|
Bid farewell to the craptastic snacks of the 1970s… private company Hostess Brands Inc. has filed for bankruptcy. Yep, those iconic kid-happy treats such as Twinkies, Snack Cakes and Wonder Bread are “O-U-T, OUT!” The CEO has blamed labour rules, pension fund costs and other legislation for the demise, but the reality is the company failed to innovate its products in line with healthier times. Hostess’s main baked goods competitors - such as the unfortunately named Grupo Bimbo (BMV:BIMBO) who first introduced sliced bread to Mexico and today owns Sara Lee, and Flowers Foods (NYSE: FLO) which owns Nature’s Own - seem to have figured out that marketing to nutrition-minded moms makes good business sense. C’mon kids, who wants a cream-filled centre when you can have roasted flax…yum!
First Wonder Bread, now orange juice - what will be left of breakfast? Did you know that the world’s favourite breakfast drink is sold and traded as a commodity just like gold, oil and soybeans? (Remember pork bellies? Sadly, this delicious commodity stopped trading as of last summer.) Trading in orange juice futures has gone loco. Prices for frozen concentrated orange juice jumped nearly 10% this week to over $2 per pound - its highest price in 35 years!
Why all the juicy commotion? For one thing, freezing temperatures in Florida are threatening the American supply of citrus fruits. Even worse, the world’s biggest supplier of citrus fruit, Brazil, has been blamed for using a fungicide that the US food safety regulator has outlawed. All shipments of imported orange juice have been halted at the US border. PepsiCo (NYSE:PEP), which owns Tropicana and Dole brands, and Coca-Cola (NYSE:KO), which owns Minute Maid, account for 62% of all orange juice sold in the US. The shares of both companies are currently quivering in their pulp, while investigators determine whether the juices currently on supermarket shelves contain the contraband fungicide. Switching to organic anyone?
With all this controversy, it’s no wonder that some food companies are turning to pets instead of people… Swiss-based Nestlé (SIX:NESN) - the largest food company in the world - has noted that even while consumers cut back on spending for themselves, they refuse to skimp on their kitties – monetarily and calorically. These days, it’s not only Mariah Carey but her dog that struggles with the battle of the bulge. Eureka! Nestlé, owner of Purina pet foods and Jenny Craig, has launched an online diet program for pets, promoting healthier food and exercise for our four-legged friends. This means no more cream-filling for Fluffy either…awww…so much for a dog’s life!
|
