General Mills to sell Pop Secret to Diamond Foods
GOLDEN VALLEY, Minn. General Mills today announced details of an agreement to sell its Pop Secret microwave popcorn business to Stockton, Calif.-based Diamond Foods for around $190 million. None of General Mills’ employees or plants will be affected by the sale because Pop Secret is manufactured at an outside facility, a company spokesperson said.
According to spokesperson Heidi Geller, the sale is part of a move by General Mills to reevaluate its priorities. Additionally, General Mills is also looking to sell its Nature Valley granola bar line and other grain-based snacks.
Diamond Foods, the creator of Diamond brand almonds and other snack nuts has said that it is very excited to add Pop Secret to its portfolio. The added brand will broaden Diamond’s presence in the snack aisle and the company expects to generate $85 million to $90 million per year from the sale of Pop Secret products.
General Mills is looking at a one-time $160 million profit gain, not including costs related to the costs.
Dr Pepper Snapple reports profit down for 2Q
PLANO, Texas Dr Pepper Snapple Group has announced that its profit dropped 21 percent in the second quarter of 2008. Speculators say that the drop was most likely the result of the new company’s break from former parent Cadbury Schweppes.
According to the company, net income dropped from $136 million, or 54 cents per share, in the second quarter 2007 to $108 million, or 42 cents per share for the quarter ended June 30.
Not including the costs of restructuring and separation and other transactions, earnings were reported at 60 cents per share, the company said. In comparison the second quarter of 2007, revenue did rise 1 percent to $1.56 billion from $1.54 billion, after predictions that it would reach $1.58 billion. And, while higher prices may have steadied the loss from a drop-off in sales, coupled with a “challenging macroeconomic environment,” the higher prices were also the cause for the for the drop in volume, the company said.
MillerCoors uses clothes hangers to market beer to female drinkers
NEW YORK SABMiller and MolsonCoors are preparing to launch the new beer, MGD 64, this fall with a campaign targeting women—especially those who watch their waistlines.
After giving original Miller Genuine Draft a reformulation so that it contains just 64 calories, the beer makers are driving ads towards female consumers by plastering them on clothes hangers in dry cleaners in Portland, Ore., and Seattle.
The ad campaign works with hanger company EcoHanger, which manufactures 100 percent recycled hangers. The dry cleaning locations have been using these hangers since July, but starting in the fall they will have signage with MGD 64’s slogan “64 calories is a light beer—a perfect fit.”
Hanger Network of New York, an advertising group, will distribute eco-friendly hangers with ads to around 35,000 dry cleaners in various markets across the United States.