Who To Watch This Year In The Food Industry (Part One Of Three)
By Katrina Oakley, contributing writer, Food Online
Many food industry heavy hitters are leading consumer demanded changes with innovative ideas for the future. Top executives of food manufacturers are taking charge and bringing their companies into the lime light with plans and innovations leading consumers through 2014 and beyond.
It is still very early in the year and already the food industry is getting insight into what is in store for many facets of the food industry. These seven companies’ top executives have visionary plans for the future of their companies.
Tyson Foods
The president and CEO of Tyson Foods, Donnie Smith, began his tenure with Tyson in 1980. In 2009, he climbed to the top rung of the company ladder, becoming the company’s CEO. In his time with the company, Smith has creatively solved many problems, but in the last year, it seems his mettle has truly been tested. The pork industry is reporting a highly contagious virus — Porcine Epidemic Diarrhea — that has spread through 23 states and is killing livestock at an alarming rate. The consequence of this disease is estimated to drop the pork supply by approximately 3 percent. Smith will be monitoring this situation closely, making necessary adjustments for Tyson’s bottom line to not be affected.
Smith is also an advocate of sustainable practices and the humane treatment of animals. In late 2013, an animal rights group made public a video showing pigs being abused at a farm contracted by Tyson. Smith cut ties with the farm and created a company initiative to regulate the living conditions and treatment of livestock at any farm contracted by Tyson Foods.
Nestle
Nestle CEO Paul Bulcke has a lot of work to do to bring up the disappointing sales figures from 2013. While the company is not forecasted to recover much in 2014, Nestle is expected to regain some lost sales. In an effort to sell off underperforming brands, Bulcke has already sold weight-loss brand Jenny Craig, fitness and sports nutrition brand PowerBar, flavorings and fragrance brand Givaudan, along with a large portion of its 20 percent stake in L’Oreal. The L’Oreal funds created from the L’Oreal sale will be applied to a share buyback program.
It is also important to note that in the L’Oreal deal, Nestle will be assuming L’Oreal’s half of Galderma — a joint venture with Nestle that produces prescription drugs, dermatology treatments, and other skin, hair, and nail products. According to Bulcke, Nestlé’s move into the health and wellness market is the “core of our strategy” and will be “a major platform of growth” due to profit margin potential that has been more lucrative than the traditional food market.
In the second installment of Who To Watch This Year In The Food Industry, a company substituting eggs with a plant-based alternative, happenings at PepsiCo, along with plans for do-it-yourself soda will be discussed. Stay tuned.