Weekly Roundup: Coca-Cola, AAK and DuPont report financials and plant-based NPD continues to boom

31 Jan 2020 --- This week in business news, the Coca-Cola Company reported strong growth in Q4, along with achieving or exceeding all guidance for the full year 2019. AAK’s interim report for Q4 and year-end report 2019 showed continued profit growth and a new strategic direction. DuPont’s full-year net sales totaled US$21.5 billion, down 5 percent from 2018. Meanwhile, Lesaffre inaugurated the Baking Center of its subsidiary Lesaffre Ivoire in Ivory Coast’s economic capital of Abidjan.The plant-based movement continues to boom, with further launches from Kerry Foods, Tesco and US plant-based beverage brand Silk.

In brief: Business results
The Coca-Cola Company has reported that its net revenues grew 16 percent to US$9.1 billion for the quarter and 9 percent to US$37.3 billion for the year. Organic revenues rose 7 percent for the quarter and 6 percent for the year. Revenue growth for the quarter was driven by concentrate sales growth of 2 percent and price/mix growth of 5 percent. Revenue growth for the year was driven by concentrate sales growth of 1 percent and price/mix growth of 5 percent. In 2019, the company continued to grow its total portfolio, which led to the most significant value share gains in almost a decade, with contribution from both sparkling and non-sparkling offerings. In sparkling, trademark Coca-Cola grew 6 percent retail value globally as it continued to scale innovative offerings such as Coca-Cola Plus Coffee, now available in more than 40 markets. Coca-Cola Zero Sugar continued to expand its footprint, achieving another year of double-digit volume growth. In the non-sparkling portfolio, Innocent, one of the company’s juice and smoothie brands, continued to perform well led by innovative products such as innocent plus, a premium juice offering with added vitamins. The Innocent brand scaled beyond its flagship market of Europe, launching in Japan during 2019 with more expansion planned in 2020.

AAK’s interim report for Q4 and year-end report 2019 showed continued profit growth and new strategic direction, the company has highlighted. AAK’s profit growth continued in Q4 with both Food Ingredients and Chocolate & Confectionery Fats, reporting substantial year-over-year improvement. Food Ingredients continues to grow, improving its operating profit by 9 percent, primarily driven by the company’s semi-specialty solutions in Dairy, Bakery and Foodservice. The performance within the Special Nutrition segment was mixed. Lower birth rates in China and destocking by some customers had a negative impact on Infant Nutrition sales in Q4, while AAK also saw continued growth for Medical Nutrition. Business with solutions for plant-based foods generated substantial volume and profit growth, the company notes. Chocolate & Confectionery Fats reported double-digit profit growth, driven by favorable spot business opportunities in the quarter as well as an improved product mix. AAK continues to see pressure from some customers to roll contracted volumes forward. The company’s investment projects to increase capacity and strengthen its supply chain have been completed according to plan. The sourcing season for new kernels in West Africa has been good and AAK has managed to build an adequate safety stock to secure future production needs. With new kernels at hand and additional capacity, the company expects to reach normal cost levels within the business area by the middle of the first quarter of 2020.

DuPont’s full-year net sales totaled US$21.5 billion, down 5 percent versus 2018, the company has reported. Net sales for the quarter totaled US$5.2 billion, down 5 percent versus the same quarter last year. On an organic basis, net sales were down 2 percent, with 1 percent higher price being more than offset by 3 percent lower volume. “The planned merger of our N&B business with IFF advances the strategic direction of the company and will generate value for our shareholders,” says Ed Breen, Executive Chairman of DuPont. “Together, we are creating a global leader in high-value ingredients and solutions for Food & Beverage, Home & Personal Care and Health & Wellness markets. In addition, we continue to bolster our portfolio through the recently announced strategic acquisitions in the high growth water space. I remain focused on this aspect of DuPont’s value creation opportunity, working closely with the Board to assess opportunities to unlock shareholder value through portfolio refinement and differentiated investment,” Breen states. Kerry Foods has expanded its Naked Glory range with the launch of new meat-free Tenderstrips.

In brief: Projects
French yeast manufacturer Lesaffre has inaugurated the Baking Center of its subsidiary Lesaffre Ivoire in Ivory Coast’s economic capital of Abidjan. This “locally anchored project” is established to support clients in this region in developing new concrete solutions for using yeast, sourdough, or bread improvers in traditional recipes such as Ghanaian bread, traditional baguette, farmhouse bread or compound bread (wheat-manioc). Lesaffre’s Baking Centers currently comprises a global network of 47 centers spread over five continents.

In brief: NPD
Kerry Foods has expanded its Naked Glory range with the launch of new meat-free Tenderstrips, be available in three flavors: Roast, Tikka and Smoky BBQ. They are touted as making the perfect accompaniment to a wide variety of dishes that typically contain chicken – from fajitas and curries to pasta. Drawing upon the company’s experience within the meat industry, Naked Glory Tenderstrips are an addition to the meat-free category – an alternative that matches both the meaty taste and texture of chicken. Following the launch of meat-free quarter pounders, mince and sausages last year, the arrival of Tenderstrips brings a new opportunity for consumers to “Cheat on Meat” with Naked Glory, says Kerry Foods. They will be rolled out across the UK grocery and foodservice channels from February.

Tesco has launched the UK’s first-ever plant-based condiment range. Tesco has launched the UK’s first-ever plant-based condiment range. With sales of plant-based food soaring by 37 percent in the last year, there has been a growing demand for sauces to complement the most prominent culinary trend of the last decade, the retailer notes. Among the most popular plant-based sauces at Tesco in the last year have been Hellman’s Vegan Mayo – with a growth of nearly 400 percent. Tabasco Mild Green Pepper sauce – up by nearly 300 percent and Sriracha sauces – up by 50 percent. The new sauces are part of the Wicked Kitchen range, which is exclusive to Tesco. They include Wicked Dreamy Beetroot Dressing,Wicked Mazin’ Mango Sauce, Wicked Hella’ Horseradish and Mustard Sauce, Wicked Sriracha Sauce, Wicked Sticky Teriyaki Sauce and Wicked Asian Style BBQ Sauce.

US plant-based beverage brand, Silk, has launched a new dairy-free half and half alternative for combining with coffees, teas, lattes and more. New Silk Dairy-Free Half & Half Alternative provides the neutral flavor and creamy texture that half and half consumers expect, but it’s entirely plant-based. This is the first half and half alternative on the market to use oat milk as part of its formulation, which offers a taste and texture that is reminiscent of traditional dairy milk. Each serving has zero grams of added sugar, 1.5 g of fat, and is free of dairy, nuts, artificial flavors and cholesterol. It’s also keto-friendly, non-GMO Project Verified and gluten-free, the brand notes.

Theo Chocolate has debuted two new products to join its line-up of organic, fair trade chocolate bars and candies – Peanut Butter & Jelly Cups and Coffee & Cream Cups. A twist on a classic duo, Theo’s Peanut Butter & Jelly Cups are filled with creamy peanut butter and a sweet layer of raspberry jelly in a 55 percent dark chocolate shell. The Coffee & Cream Cups are a pairing of dark chocolate and coffee-infused coconut oil, in a creamy 45 percent milk chocolate shell. This flavor duo pays tribute to Theo Chocolate’s Seattle roots and love for coffee, the company notes.

By Elizabeth Green

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