Weekly Roundup: Hershey beats Q2 expectations, Ruby Kit Kat lands in Ireland

27 Jul 2018 --- Hershey has released its Q2 results this week and reported a profit of US$226.9 million, beating analysts expectations. Meanwhile, Ruby Kit Kat is now available in Ireland as of this week, after the success of its launches in several Asian and European markets. Also this week, Roquette is celebrating the 40th anniversary of its presence in the US and Campden BRI opened a new virology laboratory to support its virus services for a range of foods including ready-to-eat products, fresh produce, bivalve shellfish and pork products.

In brief: Business & product launches
This week, Hershey released its Q2 results and reported a profit of US$226.9 million. The Pennsylvania-based company had a profit of US$1.08 per share. Earnings, adjusted for one-time gains and costs, came to US$1.14 per share. The results beat Wall Street expectations and the candy maker posted revenues of US$1.75 billion in the period, meeting Wall Street forecasts. Hershey expects full-year earnings in the range of US$5.33 to US$5.43 per share. According to Hershey, its acquisition of SkinnyPop popcorn maker Amplify had helped it boost sales in the US by nearly 6 percent in its latest quarter, as the group looks to diversify its range amid increasing competition. Although the company said it lost market share in the core US candy and gum sector, Hershey reported a rise in both profits and sales for the three months to June, compared to the same period a year earlier. Hershey says the company is on track to achieve its financial targets, adjusted to reflect the sales of Tyrrells and Golden Monkey.

The Coca-Cola Company has also topped Wall Street estimates for its Q2 earnings as the company reported that more consumers bought its healthier diet drink options. Coca-Cola has launched new flavors of its Diet Coke range in slimmer packaging and has introduced no-sugar alternatives in smaller markets to tap into health-conscious consumers who are shifting away from sugary drinks. The beverage company said that its organic revenue, or sales from its core beverage business, climbed by 5 percent and the strongest organic sales growth were in Europe, Latin America, the Middle East and Africa. The world's largest soft drinks company also reported that organic volumes climbed 2 percent thanks to the strong performance of its trademark Coca-Cola brand and Fuze Tea. In its financial report, the firm said its net revenue declined 8 percent to US$8.9 billion, as it was impacted by a 15 percent headwind from the refranchising of its company-owned bottling operations. 

Nestlé’s newest version of its iconic four-finger Kit Kat has hit Irish shores, available exclusively at Tesco Ireland, offering a brand new taste experience, according to Nestlé. The crispy four-finger wafer bar is coated with Ruby chocolate, derived from Ruby cocoa beans, which has an intense berry-fruitiness taste without the addition of any flavor or color. Ruby chocolate was launched last year by Swiss chocolate manufacturer Barry Callebaut. The launch of a breakthrough innovation like Kit Kat made with Ruby chocolate underlines Nestlé’s commitment to developing new, innovative products to help grow its confectionery brands around the world. Maria McKenna, Marketing Manager, Confectionery at Nestlé Ireland says: “We know that a new type of Kit Kat is a huge deal and we are very excited to be able to offer a whole new type of chocolate for Kit Kat fans to try. Ruby chocolate is a big innovation in confectionery and we are very proud that Kit Kat is the first major brand in Ireland to feature this exciting new chocolate.”

EHL Ingredients has launched its new UK foodservice division, Lähde, and unveiled the new brand identity for the range, as well as a new company website. Lähde is a new range of premium, organic and conventional ingredients and blends for foodservice providers, chefs and caterers. EHL's range of products is available in various pack sizes and weights in Lähde branded and own label re-sealable tubs, pillow packs, and jars for the foodservice sector. The products can be added to recipes and formulations for international dishes and accompaniments, sweet and savory baked products, meat marinades, soups and sauces, meat, fish and vegetable meals, as well as curries, stews and tagines. The new brand features a Scandinavian-style logo, in keeping with the name, which means “source” in Finnish, and colors and graphics will change depending on the ingredient or blend, according to EHL Ingredients. 

In brief: Sustainability
Nestlé has joined forces through the Global Coalition for Animal Welfare (GCAW) to advance animal welfare standards throughout the global food supply chain. GCAW is the world’s first global food industry-led collaboration uniting companies and animal welfare experts working towards improving the standard for animals to meet consumer demand for food products reared in systems that promote good welfare. Nestlé joins efforts to collectively address current systemic barriers to change, share best practices as well as accelerate the development of standards and progress on key welfare issues. GCAW aims to publish a collective action agenda in the first half of 2019, focusing on five priority work streams, including cage-free policies and improved broiler chicken welfare.

In brief: Acquisitions
Syngenta has completed the acquisition of Floranova, a flower and home garden vegetable seeds breeder with a broad portfolio and customers in over 50 countries. Founded some 40 years ago in the UK, Floranova is well-known for its strong brand and for meeting the needs of growers in established and emerging markets. In 2017, Floranova generated high single digit USD million sales with a broad customer base ranging from the US and Europe to the Middle East and Asia. Jeff Colegrave, Chairman of Floranova says: “I am proud of what has been achieved at Floranova during the period of ownership. There has been exciting development and growth, particularly in the Asian markets. The acquisition of Floranova by Syngenta is excellent news for all stakeholders and will mean Floranova will be stronger and better placed to face the challenges in a highly competitive marketplace.”

In brief: Appointments & retirements
First Milk has appointed a new non-executive Chairman, Chris Thomas. Thomas, who has spent his career in senior management with some of the food sector’s leading businesses, joins the First Milk Board on August 1, 2018, and will replace, Clive Sharpe, who informed the Board that he intended to stand down from the position earlier this year. Thomas has a strong track record of successful leadership in the food and dairy sectors, having held senior executive and non-executive positions across a range of businesses including Tulip UK, Adelie Foods, Bakkavor, St. Ivel, PepsiCo and Mars. He is currently non-executive Chairman of G’s Convenience Foods and Street Eats Food Ltd. and a non-executive director of Espersen.

Fonterra Co-operative Group Ltd (FCG) has announced that John Wilson has stood down from his position as Chairman with immediate effect as he recovers from a recent serious health scare. Within the last month, Wilson has undergone a significant surgery and will require on-going treatment, according to the He will remain a Fonterra Director until the Co-operative’s Annual Meeting in November when he will retire from the Board. In response to Wilson’s decision, the Fonterra Board has selected John Monaghan as the Co-operative’s new Chairman.

In brief: Other highlights
Roquette is celebrating the 40th anniversary of its presence in the US. Since 1978, the group has expanded its footprint in the country through the establishment of three sites, complemented with a presence in Mexico, Brazil and Canada to serve its American clients in the Food, Nutrition and Health sectors. Roquette opened its first American office on 5th Avenue in New York City in 1978, 45 years after the creation of the group in Northern France in 1933. As a family-owned company with a long-term vision, Roquette identified early on the substantial opportunities offered by the US and American markets for plant-based ingredients, notably to serve local players in the Food, Nutrition and Pharma sectors. 

Campden BRI has opened a new virology laboratory to support its virus services for a range of foods including ready-to-eat products, fresh produce, bivalve shellfish and pork products. The new suite contains a new, large open–plan laboratory for analyses, validation trials and project work on norovirus, hepatitis A and hepatitis E. Martin D’Agostino, who manages the virology team says: “This is a further development of our virus research and testing facilities. This expansion allows us to increase the scope of work that we can offer clients.” This investment follows the UKAS accreditation to ISO 17025:2005 of Campden BRI’s method for the detection of human norovirus GI/GII and hepatitis A virus on fresh and frozen soft berry fruits and a range of salad vegetables earlier this year.

By Elizabeth Green