks are Reported

6/2/2010

P&G, Newell Rubbermaid Takeover Talks are Reported

P&G, Newell Rubbermaid Takeover Talks are Reported

According to an article in Businessweek, trading of Newell Rubbermaid Inc. options surged to the highest in almost three months on speculation of a takeover by the Procter & Gamble Company (P&G).

The article states that almost 14,000 calls to buy the stock changed hands, 10 times the four-week average and 11 times the number of puts, which give the right to sell. The most-active contracts were June $17.50 calls, which rose 60 percent to 40 cents and accounted for more than half of all options volume for Atlanta-based Newell Rubbermaid. Those contracts expire June 18.

"There's an unsubstantiated rumor that Newell may be taken over by Procter & Gamble," says Patrick Mortimer, director of options trading at Pipeline Trading Systems LLC in New Hope, Pa. "That could drive the trading in options."

Rotha Penn, a spokeswoman for P&G, said the company doesn't comment on rumors about acquisitions or divestitures, but she did offer the following statement: "Managing the product portfolio is an ongoing process. Procter & Gamble management and the board regularly review the portfolio to ensure the businesses are capable of meeting our shareholder value creation expectations."

Newell Rubbermaid declined to comment.

This isn't the first time rumors have swirled around the possible combination of these two consumer goods giants. On Jan. 20, 2010, Bizjournal reported that P&G shares were down, as were Newell Rubbermaid's to a lesser extent, following reports that P&G might be looking to acquire the maker of Sharpie markers, Rubbermaid containers and other branded consumer products.

The rumors did not prove true then. Only time will tell if they come to fruition this time around.

Cadbury Strategy Chief to Step Down
5/28/2010

Cadbury Strategy Chief to Step Down

Cadbury Strategy Chief to Step Down

Cadbury PLC Chief Strategy Officer Mark Reckitt will leave the company, Kraft Foods Inc. said Friday, as the two companies integrate following their merger earlier this month.

Mr. Reckitt, who has been with U.K.-based Cadbury since 1989 and was running the merger integration team with Kraft's Tim Cofer, will step down from his full-time post at the end of July. He will remain as a part-time consultant, according to Kraft, working one day a week for the Green & Black's chocolate brand.

Michael Osanloo, currently Kraft's executive vice president of strategy, has taken over the global integration effort.

According to Kraft spokeswoman Perry Yeatman, Mr. Reckitt is leaving because his position as strategy chief became redundant and because he didn't want to relocate his family to Chicago at this time.

"Had he been able to relocate to Chicago, he certainly would have been considered as a candidate for head of strategy for the combined entity," Ms. Yeatman said.

The Financial Times, which first reported Mr. Reckitt would be stepping down, also said four other Cadbury executives may be leaving. Kraft, which is based in Northfield, Ill., couldn't immediately confirm those departures.

Mr. Reckitt, who became Cadbury's strategy chief in 2007, helped oversee the acquisitions of the Adams and Green & Black's business lines

Former Unilever Exec Named Bacardi CMO

5/26/2010

Former Unilever Exec Named Bacardi CMO

Former Unilever Exec Named Bacardi CMO

Bacardi Limited, and its wholly-owned affiliate, Bacardi International Limited, announce that Silvia Lagnado has been named chief marketing officer (CMO) of Bacardi Limited and president of Bacardi Global Brands, responsible for global marketing initiatives for the company's internationally known portfolio of premium spirits. Lagnado joins Bacardi from a 24 year career at Unilever, where she masterminded the "Campaign for Real Beauty" for Dove. She will join Bacardi by September 1 and will be based in the Bacardi Global Brands headquarters in London.

Lagnado was most recently at Unilever in London where she served as the executive vice president for Savory products which includes Unilever's largest brand, Knorr. In a career spanning 24 years with Unilever, she assumed positions of increasing responsibilities from 1986 to the present including graduate trainee and brand manager for Laundry in Brazil; brand manager and marketing manager positions for Oral Care, Hair Care and Deodorants in Europe; president of Marketing for Personal Care in the UK; vice president for Deodorants in Latin America, UK and Europe; global vice president for Dove; and global group vice president for Savory.

General Mills Ken Powell named America's Favorite Boss
5/24/2010

General Mills Ken Powell named America's Favorite Boss

General Mills Ken Powell named America's Favorite Boss

Glassdoor recently took a survey of employees of some of the most popular companies, asking workers what they thought of the way their bosses were running the company. Glassdoor then broke down the data and ranked the head honchos based on the answers, in hopes of helping potential employees get a better picture of companies and their bosses. What resulted is an interesting look at why these business leaders have such great standing with their employees.

1. Ken Powell, CEO of General Mills

Ken Powell has worked for General Mills since 1979, but has been the CEO of the food company since 2007. Running a food company during a recession can be a tall order, and General Mills revenues continued to climb nonetheless. Their legendary products (Wheaties, Hamburger Helper, Cheerios) might seem a hard sell considering there are plenty of off-brands that could be purchased instead, but General Mills continued to expand its marketing budget and started innovating with online ads before their competitors. The result: major growth and revenues in 2009, at a time when companies were struggling to keep their doors open. In 2009, Powell received a 100 percent approval rating from his workers, a testament that his leadership style is one of the best of the Fortune 500 companies.

2. John Hennessy, Stanford President

People don't often think of university presidents as "bosses," but Stanford's President John Hennessy is one of the best. Dr. Hennessy became president of Standford in 2000, but has been a faculty member since 1977. He was one of the pioneers in computer architecture, and in 1981 he contributed to the RISC (Reduced Instruction Set Computer) architecture, a technology that greatly improved computer performance. It's safe to say that Hennessy is an entrepreneur. John Hennessy's entrepreneurial streak has been what has helped Stanford become one of the most innovative universities. Stanford is one of the top three wealthiest schools in the U.S., and last year announced that it would start forging more ties with local tech companies, many of which sprang from the halls of Stanford. Dr. Hennessy received a 98 percent approval rating from his employees at Stanford, saying that Stanford was an "overall great place to work."

3. Steve Jobs, Apple CEO

Steve Jobs has become one of the most iconic bosses of all time. His keynote speeches at the annual MacWorld Expos keep the tech industry on the edge of their seat, and Apple's revenues continue to grow at blistering speeds. In January, the company posted it's highest fiscal first quarter ever, with their net income up 50 percent. It's no surprise then that the man leading Apple's charge has become one of the most popular and well-liked bosses. As Jobs' popularity and Apple's profits continue to soar, Apple employees will continue to rate the CEO highly. Employees at Apple gave Jobs an approval rating of 97 percent, with 517 votes.

4. Lloyd Blankfein, Goldman Sachs CEO

Love him or hate him, Lloyd Blankfein is popular with his employees. Even though he made our list of dumbest business mistakes of 2009, his employees who voted at Glassdoor gave him a 97 percent approval rating. Blankfein has been under intense scrutiny, with Goldman Sachs receiving federal aid in 2008 and then giving out $16 billion in bonuses. While this may have enraged the general public, it certainly made Goldman Sachs employees happy. Employees described Blankfein's leadership as "intense," but overall they were very happy with the performance of the company under his lead.

5. Eric Schmidt, Google CEO

Google is another tech company that has posted massive growth year after year. Many attribute this to the excellent leadership of CEO Eric Schmidt. Schmidt joined the Google board of directors in March of 2001, and quickly became the company's CEO five months later. Schmidt has helped raise revenues quarter after quarter, with sales last quarter jumping 23 percent from the previous year. Google has grown to handle over two-thirds of all search queries in the U.S., and continues to add innovative products and services to the company year after year. Schmidt was even named PC World's #1 on the 50 Most Important People on the Web in 2007. With all the growth and accolades, it's no surprise that Google is one of the most sought-after tech companies to work for. As Google continues to show strong growth and great leadership, Google employees will continue to be happy with their CEO.

6. James Truchard, National Instruments CEO

James Truchard is the co-founder of National Instruments. While National Instruments may not be the sexiest company around, it's definitely one of the best companies for employees. The company has been on Fortune's 100 Best Companies to Work For for eleven consecutive years and counting. CEO James Truchard is directly responsible the accolades. James' employees refer to him as "Dr. T," and is one of the most accessible CEOs of a fortune 500 company. He drives an old pickup truck to work, wears jeans, and sits in a cubicle on the 8th floor, where employees are encouraged to discuss any issues they might have with the company. "Dr. T's" accessible leadership style has won the hearts of his employees, giving him an approval rating of 96 percent.

7. Edward Zore, Northwestern Mutual CEO

Edward Zore has been Northwestern Mutual's CEO since 2001, but he's been working for the company since 1969. In 2008 Zore made the list of 100 Most Influential People in Business Ethics due to his strong stance on ethics in banking. When most financial institutions were caught with their pants down in the subprime markets, Zore insured that Northwestern Mutual had less than 0.5 percent of their assets exposed to subprime loans. Under Zore's leadership, the company has brought in award after award on social responsibility and quality. His employees gave the company a 96 percent approval rating because of the strong human element that Zore and the rest of the company have embraced.

8. Richard Edelman, CEO Edelman

Richard Edelman has helped the company his father started become the largest public relations firm in existence. Richard Edelman is a thought leader on PR, and has produced regular reports on the state of trust with corporations. Edelman has worked with high-profile clients like Walmart, Starbucks and many others. Richard Edelman is known for his outspoken critiques on the PR industry and industries that have PR problems. Yet his company ranks as one of the best by employees. They gave Edelman a 95 percent approval rating, giving Richard Edelman high marks for being a visionary and a great educator.

9. Gary Kelly, Southwest Airlines CEO

Southwest is known for its innovative approach to customer service, and also for the care of their employees. The man in charge for the excellent corporate culture is Gary Kelly. Gary Kelly joined the airline company in 1986, and was eventually named the CEO by 2008. Since then Kelly has been named one of the best CEOs in America twice (2008, 2009) by Investor magazine. The company has a slew of recognition and awards like "100 Best Corporate Citizens" for eight years in a row, and the leader in American Customer Satisfaction Index in both 2005 and 2008. Kelly scored a 94 percent approval rating for the care of his employees.

10. Matt Ferguson, Career Builder CEO

CareerBuilder.com has grown into the largest online job site, and has held that title since 2001. CareerBuilder CEO Matt Ferguson has used many innovative strategies to grow the company, and the dividends are paying off. Under Ferguson, CareerBuild.com has built impressive customer service and expansive marketing campaigns to bring in high amounts of traffic and revenue. In 2004 Ferguson was named one of the Crain's Chicago Business 40 Under 40. Ferguson received a 94 percent approval rating thanks to his innovative vision for the company and his employees.
Berkshire sells 23% of its Kraft share
5/18/2010

Berkshire sells 23% of its Kraft share

Berkshire sells 23% of its Kraft share

Warren Buffett's Berkshire Hathaway Inc. cut its stake in Kraft Foods Inc. in the first quarter as the billionaire investor raised cash for the biggest acquisition of his four-decade reign.

The Mr. Buffett-controlled firm exited positions in health-care companies UnitedHealth Group Inc. and WellPoint Inc., sold all holdings of SunTrust Banks Inc. and disposed of a small stake in insurer Travelers Cos., according to a filing with U.S. securities regulators Monday.

And Berkshire again reduced holdings in Johnson & Johnson, Procter & Gamble Co. and ConocoPhillips in the first quarter as Mr. Buffett's company completed the $27 billion purchase of railroad Burlington Northern Santa Fe.

But it was the sale of 23% of its stake in Kraft—the company he criticized for paying too much to buy Cadbury PLC—that stood out. Mr. Buffett took the rare step of publicly criticizing Kraft Chief Executive Irene Rosenfeld's pursuit of Cadbury this year, saying she overpaid by using undervalued Kraft shares to fund the deal. And he objected to the price Kraft got for the sale of its DiGiorno and Tombstone pizza brands to Nestle SA, which raised additional cash for the Cadbury transaction.

"Both deals were dumb," Mr. Buffett told Berkshire shareholders at the company's annual meeting this month, while saying that Ms. Rosenfeld was still a good manager. Ms. Rosenfeld has said Kraft increased value for shareholders by buying Cadbury, obtaining brands with global recognition and adding a valuable distribution network in developing countries.

Berkshire and Mr. Buffett, the company's 79-year-old chairman and chief executive, now own 106.7 million shares in Kraft, and appeared to remain the largest shareholder in the Northfield, Ill.-based company. Competing money managers were also filing updates on the stock holdings Monday, making an exact ranking difficult to calculate. Berkshire's remaining Kraft shares are worth more than $3.2 billion based on Kraft's closing price of $30.55

The filing shows Berkshire's holdings as of March 31, meaning Berkshire had already sold Kraft shares when Mr. Buffett most recently aired his objections at the shareholder meeting. He had also said in interviews before the completion of the £13.6 billion ($ 19.69 billion) Cadbury transaction that he still considered Kraft shares to be undervalued, while saying the use of Kraft stock to acquire Cadbury made him feel "poorer."

"He's been complaining about that Cadbury deal like a kindergartener who can't get over the fact that someone stole his bicycle," said Jeff Matthews, the founder of hedge fund Ram Partners LP. "He's held out the olive branch to their CEO and said that she's a smart lady, but he just keeps talking about it. It's pretty remarkable."

A Kraft spokesman said Mr. Buffett doesn't advise the company when he trades the shares, but noted that the reduction appeared to be part of an effort to raise money for the Burlington deal alongside the sale of stock in consumer-products firm Procter & Gamble and Johnson & Johnson, the world's largest maker of health-care products.

Omaha, Nebraska-based Berkshire cut its holdings of Procter & Gamble by about 10% to a stake that was worth $5 billion on Monday, and reduced Johnson & Johnson by 12% to a stake worth $1.53 billion. But Mr. Buffett had told shareholders a year ago—after he first sold those stocks—that they were companies he "would have preferred to keep," and was selling only because he had opportunities to put the money to work elsewhere.

The first time he sold them, Mr. Buffett put Berkshire money into preferred shares and warrants in Goldman Sachs Group Inc. and General Electric Co. This time, he had Burlington in his sights, which required Berkshire to sell $8 billion of debt and, like Kraft when it wanted Cadbury, issue new stock.

Mr. Buffett, in his annual letter to shareholders in February, wrote that the decision he made alongside Vice Chairman Charlie Munger to issue shares for the Burlington deal "was a close one," but worth it to buy "a business we understood and liked for the long term."

But, he wrote, "Charlie and I enjoy issuing Berkshire stock about as much as we relish prepping for a colonoscopy."

Berkshire cut holdings of ConocoPhillips for the sixth straight quarter, and exited from SunTrust, UnitedHealth and Wellpoint after cutting the stakes in prior periods. Mr. Buffett has confessed to the "mistake" of buying ConocoPhillips stock when oil prices were near their peak, and has written down the value of the company in prior quarters. Mr. Buffett's firm also sold shares in ratings agency Moody's Corp., used-car company CarMax Inc., M&T Bank Corp., newspaper chain Gannett Co. and Costco Wholesale Corp. Mr. Munger is on Costco's board of directors.

Berkshire added to holdings of medical devicemaker Becton Dickinson & Co., Iron Mountain Inc. and trash-hauler Republic Services Inc.

Berkshire's quarterly disclosure of its $51 billion U.S. portfolio is scrutinized by professional money managers and amateur investors alike. Mr. Buffett's company joins other investment firms that control more than $100 million in reporting stock holdings 45 days after the end of a given quarter, giving the public its freshest possible glimpse into the investing decisions of the "Oracle of Omaha." But Mr. Buffett has warned investors against assuming all moves in the Berkshire portfolio are his. Portions of the company's holdings are managed by Lou Simpson, the head of investing at Berkshire-owned car insurer Geico Corp.

Berkshire stakes in American Express Co., Coca-Cola Co. and Wells Fargo & Co. remained unchanged. Mr. Buffett's firm is the largest shareholder in each.

Most hedge-fund managers and others wait until the last possible moment to make these filings. Because the 45th day after March 31 fell on Saturday, the deadline for first-quarter holdings was Monday.
Sara Lee's CEO takes temporary leave
5/15/2010

Sara Lee's CEO takes temporary leave

Sara Lee's CEO takes temporary leave

Sara Lee Corp. said Brenda C. Barnes, its chairman and chief executive, has left the company temporarily for medical reasons, with the food maker's lead independent director and chief financial officer to take over those roles, respectively, in her absence.

Finance chief Marcel Smits, who will serve as interim CEO, is new to the company, having joined in October. Lead independent director James S. Crown becomes acting chairman until Ms. Barnes's return. The company didn't say when she plans to resume her duties. It said that out of respect for Ms. Barnes' privacy, it wouldn't comment beyond its press release.

Sara Lee also formed an office of the chairman to keep strategies and operations on track. Messrs. Crown and Smits will be part of the office, as will Christopher John Fraleigh, chief of North American retail and food service.

Until Mr. Smits's tenure as interim CEO ends, Mark Garvey—a veteran Sara Lee executive—will take on the duties of chief finance officer.

Ms. Barnes, 56 years old, took over as chief executive in 2005, and pruned some operations. Among other deals, she recently sold the Ambi Pur air-freshener business to Procter & Gamble Co.

D.A. Davidson analyst Tim Ramey said Barnes had made substantial progress in turning around the company. "She's got some good traction going so I hate to have her step away for even a short while, but it sounds temporary. Smits is capable and the company is in good hands," he said.

Earlier this month, Sara Lee said it swung to a fiscal third-quarter loss on charges, but its earnings without them beat expectations and the company was optimistic about the future, raising its profit target for the year.

Sara Lee, which has been restructuring since 2005, benefitted in the recession from consumers cutting back on eating at restaurants and spending more on groceries.
P&G to acquire Natura Pet Products
5/5/2010

P&G to acquire Natura Pet Products

P&G to acquire Natura Pet Products

Procter & Gamble Co has signed a deal to buy privately held Natura Pet Products Inc, a move that will let the maker of Iams and Eukanuba products expand into the holistic and natural segment of the pet food market.

The acquisition may surprise some industry watchers who had wondered in the past if pet food was a business P&G would exit. The business, a relatively small one for P&G, has not performed as well as other parts of the consumer product maker's $79 billion portfolio.

Natura, based in Davis, Calif., sells products under the Innova, Evo, California Natural, Healthwise, Mother Nature and Karma brands in some specialty pet stores and through veterinarians, mainly in the United States and Canada.

P&G said it plans to close the acquisition of Natura, which has about 140 employees, in a month or so. The terms of the deal were not disclosed.

Last week, P&G reported a 6 percent drop in quarterly organic sales of snacks and pet care items, which strip out the impact of acquisitions, divestitures and foreign exchange rates. The snacks and pet care business, which also includes the Pringles brand, was the company's only unit to post a decline in organic sales

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