NEWS & ANALYSIS

INDUSTRY NEWS
McCain Foods and Heinz to acquire Anchor Food Products
McCain Foods Ltd. announced in August that it will acquire the production facilities and foodservice business of Anchor Food Products Inc. in a three-party transaction. H.J. Heinz Co. will purchase the company’s branded products sold to retail outlets, including supermarkets and club stores.

The transactions, which are subject to regulatory review, are expected to close this fall. 

Anchor had sales of $503 million in 2000. The company produces specialty cheese appetizers, onion rings, stuffed jalapeño peppers, vegetable appetizers, and rolled and specialty appetizers. McCain Foods, the world’s largest manufacturer of French fries and an international producer of pizzas, appetizers, and other frozen foods, will acquire Anchor’s foodservice business, its main production facility and headquarters in Appleton, Wis., and its plants in Pecos, Tex., and Cuauhtémoc, Mexico. H. J. Heinz Co., whose Heinz Frozen Food Co. manufactures and markets the Boston Market HomeStyle Meals brand of frozen entrees, will gain licensing rights to Anchor’s T.G.I. Friday’s brand and will acquire the Poppers brand of retail appetizer lines. 

McCain Foods is based in Florenceville, New Brunswick, Canada. Heinz is based in Pittsburg, Pa. 

Kerry buys SPI Foods
Plaza Belmont Management Group LLC sold the stock of SPI Foods, Inc. to Kerry Ingredients North America in August. 

Based in Fremont, Neb., SPI’s primary product line consists of specialty extruded cereal ingredients for use in ready-to-eat cereals, health and energy bars, and snack foods. The sale will allow Plaza Belmont to focus on its other companies, including Premier Blending, Inc. and Hilton House Foods, Inc. 

Plaza Belmont Management Group is the fund manager for Plaza Belmont LLC, a private equity capital call fund based in Shawnee Mission, Kans., that invests primarily in food manufacturing companies. Kerry is based in Beloit, Wis. 

Praxair introduces new ozone technology
Praxair, Inc. has introduced a new ozone technology that improves the quality of fresh-cut fruits and vegetables. The first unit was installed and is in operation at a supplier to McDonald’s Restaurants. 

Ozone is an alternative to chlorinated water for use in disinfecting produce. The process extends the amount of time the fruits and vegetables retain their fresh qualities and uses less water. Ozone is effective in killing a wide variety of microorganisms through oxidation of their cell membranes without leaving toxic residuals behind. The Food and Drug Administration recently approved ozone as an antimicrobial agent for washing fruits and vegetables. 

Based in Danbury, Conn., Praxair supplies industrial gases and related technologies to the food and beverage processing industries worldwide. 

David Michael & Co. announces joint venture
David Michael & Co., Inc., a Philadelphia, Pa.-based flavor company, has entered into a 50/50 joint venture with Aromatics Holdings S.A.S., France, in June. The new company, Extracts DMA S.A.S., will manufacture botanical extracts, particularly those made with vanilla beans. 

Headquartered in Paris, France, the company will market its products globally to the food, beverage, fragrance, and pharmaceutical industries. Initially, it will produce oleoresins such as those used by the European food manufacturers and global flavor and fragrance manufacturers. 

The partners had been working on this project for nearly a year before they formed the company, and have already manufactured a commercial quantity of oleoresin. Because of current vanilla market conditions, product manufactured from the existing crop is extremely limited. Production from the new crop, now being harvested, will be sufficient to cover most demands and should be available early in 2002. 

Kellogg Co. and Disney announce deal
Kellogg Co. and the Walt Disney Co. reached an agreement that gives Kellogg exclusive rights to develop and market breakfast foods based on Disney characters. 

Mickey Mouse and friends, Winnie the Pooh, the Disney Princesses, and characters from various Disney movies will be the stars of breakfast foods that will include ready-to-eat cereals, Pop-Tarts toaster pastries, and Eggo waffles. The new offerings are targeted for worldwide distribution beginning in 2002. 

Kellogg also will become the “official sponsor of breakfast’’ at Walt Disney World, Disneyland Resort, and Disneyland Paris. In addition, Disney and Kellogg agreed to co-develop promotional programs including film, television, and theme parks, with Kellogg’s exclusive character rights. 

Kellogg is based in Battle Creek, Mich.

COMPANY NEWS
Cargill entered into a joint venture agreement with Global Bio-chem Technology Group to form a joint-venture company in Hong Kong. The new company will be a vehicle for investing in the manufacture and sale of sweeteners and biofermentation products made from corn processing in China. The first investment will be a 50/50 owned refinery to be built in Shanghai that will produce high-fructose corn syrup. Based in Minneapolis,Minn., Cargill is an international marketer, processor, and distributor of agricultural, food, financial, and industrial products and services. Based in Hong Kong, Global Bio-chem researches, develops, manufactures, and sells corn-based biochemical products in China and other Asian countries.

Custom Industries acquired Beta Brands Ltd.’s candy-coated chocolate chip business. The new addition will complement Custom’s confectionery product line, which includes sprinkles, nonpareils, colored sugars, and candy-coated chips. Production will take place at Custom’s production facility in Toronto, Ontario, Canada. Custom supplies specialty ingredients to the bakery, cereal, and snack industries. It is a member of the Royal Cosun Group, based in Breda, the Netherlands.

Danisco Cultor USA, Inc. purchased Germantown from the Australian-based Goodman Fielder. Germantown produces stabilizer and emulsifier functional systems worldwide. Based in Copenhagen, Denmark, Danisco develops and produces food ingredients, sweeteners, and sugar. 

Aromatic herb producer Daregal acquired the quick-frozen flavorings operation of GYMA Corp. on July 1, 2001. Based in Milly-la-Forêt, France, Daregal grows, processes, and markets a line of natural aromatic products for the agricultural and food industry, the restaurant and catering industry, and the general public. It will offer GYMA’s flavorings in the U.S. through its joint venture partnership with SupHerb Farms, based in Turlock, Calif.

Jeneil Biotech and Kiwi Co-op Dairies Ltd. have formed a new joint venture company, Maverik Flavors and Ingredients LLC (MFI). The new company will be headquartered in Saukville, Wis. and will manufacture in both Saukville and New Zealand. Based in Saukville, Jeneil develops dairy flavor products. Kiwi Coop Dairies manufactures dairy ingredients and is based in New Zealand. 

The M.F. Cachat Co. relocated its corporate headquarters to 14600 Detroit Ave., Suite 600, Lakewood, Ohio 44107. The company’s phone numbers, 216-228-8900 and 800-729-8900, remain the same. It is a regional technical sales organization focusing on the marketing and distribution of specialty chemical products.

Molins PLC acquired Rose Forgrove horizontal wrapping machines in August. The acquisition augments its existing packaging machinery groups, which include Langen Packaging, Sandiacre Packaging Machinery, Langenpac, and Molins ITC Machinery. Rose Forgrove’s machines will continue to be sold under the Rose Forgrove name. Molins is based in Sykesville, Md.

Procter & Gamble’s Folger Coffee Co. division is expanding its New Orleans plant. The $100 million expansion includes upgrades of roasting and packaging operations and will create at least 80 new jobs. Procter & Gamble is based in Cincinnati, Ohio.

Rocco Enterprises, Inc. agreed in August to sell its turkey and chicken processing business to Cargill North American Turkey Operations, which will immediately sell the chicken processing business to affiliates of George’s, Inc. Based in Harrisonburg, Va., Rocco’s turkey brands include Shady Brook Farms and Marval. Poultry and egg producer George’s is based in Cassville, Mo. Cargill North American Turkey Operations is based in Springdale, Ark. Its premium brands include Honeysuckle White and Plantation.

Southland Bagel Co. changed its name to Southland Brands in August. The new name better describes the expanded range of products the company offers. The company has also instituted a number of growth initiatives, including enlarging its plant size and adding a tunnel oven and new packaging equipment. Based in Carson, Calif., Southland is a family-owned business that offers a line of bagels, pizzas, and other baked goods for retail and wholesale markets.

Spray-Tek, Inc. is opening a new facility in Bethlehem, Pa., this month. The new production facility will provide the company with an opportunity to grow with its clients. Spray-Tek is involved in custom dehydration contract manufacturing.

Stake Technology Ltd. announced in August that its subsidiary Northern Food & Dairy’s Star Valley soymilk plant in Afton, Wyo., has produced its first product. The plant will service customers on the West Coast. The company also plans to expand production at the plant to produce dry soy-based food ingredients and a soy ice cream base. Stake is based in Norval, Ontario, Canada.

by SARA LANGEN
Assistant Editor