Company News Archive - 2002

December 2002

United Natural Foods completes merger
12/31/02 - United Natural Foods, Inc. announced the completion of its previously announced merger with privately held Northeast Cooperatives, a natural food distributor in the Northeast and Midwest regions of the United States. Northeast Cooperatives carries and distributes over 14,000 products to approximately 2,800 customers primarily in the Northeast. United Natural Foods, Inc. carries and distributes over 30,500 products to more than 11,000 customers nationwide. The Company serves a wide variety of retail formats including conventional supermarket chains, natural product superstores and independent retail operators. For more information on United Natural Foods, Inc., visit www.unfi.com.

Clextral acquires Afrem and Lymac
12/30/02 - Clextral, a French manufacturer of twin-screw extruders used in food processing and other processing industries, announced that it has acquired Afrem International, a pasta processing equipment company and vertical cartoner manufacturer, Lymac.

Hormel Foods acquires Diamond Crystal brands
12/30/02 - Hormel Foods Corp. announced that it has acquired the Diamond Crystal Brands unit of Imperial Sugar Co. Diamond Crystal Brands packages and sells various sugar, sugar substitute, salt and pepper products, savory products, drink mixes and dessert mixes to retail and foodservice customers. The $115 million stock transaction has received regulatory approvals and closed today. "Diamond Crystal Brands had revenues of $160 million in the last fiscal year, and we expect it to be immediately accretive for Hormel Foods," said Joel W. Johnson, chairman of the board, president and chief executive officer. Diamond Crystal Brands is based in Savannah, Ga., employs approximately 600 people and operates four packaging facilities.

Heinz and Del Monte close transaction
12/20/02 - H. J. Heinz Company announced the completion of the a deal with Del Monte Foods. The former Heinz businesses which are now a part of Del Monte are: U.S. and Canadian pet food and pet snacks; U.S. tuna; U.S. retail private label soup and College Inn®broth; and U.S. infant feeding. These businesses include the following major brands: StarKist®tuna, 9-Lives®cat food, Kibbles `n Bits®dog food, Pup-Peroni®and Pounce®pet snacks, and Heinz Nature's Goodness®baby food. As part of the transaction, new financing for the spun-off businesses has been obtained, approximately $1.1 billion of which has been distributed to Heinz. Heinz plans to use these proceeds to reduce outstanding debt.

Tate & Lyle disposes of Chinese sugar factories
12/18/02 - Tate & Lyle PLC announces the sale of Well Pure Ltd to a group of private Chinese investors. Well Pure is a Hong Kong registered company that holds majority interests in two sugar factories based in Guangxi province, southern China. The proceeds of £5 million (HK$62 million) have been received in cash and used to reduce Group debt. Simon Gifford, Group Finance Director Tate & Lyle PLC said: "This disposal completes our exit from investments in sugar assets in China and continues our ongoing strategy to divest non-core or underperforming businesses or product lines."

Cadbury acquires Adams Chewing Gum Co.
12/17/02 - Cadbury Schweppes PLC, London, announced that it will acquire Adams Chewing Gum Co. from Pfizer Inc. for $4.2 billion. The acquisition will make Cadbury the No.2 chewing gum manufacturer worldwide and No.1 in North America. Adams' brands include Dentyne, Clorets, Certs, Bubblicious and Halls.

DuPont shares wheat genome data
12/16/02 - DuPont Corp., in an effort to boost industry-wide research and enhance nutritional applications of wheat and other major cereal crops, announced it is making proprietary wheat genome data available to public and private researchers without restriction. The DuPont contribution, consisting of more than 200,000 lines of expressed sequence tags (ESTs), portions of a gene which can be used to locate an entire gene, more than doubles the amount of wheat genome information currently available to researchers through GenBank, a public database of DNA information held by the National Institutes of Health. An important piece in overall crop science research, DuPont's contribution will considerably increase the amount of wheat genetic information widely available to scientists across the globe. A greater knowledge about the wheat genome will help advance the research of all cereal crops that feed a bulk of the people in the developing world. For more information, see the DuPont Press Release and GenBank.

Unilever sells Malaysian palm oil estates to IOI
12/02/02 - Unilever announced that it has reached agreement to sell its shareholdings in Unipamol Malaysia Sdn. Bhd and Pamol Plantations Sdn Bhd (the Pamol Group) to Palmco of Malaysia, a subsidiary of IOI Corporation for € 152m. The deal is subject to approval by Palmco shareholders and is expected to complete early in 2003. Patrick Cescau, Unilever Foods Director said, "We are pleased that Palmco is acquiring the Pamol Group. They are one of the leading plantation businesses in Malaysia with the capabilities and resources to develop Pamol in the future. The sale is part of Unilever’s Path to Growth strategy which focuses on core activities within Foods and Home and Personal Care". The sale includes more than 20,000 hectares of oil palm estates in East and West Malaysia.

November 2002

Firmenich acquires seafood extract business
11/22/02 - Firmenich, the world's largest privately-held flavor and fragrance company, announced the acquisition of Bjørge Biomarin AS, the leading European producer of natural seafood extracts. Established in 1988, the Norwegian company will continue to be managed by its founders and former owners, Jan and Oddvar Bjørge and will operate under the name of Firmenich Bjørge Biomarin AS. "The acquisition of Biomarin will provide Firmenich with first hand access to natural seafood extracts, contributing significantly to the range of high quality natural ingredients available to our flavorists. This will allow us to develop superior products for our clients and reinforce our leading position in the Industry," said Mr. Patrick Firmenich, Chief Executive Officer of Firmenich. Firmenich is a leader in the creation of flavoring materials for the food, beverage and pharmaceutical industries. With a turnover of CHF 1.9 billion in 2002, Firmenich has been gaining market share for the last twelve years.

EU Commission clears take-over of Degussa by RAG
11/20/02 - The European Commission has approved the acquisition of the German specialty chemicals company Degussa AG by the German mining and technology group RAG. RAG Aktiengesellschaft is an international mining and technology group based in Germany. Its business activities comprise coal mining, power generation, environmental technology, chemicals and plastics. Degussa AG is a German-based international company which makes specialty chemicals. Its activities range from food additives to construction chemicals, coatings and specialty polymers. Degussa is currently 64 % owned by the German utility group E.ON.

GeneScan opens GMO lab in Brazil
11/20/02 - GeneScan do Brasil, Sao Paulo, is opening its new analytical service laboratory in São Paulo – Itu (Brazil). This facility will offer detection, identification, and quantification of Genetically Modified Organisms (GMO) in agricultural commodities, ingredients for food and feed and in finished food products. The new Brazilian lab facility is of special importance to the international trade and agro-food industry because Brazil is the main supplier of Non-GM soy products to the world food and feed market. Currently, the European Union accounts for 45% of the Brazilian soy products exported annually. Currently, the GeneScan Group operates laboratories in Europe (Germany), the USA (New Orleans), and Brazil (São Paulo). A laboratory in Australia (Melbourne), licensed to the New Zealand company AgriQuality, and a subsidiary in Hong Kong comprise this international network.

Importers Service Corp. to buy gum acacia
11/19/02 - Eric Berliner, President of Importers Service Corp., announced that the company has signed a definitive agreement with the state of Jigawa, Nigeria to purchase the state's entire production of gum acacia. Importers Service Corp. has been involved with the Jigawa growing program since its inception.

Cargill opens masa flour plant in UK
11/15/02 - This monthy, Cargill Dry Corn Ingredients opened a £3.85 million masa flour plant at its Seaforth site in Liverpool, UK. The new plant will provide European customers with masa flour, which is a prime ingredient in snack foods, particularly tortilla chips. With the new facility, Cargill Dry Corn Ingredients (Cargill DCI) is able to offer its customers the convenience of a UK supplier with the quality assurance capabilities of an internationally recognised food company, providing a product made from European corn. The project has been supported by the Northwest Development Agency (NWDA) with a £500,000 Regional Selective Assistance Grant (RSA). Bill Lee, commercial manager of Cargill DCI at Seaforth, noted that while masa flour traditionally has been imported from the US, increasing European Union demand for the product led Cargill to the decision to invest in its existing DCI facility in Liverpool.

Kraft Foods sells Now and Later
11/15/02 - Kraft Foods North America, Northfield, Ill., and the Farley's & Sathers Candy Co., Inc., a wholly owned investment of Catterton Partners, announced today an agreement for Farley's & Sathers to acquire the business that manufactures and sells candy under the Now and Later, Intense Fruit Chews and Mighty Bite brands from Kraft. Now and Later, the anchor brand of the business, is a fruit chewy hard taffy. The transaction is expected to be completed by the end of December 2002, and terms of the agreement were not disclosed.

Bunge Limited leases additional soybean plant
11/13/02 - Bunge Limited announced that it has signed a four-year lease on an integrated soybean crushing and refining plant in Brazil. The plant, owned by Bertol S.A., is located in Passo Fundo, Rio Grande do Sul. The lease expands Bunge's storage, processing and refining capacity in one of Brazil's largest and soybean production regions. Bunge is the largest processor of soybeans in Brazil and the largest supplier of bottled vegetable oils to Brazilian consumers.

Merged H&R/Dragoco to cut 950 jobs
11/06/02 - According to a company press release, the merger of the two Holzminden-based producers of flavors and fragrances, Haarmann&Reimer (H&R) and Dragoco, is proceeding according to plan, a month after closing of the deal. With the appointment of the top three management tiers and development of detailed plans for 150 various task forces, the way is paved for the integration plan to be successfully implemented. As part of a process of ongoing dialogue, the company’s employees will be regularly informed about the progress made in the integration as well as about future measures. Over the next one to two years, the merged company expects a reduction of approximately 950 jobs worldwide. This is equivalent to about 16% of the total workforce, which currently stands at 5,800. One-third of the reductions will take place at facilities in Germany, two-thirds at the international facilities. With a view towards further strengthening global competitiveness, additional facilities around the world will – wherever possible and sensible – be combined, and new joint management, production and sales teams will be formed. A detailed outline on the future company strategy is anticipated by February 2003. The completion of the transaction creates a company which, with pro forma sales of €1.245 billion in fiscal 2001, advances to become one of the industry’s leading players. The process of finding a new name for the company is also at an advanced stage, and the new name is likely to be announced early in 2003. Pending the final merger, H&R and Dragoco will, for a limited time, continue to operate as separate entities under company law provision. Both Haarmann & Reimer and Dragoco are successful global players in the fields of fragrance and flavor compositions, aroma chemicals and cosmetic ingredients.

ADM to acquire Dow's industrial ethanol interests
11/01/02 - Archer Daniels Midland Co., Decatur, Ill., and The Dow Chemical Co. announced on Oct. 23, 2002 that effective January 1, 2005, ADM will acquire the interest of Union Carbide Corp. in World Ethanol, a joint venture between ADM and UCC. UCC is a wholly-owned subsidiary of Dow. The agreement calls for ADM and UCC to continue marketing industrial ethanol through World Ethanol during a two-year transition period. During this period, the joint venture will work to transition existing UCC customers to fermentation ethanol produced at state-of-the art ADM facilities in Peoria, Illinois and Clinton, Iowa. At the end of the two-year transition period, Dow plans to exit the industrial ethanol business.

October 2002

DuPont Protein establishes joint venture in China
10/31/02 - DuPont Protein Technologies , St. Louis, Missouri, and Shineway Industry Group Company, Ltd., China’s largest meat processor, have signed a formal agreement establishing a joint venture to produce and market soy protein for mainstream consumer foods in the Asia-Pacific region. The joint venture, named DuPont Shineway Luohe Protein Co. Ltd., will leverage the leading soy protein technology of DuPont and the meat industry and market access of Shineway Group to produce high-quality soy protein to meet the growing demand for healthy food in China. Soy protein will be manufactured at a facility in Luohe, China. “We are very glad to expand our relationship with the Luohe Shineway Group to supply the region’s needs with our high-quality, good-tasting soy protein under the Supro brand,” said DuPont Protein Technologies President Stephan Tanda. “Shineway’s marketing strength, distribution channels and sound management make them a desirable partner to develop food applications.” Luohe Shineway Industry Group General Manager Wan Long said: “We look forward to building a long-lasting partnership with DuPont across the entire food value chain.”

Novozymes and Chr. Hansen form alliance
10/31/02 - Novozymes and Chr. Hansen have entered into a strategic alliance on the development of enzymes for the food industry. The goal is to be able to market new products faster, and the first product created through the alliance is expected on the market in a couple of years. "Novozymes and Chr. Hansen complement each other perfectly," comments Henrik Dalbøge, senior director at Novozymes. "Novozymes has a number of exciting projects in the pipeline, an innovative R&D organization and efficient production while Chr. Hansen is a global leader and supplier of ingredients to the dairy industry, with a thorough knowledge of the market and a strong process and application base. By pooling our complementary skills and resources, we will become the new innovative force in the dairy industry." The alliance is specifically focused on three key areas, increased yield in cheese production, development of new taste variations and improved texture in fermented dairy products.

Opta acquired by Stake Technology
10/29/02 - On Oct. 28, 2002, food ingredients manufacturer, Opta Food Ingredients, Inc., Bedford, Mass., announced it had entered into a acquisition agreement with Ontario, Canada-based Stake Technology Ltd. Stake to acquire all of the outstanding common shares of Opta Food Ingredients. The acquisition value of Opta's common shares, after dilution, is approximately $28 million in cash. Opta's board of directors unanimously approved the acquisition agreement and voted to recommend the tender offer to Opta's shareholders. Jeremy N. Kendall, Stake chairman and chief executive officer, said, "The addition of Opta is integral to our strategy of continuing to build our health-oriented food business. Opta has an excellent reputation for product quality, innovation and technical expertise in developing value-added solutions for major food and food service companies. The acquisition of Opta will be a superb addition to our growing portfolio of food companies and, having turned the corner on profitability two quarters ago, is expected to be accretive to our future earnings." Opta will become a wholly owned subsidiary of Stake with existing management continuing to operate the company.

Japanese functional foods market expected to grow
10/22/02 - Paul Yamaguchi and Associates has released their report explaining the $8.22 billion Japanese nutritional supplement market, which includes dietary supplements and more. The Japanese nutritional supplements market has demonstrated a steady growth of an average of 16 percent a year for the last 10 years, and since 2000, the growth rate has accelerated to more than 20 percent a year. The popularity of western botanicals, herbal and non-herbal products, eased regulatory restrictions, a rise in the aging population and prevention of lifestyle diseases all are contributing to an expansion of the Japanese nutritional supplement market. This report is the first to explain this market comprehensively. As stated in a summary to the report, Japan has been slow to recover from an overall economic downturn, but its nutritional supplement market has been growing steadily for the last 10 years. Just last year, the nutritional supplement industry was up 22% from 2000 to $8.22 billion. The growth trend in the industry is expected to continue at an average of 9% a year over the next decade. For more information, contact www.functionalfoodsjapan.com . 

BASF expands vitamin E production
10/17/02 - BASF, a supplier of vitamin ingredients, announced that it is on schedule to expand its production capacity for vitamin E at its Ludwigshafen site. Measures to optimize and expand vitamin E production have proceeded as scheduled since first being announced in 2001. BASF expects to achieve its target annual capacity of 20,000 metric tons by mid-2004. BASF is among the leading suppliers to the animal nutrition industry, as well as to the human nutrition and cosmetics industries.

Kraft sells Latin American Fleischmann's yeast business
10/15/02 - Kraft Foods Inc., a manufacturer of branded foods and beverages, confirmed that its international business has entered into a binding agreement to sell its Latin American Fleischmann's yeast and industrial bakery ingredients business to Burns Philp, an international food conglomerate based in Australia. Burns Philp will acquire the business for US$110 million. The transaction is expected to close prior to the end of November. The Fleischmann brand name enjoys a well-established position in both the retail and industrial yeast categories. The business has its main operations in Brazil, Colombia, Peru, Ecuador and Venezuela, and it includes five production facilities in the region.

Group selling holdings of Lonza
10/10/02 - Martin Ebner's BZ Group Holdings announced plans to sell its 20% ownership in Lonza, a Swiss-based raw ingredient supplier to the nutrition industry. The 20% stake was valued at EUR547 million, valuing Lonza at nearly EUR2.8 billion. Ebner also resigned as Lonza’s chairman to remove any conflict of interest. Sale of the 20% stake by Ebner will raise cash for BZ Group Holdings.

Novartis sells Ovomaltine
10/08/02 - Novartis is selling Ovomaltine (that's Ovaltine to those in the U.S.) to Associated British Foods, one of Europe's biggest food companies, for 272.5 million Euros. According to Novartis this completes its first phase of its Health and Functional Food divestment, strengthening its focus on core pharmaceuticals business. Under the proposed deal, Associated British Foods plc (ABF), based in London, Great Britain, will acquire the F&B business and brand ownership worldwide, with the exception of the USA and Puerto Rico. The transaction, which is subject to regulatory approvals, will enable these F&B brands to become part of a consumer product business that will optimize their growth. Paul Choffat, CEO of Novartis Consumer Health, said, “We believe that the new owner of Ovaltine/Ovomaltine, Caotina and Lacovo has the relevant geographic reach, distribution presence, and marketing expertise in the consumer industry to exploit the brands’ potential. The F&B brands will be key businesses for ABF and we expect that they will receive the necessary resources for future growth. A key element in our selection of ABF as the future owner was the commitment to maximize job transfers and employment continuation globally and especially in Switzerland, where the company has no overlapping activities.” Novartis announced plans in February this year to divest its Health & Functional Food businesses, with 2001 sales of approximately CHF 850 million (567 million Euros), of which CHF 366 million (244 million Euros) were generated by the F&B business. Negotiations on the divestment of the other H&FF businesses (Health Food & Slimming and Sports Nutrition) are proceeding.

Cargill sells 70,000 tons of food to Cuba
10/01/02 - Cargill Americas, Inc. announced that it has reached an agreement to sell soybean oil, soybean meal, corn, meat and feed phosphate to Cuba. The agreement calls for the delivery of the food during the next six months. "This agreement is a further signal to the American farmer that their products are sought by the once prohibited Cuban marketplace. This purchase - about 70,000 metric tons - will provide food for many of the 11.2 million people who live on this island," said Robert Lumpkins, Cargill's vice chairman and chief financial officer. This sale provides U.S. products that are of value to the people of Cuba, he said.

Danisco sets up flavor group in Singapore
10/01/02 - Denmark-based food ingredient company, Danisco has set up its flavor headquarters for the Asian region in Singapore. The expansion is brought about shortly after Danisco established a new flavor house in China this spring. "Application of flavours in Asia is rapidly increasing and that is why we should be closer to our customers in this part of the world", says Steen Londal, Business Manager, and adds that a stronger position in Asia is one of the factors that will bring Danisco up among the five leading flavour manufacturers in the world. Danisco has based its new Asian headquarters on the formerly Belgian-based Perlarom's activities in Singapore. Danisco acquired Perlarom last May and thus already has an R&D department and a small plant in Singapore. Whereas Danisco excels in flavours for the food industry and Asian customers servicing the global market, Perlarom has established sales to local producers of beverages in the region. The beverages include various kinds of canned soft drinks and coffee beverages. The synergy between the two businesses will provide Danisco with a wider product range. Danisco's plant in China will take over the flavour production aimed at Perlarom's Chinese customers. On the other hand, Danisco is contemplating gradually transferring its production of flavours for the South East Asian customers from Denmark and England to Singapore.

September 2002

CSM to acquire Glucona
9/30/02 - Dutch food ingredients firm, CSM, has reached an agreement with starch manufacturer AVEBE on the acquisition of the gluconic acid derivatives activities of AVEBE's subsidiary Glucona. Glucona, with production facilities in Ter Apelkanaal (the Netherlands) and Janesville (Wisconsin, USA), has a strong market position in high-quality gluconic acid derivatives. The business represents an important addition to the portfolio of CSM Biochemicals which, under the name of PURAC, is global leader in lactic acid and lactic acid derivatives. Like lactic acid, gluconic acid is an organic acid produced by fermentation. With gluconic acid derivatives PURAC will be able to broaden its product range. The derivatives will be used as a calcium and mineral enricher in food and pharmaceutical products. This acquisition fits into CSM's strategy to expand its activities worldwide in these market segments. The integration of the gluconic acid derivatives activities in CSM Biochemicals will also provide synergy opportunities. The pending acquisition has been reported to the SER (Socio-Economic Council) and will be submitted to the relevant competition authority for approval. This acquisition covers the vast majority of Glucona's operations. AVEBE and dairy company Campina are talking about a possible take-over to the starch-based pharmaceutical activities of Glucona.

Frito Lay to eliminate trans fat from its snacks
9/24/02 - Frito-Lay, Plano, Tex., announced eliminating trans fats from its salty snacks, Doritos, Tostitos and Cheetos. Along with the trans fat elimination, Frito-Lay will also introduce Lay’s Reduced Fat chips and Cheetos Reduced Fat snacks in the coming months. Early next year, the snack company will eliminate the hydrogenated oils and convert to corn oil, a trans fat-free oil, in the production of Doritos, Tostitos and Cheetos. For years, the company’s leading Lay’s and Ruffles potato chips have been prepared in trans fat-free oils. The company also plans the unveiling of Lay’s Reduced Fat chips and Cheetos Reduced Fat snacks. Available to consumers this December, Lay’s Reduced Fat chips will have a 25% reduction in total fat and a 60% reduction in saturated fat. Cheetos Reduced Fat snacks will have a 50% reduction in total fat, a 70% reduction in saturated fat and the snack will be prepared in trans fat-free oils. Cheetos Reduced Fat will be available early next year. "We’re taking several steps that will change the way America snacks," said Al Bru, President and Chief Executive Officer of Frito-Lay North America. "Early next year, Frito-Lay is eliminating trans fat oils from our big brands including Doritos, Tostitos and Cheetos." For more information, see the press release.

Kraft acquires Turkish snack company
9/24/02 - Kraft Foods Inc. announced that its international business has completed the acquisition of the shares of the Kar Gida snacks company in Turkey. Kar Gida has a strong position in the Turkish salted snacks market and its portfolio of brands comprises well-known potato and corn chips such as Cipso, Pekos, Patos, Critos and Cerezos. "This is part of Kraft's strategy to rapidly expand our food portfolio in high growth developing markets and we are delighted to grow our presence in a country we consider key to our growth for the region," said Maurizio Calenti, President of Kraft's Central and Eastern Europe, Middle East and Africa region. "This business will significantly increase our scale in Turkey by complementing our existing beverage and chocolate portfolio with strong salted snacks brands," continued Calenti. The Kar Gida company was previously owned by the Kar Group of Companies, a privately owned conglomerate of companies which span financial and recreational services, food, agriculture, aviation, tourism and construction. In 2001, Kar Gida's revenues were approximately $35 million, and has approximately 500 employees at its Istanbul plant and in several regional offices throughout Turkey.

Commission clears Bunge's takeover of Cereol
9/23/02 - The European Commission has cleared the proposed acquisition of French-based food company Cereol S.A. by Bunge Ltd of the United States. The Commission's investigation showed that the two companies' activities were largely complementary and that Bunge would face sufficient competition despite becoming the world's leading oilseed-processing company. Bunge Ltd is an US-based agribusiness and food company whose activities include grain and oilseeds trading, oilseeds processing, edible oils and specialty food products. Cereol S.A. is a French-based food company also active in oilseeds processing, specialty food ingredients and edible oils. It was formerly part of the Eridania Beghin-Say group of companies, controlled by Italy's Edison. In July 2001, EBS was de-merged into four separate companies. Under the terms of an agreement notified to the European Commission on August 19, Bunge will acquire sole control of Cereol from Edison by way of purchase of shares. After the closing of the purchase of the 55% stake held by Edison Bunge will purchase the remaining 45% of Cereol shares that are publicly held.

H&R and Dragoco acquisition cleared
9/18/02 - On September 17, 2002, the Brussels, Belgium-based European Commission cleared the acquisition by private equity fund EQT, which is ultimately controlled by Sweden's Investor AB, of two German-based flavor and fragrances manufacturers Hermann & Reimer GmbH (H&R) and Dragoco Gerberding & CO AG. The Commission's market investigations have shown that even after the acquisition there will be sufficient competition in the European market for the flavors, fragrances, aroma chemicals and cosmetic ingredients concerned. On August 12, 2002 the Commission received a notification of a proposed concentration by which EQT Northern Europe, a private equity fund ultimately controlled by Sweden's Investor AB, would control the whole of Dragoco and H&R by way of purchase of shares and assets. The acquisition would be carried out through a German-based company especially set up for this purpose, called Isis Vermögensverwaltung GmbH. H&R is currently owned by Germany's Bayer group. Both H&R and Dragoco are based in Holzminden, Germany, and manufacture fragrances, flavors, aroma chemicals and cosmetic ingredients, but their combined market share will not exceed 15% for any of the ingredients concerned.

FTC clears acquisition of Chef America
9/12/02 - The Federal Trade Commission has cleared the acquisition of Chef America, the fifth largest producer of frozen food in the USA, by Nestle. The deal is expected to close immediately. The transaction, amounting to $2.6 billion, was announced on August 6, 2002. Once completed, it will give Nestle clear leadership in two of the three main frozen food categories in the U.S Chef America is best known for its frozen hand-held food products that are sold under the Hot Pockets, Lean Pockets and Croissant Pockets brands. The company is expected to generate sales of $720 million in 2002. Chef America is based in Denver, Colorado and operates two factories in California and in Kentucky.

Tyson Foods to sell Specialty Brands, Inc.
9/12/02 - Tyson Foods, Inc. announced that it has signed a definitive agreement to sell its Specialty Brands, Inc. subsidiary to Fremont Partners. Terms of the transaction were not disclosed. Specialty Brands is a leading producer, processor and marketer of frozen food products, including frozen hand-held Mexican appetizers and entrees, frozen filled pasta and coated appetizers. Its brands include Jose Ole, Fred's for Starters, Rotanelli, Marquez, Posada, Little Juan and Butcher Boy. Specialty Brands has manufacturing sites in New York, Missouri, Texas, New Mexico, and California, and is headquartered in Ontario, California. Specialty Brands had sales of approximately $300 million in fiscal year 2001. Subject to potential purchase price adjustments at closing, the sale is expected to result in a pre-tax gain of up to $25 million.

Heinz and Kagome modify alliance plans
9/09/02 - H. J. Heinz Co., Pittsburgh, Pa., and Kagome Co. Ltd., Tokyo, Japan, affirmed their strategic alliance first announced in July 2001. Under the alliance, Heinz, a leading global food company, and Kagome, the leader in ketchup and vegetable juices in Japan, are exploring ways to work together to improve their global operations and product portfolios to accelerate sales growth and reduce operating costs. The alliance is built on long-term plans and the potential for the two companies to jointly pursue business opportunities globally. Due to current economic and market conditions, however, Heinz and Kagome have decided not to implement their initial project in Japan, the previously announced investments in each other's businesses. Heinz and Kagome will continue to work together on various global projects under the terms of the agreement. For example, they plan to continue collaborating on projects in tomato seed development and product and packaging innovations. In August 2002, Heinz and Kagome completed a joint study of the development of a North American fruit/vegetable juice business. As a result of this study, the two companies have agreed to continue their joint effort to commercialize opportunities in this market. As the first step, Kagome on its own will develop and introduce the Kagome brand for vegetable-based drinks in North America. Kagome plans to launch its vegetable drink products next spring.

Hormel and Cargill form joint venture
9/05/02 - Hormel Foods Corp. Austin, Minn., and Excel Corporation, a subsidiary of Cargill, Inc., announced that Hormel Foods and Excel have signed the agreement to form a joint venture to market nationally branded fresh-case-ready beef and pork under the existing Hormel Always Tender (R) brand name to retailers in the U.S. The two food companies are combining their marketing and distribution capabilities and expertise through this joint venture to provide case ready pork and beef solutions that address consumers' and retailers' needs. The joint venture, named Precept Foods, LLC, will be based in Austin, Minn. The current Hormel brand primarily includes pork. Cargill's Excel Corporation subsidiary will supply fresh beef and pork to the nationally branded program, resulting in an enhanced assortment of fresh case ready pork and beef products that will be distributed in retail supermarkets and club stores nationwide. Each company will independently maintain existing meat programs, such as Hormel Foods further-processed meat products and Excel's branded premium meat programs. In a another announcement, Hormel Foods announced it will complete the transformation of its Rochelle, Ill., plant from a hog slaughter operation to a value-added product processing facility. It will produce cured and smoked meats. The company plans to conclude slaughter activities at the plant on Nov. 8, 2002, and begin the renovation immediately.

DSM acquires Roche Vitamins and Fine Chemicals Division
9/03/02 - The Swiss based healthcare group Roche and the Dutch life science products and performance materials company DSM announced today that DSM intends to acquire Roche’s Vitamins and Fine Chemicals Division. On the basis of the discussions to date, the two companies have reached basic agreement on price and payment terms and expect subsequently to conclude on an exclusive basis a contract on all terms of the transaction. The Roche division is the world’s leading supplier of vitamins and carotenoids with annual sales in 2001 of CHF 3.5 billion (EUR 2.4 billion). The division, which will become a unit of DSM, is a global business, headquartered in Kaiseraugst (Switzerland). It employs 7.500 people. The total consideration of the transaction is EUR 2.25 billion. The present and future liabilities from the vitamin price fixing case will remain with Roche. After signing of the contract and before closing the transaction needs to be approved by antitrust authorities. Franz B. Humer, chairman and CEO of Roche said: “This is a significant step for Roche to further focus our group on our two high-tech pillars, pharmaceuticals and diagnostics. With the acquisition of Boehringer Mannheim, the spin-off of Givaudan, the acquisition of a majority interest in Chugai and a number of supplementary acquisitions and alliances in addition to the strengthening of our existing business we have clearly positioned Roche as a leading, innovation driven healthcare company.” To DSM, the acquisition is an important step in the realization of the Vision 2005 strategy which it presented in 2000 and which involves a concentration on life science products and performance materials. Through this strategy DSM aims to grow its sales to about EUR 10 billion by 2005. DSM intends to achieve the desired sales growth through organic growth as well as through acquisitions.

August 2002

Starbucks to open store in Puerto Rico
8/29/02-Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Company, and Puerto Rico Coffee Partners, LLC, will open the first Starbucks Puerto Rico next week. Starbucks and Puerto Rico Coffee Partners, LLC, signed a joint venture agreement to open Starbucks stores in Puerto Rico in January this year. The joint venture, Cafe del Caribe, LLC, is responsible for managing the operations in the market. Following the opening of the first Starbucks store, Cafe del Caribe in Old San Juan., LLC, plans to open another 10 to 15 stores in the next 18 to 24 months. In Puerto Rico, Starbucks is introducing its new single origin coffee, Puerto Rico, which will be offered exclusively in the local market. In addition to Puerto Rico, the first Starbucks store in Mexico is scheduled to open in September, followed by Greece at the end of this year. Puerto Rico Coffee Partners is a division of Cafe Partners Hawaii, which is the joint venture partner of Starbucks Coffee International in Hawaii. The joint venture, Coffee Partners Hawaii, currently owns and operates 30 Starbucks retail stores in Hawaii.

ConAgra to complete Swift transaction
8/28/02 - ConAgra Foods Inc. announced that it expects Hicks, Muse, Tate & Furst Inc. and Booth Creek Management, Inc. to wrap up their financing and close the previously announced $1.4 billion Swift & Company transaction during September. Announced in May 2002, the agreement transfers ConAgra’s fresh beef and pork processing business to a new venture led by Hicks, Muse, Tate & Furst Inc. Under the arrangement, ConAgra Foods will own a minority stake and substantially reduce its equity interest in the fresh beef and pork business to $150 million from over $1 billion currently. The HMTF group, in conjunction with Booth Creek Management Inc. and George Gillett, will own 54% of the venture, leaving ConAgra Foods with 46%. ConAgra Foods' consumer brands include: Hunt's, Healthy Choice, Banquet, Armour, Bumble Bee, Louis Kemp, La Choy, Lunch Makers, Knott's Berry Farm, Wesson, Country Pride, Blue Bonnet, Kid Cuisine, Parkay, Reddi-wip, Cook's, Butterball, Act II, Slim Jim, Eckrich, Chef Boyardee, Orville Redenbacher's, PAM, Snack Pack, Van Camp's, Peter Pan, Hebrew National, Gulden's, Pemmican, Brown 'N Serve, Swiss Miss, and many others.

Michael Foods to acquire Inovatech's egg products business
8/14/02 - Michael Foods, Inc. announced that it has entered into an asset purchase agreement with Canadian Inovatech Inc. whereby Michael Foods' wholly-owned Canadian subsidiary, MFI Food Canada, Ltd., will acquire the egg products assets of Canadian Inovatech. These assets include customer lists, egg processing equipment, and other assets. Additionally, Michael Foods will enter into long-term leases for two plants presently operated by Canadian Inovatech. A late August closing is expected. The egg products operations of Canadian Inovatech are expected to generate approximately CD$70 million in sales this year. This new division will continue to service its customers and worldwide markets under the name Inovatech Egg Products, a division of MFI Food Canada, Ltd. Canadian Inovatech is also a one-third partner in a Canadian joint venture, Trilogy Egg Products, Inc., along with Michael Foods and The Egg Producers Co-op Ltd., a group of Manitoba-based egg producers. Hence, upon the completion of the asset purchase, Michael Foods will own two-thirds of Trilogy Egg Products. Trilogy produces and markets value-added egg products in Canada.

Bunge gets go ahead for Cereol acquisition
8/09/02 - Bunge Ltd., White Plains, NY, announced that it has been notified that it has received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to its proposed acquisition of an approximately 55% controlling stake in Cereol S.A. Bunge signed a definitive agreement to acquire an approximately 55% controlling stake in Cereol S.A., a leading oilseed processor, from Edison S.p.A. for Euro 32 per share, or approximately Euro 449.2 million in cash on July 22, 2002. As required by French law, Bunge intends to make an offer to purchase, at the same price per share, the approximately 45% of Cereol shares that will remain publicly held after the closing of the purchase of the Edison shares. The transaction, which is now expected to close in 2002, is also subject to regulatory approval in the European Union. Bunge is currently in the process of seeking approval for the acquisition from the European Union antitrust authorities.

Barry Callebaut completes Stollwerck acquisition
8/06/02 - Barry Callebaut, Zurich, Switzerland, has received the necessary approvals form antitrust authorities to close its acquisition of Cologne-based Stollwerck AG through its German subsidiary, Van Houten Beteiligungs AG. Stollwerck generated dales of approx. CHF 774 million or Euro 530 million in 2001.

Nordzucker to produce tagatose
8/05/02 - Spherix Inc., Beltsville, Maryland, said that Nordzucker of Germany just announced signing a joint venture with Arla Foods of Denmark to produce Spherix's revolutionary new sweetener, tagatose. With completion of the Arla- Nordzucker negotiations, construction of the first production facility for the low-calorie, full-bulk sweetener will allow Arla (MD Foods, Spherix's licensee, has been merged into Arla Foods) to meet its stated plan to market tagatose by the summer of 2003. Nordzucker said this first plant will produce 1,250 metric tons (2,750,000 pounds) of tagatose per year.

DSM to build new yeast production facility
8/02/02 - DSM Food Specialties, Delft, the Netherlands, recently commissioned new production facilities for its dried inactive yeast product, called Engevita(R), at its headquarters in Delft, the Netherlands. The facility is said to be designed in accordance with GMPs in which HACCP prinicples are implemented. DSM is a leading supplier of food ingredients. Sales from food ingredients accounted for Euro 850 million in 2001.

Wessanen acquires Kallo Foods
8/02/02 - On July 30, the Executive Board of Koninklijke Wessanen nv, the international food group, announced that an agreement has been reached to acquire Kallo Foods Ltd, based in Wormley, United Kingdom. Kallo is the leading brand for an organic product range in the United Kingdom. This extensive range includes healthy products such as rice cakes and breadsticks. Kallo Foods' products are available at most supermarkets and the better health food shops in the United Kingdom. Kallo Foods has sales of approximately EUR 22.5 million. This acquisition is the next step in executing Wessanen's wellness strategy to further concentrate on natural and specialty foods for the health and quality conscious consumer. Kallo Foods offers Wessanen a strong brand with a premium quality in the UK organic food market. Kallo Foods will be part of Wessanen's Tree of Life Europe division. Following the acquisition of Nature's Store in March of this year, the acquisition of Kallo Foods will further strengthen the existing activities and brands in the United Kingdom.

Campbell completes purchase of Snack Foods Ltd.
8/02/02 - Campbell Soup Co., Camden, NJ, announced that its Australian subsidiary, Arnott's Biscuits Holdings Pty Ltd, has completed purchases for more than 90% of the shares of Snack Foods Ltd., a leader in the Australian salty snack category. Campbell announced its intent to acquire Snack Foods Limited on June 4, 2002, when it offered $2.00 per share (Australian). Total consideration for the shares is approximately $255 million (Australian), or approximately $145 million (U.S.). Snack Foods Limited had approximately $125 million (U.S.) in sales in 2001, and over the past two years its sales have grown an average of 8% annually. Arnott's, the biscuit market leader in Australia, entered the salty snack category in 1996 with the acquisition of the "Kettle Chip" brand. With the addition of Snack Foods Limited's brands in the potato chip, corn chip and other snack segments of the salty snack market, Arnott's will be the number two producer in the Australian salty snack market, which has been growing at an annual rate of 7.5% over the past three years.

ADM awarded patents for isoflavone use
8/01/02- Archer Daniels Midland Co. announced that it has been awarded three U.S. patents that describe the use of concentrated isoflavones in combination with other plant-derived phytochemicals for the treatment of blood-related diseases, cancer and menopausal symptoms. The patents cover plant-derived compositions enriched with at least two phytochemicals from a group consisting of isoflavones, lignans, saponins, catechins and phenolic acids. "The unique combination of isoflavones with other natural-source compounds has potential to provide greater benefit than can be achieved from single uncombined compounds and may prove useful in reducing the risk of cardiovascular disease, reduction in hot flashes, and treatment of cancer," stated Tony DeLio, Corporate Vice President of Marketing and External Affairs. "They can be utilized in dietary supplements or added to foods to provide functional benefits."

July 2002

Bunge to acquire Cereol S.A.
7/22/02 - Bunge Ltd announced a definitive agreement to acquire an approximately 55% controlling stake in Cereol S.A., a leading oilseed processor, from Edison S.p.A. for EUR449.2 million in cash. As required by French law, Bunge intends to make an offer, at the same price per share, to purchase the approximately 45% of Cereol shares that will remain publicly held after the closing of the purchase of the Edison shares. Assuming 100% of the remaining shares are purchased as part of this process, the total price paid by Bunge for Cereol's equity will be EUR821.4 million. Bunge will also pay up to an additional EUR77.0 million to Cereol shareholders upon the resolution of pending arbitration against Cereol. In addition, Bunge will assume Cereol's debt upon closing. The transaction is expected to close between late 2002 and early 2003 and is subject to regulatory approvals in the United States and the European Union. The transaction will make Bunge the world's leading oilseed processing company, with integrated operations across key geographic regions.

Haarman & Reimer acquired; H&R to merge with Dragoco
7/18/02 - EQT Northern Europe Private Equity Funds (EQT) has signed an agreement with Bayer to acquire the world's fifth largest manufacturer of flavors and fragrances, Haarmann & Reimer. EQT will, at the same time, acquire shares in the competitor Dragoco and the two Holzminden-based manufacturers of flavors and fragrances, Haarmann & Reimer and Dragoco, will subsequently be merged into a new company, operating under a new name. EQT will have a controlling stake of 76% in the new company. In addition, Dragoco CEO Horst-Otto Gerberding will hold a 22% stake and NordLB a 2% stake. The merger is subject to approval by the cartel authorities. The headquarter will remain in Holzminden. The two companies operate in the areas of fragrances and flavor compositions, aroma chemicals and cosmetic ingredients. For more information, see the Dragoco Press Release.

SiberHegner and Diethelm Asia merge
7/17/02 - Swiss-based pharmaceuticals and food ingredients distributor, SiberHegner Holding Ltd. and Diethelm Keller Services Asia Ltd., a subsidiary of Diethelm Keller Holding Ltd., have agreed to a merger of their companies. The new company will operate as DKSH Holding Ltd. While Diethelm Keller Services Asia serves several Asian markets, predominantly in Thailand, SiberHegner holds a position in Japan and has established a network spanning Asia, Europe and the Americas. Established in South East Asia in 1887, the companies Diethelm and Eduard Keller merged to form Diethelm Keller Services Asia (DKSA). Today, DKSA is the largest subsidiary of Diethelm Keller Holding Ltd., generating annual revenues in excess of CHF 3 billion. DKSA is active in 15 Asian and Pacific countries as a distribution and marketing service provider. The main business segments are pharmaceuticals, chemicals, consumer goods, and food ingredients. Founded in Yokohama, Japan, in 1865, SiberHegner is a Zurich-based marketing and services group with annual revenues exceeding CHF 1 billion. SiberHegner focuses on the strategic business segments pharmaceuticals, food ingredients, and other products.

Danisco and NZMP launch new probiotics
7/16/02 - Following an agreement concluded with NZMP Ltd., Danisco is now able to launch the first of two new probiotic bacteria cultures which can promote consumer health by enhancing the immune system. The launch is the result of a cooperation managed by the Danisco Specialities division that is dedicated to development of dairy cultures and other speciality products. Last year, Danisco acquired the Australian and New Zealand-based ingredients company Germantown. In 2001, Danisco obtained the licences for production and marketing of the two probiotic bacteria cultures in major parts of the world, both cultures have been developed by Fonterra Research Centre (NZDRI) and NZMP Ltd.

Rhodia forms new venture in Japan
7/15/02 - Food ingredients company, Rhodia, through its subsidiaries Rhodia Food and Rhodia Japan, and Organo Corporation announced on July 12, 2002, that they have formed a joint venture to develop and sell food ingredients and food additives to the Japanese market. Organo holds a 51% stake in the joint venture and Rhodia, 49%. The new company, Rhodia Organo Food Tech Co., Ltd., located in Japan will target primarily the local market. The company will provide customers with a full range of food ingredient solutions and systems, technical services, marketing and distribution.

Balchem and National Starch form partnership
7/12/02 - Balchem Encapsulates, a business segment of Balchem Corporation, has named National Starch and Chemical Company, an ICI company, as its exclusive sales and marketing arm for its Vitashure(TM) wellness ingredient product line to the food and nutritional supplement markets in the Asia Pacific region. Vitashure is a line of encapsulated wellness ingredients used for fortification, utilizing patented precision release systems. Balchem's technology provides manufacturers the ability to deliver healthy consumer products while extending shelf life stability.

Nestlé to open Global Culinary Research Centre
7/09/02 - The research arm of the Nestlé Group has announced that in 2003 it will open its global culinary development and technology centre in Singen (Southern Germany). The The initiative will bring R&D personnel, currently based at the Product Technology Centre Kemptthal (Switzerland) and the Research and Development Centre Weiding (Bavaria) onto the same site. According to the company, Germany is the Group's most important dehydrated culinary market as well as a key exporter to other European markets, and there will be significant benefits gained from having the Product Technology Centre unit and the Singen factory Application Group in close proximity to each other. The new unit, called Nestlé Product Technology Centre Singen, will focus on culinary products, both dry and wet, as well as baby food. Chilled dessert product development presently in Weiding is to be transferred to Nestlé's Product Technology Centre in Lisieux (France). As a result of these decisions, the Product Technology building in Kemptthal will be sold to Givaudan S.A., which has already purchased the Kemptthal factory. The Weiding R&D premises will remain property of Nestlé Germany. Overall, Nestlé expects these moves to improve and accelerate its product research and development cycle in the culinary area.

FDA approves non-nutritive sweetener, Neotame
7/08/02 - On July 5, 2002, the Food and Drug Administration announced its approval of a new sweetener, neotame, for use as a general-purpose sweetener in a wide variety of food products, other than meat and poultry. Neotame is a non-nutritive, high intensity sweetener that is manufactured by the NutraSweet Company of Mount Prospect, Illinois. For more, see the FDA Press Release. Also, the July issue of Food Technology will have an article on Neotame.

ACH acquires Unilever's Mazola corn oil
7/02/02 - Memphis, Tenn.-based ACH Food Companies, Inc., a subsidiary of Associated British Foods plc, announced the completion of its purchase of Unilever's Mazola branded cooking oil and corn products business in the United States, Canada and Puerto Rico. The sale was for 19 of Unilever’s food brands for approximately $360 million in cash. ACH has acquired leading consumer brands including Mazola cooking oil, Argo and Kingsford's corn starch, Karo and Golden Griddle syrups, Henri's salad dressings and a number of related Canadian Brands. With 8 plants across the United States, ACH Food Companies, Inc., markets a broad range of products to the retail grocery, foodservice and food processor segments. ACH products include specialty shortenings and oil-based products, specialty rice products, non-dairy spray dried products and cheeses, spray dried savory ingredients and ingredient systems. Unilever will continue to assist ACH in day-to-day operations under a transitional services agreement for up to six months.

June 2002

Danisco to acquire Perlarom
6/27/02 - According to a press release from Danisco, the necessary approvals from public authorities of Danisco´s acquisition of flavor house Perlarom are now in place. Perlarom´s headquarters are located in the Belgian town of Louvain-la-Neuve and will also be Danisco´s future European flavor headquarters. The global flavor headquarters are situated in Wellingborough north of London. The acquisition of Perlarom doubles Danisco´s sales and development capacity in the flavor segment. In the last financial year, Perlarom boasted net sales of approx. EUR 47 million (DKK 350 million). The acquisition brings Danisco´s total flavor net sales up to approx. EUR 240 million (DKK 1.8 billion). Through the years, Perlarom has established a good position within sweet and savoury flavors. The flavors are used in for instance soft drinks, dairy products, confectionery, alcoholic beverages and bakery products. The world market for flavors is estimated at EUR 5.5 billion (DKK 40 billion). Danisco´s ambition is to move up from being number nine to a position among the world´s five leading flavor houses.

Cadbury acquires Dandy chewing gum brands
6/27/02 - Cadbury Schweppes plc announced that it has acquired 100% of the branded chewing gum business of Dandy A/S ("Dandy") from the Bagger-Sorensen family in Denmark for 201 million pounds (euro 310 million). Dandy is the fourth largest chewing gum manufacturer in the world. Combined with Cadbury Schweppes' existing chewing gum businesses, this acquisition makes Cadbury Schweppes the second largest player in the European chewing gum market, with No 1 positions in France, Denmark, Belgium and Switzerland and No 2 positions in Russia, Sweden, and the Netherlands. Cadbury Schweppes also has leading positions in several other markets, most notably Turkey, Argentina and China.

Cott, soft drink supplier enters Mexican market
6/21/02 - Toronto-based Cott Corporation has agrees to buy 90% stake in a new joint venture with Mexican bottler Embotelladora de Puebla SA de C.V. Cott Corporation executive vice-president and chief financial officer Raymond P. Silcock, "We expect this new venture to breakeven this year and to be accretive to earnings in its first full year of ownership," said Silcock. Mexico, the company noted, has about 100 million people and the "second-highest per capita consumption of carbonated soft drinks in the world." Embotelladora de Puebla, or EPSA, is a privately owned company based in Puebla. Cott said the new venture, Cott Embotelladores de Mexico SA de C.V., will make retailer-brand soft drinks for several grocery retailers in Mexico, including Comercial Mexicana, Chedraui and Wal-Mart. Cott, a maker of private-label soft drinks, has annual revenue of $1.09 billion.

Kerry creates new flavor division
6/18/02 - Kerry Group formally introduced its new flavor division, Mastertaste during a press conference at IFT's Annual Meeting and Food Expo, June 17, 2002 in Anaheim, Calif. Mastertaste is the culmination of a fast-track five-year-plan that Kerry began four years ago aimed at becoming more active in the segment and building a global presence in the flavor business. “Our customers were telling us that they wanted to be able to buy ingredients and flavors from one company,” explained Hugh Friel, managing director, Kerry Group. The first piece of the business came as part of Kerry’s purchase of Dalgety in 1998. This was Mastertaste UK, a leading flavor house in the region, focused on savory and sweet applications. Since then, a series of acquisitions including one in Italy, Australia, and several in the United States added global capabilities. The new company has set up global headquarters outside of Chicago, and plans to continue its growth organically and through acquisitions, Friel said.

Fortitech and BASF announce joint venture
6/18/02 - On June 17, 2002, in the IFT Annual Meeting and Food Expo in Anaheim, Calif., Fortitech, Inc. and BASF announced a joint venture for the manufacture, marketing and sales of human nutrition premix products. Under the agreement, BASF will transfer its premix customers in Europe, Asia, South America and Africa to the international companies of Fortitech. Fortitech international companies, constituting the joint venture, will assume ownership of BASF's premix manufacturing facilities in Denmark and Malaysia. In addition, BASF will become the primary supplier of a broad range of nutritional ingredients to Fortitech. The joint venture builds upon the existing North American strategic alliance the companies formed in June 2001, creating a worldwide partnership. As part of the joint venture, BASF will provide Fortitech with enhanced access to top grade nutritional ingredients to be used in nutrient systems for products ranging from baby formulas and nutrient bars to drinks and supplements. Fortitech customized premixes feature any of a variety of ingredients from a comprehensive range of vitamins, minerals, amino acids, nucleotides, nutraceuticals and other specialty ingredients. Fortitech will also have access to BASF's substantial nutritional research and development efforts.

Cargill-Cerestar combination highlighted
6/17/02 - Cargill's recent acquisition of Cerestar - uniting two strong companies in the sweeteners, starch, and starch derivatives sectors - allows Cargill to provide customers with global business solutions tailored to match their individual needs, Creager Simpson, head of Cargill Specialty Food & Pharma Starch Solutions-North America, told a press conference June 16, 2002. Speaking to reporters at the Institute of Food Technologists' Annual Meeting and Food Expo, Simpson highlighted the wider array of products and services that the combined entity offers the food industry. "This acquisition brings to Cargill a greatly enhanced research and development team, an expanded product line, and a broader global presence," he said. New-to-Cargill products include an expanded line of specialty food starches, maltodextrins, polyols, dry dextrose and cyclodextrins.

Heinz to merge tuna, pet units with Del Monte
6/13/02 - H.J. Heinz announced a definitive agreement to spin off a number of U.S. and North American businesses and merge them with Del Monte Foods Company. The businesses generate approximately $1.8 billion in annual sales. Under the terms of the agreement, Heinz will contribute the businesses to a newly-created subsidiary which will immediately be merged with a subsidiary of Del Monte. Included in the transaction will be the following brands: StarKist®, 9-Lives®, Kibbles 'n Bits®, Pup-Peroni®, Snausages®, Nawsomes®, Heinz Nature's Goodness® baby food and College Inn® broths. The sale of the StarKist and other businesses will allow Heinz to become a " faster-growing, more focused, international food company," William R. Johnson, chairman, president and chief executive, said in a statement. The transaction is expected to close around the end of the calendar year 2002 or early 2003.

Chiquita Brands to sell dried fruit company
6/07/02-Chiquita Brands South Pacific Ltd., an Australian fruit and vegetable business, said Friday it signed a preliminary agreement to sell its Angas Park Fruit Co. to the existing management team. Angas Park, which was bought by Chiquita in mid-2000, makes and sells dried fruit to the grocery trade and as an ingredient to the food processing industry. If a formal agreement on the transaction can't be reached, Chiquita plans to explore options with other interested parties.

May 2002

Acatris and Schouten open new soy products plant
5/31/02 - Acatris and Schouten Products opened a new factory last week for the production of SoyLife(R) (natural soy germ isoflavone concentrates) in Poederooijen, The Netherlands. Both Acatris and Schouten Products are full divisions of the Royal Schouten Group of The Netherlands. The new facility allows Schouten Products and Acatris to maintain and further expand their position in the market for isoflavone concentrates.

South African brewer acquires Miller
5/30/02 - South African Breweries yesterday agreed to purchase Miller Brewing for $5.6 billion, according to various news reports. Miller parent company Philip Morris says pending regulatory approval, the deal is expected to close in July. The new company is to be called SABMiller and would become the world's second-largest brewer.

DuPont Protein Technologies expands in China
5/28/02 - DuPont announced the expansion of its DuPont Protein Technologies business in the People's Republic of China (PRC) to produce and market soy protein for mainstream consumer foods. The announcement includes a Letter of Intent to form a joint venture with the Henan Luohe Shineway Industry Group Co., Ltd., and cooperative agreement with the Zhengzhou government to establish the DuPont Zhengzhou Protein Co., Ltd. in Zhengzhou, also located in Henan Province. Under the Letter of Intent, the two businesses plan to build a new, innovative facility in Luohe to manufacture soy protein. The Zhengzhou agreement includes the existing assets of a state-owned site, formerly Zhengzhou Oil Chemical Group Co., that will produce soy protein to satisfy the growing market for processed meat, food and beverage products in China and for export to the Asia/Pacific region as part of DuPont Protein Technologies' global supply network. Estimated total investment in the Zhengzhou facility will be about $20 million (U.S.). The Shineway Industry Group is the largest meat processor in the PRC. Initial applications would be processed meat products.

ConAgra to sell beef and pork processing business
5/22/02 - Hicks, Muse, Tate & Furst Inc. and Booth Creek Management Corp. plan to acquire ConAgra Meats Co. in a deal valued at about $1.4 billion. ConAgra Meats is the fresh beef and pork processing business of ConAgra Foods Inc. Hicks, Muse and Booth Creek, based in Vail, Colorado, plan to rename ConAgra Meats Co. as Swift & Co, recognizing one of ConAgra Meats' premier brand names. In addition to ConAgra Meats' United States operation, Hicks, Muse and Booth Creek will acquire the company's Australia Meat Holdings unit and its U.S. cattle feeding operations. ConAgra is the third largest processor of beef and pork in the U.S. and the Australian unit is the largest beef processor in Australia. The transaction is expected to be completed in August.

Newly Weds acquires major European Ingredients company
5/20/02 - Newly Weds Foods, Inc. announced the acquisition of RHM Ingredients Ltd. headquartered in the United Kingdom. RHM Ingredients is a manufacturer of coatings, seasonings, and flavors for the food industry. The company will operate out of its UK base as Newly Weds Foods, Ltd. Newly Weds Foods, Inc. is a leading producer of seasonings, coatings, and functional ingredients and has operations in North America, China, Thailand, Australia, New Zealand, and Israel.

Schouten USA merges into Acatris
5/20/02 - The Royal Schouten Group, based in The Netherlands, has merged four of its companies to form a single, new company called Acatris. By consolidating the worldwide activities, the new company will have a strong position in the global food and health ingredients market. Acatris will officially come into being on June 1, 2002. The Royal Schouten Group has been active in the fields of animal feed, pharmaceutical ingredients and food ingredients for more than a century. In establishing Acatris, it is consolidating the food and health activities of four of its companies operating in two continents. Daminco Inc. produces and markets a wide range of food ingredients in the North American market, from antioxidant solutions, vitamin and mineral enrichment blends, to lubricants and bakery dough improvers. Orffa Health & Nutrition offers a range of health and food ingredients, supplied through local offices and warehouses throughout Europe. Schouten USA Inc. is the exclusive North American sales representative for SoyLife and FenuLife, two health ingredients produced by the Group. SoyLife Nederland is the producer and marketer of SoyLife soy germ concentrates and extract. The merger and the Acatris name will be introduced during May and June by means of a global campaign.

Alltech acquires European yeast producer
5/10/02 - Dr. Pearse Lyons, President of Alltech, and Nathan Hohman were present in Belgrade on Tuesday, April 30, for the official signing of the purchase by Alltech of Fermin. The Fermin facility is a multifunctional site where yeast, yeast extract, and a specialized yeast can be produced. The Fermin plant also contains a fully operational pilot plant where unique strains of yeast can be evaluated for their suitability for both food and feed applications. The secondary part of the plant involves the production of selective proteins that can be hydrolyzed into the individual peptides. It is proposed that this plant will be devoted to the production of NuPro, Alltech's non-animal protein. On announcing the purchase, Dr. Lyons said that the Fermin plant positions Alltech strategically in the center of Europe, with the ability to ship either east or west. The plant has a current capacity of 30,000 tons of dried yeast and is undergoing expansion that will bring the plant to 45,000 tons. It is expected that the acquisition of a second yeast factory will be announced in the near future, this time in Latin America.

Danisco to acquire Perlarom
5/08/02 - Danish food ingredients company Danisco has acquired Belgian-based flavour house, Perlarom S.A., headquartered in Louvain-La-Neuve. With net sales of EUR 47 million (approx. DKK 350 million), Perlarom´s European flavor sales level ranks among the top ten in Europe. The acquisition gives Danisco a major sales position on mainland Europe, moving Danisco from a position as the European no. 10 to a position as no. 6 within flavors, adding to Danisco´s strong flavour position in the US, the UK and Scandinavia. Perlarom has four production sites and 10 subsidiaries around the world. Perlarom has become a major player in Europe with its wide range of sweet and savoury flavors. These flavors are used in various applications such as soft drinks, dairy products, confectionery, alcoholic beverages as well as bakery products.

Givaudan consolidates FIS acquistion
5/06/02 - The acquisition of Nestlé's savoury flavour business, Food Ingredients Specialities (FIS), by Givaudan was closed 2 May 2002. FIS sales will be consolidated in the Givaudan accounts as of May 2002. The acquisition was announced on 18 January 2002 and is valued at CHF 750 million. FIS is represented in 30 countries worldwide, and manufactures and sells flavor compounds for the food and beverage industry for about CHF 400 million per year. Its business represents a strategically important operational fit for Givaudan, a global leader in flavors in food and beverages. FIS's products and expertise in the savoury flavors business (soups, sauces, ready meals) ideally complement Givaudan activities. With the acquisition, Givaudan further implements its strategic goal of strengthening its core business in order to become the undisputed leader in creation, technology and innovation within the flavor and fragrance industries.

Degussa reports sales increase; acquires Polish company
5/02/02 - Degussa Texturant Systems is reporting a 6 % increase in sales in 2001, at Euros 297 million. The improvement in sales was chiefly due to the integration of ITAL S.A., the Mexican market leader in texturizing food ingredients, which had been purchased in the second half of the year 2000. In addition, to further strengthen its worldwide presence, Degussa Texturant Systems acquired the company Voyer Spolska z. o.o. in Kalisz, Poland, at the end of 2001. Located in modern premises equipped with "state of the art" laboratories, pilot plant, and production unit, the new Degussa Texturant Systems Poland specializes in blends for the meat, dairy, fruit and confectionery industries, and offers global service to its customers, from product development to door-to-door delivery. This new acquisition should substantially raise the volume of sales in the fast growing Eastern European markets. At the start of 2001, an additional fermenter for biopolymers came on stream at the Baupte (Normandy, France) site. The xanthan and scleroglucan biopolymers produced in Baupte are used in food and in technical applications such as oil production. The first half of the year 2001 was largely dedicated to ensuring a smooth transition from the former to the new company name and identity, following the merger between SKW Trostberg and Degussa-Hüls in February 2001.

Unilever to sell Loders Croklaan Group
5/02/02 - Unilever announced today that it intends to sell its international specialty oils and fats business, Loders Croklaan Group, as part of its Path to Growth strategy which focuses on core activities. Loders Croklaan has factories in Wormerveer, near Amsterdam, and in Channahon, near Chicago, with smaller plants in Toronto and Cairo and sales offices in a further seven countries. The business employs some 600 people and in 2001 had sales of approximately $240 million. Loders Croklaan is self-standing business with a strong innovation record. It has traditionally supplied the confectionery and bakery industries world-wide, but also has a division focused on supplying nutritional oils and fats to manufacturers. Unilever believes that the business' future would be best served by a new parent company able to focus on the development of its full potential. Employee representatives are being consulted about the proposed sale. Customers and suppliers will be kept informed. Unilever has engaged Deutsche Bank to assist with the sale process. Further announcements will be made as appropriate. Unilever is one of the world's largest consumer products companies with annual sales of approximately $49 billion in 2001. It produces and markets a wide range of foods and home and personal care products. Unilever operates in 88 countries around the globe and employs approximately 279,000 people. In the United States, Unilever sales were approximately $11 billion in 2001. It employs some 28,000 people and has 80 offices and manufacturing sites in 26 states.

April 2002

Danisco to open flavor plant in China
4/25/02 - Food ingredients company Danisco has issued a new report on it?s progress in the Chinese flavor and food ingredients market. The company is planning to open a new flavor factory in China in May. Since 1999, Danisco has had its own factory in China, where ingredients, e.g. emulsifiers and functional systems for the food industry, are produced. Net sales in China are at a three-digit million DKK figure and sales were up by 100% last year. On the basis of this, Danisco is opening a flavor factory in Kunshan, China. Stephen Catling, President, Danisco Flavors, says: "I have great expectations for our future flavor sales in China. The country is an emerging market for us. We have successfully entered the Chinese market with our other ingredients, and we are going to use our customer access to sell flavors as well." Today, China is a USD 500 million (DKK 4.2 billion) flavor market, growing at 7% - one of the fastest rates in the world. All major flavor houses are present in China. Danisco's new flavor factory in China is ready to operate and will be officially inaugurated in May. The flavor factory will employ 20 people and represents an investment of DKK 20 million. Besides flavor production, a team will work on research and development of flavors and flavor blends customised for the Chinese and Asian markets. The factory is located in Kunshan at the same location as Danisco's ingredients factory, where emulsifiers and other ingredients are produced. Danisco employs a total of 150 people in China.

Coca-Cola to distribute Evian in U.S.
4/25/02 - The Coca-Cola Co. and Groupe Danone, the owner of Evian bottled water, announced an agreement under which Coca-Cola will manage marketing execution, sales and distribution for the Evian brand in North America (U.S. and Canada). Evian distribution will continue through the Coca-Cola System, including Coca-Cola Enterprises, Coca-Cola Bottling Company United, Swire Pacific Holdings, The Philadelphia Coca-Cola Bottling Company, and The Coca-Cola Bottling Company of Northern New England, as well as other existing distributors of Evian. Financial terms of the agreement were not disclosed.

ACH acquires Unilever's Mazola Corn Oil and other brands
4/23/02 - ACH Food Companies, Inc., a Memphis-Tenn. based subsidiary of Associated British Foods plc, announced that it has signed an agreement to purchase Unilever's Mazola branded cooking oil and corn products business in the United States, Canada and Puerto Rico for $360 million in cash. The transaction is expected to be completed in the third quarter of 2002, subject to regulatory approvals. As a result of this transaction ACH will acquire leading consumer brands including Mazola cooking oil, Argo and Kingsford's corn starch, Karo and Golden Griddle syrups, Henri's salad dressings and a number of related Canadian Brands. In addition ACH is acquiring a manufacturing facility in Illinois, and equipment in New Jersey and Puerto Rico. Canadian brands to be acquired include Benson's and Canada corn starches, St. Lawrence/St. Laurent corn oil, Crown and BeeHive corn syrups, Old Colony maple syrup and Old Tyme pancake syrup. Mazola is the number one brand of corn oil in the United States and has been a leader in the salad and cooking oils category since 1911. The Argo, Kingsford's and Karo brands have been category leaders since the early 1900s. The brands being acquired had combined net sales of $310 million in 2001. ACH, which had combined sales of approximately $740 million in 2001, is also a leading player in the branded foodservice oil sector following its acquisition last year of Procter & Gamble's U.S. Foodservice Shortening and Oils business. With 8 plants across the United States, ACH Food Companies, Inc., markets a broad range of products to the retail grocery, foodservice and food processor segments. These products include specialty shortenings and oil-based products, specialty rice products, non-dairy spray dried products and cheeses, spray dried savory ingredients and ingredient systems. ACH is a subsidiary of London-based Associated British Foods (ABF), an international food, ingredients and retail group with 2001 sales of $6.5 billion and 34,000 employees.

Cadbury Schweppes looking to Dandy in Denmark
4/22/02 - Cadbury Schweppes plc confirms that it is in preliminary discussions with the Bagger-Sorensen family in Denmark regarding the possible acquisition of some of the businesses in the Dandy Group. Dandy is the fourth largest chewing gum manufacturer in the world. These discussions may or may not lead to eventual agreement. A further announcement will be made in due course.

Barry Callebaut closing plant; to acquire Stollweck AG
4/17/02 - Barry Callebaut AG is currently in discussions with the Works Council, the Dutch unions, and the European Works Council about the proposed closure of its cocoa processing plant in Bussum, Netherlands. The proposed closure would affect around 100 employees. The company also announced that it is in negotiations with Imhoff Industrie-Holding AG about the possible acquisition of Stollwerck AG, headquartered in Cologne, one of the leading German chocolate manufacturers.

Tyson Foods to purchase bacon processing plant
4/16/02 - Tyson Foods, Inc. announced it has signed a letter of intent to purchase a bacon processing facility in Omaha, Nebraska, from Millard Refrigerated Services. The facility, which employs approximately 600, has been primarily involved in co-packing smoked bacon for private brands for retail and foodservice. The facility will continue to co-pack, as well as manufacture products under brands owned by Tyson Foods. The facility, which was refurbished into a state-of-the-art bacon processing plant in the early 1990's, has approximately 329,000 square feet under roof, including the processing area and cold storage capacity. A closing date for the transaction has not been established at this time, nor has a transaction price been announced.

Cargill's corn mills now operating under common name
4/12/02 - Cargill announced that its two dry corn milling businesses, Illinois Cereal Mills, Inc. and Seaforth Corn Mills (a Cargill PLC company), will operate under a common trade name, called "Cargill Dry Corn Ingredients." With production facilities in Paris, Ill., and Indianapolis, Ind., Illinois Cereal Mills (ICM) supplies customers in North America, Europe and Asia. Seaforth Corn Mills (SCM), Liverpool, England, serves customers throughout the European Union. Despite different names, ICM and SCM have operated under a joint business strategy since Cargill acquired them in 1994.

Cargill acquires control of Cerestar
4/05/02 - On April 4, Cargill purchased Montedison's 56% shareholding in Cerestar, the global manufacturer of starches, sweeteners and derivatives. Cargill will now file a public tender offer for the remaining 44% shareholding held publicly, at 33 euro a share. The public tender offer will begin in the near future following approval by relevant stock market authorities. The announcement, made at a Cerestar board meeting, follows the expiration of the waiting period pursuant to the Hart-Scott Rodino act of 1976 and earlier approval by the European Commission (EC). The approval by the EC provided for a further investigation into the possible impact the acquisition might have on the supply of glucose syrups and blends in the United Kingdom (UK), but the purchase of Cerestar shareholding is not conditional on the decision of the UK authorities. Said Warren Staley, chairman and chief executive officer of Cargill: "This transaction is the largest of its kind in Cargill's 137 year history. The decision to acquire Cerestar is consistent with our strategy to deliver distinctive products and services that help our customers succeed locally and globally. We are now going to begin the integration process and the highly skilled employees of both Cerestar and Cargill will be working together to build the best teams to serve our customers."

Japanese firms to sell food-testing DNA chips in U.S.
4/04/02 - According to the Nikkei English News Service, Hitachi Software Engineering Co. and Nisshinbo Industries Inc. will separately enter the U.S. market for food-testing DNA chips this year. Both companies will release chips used to identify different types of beef as well as test for genetic modifications. Hitachi Software will first market in Japan by May DNA chips used to identity types of beef and rice plants as well as chips for singling out bacteria that cause infections in hospitals. It plans to sell the chips in the U.S. this fall through American subsidiary MiraiBio Inc. Hitachi Software estimates that the domestic market for food-testing DNA chips will grow to 1 billion yen in 2005, while the market for bacteria-testing chips will reach 1.5 billion yen in 2005.

Hauser sells lab division
4/04/02 - Hauser, a U.S.-based maker and supplier of herbal extracts, said it has reached an agreement to sell its Hauser Laboratories division to Microbac Laboratories, a U.S. analysis company. Terms were not released, but Hauser noted that all jobs in the division were saved as part of the transaction. Shuster Labs was not included in the divestiture.

March 2002

Sensient acquires some C. Melchers GmbH operations
3/25/02 - Sensient Technologies Corp., Milwaukee, Wis., announced that it has acquired the flavors and essential oil operations of C. Melchers GmbH & Company. The businesses are headquartered in Bremen, Germany and reported revenues of approximately $14 million last year. Terms of the cash purchase were not disclosed. "This is the fourth strategic transaction that we have completed since November," said Kenneth P. Manning, Chairman and CEO of Sensient Technologies. "The integration of Melchers with our existing German flavor operations improves our manufacturing and technical capabilities within Germany. The transaction also adds important new customers and broadens our flavor product line in Europe, China and the United States. Our acquisition program continues to open new opportunities around the world." Melchers is a supplier of flavors for coffees and teas, as well as a broad range of essential oils, aroma chemicals and other formulations for flavor, cosmetic and fragrance applications worldwide. The company maintains facilities in Germany, the United States, and China.

Internatio Benelux building food laboratory
3/22/02 - In February Internatio Benelux, a European food ingredients distributor, in Mechelen, Belgium, started the construction of a food laboratory and test kitchen to test Quest's Inc. aromas and ingredients. The kitchen will be equipped with professional appliances e.g. a combi-steamer, a conventional oven, gas and electric cookers and a deep fryer. Ready-made products ranging from bread and snacks to sweets and drinks are made at the lab. Customers can judge directly the quality of Quest's aromas and ingredients.

Danisco reports on Russian activities
3/22/02 - Danisco Food Ingredients company has reported on its activities in Russia. Only 6-7 years after Danisco established its own sales office in Moscow, annual sales of food ingredients have reached three-digit million figures in DKK terms. And sales are increasing by 20 to 25% a year. Many of the food manufacturers have never used food ingredients before, so Danisco in Brabrand has a big challenge on their hands in teaching these businesses how to use the ingredients and which qualities they add to food. The close dialogue between Danisco and the Russian consumers is thus a major contributing factor to Danisco's success. Danisco uses local distributors in order to be able to cover the huge market. These distributors are supported by Danisco's own staff, of whom by far the majority are Russians with a sound technical background supplemented by training at Danisco, for instance in Brabrand. Russian consumers represent a broad section of the food industry: dairy products, bread and cakes, meat products, beverages, chocolate and confectionery, margarine, ice cream, mayonnaise and dressings. The food ingredients sold by Danisco in Russia are, among others, flavours, emulsifiers, starter cultures, enzymes, pectin, carrageenan, sweeteners, as well as the functional systems (typically integrated blends of emulsifiers and thickeners). These ingredients are produced at Danisco production plants in Mexico, the Czech Republic, Germany, Sweden, Finland and Denmark, where production takes place in Grindsted and Haderslev and development in Brabrand. The Moscow sales office and the Russian sales force of about a dozen people report to Danisco in Brabrand and Frederik Gejl-Hansen, President, EUROW.

Starbucks to open in Puerto Rico
3/20/02- Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Company, and Puerto Rico Coffee Partners, LLC, today announced the signing of a joint venture agreement to open Starbucks stores in Puerto Rico. The joint venture, Cafe del Caribe, LLC, will be managing the day-to-day operations in Puerto Rico, with the first Starbucks store scheduled to open in San Juan by the end of the summer. In addition to Puerto Rico, Starbucks recently announced its plans to enter Mexico by the end of this year and plans to open its first stores in Germany, Spain and Greece later this year. Puerto Rico Coffee Partners LLC is a division of Cafe Hawaii Partners. Cafe Hawaii Partners currently owns and operates 28 Starbucks Coffee stores in Hawaii.

Molson acquires second largest Brazilian brewer
3/19/02 - Molson Inc. has announced the acquisition of Kaiser, the second largest brewer in Brazil, a transaction valued at US$765 million. The transaction will increase Molson's market share in Brazil from 3.1% to 17.8%, making it the second largest brewer in Brazil and the 13th largest in the world. As part of this transaction, Molson will combine Bavaria, its existing operations in Brazil, with Kaiser. Heineken will acquire 20% of the new combined entity for a consideration of approximately US$220 million. In addition, this partnership agreement with Heineken includes the extension of the Canadian distribution agreement for a period of 10 years and the extension of the licensing agreement for the Heineken brand in Brazil.

Tricon opens 11,000th restaurant
3/19/02 - Tricon Restaurants International, a division of Tricon Global Restaurants, Inc., announced the opening of its 11,000th restaurant. The new KFC restaurant is located in Gateshead in the United Kingdom. TRI includes the international operations of KFC, Pizza Hut and Taco Bell restaurants in over 100 countries and territories and has system sales of over $7.7 billion. In 2001, TRI opened 1,041 new units in international, on top of a record-breaking 929 new restaurants opened in 2000. TRI is targeting another 1,000 new restaurant openings outside the U.S. in 2002. TRI's other top growth markets include China, Mexico and South Korea. TRI has more than 600 restaurants in China, more than 400 in Mexico and over 450 in South Korea. Earlier this month, Tricon announced that it had signed a definitive agreement to acquire Long John Silver's and A&W All American Food Restaurants, owned by Yorkshire Global Restaurants. The acquisition is subject to regulatory approval and other customary closing conditions.

FTC clears way for gelatin company acquisition
3/11/02 - The Federal Trade Commission has negotiated a settlement designed to remedy the alleged anticompetitive effects resulting from the proposed $170 million acquisition of Leiner Davis Gelatin Corporation and Goodman Fielder USA, Inc. by Deutsche Gelatine-Fabriken Stoess AG (DGF Stoess). If consummated as proposed, the transaction would eliminate strong, head-to-head competition between DGF Stoess and Leiner Davis (a subsidiary of Goodman Fielder), and the two firms combined would account for more than 50 percent of the U.S. market for pigskin and beef hide gelatin. These gelatin products are used primarily by the food industry as an ingredient in edible products. Under the terms of the proposed settlement, DGF Stoess would not acquire Goodman Fielder's entire gelatin business; rather, Leiner Davis would retain its United States and Argentine gelatin plants and all of the infrastructure, assets, and personnel related to those plants.

DSM starts benzoic acid production at new facilities
3/11/02 - DSM Special Products, Heerlen, The Netherlands, recently started producing benzoic acid and sodium benzoate at its new facilities in Rotterdam (Netherlands). These new DSM grades of benzoic acid and sodium benzoate will be on the market before the end of this month. With the start-up of the new facilities, DSM has more than tripled its production capacity for benzoic acid, while its capacity for sodium benzoate has more than doubled.

Glanbia reports results; to increase whey capacity
3/06/02 - U.K. –based dairy food processor, Glanbia, announced that 2001 operating profit increased by 12.7% to Eur93.23m (2000: Eur82.71m). The company claimed it has made steady progress in 2001with strong performances in both the Irish consumer foods and American food ingredient operations. Glanbia Foods Inc is one of the USA’s top four producers of American cheddar-type cheese, supplying the food service, food processing and retail sectors. It is also a leading producer of high value-added dairy nutritional ingredients for domestic, Asian and European markets. Continuing the company’s strategy of building a leadership position in the global dairy nutraceutical arena, further capacity was added for Provon™ whey protein isolate production during 2001. Investment is now also underway to significantly expand output of Bioferrin™, Glanbia’s lactoferrin product, in response to growing global demand for bioactive ingredients. For more information, see the company’s press release.

Schouten USA combines offerings with Daminco's
3/05/02 - As a result of Schouten USA’s parent company’s (The Royal Schouten Group N.V., Giessen, The Netherlands) purchase of Daminco, Inc., Toronto, Canada, the group now has increased its combined offerings of nutraceutical ingredients. In addition to SoyLife“ and FenuLife‘, Schouten USA is offering a variety of food grade antioxidants, release agents and enrichment blends to both the food and dietary supplement market. The new product launch will take place at the Natural Products Expo Supply West and Nutracon exhibits on Sunday, March 10th through Tuesday, March 12th. Schouten is merging its sales and marketing efforts with Daminco’s broader range of ingredients.

J.M. Smucker seeks approval of Jif and Crisco deal
3/04/02 - The J. M. Smucker Co. Orrville, Ohio, announced that it will hold a special shareholders' meeting on April 5, 2002, to seek approval of the previously announced merger of the Jif and Crisco businesses into The J.M. Smucker Company. In addition to Smucker shareholder approval, closing of the transaction is also contingent upon receipt of a private letter ruling from the Internal Revenue Service. The Company anticipates that the transaction will close in the second calendar quarter of this year. ``We continue to receive outstanding support for our planned merger of the Jif and Crisco brands into The J.M. Smucker Company, and we expect that support to be reflected in a strong vote of approval by our shareholders,'' stated Tim Smucker, the Company's chairman and co-chief executive officer.

Novartis announces Altus joint venture dissolved
3/04/02 - As part of the company's strategy to divest of its non-core Health and Functional Food business, Novartis Consumer Health has reached an agreement with The Quaker Oats Company to dissolve the Altus Food Company, a joint venture formed in January of 2000. Recently, the Consumer Health Sector has been realigned into six global businesses: OTC (over-the-counter medicines), Infant & Baby (including Gerber), CIBA Vision, Animal Health, Medical Nutrition, and until divestment, Health and Functional Food. Dr. Paul Choffat, CEO, Novartis Consumer Health commented, “This realignment will help Novartis increase customer focus, streamline the decision making process, and create entrepreneurial opportunities to stimulate further growth.” With a move out of the Health and Functional Food sector, Choffat said, “Novartis no longer sees a fit in the new organization for the Altus Food Company.” Novartis believes that the business objectives of these products, along with its other strong brands in Health and Functional Food would be better achieved in companies where there is a good strategic fit. Altus was created to develop and market consumer food products that are specifically formulated to provide functional health benefits beyond basic nutrition. The Quaker Oats Company, which was recently acquired by PepsiCo Inc., and Novartis Consumer Health have ceased operations of Altus. The two companies are currently reviewing the most appropriate options for their ``Take Heart''(TM) Brand, a line of cholesterol-lowering products. The relationship was terminated at the end of 2001 on amicable terms.

February 2002

Cargill introduces new logo
2/28/02 - Ag processor, Cargill, based in Minneapolis, Minn., has announced a new brand strategy with a new corporate identity, or logo, that is being introduced to symbolize the change. For more information, on the new logo and brand strategy, see http://www.cargill.com/brand/brand.html

Roche exploring options for vitamins group
2/28/02-Hoffman LaRoche, the Swiss pharmaceutical and chemical company, released its annual earnings report on February 27. The company stated that it is reviewing strategic options outside the group for its Vitamins and Fine Chemicals Division. The statement was just a note in the earnings report and gave no other details. The company reported that net income decreased slightly to 4.8 billion Swiss francs (-4% compared with 2000) due to higher tax expenses and lower income

Novartis and PepsiCo end functional foods venture
2/26/02 - Novartis AG and PepsiCo Inc have ended their functional foods joint venture. The joint venture was launched about two years ago between Quaker Oats and Novartis. Novartis continues to withdraw from the functional foods area, this latest announcement follows a decision earlier this month to put malt drink Ovaltine and sports beverage Isostar up for sale. Activities of the venture were very limited and confined themselves to market tests. No products were launched.

ADM Cocoa to close processing plant
2/21/02 - The Archer Daniels Midland Company announced that it will discontinue operations indefinitely at its Koscian, Poland cocoa processing plant, effective July 15, 2002. This facility was acquired in 1997 and produces cocoa butter, powder and liquor. The site will continue to be used as a warehouse. The closure is part of ADM's continuing review of all manufacturing assets. ADM is committed to improve returns by closing under-performing plants.

Continental to distribute seaweed products
2/13/02 - Marigot Ltd., Strand Farm, Ireland, and Continental Custom Ingredients, West Chicago, Ill., have announced a joint agreement that appoints Continental as the distributor of the AquaMin line of calcium products in North America. Continental will provide sales, technical service, applications, and marketing of the calcium products. The ingredients are harvested from seaweed off the southwest coast of Ireland.

IFT relocates headquarters office
2/07/02 - This week, the Institute of Food Technologists is relocating their headquarters office to new location in downtown Chicago. IFT's new address is 525 W. Van Buren St., Suite 1000, Chicago, IL 60607. Our phone number will remain 312-783-8424. Our offices will be closed on Friday, Feb. 8.

Novartis to sell Health and Functional Foods unit
2/04/02 - Novartis announced the intention of its Consumer Health Sector to divest its Health and Functional Food business, furthering the Group's strategic focus on pharmaceuticals. The Consumer Health Sector has been aligned into six global businesses: OTC (over-the-counter medicines), Infant and Baby (including Gerber), CIBA Vision, Animal Health, Medical Nutrition, and until divestment Health and Functional Food. The divestment s expected to be completed within 6-12 months. According to Dr. Daniel Vasella, Chairman and CEO of Novartis, "Our strong performance over the past year reflects our strategic focus on our healthcare business. Our Health and Functional Food brands are strong and well established, and we believe their growth can be accelerated in companies where there is a good strategic fit. " The Health and Functional Foods business consists of three groups of brands, which had combined 2001 sales of approximately CHF 850 million: Food & Beverages, including: Ovaltine, Caotina, Lacovo; Health Food & Slimming, comprising: Céréal, Gerblé, Gerlinéa, Modifast, Dietisa, Pesoforma, Lecinova, Milical; Sports Nutrition, including: Isostar, Powerplay, Mineralplus.

January 2002

Nestle, Ocean Spray form strategic alliance
1/29/02 - The Nestle USA - Beverage Division and Ocean Spray Cranberries, Inc., announced the formation ps a long-term strategic operations alliance that hopes to enable both companies to significantly increase manufacturing and supply chain efficiency, while maintaining high quality products for their respective juice businesses. Within the strategic operations alliance, Nestle will transition over time its manufacturing of Libby's Juicy Juice and Libby's Kerns Nectars to Ocean Spray facilities. The companies will also pursue collaborative procurement of common raw and packaging materials, and common operating supplies, as well as shared logistics to increase process efficiency across the supply chain. The operation will be governed by a leadership team and an executive operating committee, both comprised of members from each company.

DSM to build new food applications lab
1/23/02 - DSM N.V., the Dutch chemicals group, announced that the company is going to build a new food applications development laboratory for Food Specialties and Bakery Ingredients in Delft (Netherlands) which is set to be completed in the third quarter of 2003. The project will involve an investment of approximately EUR 12 million. The facility will accommodate over a hundred application specialists and product developers, most of whom are now working at different locations in Delft and Zaandam (also in the Netherlands). The laboratory will include facilities for producing a wide range of foodstuffs (from bread and baked goods to meat products, cheese, yogurt, soups, sauces, ready meals and functional foods) on small scale for the purpose of testing food ingredients. The new facilities will serve as the ingredients development and application know-how center of DSM and will support DSM's broad network of Food Application Centers across the globe. DSM Food Specialties produces high-quality ingredients for the food, beverage and feed industries, including enzymes, yeast extracts, natural colorants, polyunsaturated fatty acids and starter cultures. DSM Bakery Ingredients is a supplier of high-quality yeasts, bread improvers and enzymes to the bakery industry worldwide. DSM is a highly integrated international group of companies that is active worldwide in the field of life science products, performance materials, polymers and industrial chemicals. The group has annual sales of EUR 8.1 billion and employs about 22,000 people (year-end 2000) at more than 200 sites worldwide.

EU approves Cargill acquisition of Cerestar
1/21/02 - The European Commission (EC) has decided to give clearance without condition to the Cargill's intended acquistion of Montedison's 56% shareholding in Cerestar. The EC decision, announced today, provides for an investigation by authorities in the United Kingdom into possible impact the acquisition might have on the supply of glucose syrups and blends in the UK. However, the purchase of Montedison's shareholding is not conditional upon the decision of the UK competition authorities. When a ruling on the transaction is reached by the U.S. Department of Justice, Cargill will purchase Montedison's shares a file a public tender offer for the remaining 44% interest in Cerestar at 33 euro per share. It is hoped the deal will be completed by Spring 2002.

Givaudan to acquire FIS, flavor unit of Nestle
1/21/02 - Givaudan SA, Vernier, has signed an agreement with Nestlé SA, Vevey, to acquire its flavor activities, operating under the umbrella of Food Ingredients Specialities (FIS). Subject to regulatory approval in several countries, the deal is still pending. After closing, Dietrich Fuhrmann, currently CEO of FIS, will join Givaudan’s Executive Committee. In addition to facilitating the integration of FIS he will take responsibility for further business development initiatives of the Givaudan group. The transaction is valued at CHF 750 million. The payment will be made in cash and Givaudan shares. For the latter, Givaudan will also make use of its existing authorised share capital, emitting 100’000 registered shares resulting in a new total of 8,725,627 registered shares. Jürg Witmer, CEO of Givaudan: ”The acquisition of Food Ingredients Specialities is an important step forward in attaining undisputed industry leadership. Through this transaction, we strengthen our position in savoury flavours and become the world leader in this domain. It will also allow us to strengthen our role as core flavour supplier to Nestlé. Additionally we improve our knowledge in culinary applications and win access to new products such as vegetable, wine and coffee flavours. With the integration of FIS, Givaudan will further enhance its position in Asia-Pacific.” FIS is headquartered in Châtel-St-Denis (Switzerland) and is represented in 30 countries world-wide. It manufactures and sells flavor compounds for the food and beverage industry for about CHF 400 million per year. Food Ingredients Specialities (FIS) produces savory flavors for soups, sauces, and ready meals. 

Mexico's Coca-Cola bottlers to replace fructose with sugar
1/20/02 - Mexican bottlers of Coca-Cola soft drinks are replacing high fructose corn syrup (HFCS) are switching to pure sugar. According to industry sources, the new 20% tax on soft drinks sweetened with high fructose corn syrup (HFCS) prompted the change. Mexico's 14 Coca-Cola bottlers as a whole used 30% fructose and 70% sugar in their plants before the new tax was imposed, the sources said. Mexico's Congress passed a tax package on Jan. 1 including the new levy on soft drinks made with non-sugar sweeteners. To protect its sugar industry, ailing due to chronic over-supply and enormous debts, Mexico has put high import duties on U.S. HFCS. Mexico is the world's biggest per-capita consumer of Coca-Cola products.

Miller Brewing and Allied partner up
1/18/02 - Milwaukee-based Miller Brewing Co. and Britain's Allied Domecq Plc announced a commerical partnership to sell a range of flavored alcoholic malt beverages. The first two ready-to-drink bottled products, to be launched this spring, will be based on the flavors of Allied's Stolichnaya vodka and Sauza tequila. The drinks will compete in the U.S. market against premium light beers. The new Stolichnaya and Sauza ready-to-drink malt beverage products will be produced and distributed by Miller in the U.S. The companies plan to initially invest up to $50 million in development, launch activity, and marketing.

AmeriPac forms venture with Chinese sorbic acid company
1/17/02 - AmeriPac Chemical Corp., Calif., U.S., has formed a joint venture company with the Yongchang Chemical Co., a basic producer of sorbic acid and potassium sorbate. The newly formed company will be named the AmeriPac Yongchang Chemical Co. Ltd. AmeriPac President Stan Chang will be appointed to the board of directors in addition to AmeriPac's Justin Qin, Vice Chairman of the joint venture company. The capital investment will increase the sorbic acid production to 5,000 mt per year and increase potassium sorbate to 3,000 mt per year. AmeriPac's decision to invest is due to changes that have occured in the global sorbic acid marketplace, including Eastman Chemical's shut down of the only domestic U.S. plant; Nippon Gosehi exiting the marketplace; and Ueno downscaling their involvement in the U.S. In addition, Nutrinova, Daicel, Chisso, and Ueno have faced FTC fines for price fixing and have pending civil suits in the U.S. A weakening U.S. dollar would impact the yen and eurodollar on the global marketplace affecting preservative pricing in the U.S.

Cadbury in discussion with Kent Confectionery
1/17/02- C adbury Schweppes plc confirmed that it is in discussions with the Tahincioglu family in Turkey regarding a possible equity interest in Kent, the leading sugar confectionery manufacturer in Turkey, together with Birlik its distribution arm. These discussions may or may not lead to an eventual agreement

Whole Living expands into South Korea
1/15/02 - Whole Living, Inc., dba Brain Garden, announced that it has completed a deal with the South Korean company, Lee & Pak Inc., and will open up distribution in South Korea. Lee & Pak Inc. will take care of all product registration, open an office in Seoul, and manage all operations in Korea under Whole Living's care. All legal and logistical issues, as well as establishing an office in Seoul, will be completed in January. The company plans on beginning the pre-launch of Korea in February. Whole Living, Inc. is a premier whole- foods nutrition company in the direct-selling industry, with products reaching consumers throughout the USA, Canada, Australia, New Zealand and Japan.

La Moderna to purchase three Kraft flour businesses
1/14/02 - Kraft Foods Inc. has agreed to sell three rice and wheat flour brands to Mexico's Grupo La Moderna , the two companies announced on Friday. La Moderna, the biggest wheat miller and pasta leader in Mexico, did not reveal terms of the deal. The three brands, Tres Estrellas, San Antonio and Sorpresa, had estimated total sales of $10 million last year. The deal, which includes the three brands and the equipment to produce them, is expected to close by the end of the month, the companies said in a statement. In December Kraft sold its Mexican pasta to global pasta giant Barilla Alimentari S.p.A. for an undisclosed amount.

Horizon Organic signs agreement with Dairy Crest
1/14/02 - Horizon Organic Holding Corp. announced that the company's U.K. division has entered into a strategic partnership with Dairy Crest. As the largest U.K. dairy company, Dairy Crest currently processes and delivers milk to all leading supermarkets and to home delivery customers. Home delivery in the U.K. represents 30% of the milk business. As part of the agreement, Dairy Crest also will process Horizon Organic private label and Rachel's Organic branded milk. In addition, Dairy Crest will continue to deliver and place Horizon Organic's private label and Rachel's Organic branded milk directly in the dairy case.

Pernod Ricard close to completing sale of SIAS-MPA
1/11/02 - Pernod Ricard, Paris, France, confirmed it is close to completing the disposal of SIAS-MPA, a leader in fruit preparation for the milk industry, to Butler Capital Partners (BCP). The value of the sale of SIAS-MPA is 170 million Euros (including debts and minority interests). This value could increase by a maximum of 25 million Euros, allowing Pernod Ricard to benefit from the future profit achieved by BCP when they choose to exit. The SIAS management team will take part in this transaction by taking a stake in the capital.

Pernod Ricard close to completing sale of SIAS-MPA
1/11/02 - Pernod Ricard, Paris, France, confirmed it is close to completing the disposal of SIAS-MPA, a leader in fruit preparation for the milk industry, to Butler Capital Partners (BCP). The value of the sale of SIAS-MPA is 170 million Euros (including debts and minority interests). This value could increase by a maximum of 25 million Euros, allowing Pernod Ricard to benefit from the future profit achieved by BCP when they choose to exit. The SIAS management team will take part in this transaction by taking a stake in the capital.

Corn Products suspends Mexican HFSC production
1/11/02 - Corn Products International, Inc., Bedford Park, Ill., responded to recently issued reports concerning the Mexican tax on soft drinks sweetened with high fructose corn syrup (HFCS). Corn Products decided to suspend production at its Mexican unit of high-fructose corn syrup after the government there decided to tax soft drinks sweetened with the product. On Jan. 1, Mexico's Congress approved a 10% tax on bottled drinks and a 20% tax on soft drinks sold in soda-fountain machines. The tax, designed to protect Mexico's domestic sugar growers, exempts drinks sweetened with cane sugar. Corn Products International announced that it has fewer than 2,000 direct employees in Mexico and has not determined if any of these employees would be immediately affected. At this point, no full-time employees have been terminated or placed on leave. The company is investigating the impact of the tax and all options are being explored.

Kerry acquires two more ingredient companies
1/07/02 - Kerry Group plc, a major international food ingredients corporation, announced that it was acquiring two ingredient companies for a total of some 50 million euros ($44.6 million), extending an acquisition spree it kicked off last year. The company is paying around $26 million for U.S. beverage flavorings group Stearns & Lehman Inc, a leading manufacturer of branded Italian-style coffee syrups. Stearns & Lehman, with 2001 sales of $20 million, has factories in the U.S., Canada, Europe, and the Pacific Rim, and plans to open a new plant in Britain. Kerry is also acquiring Aromont SA, a French-based maker of ingredients and sauces for the European ready meals and food service industries. In October 2001, Kerry purchased Hickory Specialties, a manufacturer of smoke and charcoal flavors. In August 2001, Kerry Ingredients North America acquired SPI Foods, a manufacturer of specialty extruded cereal ingredients for use in ready-to-eat breakfast cereal, health, and energy bars and snack foods. Kerry Group is major international food ingredients, flavors and consumer foods corporation with current annualized sales in excess of US $3 billion. In ingredients markets Kerry's core technologies and global resources in cheese and dairy flavorings, coating systems, sweet flavorings and specialty lipid systems. In the financial year ended 31 December 2000, 27% of total Group sales originated in American markets.

Danisco begins antioxidant production to the U.S.
1/04/02 - European food ingredient manufacturer, Danisco has recently began antioxidant production in St. Louis, Missouri. The St. Louis facility produces natural antioxidant blends, vitamin-based antioxidant blends, and traditional antioxidant blends. Danisco's range of antioxidants include vitamin-based blends with ascorbyl palmitate and tocopherol, traditional blends with BHT, BHA, TBHQ and propyl gallate. The company also sells rosemary extract. Expanding production in the U.S. will allow the company to better serve clients and take advantage of the growing demand for antioxidants in North America. The ingredients division of Danisco employs around 3,900 people in 33 countries in Europe, North and South America, Africa and Asia.

Degussa to combine products under new brand
1/04/02 - The Flavors Business Line of Degussa Flavors & Fruit Systems announced the introduction of a new brand, Maxens, a convergence of four companies known for their expertise in flavors: SKW Nature Products, Mero, Alex Fries Inc., and Dairyland Food Laboratories. The Maxens brand completes the Flavors & Fruit Systems brand family, which also includes Alfrebo, the extract and aroma chemicals brand, and Sweet Ovations, the Fruit Systems' line of fruit and sweet products for the food service, bakery, refrigerated and frozen dairy industries. According to the company, the Maxens brand launch signifies an increase in the services that Degussa Flavors provides to its customers.

Kraft acquires Stollwerck AG
1/03/02 - Kraft Foods Inc. announced that Kraft Foods International has completed its acquisitions of the Russian and Polish confectionery businesses of Germany-based Stollwerck AG. On August 1st 2001, Kraft had announced an agreement to acquire the Central and Eastern Europe confectionery business of Stollwerck, consisting of units in Russia, Poland and Hungary. Stollwerck's 2000 revenues for this region were approximately $150 million. The Russian and Polish acquisitions were closed effective December 31, 2001, following regulatory approval by authorities in those countries.

FMC separates food processing and other operations
1/02/02 - FMC Corporation announced that it has completed the separation of FMC Technologies, Inc. through the distribution of all of FMC Corporation's remaining shares of FMC Technologies common stock. FMC Technologies is now a fully independent company. FMC Technologies, Inc. provides technology solutions for the energy, food processing and air transportation industries. It designs, manufactures and services technologically sophisticated systems and products for its customers through its Energy Systems, FoodTech, and Airport Systems businesses. FoodTech operations produce food harvesting, food processing, ovens, and freezers. FMC Technologies employs approximately 9,000 people at 31 manufacturing facilities in 14 countries.

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