Latest news with #FoodDive
Yahoo
3 hours ago
- Business
- Yahoo
Cargill invests $90M to automate Colorado beef plant
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Cargill said it will invest close to $90 million in computer vision and other cutting edge technologies over the next few years at a Colorado beef plant, which will allow the food giant to get more meat out of each animal. The company plans to implement a proprietary automated solution called CarVe at its plant in Fort Morgan. The technology uses computer vision to measure red meat yield in real time, helping employees improve cutting techniques and reduce waste. The technology allows Cargill to preserve more meat at a time when cattle supply is at its lowest point in decades. Cargill has invested nearly $24 million in tech upgrades at the Fort Morgan facility since 2021. Cargill has looked to automate some of its processes to improve production efficiencies and make operations safer for employees. The company has implemented more than 100 projects across 35 facilities in North America as part of its Factory of the Future initiative. The latest project at Fort Morgan is designed to improve the meat cutting process by allowing for real-time production insights. Frontline managers can use the technology to instantly share feedback with employees, improving processes that can boost meat production per cow. 'Now, we're making decisions in the moment and saving product that would've been lost,' Jarrod Gillig, senior vice president of Cargill's North American Beef business, said in a statement. 'By applying smart technology to the problem, we're getting more meat from every animal, reducing waste, and making protein production more efficient and sustainable from start to finish.' As the U.S. grapples with a significant cattle shortage, meat producers have invested to expand processing capabilities as a way to increase production. Even a 1% yield improvement can save hundreds of millions of pounds of meat, Cargill said in a statement. Cattle prices are expected to reach new highs in 2026 as ranchers struggle to rebuild herds from years of drought and high input costs. U.S. beef production is expected to decline in 2026 by 5% year over year, according to the Department of Agriculture. Cargill competitor JBS, the world's largest meat producer, said in February that it would spend $200 million to expand U.S. beef production as it prepares for supply to eventually rebound. In addition to the technology upgrades at the Fort Morgan plant, Cargill is investing to address labor constraints by backing a $40 million development project for employee housing. Recommended Reading JBS spends $200M to expand US beef production Sign in to access your portfolio
Yahoo
20 hours ago
- Business
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How Nerds Gummy Clusters became the candy aisle's biggest hit
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. When Nutella maker Ferrero purchased Nestlé's candy business for nearly $3 billion in 2018, the acquisition added popular brands such as Butterfinger, Baby Ruth and 100 Grand to its enviable roster of sweets. But while much of the attention went to these iconic offerings, it may be Nerds, a product largely seen as an afterthought by its prior owner, that could turn out to be the sweetest brand of them all. Nerds is on track to hit more than $900 million in sales this year, a more than 1,700% increase from the $50 million in sales the brand was generating when it was first incorporated into Ferrara, which is owned by a Ferrero-affiliated holding company. The unprecedented surge is directly attributed to the widely popular Nerds Gummy Clusters, which represented the first meaningful innovation for the once-sleepy brand in years. Nerds Gummy Clusters are now the top sugar confection on the market, overtaking Mars Wrigley's Skittles, according to Ferrara. 'We knew we had something that was kind of special, but we really, truly had no idea how special it was or that it would grow as fast or as big as it has become,' said Katie Duffy, vice president of global brands with Ferrara. But the success of the clusters, which are a gummy ensconced in crunchy Nerds candies, wasn't a given. Initial tests weren't particularly encouraging, Duffy recalled, with consumers struggling to comprehend the multi-textural eating experience. 'We looked at the scores that came back from the concept and it was not all sunshine and rainbows,' Duffy recalled. 'We were really trying to understand, okay, why are they not getting it.' Ferrara remained hopeful that Nerds Gummy Clusters would catch on with consumers, especially after the treats proved to be an early hit with its own employees. After tweaking the visuals and language around how they showcased the treats, Nerds Gummy Clusters finally started resonating with testers. When Nerds was acquired, Ferrara observed that the 35-year-old brand had a high level of consumer awareness but went years without meaningful innovation and minimal marketing, Duffy said. Nerds also were not viewed as a market leader in candy because of their small size and the fact that they were messy. Nerds Gummy Clusters solved many of these problems. The candy has proven to be a hit at movie theaters and airports. Nerds Gummy Clusters also have helped attract older consumers and new snacking occasions to the brand. Most surprisingly, some distance runners and endurance athletes have used them as a booster in place of supplements such as Gu Energy Gel, Duffy said. Despite the recent sales boom, Duffy said there is plenty of growth left for the Nerds brand. Ferrara is rolling out more seasonal Gummy Clusters varieties in the U.S. and has expanded the brand into overseas markets such as the U.K. and Canada. At the same time, the company is hopeful Nerds Gummy Clusters can grab more shelf space at existing stores to better match its product velocity. Ferrara also is planning its next big launch under the Nerds banner later this year with Nerds Juicy Gummy Clusters. The snack contains juice in the center and is three times the size of the Gummy Cluster. 'Nerds Juicy Gummy Clusters is going to give us an opportunity to continue to build momentum that Nerds has already established,' Duffy said. 'It's a different eating experience.' Recommended Reading Leftovers: Nestlé sweetens game day with Cookie Nachos | Godiva doubles down on gourmet chocolate Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Post Holdings buys rest of Ronzoni pasta maker for $880M
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Post Holdings is spending $880 million to buy out the remainder of 8th Avenue Food & Provisions, which owns the Ronzoni pasta brand and makes a variety of dried goods such as granola and nuts. 8th Avenue was formed in 2018 when Post transferred its private label business to a new entity. Post sold a 39.5% stake in that entity to private equity firm THL, which it is now buying back. The deal is expected to close July 1, and Post will take over about $111 million in leases as part of the transaction. The acquisition further deepens Post's presence in both private label and branded food, allowing it to provide a wider range of price points. As economic headwinds prompt some consumers to pull back on spending, Post is positioning its business to remain competitive, regardless of the environment. In recent years, Post has built a presence in a particular food category and then ensured the company has both branded and private label offerings to sell to retailers and consumers. With its latest acquisition, Post will have a deeper presence in both segments for foods, such as nut butter, cereal and dry pasta. Once the transaction closes, Post will become the top private label player in peanut and tree nut butter as well as granola, while being No. 2 in dry pasta. 8th Avenue recorded net revenue of $1.1 billion in its fiscal 2024 year. 'With this acquisition, we further our strategy of tactical private label positioning alongside leading brands,' Post president and CEO Rob Vitale said in a statement. The purchase also creates other benefits for Post, whose branded food products include Grape-Nuts cereal, Bob Evans refrigerated sides and Peter Pan peanut butter. According to an investor presentation provided by the St. Louis-based company, the addition of the rest of 8th Avenue secures Post's Peter Pan nut butter supply and enables the food manufacturer to become more meaningful to retail partners in the category. The acquisition enables greater participation in the growing granola sub-category of ready-to-eat cereal, complementing Post's existing business. In addition, Post gains exposure to dry pasta, something the holding company did not have before. Post described the transaction as 'an attractive capital allocation opportunity.' The purchase is expected to increase cash flow and create synergies of about $15 million annually. Post, which traces its roots to being a cereal-only company, became a sprawling food company with a presence in many categories through M&A. Similar to that acquisition strategy, 8th Avenue was formed seven years ago to look for M&A opportunities, eventually acquiring peanut butter and Ronzoni pasta. However, Post said a challenged capital structure following COVID-19 made it hard for 8th Avenue to fully execute its M&A strategy. Post noted last month that tariffs and economic uncertainty have slowed 'what was an active M&A pipeline,' according to Jeff Zadoks, the company's COO. He added that Post would focus on 'smaller tactical transactions' that have a 'clear line of sight to synergies.' Recommended Reading Inside Post Holdings' transformation from cereal slinger to a diversified CPG giant Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Cash-strapped consumers push at-home cooking to highest level since 2020: Campbell's
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. The Campbell's Company said consumers are preparing meals at home at the highest level since early 2020 when COVID-19 forced many consumers to forgo visiting restaurants and other establishments. The food manufacturer said consumers are favoring ingredients that stretch their tighter food budgets. This is providing a tailwind for Campbell's condensed cooking soups, broths and Italian sauces. While its meals and beverages operations remain strong, Campbell's continues to face pressure in snacks, most notably chips and crackers. The same inflationary pressures that have pushed consumers to cook more have also led to a decline in snacking, according to the Goldfish maker.. As consumers look to save a few bucks amid inflation and uncertainty over the broader economy, foods that can be prepared at home have proven to be a major beneficiary. Sales in Campbell's meals and beverages segment surged 15% to $1.5 billion during the third quarter, benefitting from the acquisition of Rao's owner Sovos Brands in 2024. Campbell's soup businesses 'continued its strong performance' during the quarter, with its wet offerings benefitting from younger individuals who are increasingly cooking at home, Campbell's CEO Mick Beekhuizen, said in prepared remarks. The company estimated six of its eight top meals and beverages brands, including Pace, Pacific and Swanson, grew or held share in the third quarter, with consumption increasing by 2%. 'We are seeing improved consumption across all consumer income groups' for meals and beverages, Beekhuizen said in a statement. Consumers are 'turning to our brands for value, quality, and convenience.' As inflationary pressures have led to a renaissance in home cooking, it's become a dual-edged sword for food companies that also are seeing a decline in snacking consumption. Beekhuizen said the snack space remains soft as consumers become more selective and the category continues to be 'increasingly competitive.' Campbell's said snack sales slipped 8% to $1 billion in the third quarter. The company singled out its Goldfish cracker brand, noting 'we have more work to do to reinvigorate this brand and get it back on its historical growth trajectory.' 'While we are not satisfied with the results of our Snacks division, we remain confident in the strength of our Snacks portfolio and continue to take steps to regain our momentum,' Campbell's CFO Carrie Anderson said in prepared remarks. Campbell's also said it is closely watching to see how tariffs will impact its business. The company, which imports tinplate steel for cans and canola oil for chips, noted trade headwinds could cut into its fiscal-year earnings by 3 cents to 5 cents a share. Beekhuizen said the company is 'actively work[ing] to mitigate as much of the potential direct impact of tariffs as possible.' Anderson added that these steps include inventory management, pursuing alternative sourcing and 'where absolutely necessary, consideration of surgical pricing actions.' Recommended Reading Snacking takes a hit as consumer spending shifts to food staples Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Mondelēz invests in compostable packaging, regenerative agriculture
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Oreo maker Mondelēz International announced investments in companies working on scaling compostable packaging and regenerative agriculture through its sustainability-focused venture arm. Mondelēz's Sustainable Futures Impact Investment platform said the capital "further advance[s] scalable, high-impact solutions at the nexus of climate, community, and circularity." The companies receiving investment include Pack2Earth, which looks to replace plastic packaging with bio-based materials; eAgronom, an agricultural technology company that helps farmers transition to more sustainable practices; and Ziro, a fintech startup providing small merchants with inventory financing. Mondelēz's investments in sustainability and innovation come as several of its food competitors rethink those commitments amid declining sales and shifting government policy. General Mills, for example, shut down its venture arm in March as it adjusts "how we pursue new growth initiatives." PepsiCo, meanwhile, reduced the scope of some of its climate goals last month as it looks to become more "pragmatic" around making the most impact while still preserving profits. Mondelēz also changed some of its sustainability and innovation commitments, including a shift in how it makes investments through its SnackFutures venture arm. It also joined other food giants in exiting the U.S. Plastics Pact, an initiative that seeks to unite large companies in a pledge to advance packaging sustainability. The Clif Bar and belVita biscuit owner reported a 12% reduction in emissions last year compared to 2018, according to its latest sustainability report. While it made progress on many of its goals around ingredient sourcing and manufacturing emissions, the company acknowledged headwinds in its ability to reduce the use of virgin plastic. "While we believe we have a strong pipeline of projects for 2025, we anticipate facing challenges in sourcing new materials and overcoming technical challenges to qualify and implement new solutions," the report said. Recommended Reading Nestlé, Mondelēz leave the US Plastics Pact Sign in to access your portfolio
