Dr Pepper Snapple Group reports 3Q earnings; updates Snapple look, tea recipes
PLANO, Texas Dr Pepper Snapple Group on Thursday reports its results for the third quarter 2008—its first full quarter as a stand-alone business after leaving former parent company, Cadbury, May 7.
The company reported earnings of $0.41 per share for the third quarter 2008, compared to $0.61 per share third quarter 2007. Without restructuring costs over the last two years or separation and transaction costs in the current year, earnings totaled $0.45 per share for third quarter 2008, compared to $0.63 per share the previous year.
Net sales had declined by 2 percent, due to the loss of Glaceau water products distribution, the company said. Excluding Glaceau, net sales up were up 5 percent.
Dr Pepper Snapple Group also reported that carbonated beverage volume stayed steady, up 0.5 percent, while its non-carbonated volume, excluding Glaceau, was up 3 percent.
The company also reported year-to-date profit of $1.21 per share in 2008, compared to $1.42 per share for 2007. Without considering restructuring costs, earnings totaled $1.46 per share for the year, compared to $1.50 per share in 2007. The company also reported making$523 million in cash and repaying $295 million in since separating from Cadbury.
“Without a doubt, this is one of the toughest environments the beverage industry has faced in many years,” DPS president and chief executive officer, Larry Young said. “With disposable incomes falling, consumers are thinking harder about what they buy. Despite these headwinds, we demonstrated during the quarter that our portfolio of flavored beverages has room to grow and that our business continues to generate strong cash flow.”
DPS has also announced the reformulation and reinvented look for its Snapple bottled teas. The new formulations are aimed at increasing consumer interest despite the cash-poor economy by making the Snapple teas more economical.
The Snapple marketing team is also working to produce a hip, flashy new ad campaign to draw in younger consumers, reports said.
Stop & Shop expands holdings with conversion of two C&S stores
QUINCY, Mass. Stop & Shop this week announced that it has agreed to buy out two Massachusetts Grand Union Family Markets stores and switch them to the Stop & Shop namesake.
The Grand Union in Provincetown, Mass., as well as the Ro-Jack’s in Seekonk, Mass. Will close in December for updates and reopen as Stop & Shop locations in time for the holidays, Stop & Shop said.
C&S Wholesale Grocers, based in Keene, N.H., has been operating the Grand Union store in Provincetown since its 2001 acquisition and the Ro-Jack’s store in a 2003 asset exchange with Supervalu.
C&S is also the supplier to Massachusetts area Stop & Shop stores.
Commerical Bakeries partners with Ganeden to develop probiotic cookies
TORONTO Commercial Bakeries, manufacturer of private label cookie products in the United States and Canada, on Wednesday announced a partnership with Ganeden Biotech on the development of a variety of probiotic-enhanced cookie products.
“For the first time, we have the ability to produce baked goods with the added benefit of powerful, health-promoting probiotics,” said Phillip Fusco, vice president of Commercial Bakeries Corp. “Probiotics aren’t limited to the yogurt section any longer.”
“The ability to bake cookies and other products with probiotics is something that was unheard of until recently,” said Mike Bush, vice president for business development for Ganeden Biotech.
Ganeden Biotech’s patented probiotic, GanedenBC30, is the only commercially available probiotic strain that can survive baking and other manufacturing processes, Ganeden asserted. The ability of the probiotic strain to survive harsh manufacturing conditions makes it ideal for inclusion in shelf-stable, baked good products, such as cookies.
Commercial Bakeries Corp. produces an assortment of cookie varieties, including sandwich cream, wire cut and rotary cookies, for private labels in the United States and Canada.