NEWS & ANALYSIS

INDUSTRY NEWS
Dean Foods, Baskin-Robbins form alliance
Dean Foods Company entered into a strategic alliance with Baskin-Robbins to manufacture and distribute ice cream to Baskin-Robbins’ franchised retail outlets throughout most of the nation. 

The exclusive supply arrangement gives Dean Foods $85 million in additional ice cream sales and more effectively utilizes Dean Foods’ existing production capacity while extending its distribution reach from coast to coast. The alliance will also help support the growth of the company’s regional ice cream brands and allow the company to execute its national ice cream business strategy, Dean Chairman and Chief Executive Officer Howard M. Dean said. 

Dean Foods processes and distributes a line of branded and private label products, including fluid milk, ice cream, and extended-shelf-life products, which are sold under the Dean’s and other regional brand names. 

Baskin-Robbins is operated and marketed by Allied Domecq Quick Service Restaurants, based in Randolph, Mass., which also operates Dunkin’ Donuts and Togo’s. The company’s chain of more than 4,400 ice cream specialty stores around the globe creates and markets premium ice cream, specialty frozen desserts, and beverages. 

Hormel acquires Turkey Store
Hormel Foods Corporation purchased The Turkey Store Company in the company’s largest acquisition yet. 

Hormel Foods purchased all of the outstanding shares of The Turkey Store Company for $334.4 million in cash, subject to adjustment for outstanding indebtedness and changes in working capital at closing. This is the largest acquisition in the history of Hormel Foods Corporation. 

Hormel manufactures and markets consumer-branded meat and food products. The Turkey Store Company, headquartered in Barron, Wis., produces, processes, and markets fresh and cooked turkey products principally under The Turkey Store brand, available nationwide. 

Government provides nutrition information on the Web
Food scientists and the public can now access federal government nutrition information via the Web. 

The government unveiled a new Web site, www.nutrition.gov, which will serve as a reliable, comprehensive source of information on nutrition and dietary guidance, with an extensive interactive scientific reference section. Agriculture Secretary Dan Glickman said making such information readily available is vital to the health of our nation. 

“Providing accurate scientific information on nutrition and dietary guidance is critical to the public’s ability to make the right choices in the effort to curb obesity and other food related diseases,” Glickman said. 

The new on-line resource includes nutrition information for infants and children, adult women and men, and seniors. The site also includes information on the Dietary Guidelines for Americans, supplements, fitness, the food guide pyramid, and food safety tips. Information related to the treatment and prevention of disease is also available on the Web site. 

Silliker adds Mexico labs to international network
Silliker bioMérieux Inc. acquired the American Quality Lab S.A. De C.V., a food testing lab in Mexico. 

The new acquisition will give food manufacturers, retailers, and restaurants in Mexico access to Silliker’s comprehensive services. This will help them ensure the safety, nutritional value, and quality of their food and feed products. The labs will allow the company to provide support to its clients who have suppliers or manufacturing plants in locations around the world. 

American Quality Lab has accredited labs in Mexico City and Queretaro. The labs are the most recent addition to the expanding Silliker international network, which includes 29 labs with more than 1,400 employees in Australia, Belgium, Canada, France, Italy, the Netherlands, Spain, the United Kingdom, and the U.S.

COMPANY NEWS
B&G Foods, Inc. sold its subsidiary Burns & Ricker, Inc. to Nonni’s Food Company, Inc. B&G sold all of the issued and outstanding capital stock of Burns & Ricker for an undisclosed cash amount. B&G Foods is a diversified food products company headquartered in Parsippany, N.J. Burns & Ricker produces lines of bagel chips, pita crisps, biscotti, and crispini, a crisp flatbread made without yeast. Tulsa-based Nonni’s Food Company manufactures and sells Nonni’s Biscotti®, Cape Cod Cranberry Cookies, and other cookie brands.

Cargill Malt announced it will buy malting barley directly from farmers at its plant in Spiritwood, N.D., and will offer production contracts for specific malting barley varieties. The program will complement the company’s existing elevator-origination programs and will encourage improvements in long-term supplies of high quality U.S. malting barley. The company will offer growers agronomic support in variety selection, cultivation practices, storage, and risk management to help them make cropping choices and manage price risks. Cargill is an international marketer, processor, and distributor of agricultural, food, financial, and industrial products and services.

Coca-Cola Co. purchased coffee maker Planet Java with plans to expand it nationwide. Planet Java, which is currently distributed only in New York and New Jersey, is made by privately held P.J. Bean Co. Planet Java also sells roasted coffees and supplies coffee to about 450 Subway restaurants, but Coke is expected to sell or license that business.

DairiConcepts, L.P. purchased a state-of-the-art production facility in Pollock, S.D., from DFA, a dairy cooperative which markets and processes milk for more than 24,000 dairy farmers across the United States. The facility will begin producing cheese and dairy-based ingredients for food applications. DairiConcepts, based in Springfield, Mo., is a limited partnership with equal ownership by DFA and the New Zeland Dairy Board. 

The Dow Chemical Company acquired 80 percent of Pacific Epoxy Co., Ltd., a manufacturer of converted epoxy resins in the Republic of Korea, from Saehan Industries, Inc. Saehan retains 20% of the company in this joint venture. Dow is a science and technology company that provides innovative chemical, plastic, and agricultural products and services to many essential consumer markets. Pacific Epoxy Co. manufactures and supplies several categories of converted epoxy resins.

Nielsen-Massey Vanillas, Inc. received the Illinois State Blue Chip Enterprise Award. President Camilla Nielsen was recognized for “taking the reins of the company following her husband’s death and keeping alive the business commitment to producing high quality vanilla products.” The company was also recognized for expanding into the European market and developing a waste disposal system that was both effective and environmentally safe. Nielsen-Massy, based in Waukegan, Ill., supplies quality pure vanilla extracts, vanilla powder and paste, and whole vanilla beans to the foodservice and gourmet consumer markets.

O’Connell, Norton & Partners is changing its name to Bozell FoodWorks™. The name better represents what the company is, a specialized group within Bozell, and what the company does, which is work on food. Bozell FoodWorks™ is based in Chicago, Ill.

Pepsi-Cola Company introduced a line of Dole single-serve juices. The new Dole products are being developed with the support of PepsiCo’s Tropicana R&D organization and distributed via Pepsi bottlers in wide-mouth, cup-holder friendly, 16-ounce hot-fill plastic bottles and 11.5-ounce cans. The line is non-carbonated and caffeine-free and includes nine natural fruit flavors with as much as 100% real fruit juice and 100% USRDA of Vitamin C. 

The private equity capital call fund Plaza Belmont L.L.C., based in Shawnee Mission, Kan., and Memphis, Tenn., purchased the business and certain assets of CPI Corporation in Wichita, Kan., and is renaming the company Premier Blending, Inc. CPI manufactures numerous products, including pizza dough mixes and bases, breading and batter mixes, bakery mixes and bases, drink mixes, spice blends and seasonings, and gravy and sauce mixes.

Sparboe Foods Corporation, a member of the Sparboe Companies, based in Litchfield, Minn., purchased a 330,000 square-foot manufacturing facility in New Hampton, Iowa. The facility will enable the company to expand its further processed egg operations. Sparboe Companies produces fresh shell eggs and is a commercial egg breaker.

A.E. Staley Manufacturing Co., a Decatur-Ill., starch manufacturer, and Domino Specialty Ingredients, a carbohydrate-ingredient processor located in Baltimore, Md., are merging their sales and research activities under the new name of Tate & Lyle Food Ingredients. The combined operation will feature an extensive line of starches, sweeteners, acidulants, and specialty sugars.

by SARA LANGEN KAROTTKI
Assistant Editor