Meat+Poultry - June 2018 - 12
BUSINESS NOTES IMPOSSIBLE FOODS ENTERS INTERNATIONAL MARKET Diners in Hong Kong will now have the opportunity to experience "the impossible." Impossible Foods, the maker of plant-based meats, announced its entry into the Hong Kong foodservice market. The Impossible Burger will be available at three restaurants in Hong Kong: Little Bao, Happy Paradise and Beef & Liberty. "We're humbled to launch with spectacular chefs in one of the world's most dynamic restaurant hotspots," said Patrick O. Brown, MD, CEO and founder of Impossible Foods. "We're confident that Hong Kong... will be home to the most innovative Impossible recipes yet." The Impossible Burger, which was developed in 2011 by Impossible Foods, is formulated to look and taste like conventional ground beef but is made from plant ingredients. The use of a soy root-derived molecule called "heme" gives the burger its juicy, beef-like attributes, according to the company. TYSON REPORTS HIGHER SALES FOR SECOND QUARTER In reporting its Q2 fiscal results for the period ended March 31, 2018, Tyson Foods Inc. reported sales of $9.77 billion, nearly 2 percent higher than the same period last year. Despite higherthan-expected costs in transportation and labor, officials reaffirmed the company's guidance for what they forecast to be another record year. Quarterly net income was $316 million, or $0.85 per share, dropping from $340 million, or $0.92 per share, for the same period last year. Adjusted earnings per share (EPS) was $1.27. Except for its Pork business unit, which reported a sales decline of 1.1 percent to $1.27 billion, Tyson's Beef, Pork, Chicken and Prepared Foods segments all saw volume increases, led by Prepared Foods, with an increase of nearly 11 percent to $2.15 billion. "Overall, we're pleased with the progress we made in the second quarter and the first half of the fiscal year," said Thomas Hayes, president and CEO, during a May 7 conference call with analysts. Hayes said Tyson expects to achieve its annual adjusted earnings guidance of between $6.55 and $6.70 EPS. "In Q1 I spoke of transportation cost challenges," Hayes said. "Increased freight costs affected all four segments and had a net impact of about $0.14 per share for the quarter," he said, and the Little Bao Chef May Chow will now be serving Impossible Burgers at the Hong Kong restaurant. impact is expected to translate to a total of $250 million in costs for the full fiscal year, about $50 million more than the forecast made during the first quarter. The company plans to offset the cost in the second half of the year through pricing and cost-reduction programs, including maximizing truck weights and lead times for shipments. Even after the cost-recovery plans are executed, however, the remaining gap is expected to be $155 million, or about $0.31 EPS. SMITHFIELD DETAILS MILESTONES IN ANIMAL CARE More than a decade has passed since Smithfield Foods made a business decision to house the company's sows in group housing systems and report antibiotics use in the animals. The release of the Animal Care section of Smithfield's 2017 Sustainability Report documents the company's journey to establish practices to ensure animal safety, comfort and health. "Our bold initiatives create value for our business, our contract growers and supply chain partners, as well as the industry as a whole," said Smithfield Foods President and CEO Kenneth Sullivan. "Our animal care practices and policies underpin our focus on producing good food the right way." The Animal Care report includes details about the company's ongoing research into alternatives to antibiotics. Initiatives include a new vaccine research lab, results of internal and third-party animal care audits and Smithfield's ongoing efforts to enhance animal care management systems. In addition the company released a new 360-degree virtual reality video to support the release of the Animal Care section of the 2017 report. To review the entire report go to www.smithfieldfoods.com/integratedreport/2017/animal-care. 12 MEAT+ POULTRY | 06.18 | www.meatpoultry.com Impossible Foods For more news, visit MEATPOULTRY.com