• The Virginian-Pilot reports that Supervalu has completed its sale of 21 Fram Fresh stores to Kroger, Harris Teeter and Food Lion, for $43 million.
According to the story, “The company, which is abandoning the Farm Fresh brand, said it’s still trying to sell several remaining locations to its current or potential wholesale customers.”
• The Wall Street Journal this morning reports that Mondelez International is acquiring cookie maker Tate’s Bake Shop for about $500 million.
The story notes that “Americans’ appetite for fresher food with simpler ingredients has challenged some of the company’s iconic brands in recent years.
Tate’s cookies are made with ingredients such as brown cane sugar and butter, rather than high fructose corn syrup and vegetable oil, making them more in sync with current eating habits.”
Mondelez is expected to expand Tate’s distribution, after a five-year period in which Tate’s sales have quadrupled.
• The Wall Street Journal reports that Starbucks has struck a deal with Nestlé SA that will have the Swiss company selling its consumer and foodservice products around the world in retail stores not owned by Starbucks.
According to the story, “Nestlé said Starbucks will receive an upfront cash payment of $7.15 billion plus royalties as part of a global perpetual license. The business in question has annual sales of $2 billion. The transaction doesn’t include any fixed assets and excludes Starbucks’ ready-to-drink products … About 500 Starbucks employees will join Nestlé; operations will be located in Seattle, the company said. Nestlé will work jointly with Starbucks on new offerings under a brand board that will meet regularly. Starbucks must approve of new products to be sold under the label.”
According to the story, “The company, which is abandoning the Farm Fresh brand, said it’s still trying to sell several remaining locations to its current or potential wholesale customers.”
• The Wall Street Journal this morning reports that Mondelez International is acquiring cookie maker Tate’s Bake Shop for about $500 million.
The story notes that “Americans’ appetite for fresher food with simpler ingredients has challenged some of the company’s iconic brands in recent years.
Tate’s cookies are made with ingredients such as brown cane sugar and butter, rather than high fructose corn syrup and vegetable oil, making them more in sync with current eating habits.”
Mondelez is expected to expand Tate’s distribution, after a five-year period in which Tate’s sales have quadrupled.
• The Wall Street Journal reports that Starbucks has struck a deal with Nestlé SA that will have the Swiss company selling its consumer and foodservice products around the world in retail stores not owned by Starbucks.
According to the story, “Nestlé said Starbucks will receive an upfront cash payment of $7.15 billion plus royalties as part of a global perpetual license. The business in question has annual sales of $2 billion. The transaction doesn’t include any fixed assets and excludes Starbucks’ ready-to-drink products … About 500 Starbucks employees will join Nestlé; operations will be located in Seattle, the company said. Nestlé will work jointly with Starbucks on new offerings under a brand board that will meet regularly. Starbucks must approve of new products to be sold under the label.”
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