Cranberry Stressline

June 21 - 28, 2000

Company introduces beverage line to include neutraceutical cranberry drink.


What's next for Pillsbury?

6/26/00 In a column in The Worldly Investor entitled "Diageo's world run almost done" by Richard Thomson, the following is written about CEO Paul Walsh's so-called ambivalent attitude towards Pillsbury: "He (Walsh) insists that Pillsbury will remain part of the group; on the other hand, he says somewhat mysteriously that it will "play a full part" in the consolidation of the US food industry. He does not say whether this will be as a purchaser or a takeover target. What he will probably be trying to do will be to position the food interests for sell-off when the time comes, perhaps by selling strategic stakes to long term buyers."


Editorial

  Where I've been

6/26/00 Several readers have wondered why there hasn't been a Stressline editorial in some time, despite recent controversy over the marketing order and disaster payments. There are times when I have to decide whether my own knowledge base is adequate to throw the weight of Cranberry Stressline behind an opinion. I was humbled reading some of the knowledgeable comments sent in to the USDA, as I always am by the Op-Ed columns. Merely because I have an opinion doesn't mean I will write an editorial expressing it. Many of you know much more than I do about various aspects of the cranberry industry. After all, I have only been in this business for ten years.

Some people have said I should stick to writing about farm stress. I disagree with them. I will continue to write about issues that I feel strongly about and about which I believe I have a good understanding. However, in the past year, some of the farm stress articles have become outdated. Therefore, I have just updated and written significant additions to eight out of the ten articles on the Farm Stress section of Cranberry Stressline.  

For those interested in my irreverent opinions, I think you'll be satisfied with the almost completely rewritten article about farmers' personality styles. I have also made major changes to the articles on self-esteem and on family conflicts. Indulging myself, I have added comments about my new role as a journalist in "The cranberry shrink's perspective," which is probably more about my stress than yours.


ConAgra swallows IHF

6/23/00 ConAgra is the second largest American food company after Kraft. They have announced that they purchased International Home Foods (IHF), which makes Chef Boyardee pastas, Bumble Bee tuna and Libby's Vienna sausages and had revenues last year of $2.14 billion. The deal is said to be $2.9 billion. IHF receives $22 per share, half in cash and half in ConAgra stock. This is a 43 percent premium over IHF's Thursday closing price of 15 3/8. ConAgra will also assume $1.3 billion of  IHF debt.

Among other products, ConAgra produces Butterball turkeys, Armour hams, La Choy Chinese foods and Orville Redenbacher's popcorn. It has $25 billion in sales and about 100 consumer brands.

As giant food companies rush to purchase smaller ones, the next company that appears ready for sale is Nabisco. Company press release. 


6/22/00 Triarc announces plan for Snapple IPO (external link)


Statement by Secretary of Agriculture Dan Glickman on President Clinton's Signing of Emergency Farm Assistance And Crop Insurance Reform Bill - June 20, 2000

Here


General Mills bucking merger trend

6/28/00 General Mills was said to be exploring the possibility of acquiring Ocean Spray last year. It could be one of the smaller food companies still interested in growth through acquisition of yet smaller companies. While Heinz and Campbells still appear to be on the block for sale, General Mills' president Steve Sanger said in an interview on CNBC "The underlying force in consolidation basically has been the challenge of (food) companies to grow their top-line and bottom-line results," he said. "In our case, we have been successful ... For us, we would look at the possibility of a move that would only improve our already-good growth."  Read BridgeNews story


Nabisco to join Kraft under Philip Morris

6/26/00 The media is reporting that Philip Morris, the owner of Kraft Foods, has agreed to purchase Nabisco for almost $15 billion. They will assume $4 billion in debt from Nabisco. 

Nabisco data:
Fiscal Year-End: December
1999 Sales (mil.):
$8,268
1-Yr. Sales Growth: (1.6%)
1999 Net Inc. (mil.):
$357
1-Yr. Net Inc. Growth: --
1999 Employees:
50,700
1-Yr. Employee Growth: (0.6%)

NY Times article | Phillip Morris press release | Phillip Morris chairman's remarks


Russian "tall ship" to bypass New Bedford, Ocean Spray role questioned.

6/23/00 New Bedford Standard Times


Op-Ed

Comments on the proposed marketing order re. the treatment of excess fruit in relation to foreign markets

by Lory Krueger, Pres.
Mid America Trade Group

Read Article


Northland

6/21/00 Morningstar has issued a "business appraisal per share" pegging Northland Cranberries at $6.40. This figure is calculated by adding up book value and the estimated amount of future profits, adjusting the sum downward to account for the estimate of the riskiness of the business. This is a useful measure because market value doesn’t always reflect a stock’s true worth. Northland is currently trading at around 3  7/8ths. There has been a flurry of speculation on the Yahoo Northland message board.


Cranberry bogs or apartment buildings.

6/21/00 "Your bang for your buck is best with agriculture,'' said resident Rick LaFond. "For every $1 of revenue raised by residential land uses, it costs the town $1.14 to provide services. It costs 38 cents to provide services for commercial uses, and 31 cents for agricultural services. When people ask is it necessary for the town to continue to support its agricultural population, it's a no-brainer financially.'' At the same time, residents recognize that the town may not be able to rely heavily on cranberry production in the future. "The cranberry business will never be back to what it was previously,'' said Clark Griffith, an agricultural property owner. ``When it bounces back, it's only going to be 50 percent of what it was before.'' from Carver facing Decisions about town's future now -  in The Patriot Ledger


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