H.J. Heinz Company and Kraft Foods Group Sign Definitive Merger Agreement to Form The Kraft Heinz Company
H.J. Heinz Company and Kraft Foods Group, Inc. (NASDAQ: KRFT) today announced that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America with an unparalleled portfolio of iconic brands.
Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft’s Boards of Directors, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10 billion is being fully funded by an equity contribution by Berkshire Hathaway and 3G Capital.
The proposed merger creates substantial value for Kraft shareholders. The special cash dividend payment represents 27% of Kraft’s closing price as of March 24, 2015. Also, by continuing to own shares of the new combined company, Kraft shareholders will have the opportunity to participate in the new company’s long-term value creation potential.
Global Brand Portfolio Powerhouse
The combination of these iconic food companies joins together two portfolios of beloved brands, including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. Together the new company will have eight $1+ billion brands and five brands between $500 million and $1 billion. The complementary nature of the two brand portfolios presents substantial opportunity for synergies, which will result in increased investments in marketing and innovation.
Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, said, “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both U.S. and international growth. Our combined brands and businesses mean increased scale and relevance both in the U.S. and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies.”
Warren Buffett, Chairman and CEO of Berkshire Hathaway said, “I am delighted to play a part in bringing these two winning companies and their iconic brands together. This is my kind of transaction, uniting two world-class organizations and delivering shareholder value. I’m excited by the opportunities for what this new combined organization will achieve.”
“Together we will have some of the most respected, recognized and storied brands in the global food industry, and together we will create an even brighter future,” said John Cahill, Kraft Chairman and Chief Executive Officer. “This combination offers significant cash value to our shareholders and the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as we bring Kraft’s iconic brands to international markets. We look forward to uniting with Heinz in what will be an exciting new chapter ahead.”
“We are thrilled about the unique opportunities this merger will create for our
consumers worldwide, as well as our employees and business partners. Together, Heinz and Kraft will be able to achieve rapid expansion while delivering the quality, brands and products that our consumers love,” said Bernardo Hees, Heinz Chief Executive Officer. “Over the past two years, we have transformed Heinz into one of the most efficient and profitable food companies in the world while reinvesting behind our key brands and continuing our relentless commitment to quality and innovation.”
Management and Governance
When the transaction closes, Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, will become the Chairman of The Kraft Heinz Company. John Cahill, Kraft Chairman and Chief Executive Officer, will become Vice Chairman and chair of a newly formed operations and strategy committee of the Board of Directors.
Bernardo Hees, Chief Executive Officer of Heinz, will be appointed Chief Executive Officer of The Kraft Heinz Company. The new executive team for the combined global company will be announced during the transition period, but no later than transaction closing.
The Board of Directors of the combined company will consist of five members appointed by the current Kraft Board, as well as the current Heinz Board, including three members from Berkshire Hathaway and three members from 3G Capital.
Long-Term Ownership
3G Capital and its principals have a proven track record of investing in and growing iconic brands. In previous transactions over the years, 3G has partnered with other long-term investors to build significant shareholder value by driving innovation and growth and expanding the international reach of its companies and brands.
Berkshire Hathaway and 3G Capital have a history of successful partnerships and are committed to long-term ownership of The Kraft Heinz Company as it strengthens its leadership position in the industry.
Commitment to Communities
The Kraft Heinz Company will be co-headquartered in Pittsburgh and the Chicago area.
Understanding the need to preserve both Heinz and Kraft’s heritage in their respective hometowns of Pittsburgh and the Chicago area, the new company is committed to supporting local charities and community relationships in the communities in which they operate.
Structure, Terms and Synergies
Existing Heinz shareholders will have a 51% ownership stake in the combined company, and existing Kraft shareholders will have a 49% ownership stake on a fully diluted basis. Each share of Kraft will be converted into one share of The Kraft Heinz Company.
The significant synergy potential includes an estimated $1.5 billion in annual cost savings implemented by the end of 2017. Synergies will come from the increased scale of the new organization, the sharing of best practices and cost reductions.
The transaction is expected to be EPS accretive by 2017. Once the transaction is complete, The Kraft Heinz Company plans to maintain Kraft’s current dividend per share, which is expected to increase over time. Kraft has no plans to change its dividend prior to closing.
The special cash dividend of $10 billion in the aggregate to existing Kraft shareholders will be paid upon closing and will be funded by an equity investment by Berkshire Hathaway and 3G Capital. Shares of the company will continue to be publicly traded.
As the cash consideration is fully funded by common equity from Berkshire Hathaway and 3G Capital, the merger is not expected to increase the debt levels of The Kraft Heinz Company. The Company is fully committed to deleveraging in a timely manner and to maintaining an investment grade rating going forward.
Approvals
The transaction is subject to approval by Kraft shareholders, receipt of regulatory approvals and other customary closing conditions and is expected to close in the second half of 2015.
ABOUT HEINZ
H.J. Heinz Company, offering “Good Food Every Day”™ is one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz provides superior quality, taste and nutrition for all eating occasions whether in the home, restaurants, the office or “on-the-go.” Heinz is a global family of leading branded products, including Heinz® Ketchup, sauces, soups, beans, pasta and infant foods (representing over one third of Heinz’s total sales), Ore-Ida® potato products, Weight Watchers® Smart Ones® entrées, T.G.I. Friday’s® snacks, and Plasmon infant nutrition. Heinz is famous for its iconic brands on six continents, showcased by Heinz® Ketchup, The World’s Favorite Ketchup®.
ABOUT KRAFT FOODS GROUP
Kraft Foods Group, Inc. (NASDAQ: KRFT) is one of North America’s largest consumer packaged food and beverage companies, with annual revenues of more than $18 billion. The company’s iconic brands include Kraft, Capri Sun, Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Philadelphia, Planters and Velveeta. Kraft’s 22,000 employees in the U.S. and Canada have a passion for making the foods and beverages people love. Kraft is a member of the Standard & Poor’s 500 and the NASDAQ-100 indices. For more information about Kraft, visit www.kraftfoodsgroup.com and www.facebook.com/kraft.
ABOUT BERKSHIRE HATHAWAY
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of Berkshire Hathaway is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
ABOUT 3G CAPITAL
3G Capital is a global investment firm focused on long-term value, with a particular emphasis on maximizing the potential of brands and businesses. The firm and its partners have a strong history of generating value through operational excellence, board involvement, deep sector expertise and an extensive global network. 3G Capital works in close partnership with management teams at its portfolio companies and places a strong emphasis on recruiting, developing and retaining top-tier talent. 3G Capital’s main office is in New York City. For more information on 3G Capital, please go to http://www.3g-capital.com.
USDA Awards $200 Million for Skills Training to Help SNAP Recipients Get Good Jobs
ATLANTA, – Agriculture Secretary Tom Vilsack, joined by Labor Secretary Tom Perez, today announced the recipients of $200 million in competitive awards to fund and evaluate pilot projects in 10 states to help Supplemental Nutrition and Assistance Program (SNAP) participants find jobs and work toward self-sufficiency. Projects in California, Delaware, Georgia, Illinois, Kansas, Kentucky, Mississippi, Virginia, Vermont, and Washington were chosen.
“Helping people find and keep good jobs is the right way to transition recipients off of SNAP assistance and ultimately reduce program costs. These pilots will give USDA and our state partners the opportunity to explore innovative, cost-effective ways to help SNAP recipients find and keep gainful employment in order to build a stronger future for their families,” Secretary Vilsack said during a visit to Gwinnett Technical College. “This initiative is a reflection of USDA’s full commitment to ensuring that SNAP recipients who are able to work can put food on the table while they get the skills they need to compete for jobs in a global economy. Helping people find good jobs is a far better strategy for reducing food assistance spending than across the board cuts.”
Authorized by the 2014 Farm Bill, the grants announced today fund pilot projects focusing on target populations identified by the legislation, including individuals with low skills, able-bodied adults without dependents and SNAP recipients working in very low-wage or part-time jobs. The selected pilots represent a wide array of balanced approaches—including skills training, work-based learning, support services such as transportation and child care, and other job-driven strategies—and reflect the wide geographic diversity of the SNAP population. The grants will fund projects for three years.
“These grants are the result of unprecedented collaboration and an unparalleled focus on using every available tool to help people get access to good jobs and a firm grip on the ladder of opportunity,” said Secretary Perez. “By testing and then applying proven strategies across the federal government and throughout the workforce system, we’re taking on the unfinished business of the remarkable economic recovery underway – making sure that every person can share in the prosperity being created and that the promise of opportunity extends to all.”
Secretary Vilsack also announced that two respected research organizations, Mathematica Policy ResearchThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website. and MDRCThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website., will conduct rigorous, independent evaluations of the projects that will help USDA to identify which approaches are most effective for the diverse population of SNAP recipients. The most effective strategies could then be undertaken throughout the country.
Agriculture Under Secretary Kevin Concannon emphasized the importance of the these programs during a related event today in Fresno, Calif. “SNAP Employment and Training plays a critical role in workforce training for low-skilled, vulnerable adults who may not otherwise receive job training,” he said. “Along with the pilots, USDA will be working with all of its state partners to strengthen their core SNAP Employment and Training programs and incorporate job-driven elements into their existing services.”
Projects selected and the anticipated award amounts include:
Fresno County Department of Social Services, Calif., $12.2 million.
Delaware Department of Health and Social Services, $18.8 million.
Georgia Division of Family and Children Services, $15 million.
Illinois Department of Human Services, $21.9 million.
Kansas Department for Children and Families, $13.5 million.
Kentucky Department for Community Based Services, $20 million.
Mississippi Department of Human Services, $20.5 million.
Virginia Department of Social Services, $22.3 million.
Vermont Department for Children and Families, $9 million.
Washington Department of Social and Health Services, $22 million.
For further information about the projects, visit the SNAP Employment and Training Pilots website.
USDA’s Food and Nutrition Service administers 15 nutrition assistance programs. In addition to the Supplemental Nutrition Assistance Program, these programs include Special Supplemental Nutrition Program for Women, Infants and Children, the National School Lunch Program, and the Summer Food Service Program which together comprise America’s nutrition safety net. For more information, visit www.fns.usda.gov.
USDA Partners with University of Kentucky to Establish National Rural Child Poverty Nutrition Center
LEXINGTON, Kentucky, – Agriculture Secretary Tom Vilsack joined Kentucky Governor Steve Beshear and University of Kentucky-Lexington officials today to announce the establishment of the USDA Rural Child Poverty Nutrition Center at the University of Kentucky in Lexington. The Center will use cutting-edge solutions in child nutrition to reduce child food insecurity in states with the highest number of persistently poor rural counties. Currently, about 85 percent of all persistently poor counties in the United States are in rural areas, and children are one of the most vulnerable groups living in rural areas.
“The Rural Child Poverty Nutrition Center underscores this Administration’s focus on addressing poverty and food insecurity among children in rural areas where hunger and obesity are too common,” said Secretary Vilsack. “The center will make it possible for children in rural areas to access much-needed nutrition assistance and help close the large food insecurity gap between urban and rural communities.”
“This program will target child hunger and poverty in persistently poor rural communities by partnering with agencies who have the resources and expertise to make a difference,” said Gov. Beshear. “This program will do more than offer aid. It will attack the root causes of child hunger and poverty.”
“In the UK College of Agriculture, Food and Environment, part of our core mission as a land grant institution is to improve the lives of our citizens,” said University of Kentucky Dean Nancy Cox. “We are honored the USDA has chosen us to be their partner in this extremely important endeavor to reduce child food insecurity in persistently poor rural counties in Kentucky and several other states.”
With USDA’s investment of $2.5 million, the Rural Child Poverty Nutrition Center will administer and evaluate a series of sub-grants targeted to as many as 30 rural areas with high poverty rates in up to 15 states. The communities will use the funds to better coordinate existing child nutrition programs and create solutions to target child food insecurity. The University of Kentucky will partner with Altarum Institute and the Southern Rural Development Center to develop the center.
This announcement is part of the Obama Administration’s continuing efforts to combat poverty and food insecurity among children, especially in rural areas. In Kentucky alone, over 26 percent of children live in poverty. In 2014, President Obama designated eastern Kentucky as a Promise Zone, to receive integrated federal efforts to create jobs, increase economic security, expand educational opportunities, increase access to quality, affordable housing and improve public safety through local community partnerships. Seventy-three counties in Kentucky are also part of the USDA’s StrikeForce for Rural Growth and Opportunity, a strategic approach to addressing the unique set of challenges faced by many of America’s poorest rural communities.
USDA’s Food and Nutrition Service administers America’s nutrition assistance programs, including the National School Lunch and School Breakfast programs, the Child and Adult Care Food Program, the Summer Food Service Program, and Supplemental Nutrition Assistance Program, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Together these programs make up the federal nutrition safety net. USDA’s focus on nutrition and obesity is also an important component of First Lady Michelle Obama’s Let’s Move! initiative to combat childhood obesity.
Land O’Lakes Inc. to Acquire FLM+ – New Partnership Will Provide Additional Resources to Federated Cooperative system
ARDEN HILLS, Minn. – Land O’Lakes, Inc. is acquiring the assets of FLM+, a leading marketing communications and strategic consulting company with expertise in the agribusiness and rural community sector. The acquisition aligns the growth strategies of both companies in serving the agricultural industry.
“Land O’Lakes, together with its member cooperatives, is working to build the talent and provide the necessary resources to fully participate in this great growth industry of food and agriculture,” said Chris Policinski, president and CEO of Land O’Lakes, Inc. “This partnership with FLM+ will provide valuable resources within our federated co-op system to drive the growth of our member-owners.”
FLM+ will become a wholly owned subsidiary of Land O’Lakes, Inc. The company will retain its employee base after closing, which is scheduled for the second quarter of the year.
FLM+ combines the best practices of consulting firms, communications agencies and learning services companies to help clients realize their growth goals. The marketing communications and consulting services FLM+ delivers to their extensive roster of commercial and producer-funded clients will also be available to Land O’Lakes, Inc. member co-ops to help them better meet their own growth goals and respond to emerging market opportunities.
“Five years ago Phillip Farmer, John Lumpe and I set out to create a new kind of marketing and communications company focused on meeting the needs of agribusiness and rural communities,” said Rob McClelland FLM+ president and CEO. “This new partnership will only accelerate our commitment to positively impact our valued clients. We’re honored and excited to become part of the Land O’Lakes family.”
About Land O’Lakes, Inc.
Land O’Lakes, Inc., one of America’s premier agribusiness and food companies, is a member-owned cooperative with industry-leading operations that span the spectrum from farm production to consumer foods. With 2013 annual sales of more than $14.2 billion, Land O’Lakes is one of the nation’s largest cooperatives, ranking 199 on the Fortune 500. Building on a legacy of more than 93 years of operation, Land O’Lakes today operates some of the most respected brands in agribusiness and food production including LAND O LAKES® Dairy Foods, Purina Animal Nutrition and WinField. The company does business in all 50 states and more than 60 countries. Land O’Lakes, Inc. corporate headquarters are located in Arden Hills, Minn.
About FLM+
FLM+ specializes in the business of agriculture and the life of rural communities and is focused on setting strategy, aligning teams, framing opinions and creating demand via its team members located in Minneapolis, Minn.; Columbus, Ohio; Washington, D.C.; Indianapolis, Ind.; Chicago, Ill.; Sioux Falls, S.D.; and Kansas City, Mo.
USDA Launches Initiative to Develop New Solutions to End Child Hunger, Grants Provide $27 million to States and Tribal Nations
WASHINGTON, – In a speech at the 2015 National Anti-Hunger Policy ConferenceThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website. today about the extent of childhood hunger in America and the impact of USDA programs on reducing food insecurity, Agriculture Secretary Tom Vilsack announced more than $27 million in grants to fund innovative projects designed help end childhood hunger. The announcement was part of USDA efforts during National Nutrition Month to focus on poverty and food insecurity among children, especially in rural areas. These projects will be tested in Kentucky, Nevada, and Virginia, as well as the Chickasaw and Navajo tribal nations.
“Too many children in America live in households that don’t always know where their next meal is coming from. Many families are forced to buy cheaper, less healthy foods because they don’t have resources to purchase healthier options, or don’t live close to a store that sells healthy food,” Secretary Vilsack said. “At USDA, we’re deeply committed to ensuring that all Americans, especially children, have access to a healthy diet whether at home or at school. The goal of ending child hunger in America is absolutely achievable, and this new initiative will help us test innovated strategies for getting there.”
In the United States, approximately 15.8 million children live in families that have had to worry about access to food, and many of those children live in rural communities. The projects announced today are designed to test innovative strategies to end childhood hunger, including alternative models for service delivery and benefit levels that promote the reduction or elimination of childhood hunger and food insecurity. An independent evaluation will accompany this project to measure impact and identify successful strategies. The projects will be evaluated primarily based on their ability to reduce food insecurity among children.
Made possible by the Healthy Hunger-Free Kids Act of 2010 (HHFKA), the projects target areas or populations with elevated levels of food insecurity or gaps in nutrition assistance program coverage. HHFKA requires that at least one project be carried out on an Indian reservation in a rural area with a service population having a prevalence of diabetes that exceeds 15 percent. Projects chosen include:
Chickasaw Nation: The Chickasaw Nation will implement the Chickasaw Nation Nutrition Services Demonstration Project to End Childhood Hunger, which will provide food through home delivery to households with children who qualify for free school meals. Grant amount: $9.7 million.
Kentucky: The Commonwealth of Kentucky will implement the Ticket to Healthy Food Supplemental Nutrition Assistance Program Demonstration, which will test the impact of providing households with children an additional transportation deduction that may increase their SNAP benefits. The project will serve the Kentucky Highlands area in the southeastern part of the state – a designated Promise Zone. Grant amount: $3.6 million.
Navajo Nation: The Navajo Nation Division of Health will implement the Food Access Navigation Project, which will employ Food Access Navigators to evaluate assets and gaps in food access in selected regions of the reservation and provide technical assistance for connecting eligible households to nutrition assistance programs. Grant amount: $2.4 million.
Nevada: The Nevada Division of Public and Behavioral Health will implement the Nevada SNAP Enhancement Demonstration Project to test the relative impacts on SNAP households with children of (1) an increase in SNAP benefits, and (2) a SNAP increase plus additional outreach, education, and case management. Grant amount: $3.1 million.
Virginia: The Virginia Department of Education will implement the Virginia Hunger-Free Kids Act Demonstration Project, which will test the impact of providing (1) three school meals a day to all children in select schools during the school year, (2) food for weekends and school breaks, and (3) more resources for low-income households to purchase food during the summer months. Grant amount: $8.8 million.
Four of these projects are based in states receiving targeted USDA assistance to address chronic rural poverty through the Department’s StrikeForce Initiative for Rural Growth and Opportunity. USDA’s StrikeForce Initiative is operational in 770 persistent poverty counties, parishes, boroughs, Colonias and tribal reservations in twenty states.
USDA’s 15 nutrition assistance programs help struggling families gain access to healthy, nutritious food. Throughout the month of March, which is National Nutrition Month, USDA will highlight the impact of these programs on the 1 in 4 Americans that rely on these vital programs for the nutrition they need.
Healthier people go to the doctor less and have fewer medical expenses, miss fewer days of school and work, are able to join our military to defend our nation, and are more successful in the long run. USDA is focused on improving childhood nutrition and empowering families to make healthier food choices by providing science-based information and advice, while expanding the availability of healthy food.
This program also supports the Generation Indigenous (Gen-I) initiative by helping to ensure tribal youth have access to healthy food – a challenge on reservations that often do not have access to a grocery or other healthy alternative except through USDA nutrition programs.
Collectively these policies and actions are helping to combat childhood hunger and obesity, while improving the health and nutrition of the nation’s children. In addition to the National School Lunch and School Breakfast Programs that provide free and reduced priced meals to 21.6 million low-income children each day, USDA’s Food and Nutrition Service administers the Supplemental Nutrition Assistance Program, the Special Supplemental Nutrition Program for Women, Infants, and Children, The Emergency Food Assistance Program (TEFAP), and the Summer Food Service Program. For more information, visit www.fns.usda.gov.
Hershey Begins Move to Simple, Easy-to-Understand Ingredients
HERSHEY, Pa.– The Hershey Company (NYSE:HSY) today announced it is demonstrating its dedication to goodness through its great-tasting, high-quality products by beginning a transition to simple and easy-to-understand ingredients. This builds and expands on Hershey’s ongoing commitment to responsibly sourcing the ingredients it uses in its product portfolio.
“As consumers, our relationship with food is changing. We spend more time talking and sharing with others about what we eat and why we like certain foods, than we spend actually eating. Food matters and at Hershey, we care deeply about it,” said John P. Bilbrey, President and Chief Executive Officer, The Hershey Company. “We all want and deserve to know what’s in our food. Hershey takes pride in listening to our consumers and customers and understanding what they need. We will continue to make our great-tasting, high-quality iconic brands that people know and love. We also will share more information about what goes into our products in ways that are easy to understand and access.”
Hershey is focusing on three key principles:
Simple Ingredients: We are committed to making our products using ingredients that are simple and easy-to-understand, like fresh milk from local farms, roasted California almonds, cocoa beans and sugar – ingredients you recognize, know and trust. We strive for this kind of simplicity with all of our ingredients.
Sharing What’s Inside: We take pride in our products and sharing information about all that goes into them, from the ingredients to sourcing, manufacturing and labeling. We will make this information easy to find for those who are interested – whether that’s on our packaging, on our website or through new technologies.
Thoughtful and Responsible Sourcing of Ingredients: We will continue to work with our suppliers to responsibly source sustainable ingredients, building on our progress against commitments to source 100 percent certified and sustainable cocoa and certified sustainable and traceable palm oil.
“We will strive for simplicity with all of our ingredients, but we may not achieve it with every product,” said Bilbrey. “This is a journey and it will take time. We are equally committed to sharing what we achieve and what we don’t. For ingredients that may not be as simple, we will explain what they are and why we need them to provide the great flavors, aromas, textures and appearances that our consumers know and love.”
In 2015, Hershey plans to introduce in the U.S. new snacking products such as Brookside Dark Chocolate Fruit & Nut Bars, which will feature a lineup of simple ingredients, and transition some of its most popular chocolate brands, including Hershey’s Kisses Milk Chocolates and Hershey’s Milk Chocolate Bars to simpler ingredients.
The Hershey Company will continue updating its website to serve as a resource for information from a full ingredient glossary to in-depth articles about ingredients consumers want to know about and profiles of the suppliers we work with each and every day.
For more information about Hershey’s commitment to goodness, please visit TheHersheyCompany.com or contact us on Twitter at @AskHershey.
About The Hershey Company
The Hershey Company (NYSE: HSY), headquartered in Hershey, Pa., is a global confectionery leader known for bringing goodness to the world through its chocolate, sweets, mints and other great-tasting snacks. Hershey has more than 22,000 employees around the world who work every day to deliver delicious, quality products. The company, which has more than 80 brands around the world that drive over $7.4 billion in annual revenues, includes such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher, Ice Breakers and Brookside. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. Additionally, Hershey is poised to expand its portfolio into categories beyond confectionery, finding new ways to bring goodness to people everywhere.
At Hershey, goodness has always been about more than delicious products. For 120 years, Hershey has been committed to good business by operating fairly, ethically and sustainably to make a positive impact on society. This means contributing to a better life for its employees, consumers, communities, and ultimately, creating a bright future for children in need. This commitment is exemplified by Milton Hershey School, established in 1909 by the company’s founder and administered by Hershey Trust Company. The children who attend the school receive education, housing, and medical care – thriving as direct beneficiaries of The Hershey Company’s success.
SUPERVALU Announces 2015 National Sales Show For Independent Retailers Will Take Place in August in St. Paul, Minn
EDEN PRAIRIE, Minn. – Following the success of its inaugural national sales show in 2014, SUPERVALU INC. (NYSE: SVU) today announced it will host the 2015 National Expo this August in St. Paul, Minn.
This year’s event will take place from Aug. 11-13 at the RiverCentre in downtown St. Paul and is open to the more than 2,000 independent retail customers served by SUPERVALU, as well as hundreds of vendors and industry professionals.
“Our first national sales expo was a great success, helping us to increase sales and make stronger connections with our retail customers and our vendors,” said Janel Haugarth, SUPERVALU’s executive vice president overseeing independent business and supply chain services. “We’ve gathered insights and feedback from last year’s event, and are excited to build on that for an even bigger and better show for 2015.”
Nearly 1,500 retailers attended SUPERVALU’s first national expo in 2014, which featured 145,000 square feet of show floor space, 330 exhibitors and 25 education seminars. This year’s show will have an expanded emphasis on fresh departments and products, while again including the valuable “Education Day” offering consumer insights, training seminars, and other resources for operators.
Additionally, the popular Master Marketer Awards ceremony, which rewards the best marketing campaigns across SUPERVALU’s vast independent business network, will highlights this year’s event.
Additional details about the show, including registration information and daily agendas, will be shared as the event gets closer.
About SUPERVALU INC.
SUPERVALU INC is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $17 billion. SUPERVALU serves customers across the United States through a network of 3,360 stores composed of 1,832 primary stores serviced by the Company’s food distribution business; 1,333 Save-A-Lot stores, of which 911 are operated by licensee owners; and 195 traditional retail grocery stores (store counts as of November 29, 2014). Headquartered in Minnesota, SUPERVALU has approximately 35,000 employees. For more information about SUPERVALU visit www.supervalu.com.
Sysco to Contest Federal Trade Commission’s Attempt to Block Proposed US Foods Merger
HOUSTON, – Sysco Corporation (NYSE:SYY) today announced that it will contest the U.S. Federal Trade Commission’s (FTC) attempt to block its proposed merger with US Foods. The company said it is looking forward to a full judicial review of the significant competitive benefits of the merger.
The five FTC Commissioners voted by a slim margin of 3-2 to seek a preliminary injunction in the U.S. District Court for the District of Columbia to prevent the parties from closing the transaction. The narrow vote demonstrates a lack of consensus within the Commission that the proposed merger could be viewed as harmful to competition under the law.
Sysco believes that the FTC’s decision is based on an erroneous view of the competitive dynamics of the foodservice distribution industry.
“The facts are strongly in our favor and we look forward to making our case in court,” said Bill DeLaney, Sysco’s president and chief executive officer. “Those of us who work in this industry every day know it is fiercely competitive. Customers of all types have access to food distribution services from a wide variety of companies and any number of channels. In fact, the overwhelming majority of restaurants and food operators choose their foodservice distributor locally, where they have choices among many excellent companies.”
“For example, the FTC claims that Sysco and US Foods combined have a 75 percent market share in an ill-defined ‘national broadline market,’ ignoring the fact that the vast majority of ‘national customers’ use multiple regional or local distributors. Additionally, the FTC claims the merger would harm competition in 32 local markets, ignoring the existence of myriad local suppliers, including broadline companies, specialty companies, cash-and-carry, and club stores with whom Sysco and US Foods compete on a daily basis.”
Despite its fundamental disagreement with the FTC’s position, Sysco listened closely to the agency’s concerns and delivered a substantial divestiture package to enable Performance Food Group (PFG) to compete more effectively for customers coast to coast.
“This merger has always been about serving customers better and driving costs out of the system,” DeLaney said. “By unlocking at least $600 million in annualized cost synergies, the merger will allow Sysco to lower costs for customers, deliver better service and improve selection across all product segments, all of which will increase competition across the entire foodservice distribution industry to the benefit of customers.”
Sysco believes that its merger with US Foods is in the best interest of all stakeholders for the following reasons:
1. Customer Focus
The merger of Sysco and US Foods will benefit customers and help the business become more efficient in an evolving and competitive marketplace. It will increase efficiency and innovation to the benefit of small and large customers across the country. This includes providing the highest quality service, great brands and competitive pricing. The combined company will continue to create value for customers through insights-driven product innovation and expanded services that go beyond food. The merger will enhance the company’s flexibility and responsiveness to provide unique, on-trend food products that save customers time and improve performance. The foodservice industry is a collection of local and fiercely competitive markets where customers of all sizes continue to enjoy a wide range of choice among broadline, specialty and other distribution channels.
2. Substantial Efficiencies
The proposed merger creates supply chain efficiencies through the optimization of inbound and outbound freight and the opportunity to partner more closely with suppliers and brokers to address customer needs and help them grow their businesses. Sysco estimates it will be able to achieve net annual synergies of at least $600 million in four years even after its announced divestiture to Performance Food Group (PFG).
3. Enhanced Employee Opportunities
Sysco remains committed to investing in its businesses and its people to accelerate the transformation of the industry, including customer-friendly technology, robust category management, food safety and quality assurance, and sustainable business practices. The combined business will continue to be a significant national and local employer. By combining the strengths of the two companies, Sysco will provide employees even more opportunities to grow and develop their careers.
4. Substantial Divestiture Package
As previously announced, the definitive divestiture agreement includes selling US Foods facilities in 11 markets to PFG upon consummation of the merger. These facilities, representing approximately $4.6 billion in annual sales, will expand PFG’s geographic footprint in the U.S. and enable PFG to compete more effectively for customers coast to coast.
About Sysco
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates 194 distribution facilities serving approximately 425,000 customers. For Fiscal Year 2014 that ended June 28, 2014, the company generated sales of more than $46 billion. For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoCorporation or Twitter at https://twitter.com/Sysco.
About US Foods
As one of America’s great food companies and leading distributors, US Foods is Keeping Kitchens Cooking™ and making life easier for customers, including independent and multi-unit restaurants, healthcare and hospitality entities, government and educational institutions. With approximately $22 billion in annual revenue, the company offers more than 350,000 products, including high-quality, exclusive brands such as the innovative Chef’s Line®, a time-saving, chef-inspired line of scratch-quality products, and Rykoff Sexton®, a premium line of specialty ingredients sourced from around the world. The company proudly employs approximately 25,000 people in more than 60 locations nationwide. US Foods is headquartered in Rosemont, Ill., and jointly owned by affiliates of Clayton, Dubilier & Rice LLC and Kohlberg Kravis Roberts & Co. L.P. Discover more at www.usfoods.com.
Nestlé USA Will Remove Artificial Flavors and FDA-Certified Colors from All Nestlé Chocolate Candy by the End of 2015
Nestlé USA announced today its commitment to removing artificial flavors and FDA-certified colors, like Red 40 and Yellow 5, from all of its chocolate candy products. By the end of 2015, more than 250 products and 10 brands including NESTLÉ® BUTTERFINGER®, CRUNCH® and BABY RUTH® will be free of artificial flavors and certified colors. Products will begin appearing on store shelves by mid-2015, and will be identified by a “No Artificial Flavors or Colors” claim featured on-pack.
“Nestlé is the world’s leading nutrition, health and wellness company and our commitment to remove artificial flavors and certified colors in our chocolate candy brands is an important milestone,” said Doreen Ida, president, Nestlé USA Confections & Snacks. “We know that candy consumers are interested in broader food trends around fewer artificial ingredients. As we thought about what this means for our candy brands, our first step has been to remove artificial flavors and colors without affecting taste or increasing the price. We’re excited to be the first major U.S. candy manufacturer to make this commitment.”
According to Ida, Nestlé USA conducted research on brands like BUTTERFINGER®, which indicates that U.S. consumers prefer candy brands they know and love to be free from artificial flavors and colors. Further, findings from Nielsen’s 2014 Global Health & Wellness Survey show more than 60% of Americans say no artificial colors or flavors is important to their food purchase decisions.
Nestlé USA is achieving this commitment by removing artificial flavors and colors, and replacing them with ingredients from natural sources. For example, in the BUTTERFINGER® crispety, crunchety center, annatto, which comes from the seeds found in the fruit from the achiote tree, will replace Red 40 and Yellow 5. In CRUNCH®, natural vanilla flavor will replace artificial vanillin.
“We never compromise on taste. When making these changes to more than 75 recipes, maintaining the great taste and appearance consumers expect from the chocolate brands they know and love is our
#1 priority,” said Leslie Mohr, nutrition, health and wellness manager, Nestlé Confections & Snacks. “We conducted consumer testing to ensure the new recipe delivers on our high standards for taste and appearance.”
According to Mohr, this change affects Nestlé’s current portfolio of chocolate brands including NESTLE® CRUNCH®, BUTTERFINGER®, BABY RUTH®, SKINNY COW®, RAISINETS®, GOOBERS®, SNO CAPS®, 100 GRAND®, OH HENRY® and CHUNKY®. Going forward, all newly launched chocolate and non-chocolate candy products (gummies, sours, etc.) introduced by Nestlé USA will be made without artificial flavors or colors. Additionally, Nestlé USA is actively pursuing the removal of caramel coloring from its chocolate products. Caramel coloring is an exempt-from-certification color additive, which is used in only nine of the more than 250 chocolate products.
Nestlé USA
Named one of “The World’s Most Admired Food Companies” in Fortune magazine for seventeen consecutive years, Nestlé provides quality brands that bring flavor to life every day. From nutritious meals with LEAN CUISINE® to baking traditions with NESTLÉ® TOLL HOUSE®, Nestlé USA makes delicious, convenient, and nutritious food and beverage products that make good living possible. That’s what “Nestlé. Good Food, Good Life” is all about. Well-known Nestlé USA brands include: NESTLÉ® TOLL HOUSE®, NESTLÉ® NESQUIK®, NESTLÉ® COFFEE-MATE®, STOUFFER’S®, LEAN CUISINE®, HOT POCKETS® and LEAN POCKETS® brand sandwiches, NESCAFÉ® and NESCAFÉ CLASICO ™, BUITONI®, SKINNY COW®, DREYER’S/EDY’S®, NESTLÉ® CRUNCH®, NESTLÉ® BUTTERFINGER®, WONKA® and DIGIORNO®. Nestlé USA, with 2013 sales of $10 billion, is part of Nestlé S.A. in Vevey, Switzerland — the world’s largest food company with a commitment to Nutrition, Health & Wellness — with 2013 sales of $99 billion. For product news and information, visit Nestleusa.com or Facebook.com/NestleUSA.
Tyson Foods to Create 500 Jobs at Georgia Poultry Plant
Vienna, Ga. – Tyson Foods, Inc. (NYSE: TSN) is making major improvements to its Vienna, Georgia poultry plant as part of an ongoing plan to maximize efficiencies and meet growing demand for its products. The capital improvement project, valued at more than $110 million, will bolster the future of the operation and create more than 500 jobs in Vienna.
“Tyson Foods’ decision to expand in Georgia underscores how our No. 1 business climate and highly skilled workforce keeps leading companies competitive in today’s fast-paced market,” said Georgia Governor Nathan Deal. “Tyson Foods is one of our state’s largest employers in food processing, and I’m confident that it will continue to benefit from our top talent and robust industry network in order to deliver high-quality jobs to Georgia’s citizens.”
The Vienna plant has been producing chicken for foodservice customers, including restaurant chains, but will convert to supply fresh tray pack chicken to meet the needs of regional retail customers. Work began at the location in mid-January and is scheduled to be completed in mid-2015.
The project will upgrade parts of the plant and add about 100,000 square feet. Improvements will include new equipment and production lines, as well as processes and technology designed to benefit food safety, quality and workplace safety.
“The existing infrastructure, location and the availability of workers make the Vienna plant ideal for this expansion project,” said Noel White, president of poultry for Tyson Foods. “This project will improve the plant’s product mix and make it even more cost competitive.”
In an effort to fully staff the plant when the project is completed, the company will begin reviewing qualified applicants immediately. Those interested in employment are encouraged to visit TysonFoodsCareers.com, and complete an application. Many of the positions will be filled before the project is complete so new workers will have an opportunity for job training.
To assist Tyson Foods with the expansion, the Georgia Department of Economic Development is providing qualified job tax credits for new capital investment. The state also will help with new and existing employee training programs through the Technical College System of Georgia’s Quick Start program to help the company build and maintain its workforce.
“We’re grateful to the Georgia Department of Economic Development and everything it has done to make this project possible,” White said. “We appreciate doing business in Georgia and are glad we can invest in our Vienna plant.”
Tyson Foods purchased the Vienna plant in 1995. The facility currently employs about 700 people, generating an annual payroll of more than $15.6 million. In addition, the company paid family farmers more than $30 million during its 2014 fiscal year to grow chickens to supply its southern Georgia operations.
About Tyson Foods
Tyson Foods, Inc. (NYSE: TSN), with headquarters in Springdale, Arkansas, is one of the world’s largest producers of chicken, beef, pork and prepared foods that include leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee® frozen bakery, Ball Park®, Wright®, Aidells® and State Fair®. The company was founded in 1935 by John W. Tyson, whose family has continued to lead the business with his son, Don Tyson, guiding the company for many years and grandson, John H. Tyson, serving as the current chairman of the board of directors. Tyson Foods provides a wide variety of protein-based and prepared foods products and is the recognized market leader in the retail and foodservice markets it serves, supplying customers throughout the United States and approximately 130 countries. It has approximately 124,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson Foods strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
Impact of $300 Million Investment in Sage-grouse Conservation on Working Lands in West
WASHINGTON, –The United States Department of Agriculture (USDA) today issued a report showing that since 2010 USDA and its partners in the Sage Grouse Initiative (SGI) have worked with private landowners to restore 4.4 million acres of habitat for sage-grouse while maintaining working landscapes across the West. USDA also announced today that, through the provisions of the 2014 Farm Bill, it will invest in new sage-grouse conservation work over the next four years.
“We’re working with ranchers who are taking proactive steps to improve habitat for sage-grouse while improving the sustainability of their agricultural operations,” Under Secretary for Natural Resources and Environment Robert Bonnie said. “Thanks to the interest from ranchers and support of our conservation partners, USDA’s Natural Resources Conservation Service (NRCS) is working to secure this species’ future while maintaining our vibrant western economies. Since 2010, we’ve worked with ranchers to conserve, restore, or maintain more than 4 million acres of habitat on private lands – an area twice the size of Yellowstone National Park.”
In the past five years, NRCS has invested $296.5 million to restore and conserve sage-grouse habitat, and has pledged to extend these efforts by approximately $200 million over four years through the conservation programs funded by the 2014 Farm Bill. Additionally, NRCS is piloting use of its Conservation Stewardship Program to broaden the impacts of SGI by targeting up to 275,000 acres to enhance sage-grouse habitat in 2015.
SGI is a diverse partnershipThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website. led by NRCS that includes ranchers, state and federal agencies, universities, non-profit groups, and private business. SGI has leveraged the NRCS investment with an additional $128 million from partners and landowners, bringing the total SGI investment to $424.5 million. SGI aids ranchers with NRCS technical and financial assistance and in getting NRCS conservation practices on the ground.
Efforts range from establishing conservation easements that prevent subdivision of large and intact working ranches to improving and restoring habitat through removal of invasive trees. Across the range, conservation easements have increased eighteen-fold through SGI, protecting 451,884 acres. NRCS efforts have been targeted towards the most important regions. More than one-third of the easement acreage is located in Wyoming, which contains 40 percent of the sage-grouse population. In Oregon, NRCS has invested $18.4 million through SGI in on-the-ground restoration, helping more than 100 ranchers remove conifers from 200,000 acres of key nesting, brood-rearing and wintering habitats, addressing 68 percent of the conifer threat to Oregon’s sage-grouse population on priority private land. These efforts focused on eliminating the encroachment of conifer trees on grasslands not only benefit the sage-grouse, but also improve the forage available on grazing lands.
“American ranchers are working with us to help sage-grouse because they know they are helping an at-risk bird while also improving the food available for their livestock,” Bonnie said. “As the saying goes, ‘What’s good for the bird is good for the herd.'”
“We continue to work diligently to remove the conifer trees that put sage-grouse and their habitat at risk,” said Tim Griffiths, NRCS’ coordinator for SGI. “By removing trees and saving vulnerable grasslands, we’re expanding the footprint of prime sage-grouse habitat while supporting sustainable ranching and working lands.”
For more on technical and financial assistance available through conservation programs, visit www.nrcs.usda.gov/GetStarted or a local USDA service center.
Today’s announcement was made possible by the 2014 Farm Bill. The 2014 Farm Bill builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life.
Smithfield Foods Continues “Sustainability Stories” Web Series With a Look at Environmental Performance
SMITHFIELD, Va., — Kinesha Allen, the environmental manager at the Smithfield Farmland facility in Smithfield, Virginia, is part of a team that helps keep the plant’s environmental performance on track. Allen and her teammates are committed to fulfilling one of Smithfield Foods’ key sustainability commitments, reducing the company’s environmental footprint, and she is featured in the latest installment of multi-media “sustainability stories” on Smithfieldcommitments.com.
“The environmental performance of all our plants—in the U.S. and internationally—receives a lot of attention, and we work hard to improve every year,” said Larry Pope, Smithfield’s president and chief executive officer. “Kinesha is part of that effort as are virtually all the employees who work for Smithfield Foods and our independent operating companies.”
Allen has a passion for the environment, and her responsibilities run the gamut from checking water and energy usage to volunteering at local schools. She’s proud of her team’s performance. “We’ve won several environmental awards at this facility. The most recent one would be the 2014 Business Partner of the Year through the Virginia Recycling Association,” Allen said.
For more than a decade, Smithfield Foods has been committed to conducting business in a manner that reduces its environmental impact. Over the years Smithfield has augmented and improved its environmental management systems, enabling the company to reduce its use of key resources, including water, energy and land.
Smithfield also sets challenging targets to further elevate its performance around water, energy, greenhouse gas (GHG) emissions and solid waste. Not only has this made good economic and environmental sense, but the company’s focus on improvement has resulted in reaching some of those targets ahead of schedule.
Smithfield believes that sustainability is a journey, not a destination, and corporations must continually strive to exceed what is expected of them. This belief is ingrained in the culture and operations at Smithfield Foods. The online sustainability stories help share Smithfield’s journey and introduce the people who create this culture.
All three installments of the “Sustainability Stories” series can be found at http://www.smithfieldcommitments.com/stories
About Smithfield Foods
Smithfield Foods is a $14 billion global food company and the world’s largest pork processor and hog producer. In the United States the company is also the leader in numerous packaged meats categories with popular brands including Smithfield®, Eckrich®, Farmland®, Armour®, Cook’s®, Gwaltney®, John Morrell®, Kretschmar®, Curly’s®, Carando®, Margherita® and Healthy Ones®. Smithfield Foods is committed to providing good food in a responsible way and maintains robust animal care, community involvement, employee safety, environmental, and food safety and quality programs. For more information, visit www.smithfieldfoods.com and www.smithfieldcommitments.com.
Over $9 Million For Socially Disadvantaged Farmers and Ranchers To Diversify American Agriculture
Albany, GA, – Today, Deputy Secretary Krysta Harden announced over $9 million in grant funds will soon be available for outreach and technical assistance to minority and veteran farmers and ranchers. This funding will enable community-based organizations, eligible higher education institutions and tribal organizations to work directly with these groups to successfully acquire, own and operate farms and ranches and to access all USDA programs and services. These funds are being provided through the Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers Program, also known as the “2501 Program”.
Through the 2501 Program, outreach and technical assistance is provided to minority and veteran farmers and ranchers through partnering organizations, including 1890 Land Grant Institutions, 1994 Land Grant Institutions, other American Indian Tribal community colleges and Alaska Native cooperative colleges, Hispanic-serving and other institutions of higher education, Tribal governments and organizations, and community-based organizations.
“To stay competitive, America’s farmers and ranchers must be diverse in experience, background and skills. Every farmer and rancher has something to contribute to America’s agriculture. Community partnerships can help farmers and ranchers reach their full potential,” said Deputy Secretary Krysta Harden. “As we celebrate the first anniversary of the 2014 Farm Bill, programs like these are evidence that an investment in all of America’s farmers and ranchers is an investment in our future.”
Applications for the 2501 program must be submitted through www.grants.gov. More information about the 2501 Program, including forthcoming grant notice and application deadlines is available at: http://www.outreach.usda.gov/grants/index.htm.
The Deputy Secretary also announced the formation of a Socially Disadvantaged Farmers and Ranchers Policy Research Center dedicated to collecting and analyzing data, developing policy recommendations, and evaluating policy concerning socially disadvantaged farmers and ranchers including minorities, veterans, and Native Americans. This one-time competitive program is open to any eligible 1890 Land-Grant Institution interested in hosting the Center.
The Deputy Secretary made today’s announcement at the Federation of Southern Cooperatives, which was awarded a 2501 Grant last year to conduct training, outreach, and technical assistance to minority and veteran farmers and ranchers.
Since 2010, the 2501 Program has distributed more than $66 million to 250 partners. The program is administered by the USDA’s Office of Advocacy and Outreach. The 2014 Farm Bill reauthorized the program and expanded assistance to include military veterans.
The 2014 Farm Bill builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America. For more information, visit www.usda.gov/farmbill.
USDA Partnering to Conduct Grant Workshops to Support Local Foods
WASHINGTON, – The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) and National Institute for Food and Agriculture (NIFA) today announced a partnership through the Agricultural Marketing Service Technical Assistance (AMSTA) Project to conduct workshops that will help potential grant applicants understand, develop, and submit their Federal grant applications for the Farmers Market and Local Food Promotion Program.
“The Farmers Market and Local Food Promotion Program is a key to USDA’s efforts to revitalize rural economies by supporting local and regional food systems,” said AMS Administrator Anne Alonzo. “The grant workshops will ensure that more communities and businesses across the country can participate in the competitive grant process with proposals that create real economic opportunities and help meet the growing demand for locally and regionally produced food.”
NIFA is coordinating the workshops through the Regional Rural Development Centers. Cooperative Extension System educators will provide training in all regions of the country, and NIFA will conduct outreach to raise awareness of AMS grant opportunities and increase participation in the programs. The AMS and NIFA collaborative effort for this innovative national training project will be directed by Dr. Stephan J. Goetz of the Northeast Regional Center for Rural Development based at Penn State University.
A list of upcoming grant workshop dates and locations can be found at http://www.amsta.netThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website.. More workshops will be added soon, and the State representatives listed on the website can be contacted for additional information about upcoming workshops. Some of the workshop sessions will be recorded and available for online viewing for those not able to attend in person.
With $30 million authorized annually by the Agricultural Act of 2014 (Farm Bill) through fiscal year 2018, AMS’s Farmers Market and Local Food Promotion Program awards competitive grants to develop new market opportunities for farm and ranch operations serving local and regional markets. The Farmers Market Promotion Program supports farmers markets and other direct producer-to-consumer activities, while the Local Food Promotion Program supports enterprises that aggregate, store, distribute and process local and regional food.
These investments are part of USDA’s commitment to strengthening local and regional food systems through projects that recruit and train farmers, expand economic opportunities, and increase access to healthy foods. USDA’s Know Your Farmer, Know Your Food Initiative (KYF2) coordinates USDA’s support for local and regional food systems. Projects aligned with these efforts can be found on the Know Your Farmer, Know Your Food Compass. For more information on AMS visit www.ams.usda.gov, and for more on NIFA visit www.nifa.usda.gov.
Expanded Market Access for U.S. Grown Apples to China – Agreement To Boost Apple Exports by $100 million per year
WASHINGTON, Jan. 26, 2015 – This weekend, the U.S. Department of Agriculture reached agreement with Chinese officials to allow all U.S. grown apples to gain access to the Chinese market. This will allow a greater share of U.S. apple exports to China in the coming months and has the potential to increase U.S. fresh apple exports, which were valued at more than $1 billion in 2013, by approximately 10 percent. With this new agreement, the apple industry estimates that within two years, exports to China will reach 5 million bushels annually, a value of nearly $100 million per year. The agreement was reached during bilateral discussions between USDA and China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) in San Francisco.
Agriculture Secretary Tom Vilsack today made the following statement regarding this announcement:
“USDA values the relationship we are forging with China to bring mutually-beneficial food and agricultural trade to Americans and Chinese alike. The new access for American exports we’re announcing today is the culmination of decades of hard work by USDA staff. These efforts will result in high quality, fresh U.S. apple varieties available for consumers in China and a significant boost in sales for American apple producers.
“USDA remains a strong partner and advocate in the international marketplace, working with foreign governments and international organizations to ensure the smooth and safe flow of international trade. The past six years have been the strongest in history for agricultural trade, with U.S. agricultural product exports totaling $771.7 billion since 2009. Strong agricultural exports contribute to a positive U.S. trade balance, create jobs and boost economic growth. As the President said in his recent State of the Union address, we now look to Congress build on this success and pass a bipartisan Trade Promotion Authority bill to continue to support a robust trade agenda that will create thousands of new American jobs.”
USDA Seeks Applications for Conservation Innovation Grants
WASHINGTON, Jan. 26, 2015 – Agriculture Secretary Tom Vilsack today announced that applications are being accepted for up to $20 million in grants to facilitate the creation of new, innovative markets for carbon credits, providing additional revenue sources for producers to use to address natural resource conservation challenges. These grants are part of the Conservation Innovation Grant (CIG) program, authorized through the 2014 Farm Bill.
“USDA has been a leader in supporting market-based solutions to improve water quality and reduce carbon pollution,” Secretary Vilsack said. “With this opportunity, we are supporting the next generation of projects that will help mature these markets and bring them to scale to benefit both producers and the environment.”
For 2015, approximately half of the $20 million is available for environmental markets and conservation finance projects that engage agricultural producers. In past years, CIG has helped fund the development of the basic infrastructure of these markets. This year, USDA, through the Natural Resources Conservation Service (NRCS) is seeking applications for projects that will build on these efforts by maturing and scaling markets and accelerating efforts to leverage private capital and investment in private lands conservation. Improved quantification tools, multi-resource crediting, and projects that substantively engage corporate or financial partners are the types of activities NRCS is pursuing.
As an example, USDA, though CIG, helped fund the development of the first interstate water quality trading program in the Ohio River Basin. Administered by the Electric Power Research Institute, in April, the program is holding its first public auction of water quality credits, generated by farmers in the basin. USDA also funded a project led by the Delta Institute that culminated in the generation and sale of nitrous oxide credits on corn fields in the Midwest. This project demonstrated that greenhouse gas emissions can be reduced on cropland while maintaining corn yields.
USDA is also soliciting proposals for projects to stimulate natural resource improvements, including, but not limited to, improvements in water quantity, soil health, and wildlife habitat. Applications from this funding pool may also emphasize expected benefits to historically underserved producers, veterans, and organic producers. Applications in the fields of economics and sociology as they relate to natural resources are also being welcomed.
Under CIG, Environmental Quality Incentives Program funds are used to award competitive grants to non-Federal governmental or nongovernmental organizations, Tribes, or individuals. The 2014 Farm Bill also included language that has led to some changes in this year’s CIG funding announcement. One change eliminates the requirement that half the applicant’s match be in cash. Another expands eligibility for the 10 percent set-aside provision for historically underserved producers.
As in prior years, NRCS will accept pre-proposals for initial review before inviting entities to submit full proposals. Pre-proposals are due Tuesday, February 24, 2015. To apply electronically, visit http://www.grants.gov or contact a local NRCS office.
Today’s announcement was made possible by the 2014 Farm Bill. The 2014 Farm Bill builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life.
Hershey Exceeds Sustainable Cocoa Goals in 2014 – Company Plans 50% Accelerated Target for Cocoa by End of 2015
HERSHEY, Pa.– The Hershey Company (NYSE: HSY) today announced that 30 percent of its globally sourced cocoa was independently certified and verified. This reflects an accelerated pace for achieving its goal of sourcing 100 percent of its cocoa supply from certified and sustainable cocoa farms by 2020. The announcement follows the company’s 2013 achievement of sourcing 18 percent certified cocoa globally, nearly double its original goal of 10 percent for the first year of its 2020 commitment.
Given its accelerated momentum toward 100 percent certified and sustainable cocoa, Hershey also announced a new target to source at least 50 percent certified cocoa by the end of 2015, reaching its 2016 goal of 40 and 50 percent one year ahead of schedule.
“Sourcing sustainable cocoa is a key part of our 21st Century Cocoa Sustainability Strategy, which focuses on programs that improve the livelihoods of cocoa farmers, their families and cocoa communities around the world,” said Terry O’Day, Senior Vice President and Chief Supply Chain Officer. “We are proud of our rapid progress in just two years and our alignment with the industry’s efforts to address the challenges in cocoa growing regions through the CocoaAction initiative led by the World Cocoa Foundation. Together, the cocoa and chocolate industry can bring training that helps improve livelihoods, gender equality and provide health and farm safety programs to benefit these communities.”
Hershey is currently sourcing certified cocoa through three of the world’s largest and most recognized cocoa certifications: UTZ Certified, Fair Trade USA and Rainforest Alliance Certified™. During the past year, Hershey has been expanding its work with industry partners to build sustainable farm training through the Hershey Learn to Grow program in Ghana, Nigeria and Cote d’Ivoire. In 2014, the company announced that more than 19,000 cocoa farmers in Cote d’Ivoire will be enrolled in Learn to Grow agricultural and community training programs. These efforts have led to an increase in certified farms and verified sustainable cocoa, which will contribute to Hershey’ sourcing 100 percent cocoa that is certified and originates from sources that have been independently audited and verified for appropriate farming, labor and environmental practices.
Hershey’s 100 percent certified and sustainable cocoa commitment is one part of Hershey’s ongoing commitment to support sustainable cocoa farming through its 21st Century Cocoa Sustainability Strategy. Hershey’s cocoa strategy is part of the broader cocoa-industry efforts through CocoaAction to improve product, family livelihoods and communities across the cocoa-growing sector in Ghana and Cote d’Ivoire.
For more information about Hershey’s 21st Century Cocoa Sustainability Strategy and other ethical cocoa sourcing initiatives, visit Hershey’s corporate website at: www.thehersheycompany.com.
About The Hershey Company
The Hershey Company (NYSE: HSY), headquartered in Hershey, Pa., is a global confectionery leader known for bringing goodness to the world through its chocolate, sweets, mints and other great-tasting snacks. Hershey has approximately 13,000 employees around the world who work every day to deliver delicious, quality products. The company, which has more than 80 brands worldwide that drive over $7.1 billion in annual revenues, includes such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher and Ice Breakers. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. Additionally, Hershey is poised to expand its portfolio into categories beyond confectionery, finding new ways to bring goodness to people everywhere.
At Hershey, goodness has always been about more than delicious products. For 120 years, Hershey has been committed to good business by operating fairly, ethically and sustainably to make a positive impact on society. This means contributing to a better life for its employees, consumers, communities, and, ultimately, creating a bright future for children in need. This commitment is exemplified by Milton Hershey School, established in 1909 by the company’s founder and administered by Hershey Trust Company. The children who attend the school receive education, housing, and medical care — thriving as direct beneficiaries of The Hershey Company’s success.
Heinz® Ketchup to Launch Campaign Asking Fans to Share Their Happiness
PITTSBURGH– Building on the “happiness theme” launched in 2014, Heinz® Ketchup lovers across America are invited to share their happiest moments in an online contest. Watch this year’s promotional video now.
To enter, consumers are asked to share a short comment or video about when they are happiest and upload it to social media using the hash tag #HeinzHappyContest, or by visiting the contest website HowDoYouHappy.com.
99 people will win $100 for their creative comments and one grand prize winner will receive $5,700 for the most creative video submission.
“Heinz has been bringing enjoyment and happiness to mealtimes for generations, and we want to continue that tradition with this campaign,” said Joe Giallanella, Brand Manager for Heinz Ketchup.
This contest will be part of a broader campaign that incorporates Heinz’s Foodservice partners. Limited edition bottles will appear in stores beginning in late December with a special label asking fans, “How Do You Happy?”
“We are excited to see what makes our fans happy, and are thrilled to share their happiness with everyone else,” said Giallanella.
Contest Rules:
NO PURCHASE NECESSARY to enter the Contest. A purchase does not increase your chances of winning. Open only to legal residents of the 50 U.S. & DC, who, as of the date of entry, are 18 or older. Void where prohibited. The Heinz® Ketchup How Do You Happy Contest starts at 12:01: am ET on 12/29/14 and ends at 11:59 pm ET on 2/23/15. Sponsored by H. J. Heinz Company, L.P. For Official Rules, visit www.HowDoYouHappy.com.
About Heinz:
H.J. Heinz Company, offering “Good Food Every Day”™ is one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz provides superior quality, taste and nutrition for all eating occasions whether in the home, restaurants, the office or “on-the-go”. Heinz is a global family of leading branded products, including Heinz® Ketchup, Sauces, Soups, Beans, Pasta, and Infant foods (representing over one third of Heinz’s total sales), Ore-Ida® potato products, Weight Watchers® Smart Ones® entrees, T.G.I. Friday’s® frozen snacks, and Plasmon® infant nutrition. Heinz is famous for its iconic brands on six continents, showcased by Heinz® Ketchup, The World’s Favorite Ketchup®.
European Union Changes Rules on Genetically Modified Crop Cultivation
On 23 July 2014, the 28 Environment Ministers adopted the Council position concerning the restriction or prohibition of the cultivation of GMOs in the territory of the Member States.
In practice, they were seeking to amend Directive 2001/18/EC on the deliberate release into the environment of GMOs, adding a new article widening the powers of the Member States to justify legally a national or regional ban on GMO cultivation. This amendment would also apply to the cultivation of GMOs authorised under Regulation (EC) No 1829/2003 covering food and feed containing or produced from GMOs.
The provisions of these two legislative texts establish a strict legal framework, authorising the marketing of GMOs only after approval based on a scientific assessment of the risks to human and animal health and to the environment.
It must be specified that the text under discussion concerns only the cultivation of GMOs for harvesting or on-farm research. In other words, GMO imports intended mainly for livestock are not covered by this legislation.
The compromise adopted by the Member States has entered into effect three years after the Parliament vote at first reading on 5 July 2011.
While such progress is welcomed by all, the underlying situation has become increasingly sensitive:
1. The European groundswell of opposition to GMOs is particularly pronounced with regard to their presence in food intended for human consumption, as reflected in the special Eurobarometer survey (no 354) of December 2010 regarding food-related risks, revealing that only 21% of Europeans concurred with the proposition that ‘GMO foods are safe for future generations’ (as opposed to 58% against).
An updated survey would be particularly welcome. It would very probably indicate that a large majority is still opposed to GMO cultivation in Europe.
2. In February 2014, the controversy surrounding TC1507 genetically modified maize, opposed by 19 governments out of 28, received intensive media coverage. Only five Member States (Spain, the United Kingdom, Estonia, Finland and Sweden) voted in favour of authorising this new GMO variety, leaving the Commission to take the final decision, which it has not yet done.
3. A backlog of applications has accumulated in the centralised EU authorisation system. In addition to the application for authorisation of TC 1507 maize, six other GMO authorisation procedures (five for maize and one for soya) are pending, a favourable opinion having been issued by the EFSA. Given the strong opposition of most of the Member States, the Commission is hesitating to put it to the vote.
4. It was against this background that the new Commission President Jean-Claude Juncker, outlining Commission policy to the MEPs on 15 July 2014, set out his intentions: ‘I also intend to review the current legislation authorising the use of genetically modified organisms. I consider it unacceptable that, under current rules, the Commission is legally obliged to authorise the import and processing of new GMOs, even in cases where a clear majority of Member States are opposed to their use’.
This was confirmed in the mission statement sent to the new European Commissioner responsible for health and food safety, who will be required to review, in the first six months of his term of office, the existing decision-making process applicable to GMOs.
The rapporteur must therefore take account of the new political climate in drawing up his draft recommendation.
In this, he has the joint backing of the European Parliament, most of the Member States and the new Commission President, who are anxious to ‘extricate’ the GMO issue from the morass of bureaucracy that is proving so exasperating to all concerned.
II. Objectives and limits of the Council common position
It should be remembered that the principal objective of the this modification to the legislative framework is to provide greater latitude and greater legal security to Member States wishing to prohibit in all or part of their territory the cultivation of GMOs authorised at European level. This is specified by the Council in the fifth recital.
While the Council has adopted a number of Parliament’s amendments thereby endorsing its objectives, it has at the same time introduced a procedure imposing fresh obligations on the national authorities.
A Member State is initially required to submit a specific request (paragraphs 1 and 2 of Article 26b (new) to an undertaking seeking to market GMOs in the EU (phase I) so as to ensure that the authorisation does not encompass its national territory.
It is only if this initial phase is unsuccessful and the request opposed by the undertaking that the single (phase II) procedure will be applied (paragraph 3 of Article 26b (new)), enabling a Member State to invoke legal justifications in a bid to prohibit GMO cultivation.
In other words, this involves two consecutive phases, the second conditioned by the first, instead of the procedure set out in the original Commission proposal as amended by the EP and which should remain at the core of the amended version of the 2001 Directive.
However, the Council’s version, which runs counter to the European Parliament objective in its vote of 5July 2011, gives the uncomfortable impression of putting the cart before the horse.
This was why the rapporteur tabled Amendment 24 to paragraph 3 of Article 26b, which is essential if recourse to the phase I procedure by a Member State is to be optional.
Another restriction of the rights of Member States is the strict two-year deadline for procedures to be initiated at national level to prohibit GMO cultivation once EU authorisation has been accorded.
The rapporteur fails to see the reasons for this and considers that ten years, the statutory duration of authorisation, would be an appropriate deadline. That is the reason behind Amendment 25 to paragraph 4 of Article 26b.
The compensatory procedure provided for in paragraph 5 of by Article 26b is therefore no longer needed and Amendment 26 accordingly seeks deletion thereof.
Furthermore, regarding the open-ended list of reasons which may be invoked to justify a ban on GMO cultivation, the rapporteur takes the view that the absence of specific examples weakens the legal framework and has accordingly tabled Amendment 24 closely resembling the text adopted by absolute majority at first reading, except that it includes five categories of justification:
• Environmental criteria in addition to those outlined by the EFSA at European level, relating to local or systemic aspects of GMO utilisation in a given agronomic context;
• Regional development criteria;
• Land-use criteria;
• Socio-economic criteria, for example the high cost of contamination for conventional and/or organic farmers;
• Criteria relating to agricultural policy objectives.
These criteria will give Member States the necessary flexibility to take suitable measures without altering or undermining current EU risk assessment procedures.
III. Other amendments by the rapporteur
At first reading, the European Parliament adopted 28 amendments in its modified proposal, most of which were uncontroversial or supported by an absolute majority. The rapporteur accordingly tabled a total of 33 amendments, including the principal amendments adopted at first reading and not included in the Council common position.
In view of this:
– It is necessary to reaffirm the legal basis chosen by the European Parliament relating to the environment (Amendment 1). This new legislation seeks to modify not only Directive 2001/18/EC but also Regulation (EC) No 1829/2003, where the request for authorisation from a company relates to cultivation and food or feed. While the legal basis relating to the internal market was selected for the 2001 directive, the, legislators selected no less than three, relating to agriculture, the internal market and public health, for the 2003 regulation.
The text also seeks to achieve a major objective: giving greater flexibility to Member States to prohibit GMO cultivation within their territory on a number of grounds, including environmental considerations, such as the protection of biodiversity, habitats and ecosystems.
– It is necessary to improve risk evaluation procedures. Amendment 3 seeks to ensure implementation of the conclusions adopted by the ‘Environment’ Council of 4 December 2008 calling for comprehensive and effective assessment methods, bearing in mind that insufficient account has been taken to date of the long-term impact of GMO cultivation.
The rapporteur notes with satisfaction that this matter is included in the provisions of the Council text, which nevertheless needs to be improved. Amendment 33 accordingly seeks to make EFSA guidelines binding.
– It is necessary specify compulsory measures to safeguard the coexistence of different types of cultivation.
That was the purpose of the amendment to Article 26a tabled in plenary in July 2011, which the rapporteur wishes to re-table with Amendment 21.
It is important to include in this legislation compulsory provisions requiring Member States to safeguard the coexistence of different types of cultivation and to prevent any cross-border dissemination, a requirement heartily endorsed by most European farmers.
Modifications have also been proposed to guarantee the transparency of the procedure to restrict or prohibit GMO cultivation and ensure that such major decisions are made public.
USDA Announces More Than $18 Million to Support Training and Development for Beginning Farmers and Ranchers
WASHINGTON – Jan. 12, 2105 – U.S. Department of Agriculture (USDA) Deputy Secretary Krysta Harden today announced the availability of more than $18 million in funding to help educate, mentor and enhance the sustainability of the next generation of farmers. This support is available through the Beginning Farmer and Rancher Development Program (BFRDP), administered by USDA’s National Institute for Food and Agriculture (NIFA). Winning awards from last year’s application cycle will be announced in the near future.
“The Beginning Farmer and Rancher Development Program is critical for cultivating the next generation of farmers and ranchers, who will be integral to sustaining America’s agricultural future,” said Harden. “Leading community and service organizations are on the front lines when it comes to identifying and training new farmers and ranchers. Strong partnerships with these groups are the key to our success.”
The Beginning Farmer and Rancher Development Program awards grants to organizations implementing programs to train beginning farmers and ranchers, including workshops, educational teams, training, and technical assistance throughout the United States.
Fiscal Year 2015 applications for BFRDP are due March 13, 2015. Eligible applicants are collaborative, state, tribal, local, or regionally-based network or partnership of public or private entities, including state cooperative extension service; community-based and nongovernmental organization; colleges or universities (including institutions awarding associate degrees); or any other appropriate organization providing services to beginning farmers and ranchers.
At least five percent of the funds must go to projects that serve military veteran beginning farmers and ranchers, and at least five percent to projects that serve socially-disadvantaged, limited-resource, or farmworker audiences. All applicants are required to provide funds or in-kind support from non-federal sources in an amount that is at least equal to 25 percent of the federal funds requested.
Priority topics are:
Basic livestock, forest management, and crop farming practices;
Innovative farm, ranch, and private, nonindustrial forest land transfer strategies;
Entrepreneurship and business training;
Financial and risk management training (including the acquisition and management of agricultural credit);
Natural resource management and planning;
Diversification and marketing strategies;
Curriculum development;
Mentoring, apprenticeships, and internships;
Resources and referral;
Farm financial benchmarking;
Assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers;
Agricultural rehabilitation and vocational training for veterans;
Farm safety and awareness; and
Other similar subject areas of use to beginning farmers or ranchers.
NIFA will host a webinar for interested applicants on Wednesday, February 11, 2015, from 2:00-4:00 p.m. EST. No password or advance reservation is required. A recording will be posted on the NIFA website shortly after the event.
From 2009-2012, 145 awards have been made for more than $71 million through the Beginning Farmer and Rancher Development Program. Additional information about USDA support for new farmers and ranchers is available at www.usda.gov/newfarmers.
Funding for BFRDP program is authorized by the 2014 Farm Bill. The Farm Bill builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America. For more information, visit www.usda.gov/farmbill.
Through federal funding and leadership for research, education and extension programs, NIFA focuses on investing in science and solving critical issues impacting people’s daily lives and the nation’s future. More information is at: www.nifa.usda.gov.