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Insights & Outsights, a light-hearted annual retrospective (2013 and 2014). Email us for more
Subject:
FOOD BUSINESS NEWS
Period: February 6, 2016 to February 13, 2016
Geographies:
Worldwide
Categories:
All Categories
Contents
 

British Grocery Market Continues Slow Growth Pattern

Discount grocery retailers Aldi and Lidl saw growth accelerate in the U.K. – Lidl to 18.7 percent and Aldi to 13.7 percent. Lidl’s market share rose to 4.2 percent and Aldi’s to 5.6 percent. Among the big chains, Sainsbury’s and Waitrose’s sales were up, while Tesco’s and Morrisons’ were down, according to Kantar Worldpanel’s most recent data. The Co-operative – the U.K.'s fifth biggest food retailer and most frequently visited – was the fastest growing non-discounter, increasing sales by 1.4 percent. Consumers are making more healthful food choices. Although grocery sales growth in the U.K. has been sluggish overall – take-home sales increased only 0.2 percent in the period – the healthy trend led to a five percent increase in... More

"New Year health drives mean growth for the British grocery", Report, Kantar Worldpanel, February 09, 2016

Whole Foods Co-CEOs Say They’re On The Right Track Now

Rocked by negative publicity and stiff organic and natural food competition from lower-cost retailers like Kroger and Costco, Whole Foods Market has experienced slower growth and a declining stock price (down 33 percent). A key problem for the chain is how to communicate to shoppers why its products are worth the higher prices. But in an interview with the Wall Street Journal, the two co-chief executives said the company is not “on our heels." It will create 8,000 new jobs in 2016 and open 30 new stores. As to the negative publicity – New York City said the company deliberately mislabeled package weights and overcharged customers – they said they have learned to respond promptly to stop misinformation in its tracks.

"Whole Foods Boss Calls Himself a ‘Pusher Leader’", The Wall Street Journal, February 09, 2016

Yum! Brands’ 4th Quarter Bolstered By Improved Sales At Two Chains

Yum! Brands, owner of Taco Bell, KFC, and Pizza Hut, beat fourth quarter Wall Street earnings forecasts, posting $0.68 a share compared to $0.66, though sales were moderate. The company said profit was helped by improved same-store sales at Taco Bell (up four percent) and KFC (up three percent). Pizza Hut remains a worry: same-store sales rose one percent last quarter, just shy of the 1.5 percent gain expected by Wall Street. Overall revenue fell about one percent to $3.95 billion, short of analyst forecasts of $4.03 billion. Yum! Brands has said it will spin off its Chinese business into a separate unit. The company gets about half of its revenue from Chinese operations.

"Yum's Tops Profit Estimates After Taco Bell, KFC Sales Grow", Bloomberg Business, February 04, 2016

Battered By Poor Sales In China, Hershey Girds For The Future

Chocolate maker Hershey’s has its work cut out over the coming years, according to Euromonitor. Though profit was satisfactory, overall sales fell slightly in 2015 – and by five percent in the fourth quarter and 13 percent in China. The company, which advanced in recent years into the international market, is struggling to keep up with competitors. The core North American market is softening as per capita chocolate volume growth slows. Americans who buy chocolate are turning to higher quality brands, and that has led to competitive pressure from Lindt and Ferrero. Over the next five years, Hershey’s is expected to focus on its non-confectionery portfolio, pushing wider distribution of Krave Jerky meat snacks and Brookside Snack... More

"The Fourth Quarter Caps off a Year to Forget for Confectionery Giant Hershey", Blog, Euromonitor International, February 03, 2016

 
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