BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Del Monte (DLM) in a pickle]]>http://www.bloggingstocks.com/2007/09/05/del-monte-dlm-in-a-pickle/http://www.bloggingstocks.com/2007/09/05/del-monte-dlm-in-a-pickle/http://www.bloggingstocks.com/2007/09/05/del-monte-dlm-in-a-pickle/#commentsFiled under: ,

Quarter after quarter, why does Del Monte Foods Company (NYSE: DLM) continue to blame its woes on Charlie Tuna? If there is a brand that is a drag on earnings, reinvigorate the brand, sell the brand or terminate the brand. Del Monte needs to do one of the three with its Starkist Tuna. Right now, Del Monte's bottom line is being carried by non-human foods, specifically Meow-Mix and Milk Bone. Net sales for pet products increased 22% to just about $309 million in 1Q 2008, out of a total of $754.5 million in net sales. This represents net sales growth of 12%, none of which is reflected in increased earnings. Diluted EPS were $0.18 in 4Q 2007 but only $0.02 in 1Q 2008 despite the fact that the previous quarter had higher restructuring costs than did 1Q 2008. Administrative expenses continue to increase, as does interest expense. A significant portion of the pet food acquisitions was financed by incurring more debt. FY2008 interest expense will be in the $150-$160 million range (although management predicts lower interest rates based on less than no evidence) and capital expenditures will run between $100 million and $110 million. Operating income in the consumer products division declined by 46% to just under $14 million.

Do not look for improved earnings in 2Q 2008.The company has already stated FY 2008 earnings will be at the low end of guidance, $0.70. Del Monte will continue to face rising costs for raw materials. Management has not indicated any cost-cutting strategies, preferring to continue to pass along increased costs to consumers. But branded products are already losing market share to generic brands. Wal-Mart (NYSE: WMT) currently accounts for 30% of Del Monte sales. Wal-Mart is focusing more on its own Great Value brand, leaving Del Monte with the problem of how to replace lost shelf space and hence lost sales. The stock has done nothing since opening the year trading at $11.06. It currently trades at $10.60.

Del Monte (DLM) in a pickle originally appeared on BloggingStocks on Wed, 05 Sep 2007 18:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Charlie TunaCharlieTunaDel Monte Foods CompanyDelMonteFoodsCompanyDLMfruitMeow MixMeowMixMilk BoneMilkBonepet foodPetFoodStarkist TunaStarkistTunaWed, 05 Sep 2007 18:45:00 EST<![CDATA[Have you had your fruit (product) today?]]>http://www.bloggingstocks.com/2007/07/09/have-you-had-your-fruit-product-today/http://www.bloggingstocks.com/2007/07/09/have-you-had-your-fruit-product-today/http://www.bloggingstocks.com/2007/07/09/have-you-had-your-fruit-product-today/#commentsFiled under: , , , , ,

Americans are having a love affair with anything that contains even a hint of fruit. Consumer demand is so high, the U.S. is on a pace to roll out a record number of products that claim to have fruit content, according to Datamonitor. There have been over 240 fruit-related products launched in the past six months alone, compared to 124 in all of 2000.

Marketers have taken the fruit craze so seriously that Kraft Foods Inc. (NYSE: KFT) will launch nine products in 27 fruity varieties this year. Other products include PepsiCo Inc.'s (NYSE: PEP) Frito-Lay brand Flat Earth Baked Fruit Crisps, with half a serving of fruit per ounce. Kraft's Jell-O is launching its first ready-to-eat Jell-O cut with fruit pieces, aptly named Fruit Passions. Baskin-Robins' has come out with a kid-friendly mixed berry blend called Penguin Swirl that turns your tongue black.

The fruit craze comes two years after the government changed the Food Pyramid's recommended level of fruit and vegetable consumption, which created greater demand. Tom Vierhile, director of Datamonitor's Productscan Online, told USA Today that some marketers may also be looking for ways to get their banned products back in schools. "Fruit gives a positive that marketers can talk up."

But schools, as well as the general public, need to be savvy label readers. While some new products might be"fruit-infused," they're not always healthy. Krispy Kreme's (NYSE: KKD) jelly-filled donuts could never be seen as a "healthier alternative" to those delicious creme-filled donuts. What ever happened to a good ol' piece of fruit? Caveat cenator.

Have you had your fruit (product) today? originally appeared on BloggingStocks on Mon, 09 Jul 2007 15:14:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baskin robbinsBaskinRobbinsdatamonitordonutflat earthFlatEarthfrito-layfruitfruit passionsFruitPassionsjell-ojellokftkkdkraftkrispy kremeKrispyKremepenguin swirlPenguinSwirlpeppepsiMon, 09 Jul 2007 15:14:00 EST