Milling & Baking News - November 19, 2019 - 7

Editorial

2019 profiles feature telling pivots, reversals

look at consumer-packaged goods companies acknowledged the company's stock valuation is among
included in the latest Corporate Profiles, a spe- the lowest in the industry. While Kraft Heinz certainly
cial food industry overview published annu- has not abandoned its pursuit of cost cutting and has
ally by Sosland Publishing Company, reveals numer- not fully unveiled its new strategy, Mr. Patricio said he
ous trends among businesses seeking a path toward is committed to stepping up marketing spending oversustainable growth in an industry in which such basic all, particularly on its most profitable brands.
success has been anomalous at best.
Spending on "power brands" has been a strategic
Standing out in several of the profiles is the belief cornerstone for Mondelez International, Inc. for more
plant-based represents a ripe opportunity. Coming on than a decade. These brands include some of the largthe heels of steady growth for many years of plant-based est in the snack industry, including Oreo, Cadbury,
dairy alternatives and with the remarkable growth Milka and Trident. Over the past year, though, the
achieved to date by newcomer meat alternative manu- company has made a high-profile shift toward its
facturers Beyond Meat, Inc. and Impossible Foods, Inc., considerable collection of other brands. "For us to be
numerous established compasuccessful, we cannot just be foIn a business as dynamic as the
nies have rushed to participate
cused on 45% of the portfolio,"
in what is viewed as a rapidly food industry, strategic shifts and said Dirk Van de Put, c.e.o.
even reversals always will be part
emerging opportunity. For exA reversal of strategic bets
ample, Kellogg Co. is looking to
featured prominently in several
of the business landscape.
connect with a new generation of
profiles. Standing out has been
potential consumers by updating its Morningstar Farms the abandonment by Campbell Soup Co. of its expanline. The business dates back to the mid-1970s and has sion into the packaged fresh foods market as a chanbeen owned by Kellogg for 20 years but will launch in nel for growth in the face of steady declines in the
the first quarter of 2020 a next-gen line of alternative canned soup business. Bolthouse Farms, purchased in
burgers under the Incogmeato brand. Other companies 2012 for $1.55 billion, never achieved the company's
jumping into the category are Nestle S.A., Danone S.A., objectives, and the business was sold in June of this
Conagra Brands, Inc. and Tyson Foods, Inc.
year for about $500 million. Fortunately, the compaA very different trend apparent in this year's Corpo- ny's 2018 acquisition of Snyder's-Lance, Inc. for more
rate Profiles are strategies undertaken in the past year than $6 billion has performed better. Campbell's c.e.o.
that stand out as major pivots or even reversals from Mark A. Clouse expressed satisfaction in progress the
what had been longstanding bedrock strategic ap- company has made toward "stabilizing the company"
proaches by major food companies.
and improving performance but added, "by no means
Notable in this regard is a shift announced by the are we declaring victory."
new chief executive officer of Kraft Heinz Co. When
Other examples abound in the Corporate Profiles, inthe merger of Kraft Foods Group and the H.J. Heinz cluding a shift over the last couple of years by Conagra
Co. was announced in 2015, management quickly an- Brands away from a longtime focus on adjacencies,
nounced plans to slash thousands of jobs with cost international expansion and private label, and a more
savings of $1.5 billion a year targeted. Other food modest move by Hostess Brands, Inc. away from its
companies announced major cost reductions pre- pursuit of what executives once viewed as the lucramised on the expectation that the Kraft Heinz model tive in-store baking sector.
ascendant, a dramatically lower cost structure would
In a business as dynamic as the food industry, stratebe necessary for food companies to survive moving gic shifts and even reversals always will be part of the
forward. Kraft Heinz shares have declined nearly two- business landscape. Yet, the number of such shifts over
thirds from a peak price above $90 per share in early the last few years underscores the degree to which pre2017, and Miguel Patricio, the company's new c.e.o., dictable growth has been and remains elusive. MBN
WE'RE EAGER TO GET YOUR FEEDBACK: E-mail editor@sosland.com or write to us at
Milling & Baking News, 4801 Main Street, Suite 650, Kansas City, MO, 64112
EDITORIAL STAFF
Executive Editor, Markets
Neil N. Sosland
Editor
L. Joshua Sosland
Managing Editor
Eric J. Schroeder
Senior Editors, Markets
Jay S. Sjerven
Ron Sterk

Associate Editor
Jeff Gelski
Associate Editor, Markets
Matt Noltemeyer
Digital Media Associate Editor
Rebekah Schouten
Markets, Graphic Designer,
Purchasing Seminar Coordinator
Christina Sullivan

7 / January 2, 2018
Milling & Baking News
bakingbusiness.com
/ world-grain.com

PUBLISHING STAFF
Publisher
G. Michael Gude
Associate Publishers
David DePaul
Bruce Webster
Matt O'Shea
Sales Associate
Tom Huppe
Director of
Audience Development
Michael Barbee

Audience Development
Analyst
Dustin Pickman
Audience Database
Specialist
Lindsey Sheridan
Audience Development
Coordinator
Carlea Schuler
Director of Digital Media
Jon Hall

Digital Advertising Manager
Carrie Fluegge
Advertising Manager
Nora Wages
Advertising Coordinator
Annie Fournier
Design Services Manager
Sadowna Conarroe
Design Services
Assistant Manager
Ryan Alcantara

CORPORATE
Production Specialist
Marj Potts
Senior Design Consultant
Becky White
Promotions Manager
Jim White
Promotions Media Designer
Abby Chronister
Sales Coordinator
Whitney Hartman

Chairman and CEO
Charles S. Sosland
President
L. Joshua Sosland
Chief Financial and
Administrative Officer
Staci Greco
Chief Operating Officer
and Executive Editor
Meyer Sosland
-----
Morton I. Sosland
1925 - 2019

bakingbusiness.com
Milling & Baking News
November 19,/ world-grain.com
2019 / 7

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 19, 2019

Table of Contents for the Digital Edition of Milling & Baking News - November 19, 2019