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News on Chips and Snacks

Potato Chips

 Featured News on Chips and Snacks

Canada, February 03, 2010

Composting SunChips Packaging
Today the SunChips(R) brand, Frito Lay Canada's (a division of PepsiCo) popular line of multigrain snacks, is introducing the world's first 100% compostable chip bag. This green innovation, a first-of-its kind initiative, will change the way Canadians hear, see and think about product packaging in the future.

Starting in March 2010, SunChips packaging will be made from more than 90% renewable, plant-based materials. This new package will completely break down into compost in a hot, active compost pile in approximately 14 weeks.

"In order to continue to reduce our environmental impact as a company, finding sustainable packaging solutions was a must," says Marc Guay, President, Frito Lay Canada. "We know that environmentally-friendly packaging is a priority for Canadians. Using plant-based renewable materials to make packaging that will interact differently with the environment, represents the next small step in Frito Lay Canada's environmental sustainability journey."

For over a decade Frito Lay Canada has been working to reduce the company's environmental impact. In addition to the SunChips 100% compostable chip bag, Frito Lay Canada has:

    -   Reduced its manufacturing fuel consumption by more than 20% since
        1999 per kilogram of snacks produced.
    -   Reduced its water consumption by 30% since 1999, saving 5.4 billion
        litres of water through changes in the manufacturing plants.
    -   Diverted more than 92% of manufacturing waste from landfills into
        re-use streams in 2009.
    -   Reused approximately 30 million shipping cartons annually and
        200 million since 1999, which is equivalent to more than 300,000
        trees saved annually and more than 2 million trees saved since 1999.


The renewable material used to produce the SunChips 100% compostable bag is made from a plant-based PLA material. PLA, polylactic acid, is a versatile and compostable polymer made from starch. After four years of research and testing, Frito-Lay North America's Research and Development team identified PLA as the key material that meets the company's performance expectations. PLA ensures the product in the bag maintains the quality and freshness Canadian consumers expect. The compostable packaging has a different sound than traditional bags because the plant-based materials are not as soft at room temperature.

The SunChips' compostable packaging has been certified through the Biodegradable Products Institute (BPI), the only internationally recognized labeling program. As such it presents the opportunity for incorporation into waste management programs destined for composting, provided the local infrastructure is both available and capable of including this packaging material within their system. In the months ahead, SunChips will be working with local composting initiatives to enable the new packaging to be included in green bin programs as much as possible.

"Having designed packaging with the environment in mind, SunChips' certified compostable packaging will help raise awareness of the environmental importance of composting," said Susan Antler, Executive Director of the Compost Council of Canada. "We hope the introduction of initiatives such as the compostable SunChips bag will encourage and make it easier for Canadians to participate in composting such that over time, we will see an increase in the number of Canadian households that compost. This will hopefully also spur the industry to continue to develop and enhance the technology needed to create packaging from renewable resources such that it can be easily incorporated into waste management systems."

The SunChips 100% compostable chip bag will start appearing on shelves in Canada this March in the 225g & 425g size bags, with the balance of SunChips packages transitioning into the compostable packaging in August 2010.

"As we embark on a new decade, environmental initiatives are more important than ever," says Tony Matta, Vice President of Marketing, Frito Lay Canada. "Every step counts as we strive to shrink our footprint on the planet.
 
In the United States the 100% compostable SunChips bag will arrive later in February.
Frito-Lay Canada News
United States, January 28, 2010

Pringles
We reviewed todays financial release of Procter and Gamble for the October - December quarter for what details on the development of the sales of their savoury snacks (Pringles). Although somewhat hampered by the fact that P&G mostly lumps its savory snacks related figures together with their pet food sales, this is what we learned:

Snacks and Pet Care net sales increased six percent to $835 million for the quarter on a one percent increase in unit volume. Organic sales increased three percent. The carryover impact of pricing to recover higher commodity costs added five percent to net sales. This was partially offset by negative mix impacts of two percent driven by the discontinuation of premium snack products which had higher than segment average selling prices. Favorable foreign exchange contributed two percent to net sales growth.

Volume in Snacks declined low single digits driven by lower merchandising activity in North America and the discontinuation of some premium snack products. Volume in Pet Care increased mid-single digits behind continued success of product initiatives and increased promotional activity. Net earnings increased 56 percent versus the prior year period to $98 million behind higher gross margin resulting from price increases, lower commodity costs and manufacturing cost savings. SG&A as a percentage of net sales increased primarily due to higher marketing spending.

As for the performance of P&G in general:

The Procter & Gamble Company (NYSE: PG) delivered net sales growth of six percent for the October - December quarter to $21.0 billion. Organic sales grew five percent which was at the top of the Company's guidance range. Diluted net earnings per share were $1.49 and diluted net earnings per share from continuing operations were $1.01. Core EPS increased 22 percent to $1.10 for the quarter, above the Company's guidance range, on better than expected sales growth and margin expansion. The Company raised its expectations of fiscal 2010 organic sales growth and Core EPS.
Procter and Gamble Financial release
Frito-Lay,-Inc
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 News on Chips and Snacks

Companies in Item
2/8/2010McCoy’s launches man-sized marketing campaign to target football fans NewUnited KingdomUnited Biscuits
2/4/2010Lance, Diamond Foods reported to bid for Kettle FoodsUnited StatesLance Inc.; Frito-Lay; Cape Cod Potato Chips; Kettle Foods Inc
2/3/2010SunChips 100% Compostable Chip Bag in March on Canadian store shelvesNewCanadaFrito-Lay
1/28/2010P&G snack food sales volumes decreasedUnited StatesProcter and gamble
1/27/2010Orville Redenbacher expands new Flavour Shakers popcorn line in CanadaCanadaConagra Foods Inc.
1/27/2010Golden Wonder wins East Coast train contractUnited KingdomTayto (Northern Ireland)
1/26/2010Heat and Control's revolutionary UPC fryer: make all types of potato chips with one fryerUnited StatesHeat and Control
1/26/2010Seabrooks Potato Crisps expands flavour range and shelf spaceUnited KingdomSeabrook Crisps
1/13/2010Las papas nativas conquistan el mundoPeru
1/13/2010Potential bidders to tour Kettle Foods site (UK) United KingdomKettle Foods Ltd; Kettle Foods Inc
1/12/2010The Inventure Group announces partnership with Bruce Foods, new productsUnited StatesThe Inventure Group
1/11/2010Responses to NYC led National Salt Reduction InitiativeUnited StatesFrito-Lay; Conagra Foods Inc.; Snack Food Association; National Restaurant Association (NRA)
1/11/2010Ecolab introduces Exelerate ZTF, a Breakthrough cleaning Solution for Food Processing Plants Utilizing Zero Trans Fat OilsUnited States
1/10/2010Kettle Brand® Baked Potato Chips invites "real resolutions"United StatesKettle Foods Inc
1/8/2010Three potato projects receive grants in WisconsinUnited StatesMcCain Foods Limited
1/7/2010Romania will tax foods high in fat, salt, sugar starting March 2010Romania
1/7/2010Chandubhai Virani, MD Balaji Wafers on (potato) futures IndiaBalaji Wafers Pvt Ltd.
1/6/2010CEO Interview With ConAgra's Gary RodkinUnited StatesConagra Foods Inc.; Lamb Weston
1/6/2010Popcorn: Diacetyl substitutes might be harmful for workers as wellUnited States
1/6/2010Wal-mart cambia su sistema de compras para bajar costosUnited StatesWal-Mart Stores, Inc.
1/6/2010Kettle Brand potato chips launches new flavor: fully loaded baked potatoUnited StatesKettle Foods Inc
1/5/2010Potato growers converge in Orlando for second Potato ExpoUnited StatesNational Potato Council (NPC); United States Potato Board (USPB)
1/5/2010Food labels to show 'carbon footprint' under Government plansUnited KingdomFrito-Lay; Tesco; Walkers
1/5/2010Covered Bridge Potato chip company continues to gain market shareCanadaCovered Bridge Potato Chip Company
1/4/2010Walmart to cut supply chain costs by buying directly from suppliers United StatesWal-Mart Stores, Inc.
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