--- title: "Latest News: Nestlé, Danone, Mondelez, Kellogg, Coca-Cola and PepsiCo Release Q2 Results; 'Unmanned Factories' Sweep the Food Industry; Counterfeit Plants Mix Their Own Red Bull, JDB, and Wong Lo Kat..." description: "Global major food, beverage, dairy, grain, and meat companies reported their Q2 2017 results. Nestlé's profit rose 19% but sales growth was weak; Danone's sales increased 9.7%. The food industry is seeing a trend of 'unmanned factories,' and a counterfeit plant was exposed for mixing its own Red Bull, JDB, and Wong Lo Kat." author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2017-09-13" language: "en" canonical: "https://xinjignxiao.com/en/articles/latest-news-nestle-danone-mondelez-kellogg-coca-cola-and-pepsico-release-66b1f5c3/" markdown: "https://xinjignxiao.com/en/articles/latest-news-nestle-danone-mondelez-kellogg-coca-cola-and-pepsico-release-66b1f5c3.md" original_source: "https://mp.weixin.qq.com/s/PwldVdvHvmwbzppC9-71Aw" translation: "https://xinjignxiao.com/zh/articles/%E6%9C%80%E6%96%B0%E8%B5%84%E8%AE%AF-%E9%9B%80%E5%B7%A2-%E8%BE%BE%E8%83%BD-%E4%BA%BF%E6%BB%8B-%E5%AE%B6%E4%B9%90%E6%B0%8F-%E4%B8%A4%E4%B9%90%E7%AD%89%E7%AC%AC%E4%BA%8C%E5%AD%A3%E8%B4%A2%E6%8A%A5%E5%87%BA%E7%82%89-%E6%97%A0%E4%BA%BA%E5%B7%A5%E5%8E%82-%E5%B8%AD%E5%8D%B7%E9%A3%9F%E5%93%81%E8%A1%8C%E4%B8%9A-%E5%B1%B1%E5%AF%A8%E5%8E%82%E8%87%AA%E5%B7%B1%E8%B0%83%E9%85%8D%E7%BA%A2%E7%89%9B-%E5%8A%A0%E5%A4%9A%E5%AE%9D-%E7%8E%8B%E8%80%81%E5%90%89-66b1f5c3.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/latest-news-nestle-danone-mondelez-kellogg-coca-cola-and-pepsico-release-66b1f5c3/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Latest News: Nestlé, Danone, Mondelez, Kellogg, Coca-Cola and PepsiCo Release Q2 Results; 'Unmanned Factories' Sweep the Food Industry; Counterfeit Plants Mix Their Own Red Bull, JDB, and Wong Lo Kat... > Global major food, beverage, dairy, grain, and meat companies reported their Q2 2017 results. Nestlé's profit rose 19% but sales growth was weak; Danone's sales increased 9.7%. The food industry is seeing a trend of 'unmanned factories,' and a counterfeit plant was exposed for mixing its own Red Bull, JDB, and Wong Lo Kat. Click the image for details. Global major food, beverage, dairy, grain, and meat companies' Q2 2017 results: 1. Food Nestlé reported a 19% increase in first-half profit to CHF 4.9 billion, beating expectations, while revenue was flat at CHF 43 billion, missing market forecasts. Organic sales growth during the period was 2.3%, below the expected 2.7%, and the company warned that full-year sales growth could be the weakest in at least 20 years. Danone released its first-half 2017 financial results. First-half sales were €12.128 billion, up 9.7% year-on-year. Net profit was €1.049 billion, up 12.2% year-on-year. Kraft Heinz reported adjusted earnings that beat expectations but sales that missed. Net profit was $1.16 billion, compared with $770 million in the same period last year. Revenue fell to $6.68 billion from $6.79 billion a year earlier. Mondelez International reported earnings that beat expectations. Second-quarter net profit rose to $498 million from $464 million a year earlier. Sales fell to $5.99 billion from $6.30 billion. General Mills reported that for the fourth fiscal quarter ended May 28, net profit was $408.9 million, up from $379.6 million a year earlier. Sales fell to $3.806 billion from $3.928 billion. Kellogg reported second-quarter net profit rose to $282.0 million from $280.0 million a year earlier. Sales fell to $3.19 billion from $3.27 billion. Campbell Soup reported fourth-quarter results. Net profit was $318 million, compared with a loss of $81 million a year earlier. Sales fell to $1.664 billion from $1.687 billion. Conagra Brands reported fourth-quarter net profit rose to $151.3 million from $117.6 million a year earlier. Revenue fell 9.3% to $1.86 billion from $2.05 billion, with grocery and snacks sales beating expectations, frozen and refrigerated sales in line, but foodservice sales missing. The Hershey Company reported Q2 and first-half 2017 results. Quarterly net sales were $1.663 billion, up from $1.638 billion a year earlier. Quarterly net profit was $204 million, up from $146 million. First-half sales were $3.543 billion, up from $3.466 billion. First-half net profit was $329 million, down from $376 million. JM Smucker Co reported first-quarter (ended July 31) earnings that missed expectations. Net profit fell to $126.8 million from $170.0 million a year earlier. Revenue fell 4% to $1.749 billion from $1.816 billion. Lower-than-expected demand for Folgers roasted coffee and coffee powder affected results, but the company has taken measures and sales trends are improving. Tingyi (Cayman Islands) Holding Corp. reported its first-half 2017 financial results. Revenue increased 4.2% year-on-year to RMB 28.5677 billion. Profit attributable to shareholders rose 54.59% to RMB 700.2 million. Instant noodle revenue grew 1.75% year-on-year, and beverage revenue grew 5.8%. 2. Beverages and Dairy PepsiCo reported that sales and profit rose in the second quarter ended June 17, as price increases offset weak demand in North America. Second-quarter profit was $2.11 billion, up from $2.01 billion a year earlier. Revenue rose 2% to $15.71 billion, beating expectations. North American beverage revenue was the largest segment at $5.24 billion. Coca-Cola reported earnings and revenue that beat expectations. Second-quarter net profit fell to $1.37 billion from $3.45 billion a year earlier. Revenue fell to $9.7 billion from $11.5 billion. Dr Pepper Snapple Group reported Q2 and first-half 2017 results. Quarterly net sales were $1.797 billion, up from $1.695 billion. Quarterly net profit was $188 million, down from $260 million. First-half net sales were $3.307 billion, up from $3.182 billion. First-half net profit was $365 million, down from $442 million. Monster Beverage Corp reported Q2 earnings and sales that beat expectations. Net profit was $222.6 million, up from $184.2 million a year earlier. Sales rose 10% to $907.1 million from $827.5 million. Dean Foods Co reported Q2 earnings that missed Wall Street expectations. Net profit was $91.37 million, compared with $91.68 million a year earlier. Revenue rose to $1.93 billion from $1.85 billion. FrieslandCampina reported first-half 2017 results. Revenue was €6.072 billion, up 10.7% from €5.486 billion a year earlier. Operating profit was €275 million, up 7.8% from €255 million. Net profit was €162 million, up 1.3% from €160 million. Yili Group released its first-half 2017 financial report. Total revenue was RMB 33.494 billion, up 11.32% year-on-year, and net profit was RMB 3.368 billion, up 4.52%. China Mengniu Dairy released its 2017 interim report. First-half sales revenue grew 8.1% to RMB 29.4658 billion, on top of the 9.7% growth in 2016. Operating profit was RMB 1.8056 billion, up 18.4% year-on-year, and net profit was RMB 1.13 billion, up 4.7%. 3. Grains and Meat Cargill reported fourth-quarter net profit rose to $347 million from $15 million a year earlier, while adjusted operating profit turned to a profit of $460 million from a loss of $19 million. Revenue rose 4% to $28.3 billion. Animal nutrition and protein business performance improved significantly, contributing the most to operating profit. Food ingredients and applications were the second-largest contributor, also improving. ADM reported net profit of $276 million, down from $284 million a year earlier. Revenue fell to $14.9 billion from $15.6 billion. Bunge Ltd reported a 34% drop in quarterly profit. Second-quarter net income attributable to shareholders fell to $72 million from $109 million a year earlier. Wilmar International turned profitable in Q2, with net profit of $37.3 million, compared with a loss of $220.3 million in the same quarter last year. The improvement was mainly due to recovery in oilseed and grain operations, partially offset by weaker tropical oil and sugar businesses. First-half net profit surged to $349.9 million from $2.2 million a year earlier. Q2 revenue rose 13% to $10.6 billion, driven by higher commodity prices and increased sales volumes of tropical oils and sugar; first-half revenue rose 15.2% to $21.2 billion. Tyson Foods reported third-quarter net profit fell to $447.0 million from $484.0 million a year earlier. Revenue rose to $9.85 billion from $9.40 billion. Beef and pork performance was strong, driving investment in value-added chicken and prepared foods. The recent acquisition of AdvancePierre contributed about $100 million in Q3 and is expected to contribute $350 million in Q4. Hormel Foods Corp reported third-quarter net profit of $182.5 million and revenue of $2.21 billion. Source: Global Enterprise Dynamics 2017 Global Food Group Comprehensive Brand Value Top 10 2. UK brand valuation agency Brand Finance released its "Top 10 Most Valuable Food Brand Portfolios 2017." Nestlé Group of Switzerland ranked first with a comprehensive brand value of $64.458 billion. Unilever Group (UK/Netherlands) ranked second with $42.897 billion. Kraft Heinz Group (US) ranked third with $20.216 billion. The comprehensive brand value includes the sum of the group brand and all its product brands. This ranking does not include soft drink companies. Brand Finance uses the "Royalty Relief" method, which estimates the sales attributable to the brand and calculates the royalty rate that a brand owner would have to pay if they did not own the brand. The brand value figure represents the potential value of the brand as an asset. A company may own multiple brands, and its enterprise value is the sum of the values of all its brand-related assets and revenue streams. **Rank | Group | Country | Comprehensive Brand Value** 1. Nestlé | Switzerland | $64.458 billion 2. Unilever | UK/Netherlands | $42.897 billion 3. Kraft Heinz | US | $20.216 billion 4. Danone | France | $19.199 billion 5. Mars | US | $15.317 billion 6. Mondelez International | US | $15.242 billion 7. General Mills | US | $9.991 billion 8. Kellogg | US | $9.086 billion 9. Associated British Foods plc | UK | $8.544 billion 10. Wilmar | Singapore | $8.304 billion Source: Global Enterprise Dynamics 'Unmanned Factories' Sweep the Food Industry: Hope You Don't Get Left Behind... 3. China is a magical place; you can never guess what will become an overnight sensation. At the beginning of the year, Amazon tested Amazon Go, and people thought it was a relatively distant future concept. But suddenly, like a spring breeze overnight, unmanned convenience stores have become the hottest retail format in 2017. Not only unmanned convenience stores, but recently the "unmanned dumpling factory" was exposed, stunning everyone. In addition, unmanned supermarkets, unmanned hotels... this seems to be the next explosive new business format. In this big storm sweeping the Chinese retail industry, hope you don't get eliminated... **"Unmanned Dumpling Factory" Site Exposed: Machines Make Dumplings 24/7** Recently, a dumpling production factory in Qinhuangdao became famous! In a factory of several thousand square meters, it is clean and tidy, with machines working 24 hours without rest, but not a single employee is visible. From mixing dough, adding filling, to shaping dumplings, it is a completely clean and tidy production line: ▼ Soft pneumatic grippers can safely pick up even very soft dumplings, with precise positioning from grabbing to placing. ▼ At minus 50 degrees Celsius quick-freezing, robots on the line handle it with ease. ▼ Sealing the quick-frozen dumplings, with computer counting. ▼ Sorting robots have suction cup grippers that do not damage the fragile packaging of quick-frozen dumplings. ▼ Palletizing robots repeat simple actions without stopping; if it were humans, they would be dizzy. ▼ This is the factory's brilliance: production, packaging, transportation, and other key steps require no human intervention. The factory's 20 workers are mainly responsible for raw material procurement, production program setting, monitoring, and maintenance! What used to take more than 200 people now only needs one-tenth of that! And it's more efficient! **Let's watch a more shocking video:** Yes, this unmanned workshop with a shocking view is the production workshop of Qinhuangdao CP Foods' quick-frozen dumpling factory. It employs fewer than 20 people, and most work is done in control rooms and laboratories, greatly improving work efficiency. There are no workers busy wrapping dumplings; instead, there are mechanical arms constantly moving and orderly tracks on the ground. Previously, the entire factory needed 200 workers. Now, producing the same things employs fewer than 20 people, meaning "unmanned factories" can reduce labor by up to 90%. People in the quick-frozen food industry, are you worried about losing your job? Multiple Popular Imported Foods on Blacklist for Additive Overuse 4. Recently, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) published the "List of Food and Cosmetic Products Not Admitted in July," including 233 batches of food and 9 batches of cosmetics that failed quality and safety inspections. The unqualified food came from 34 countries or regions, involving 15 categories, mainly sugar, pastries and biscuits, and beverages. The main issues were excessive food additives, poor quality, and microbial contamination. **Several Well-Known Imported Brands on the Blacklist** The editor carefully reviewed the list, which included US Nestlé, Japan's Nissin Bowl, Kinder Joy eggs, Calbee vegetable chips, Tao Kae Noi original seaweed, and Viet Cong mixed dried fruits, all on the blacklist due to excessive food additives and other factors. Upon checking, the editor found that excessive use of food additives was very common among the unadmitted foods. The most notable was Nestlé: imported US Nestlé cocoa powder and chocolate powder were found to use copper gluconate, manganese sulfate, and biotin beyond the allowed scope. Not long ago, Nestlé and its subsidiary Klim had 6 batches (10.82 tons) of imported milk powder from Taiwan, China, rejected at the border, also due to excessive food additives—"overuse of nutritional fortifiers vitamin B2, B6, and B12." In addition, a Beijing company's imported US Jelly Belly mixed flavor jelly beans were found to use caffeine beyond the allowed scope; a Zhongshan company's imported Japan Nissin Bowl tofu-flavored udon noodles overused nutritional fortifiers vitamin B1 and B2, etc. Industry experts pointed out that imported foods often appear on the quality blacklist for excessive additives mainly because China's food additive standards are inconsistent with international standards. According to the "Guiding Opinions on Promoting the Healthy Development of the Food Industry" released by the Ministry of Industry and Information Technology in January, relevant departments will accelerate the cleanup and integration of national food safety standards, and by 2020, China's food additive standards are expected to align with international standards. Chu Shijian 'Reported Dead': One Sentence Shows His Great Generalship 5. This morning, Wang Wei, chairman of the National Financial Museum, suddenly posted a Weibo message revealing that Chu Shijian had passed away... At that moment, there was an uproar... It spread like wildfire on social media. Five minutes later, most reporters received news from the old man's family that he was in good health and had just gone out to buy vegetables in the morning. When he heard the false news, Chu was at home cooking fish and preparing to eat... Upon hearing that the outside world was reporting his death, Chu remained calm. "Thank you all for your concern. I'm fine, even better than last year." One sentence shows his great generalship. Having weathered many storms, Chu is a formidable figure. 2017 Asia Brand 500 Food Enterprise List 6. On September 9, the 12th Asia Brand Festival opened in Hong Kong, China, revealing the 2017 Asia Brand 500 list. This year's Asia Brand 500 includes brands from 15 countries and regions. China topped the list with 280 brands, accounting for 56% of the total; Japan ranked second with 130 brands; South Korea ranked third with 23 brands; India and Singapore had 21 and 17 brands, respectively. Here is the list of food companies that entered the 2017 Asia Brand 500. Let's see which Chinese food companies made the list and their rankings— **Thumbs up for Chinese companies!** Red Bull Trademark Case Latest: Org Technology Says Thai Tiansi Lawsuit Suspended by Court 7. Org Technology issued an announcement disclosing the latest progress in the lawsuit filed by Thai Tiansi Pharmaceutical Health Co., Ltd. ("Tiansi") against Org Technology, stating that it has obtained a civil ruling from the Beijing Dongcheng District People's Court (2017) Jing 0101 Min Chu No. 11384, ruling to suspend the case. Thai Tiansi has always been the owner of the Red Bull energy drink trademark. China Red Bull is the licensee, and the brand authorization expired at the end of 2016, but the two parties have yet to reach a consensus on future cooperation. The announcement stated that Org Technology had previously received a phone call from the Beijing Dongcheng District People's Court, informing that Tiansi had filed a civil lawsuit against the company and its wholly-owned subsidiary Beijing Org Packaging Container Co., Ltd., involving the company's cooperation with Red Bull Vitamin Beverage Co., Ltd. ("China Red Bull"). The company applied for a trading halt starting July 11. Org Technology stated that after full communication with customers such as China Red Bull, it confirmed that the lawsuit was caused by a dispute between Tiansi and China Red Bull over the licensing of the Red Bull series trademarks, and the dispute is still in the process of resolution. Today's announcement said that after receiving the complaint and other litigation materials, the company actively organized a response and immediately submitted an application for suspension of the lawsuit to the Beijing Dongcheng District People's Court, which has now ruled to suspend the case. It should be noted that "suspension" is not "termination." According to data, suspension of litigation refers to a legal system where the litigation process stops midway due to special circumstances. Situations leading to suspension include when the case must be based on the outcome of another case that has not yet been concluded. Org Technology emphasized in today's announcement that as of the date of the announcement, the company's production and operations are normal. According to the strategic cooperation agreement signed with China Red Bull, its technical requirements, and order plans, the company is producing empty cans for China Red Bull beverages and fulfilling related obligations. China Red Bull is also normally placing production orders with the company. In addition, Org Technology believes that since the lawsuit is currently suspended, the company will continue to arrange production normally according to the strategic cooperation agreement with China Red Bull, its technical requirements, and order plans, and therefore believes that this lawsuit will have no significant impact on the company in the short term. Swisse Goes All Out on Localized Marketing, Bullish on China's Adult Nutrition and Health Market 8. Australian natural health brand Swisse is launching a new round of marketing offensive targeting the Chinese market. After inviting Dimash, Liu Ye, and "Qi Pa Shuo" internet celebrity Ma Weiwei to brand events, and sponsoring The Color Run in multiple cities, the brand also announced that Chinese film star Fan Bingbing has become its brand ambassador for Greater China and Australia. At a recent investor meeting, Swisse's parent company Health and Happiness Group (1112.HK) clearly stated that this year is a key year for Swisse's marketing, with brand building and channel expansion as the two main directions. The group also said it will launch a series of advertisements in key Chinese markets in the second half, so it expects Swisse's marketing and advertising expenses to increase in H2. At the investor meeting, Health and Happiness Group revealed that Swisse's channel structure has become richer this year compared to last year. In April 2017, Swisse entered Shanghai through general trade imports, and currently has 3,000 offline stores, including Ole', Watsons, and Mannings. The company believes that Swisse has no successful experience to reference or replicate in channel development, so the current goal is to first build benchmark stores. For example, some Swisse products have entered beauty and cosmetics stores, and the company believes that the consumer structure of beauty stores is significantly different from pharmacies, making it a brand-new and good channel for nutritional products. Since being acquired by Health and Happiness in 2015, Swisse's contribution to the group's sales has been increasing. According to financial reports, in 2015, Swisse accounted for 17.6% of the group's total sales revenue, rising to 41.2% in 2016; in the first half of 2017, it accounted for 41.3%, with sales revenue reaching RMB 1.466 billion, a year-on-year increase of 14.2%. Zhongtai Securities recently issued a research report stating that it is optimistic about Swisse's product and channel development potential. The institution believes that Swisse has a diverse product range and strong functionality, avoiding direct competition with traditional health products. At the same time, Health and Happiness Group has increased marketing efforts, introduced spokespersons, and participated in e-commerce shopping festivals to enhance visibility, with significant results. In April this year, Swisse signed a RMB 600 million strategic cooperation plan with Tmall Global. Source: Xiaoshidai As Long as It Sells, They Can Mix Anything: Counterfeit Plants Mix Their Own Red Bull, JDB, and Wong Lo Kat! 9. Middlemen, please watch the following video. Don't think you've found a bargain just because you've got cheap goods! **Tip**: ↓↓Don't click "Read Original"—you'll blush! Yunnan Inspects 166 Batches of Food: 5 Batches Including 'Longwangquan' Drinking Water on Blacklist 10. Recently, the Yunnan Provincial Food and Drug Administration organized supervision and sampling inspections of 166 batches of food in 6 categories: grain processed products, meat products, sugar, fruit products, candy products, and beverages. A total of 166 samples were tested, with 161 samples qualified and 5 batches unqualified, including "Longwangquan" drinking mountain spring water. In this inspection, 29 batches of grain processed products, 5 batches of sugar, and 1 batch of candy products were tested, with no unqualified samples found. Among the 16 batches of meat products tested, 1 batch of Meizhao brand hand-torn beef (90g/bag) produced by Honghe Prefecture Gejiu City Shadian Renrenle Trading Co., Ltd. was found to contain benzoic acid and its sodium salt. Among 8 batches of fruit products, 2 batches were unqualified: rose flower jam (1.2kg/bottle) produced by Shiping Runlong Fruit and Vegetable Co., Ltd., and Xindetian brand small tomatoes (cherry tomatoes, 500g/bag) produced by Yongren Xindetian Biotechnology Co., Ltd., with excessive preservatives and sulfur dioxide detected, respectively. Among 107 batches of beverages, 2 batches were unqualified: Longwangquan drinking mountain spring water (18.9L/barrel) produced by Gejiu City Longwangquan Water Plant in Honghe Prefecture, and Yihe brand fruit juice beverage (2.5L/bottle) produced by Yunnan Yihe Industrial Co., Ltd., with excessive nitrite and sorbic acid and its potassium salt, respectively. For the unqualified products found in the above inspections, the Yunnan Provincial Food and Drug Administration has required the local food and drug regulatory departments in Honghe Prefecture, Chuxiong Prefecture, and Kunming City to investigate and handle the cases according to law, and ordered the production and operation enterprises to take measures such as sealing inventory, stopping production and sales, recalling unqualified food, and removing products from shelves to prevent food safety risks, investigate the causes of problems, and make timely rectifications. Click the image for details. The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. The conference will closely focus on the theme "New Forces, New Ecology," inviting 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to explore a new chapter of cross-border integration! **Core topics of this conference:** > * How can the FMCG industry leverage B2B to achieve new growth opportunities? > > > > > > > * How to build the new supply chain behind new retail? > > > > > > > * How can intra-city logistics help B2B achieve leapfrog development? > **Highlights of this conference:** > * The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper" > > > > > * Sharing of excellent cases of distributors' transformation and upgrading > > > > > * Conference + exhibition upgrade: Hall 6 Internet Technology Exhibition strengthens matchmaking > > > > > * Leaders from Alibaba Retail Link, GL Capital Finance, EASIA Supply Chain, Best Store Plus, Yijiupi, Unilever, Haiding Technology, and Yunmei Co., Ltd. will give on-site speeches and share pioneering views. > > November 8-9, 2017 Chongqing International Expo Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend with note "Conference Registration" Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum 2017 (2nd) China FMCG + Internet Conference Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: [2016 "FMCG + Internet" Summit Forum]() -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671