The Supply Side briefs: Heinz repayment, Nature’s Bakery bid, Cargill turkey burgers
by February 10, 2014 12:30 pm 279 views
• Heinz to repay South Carolina incentives after plant closure
H.J. Heniz Co. agreed to repay about $1.5 million it received from Florence County, S.C., for economic incentives related to the plant it will close later this year.
The frozen food plant opened in 2011 and is scheduled to close in the spring with the loss of 200 jobs. The closing was part of a round of restructuring with Heinz's new owners, Berkshire Hathaway.
The Pittsburgh-based Heinz received $2 million in economic and workforce development funds following the 2008 announcement to build the plant in South Carolina.
Heinz also agreed to provide $689,000 in lieu of taxes, according to several South Carolina news sources.
Warren Buffett's Berkshire Hathaway and 3G Capital announced last year they were acquiring Heinz for $23.3 billion along with its debt for a $28 billion deal.
Heinz is a supplier to Wal-Mart Stores Inc. with a sales office in Rogers.
• Nature’s Bakery offers $4.1 million for St. Louis bakery
Nevada-based Nature’s Bakery entered a $4.1 million bid to acquire Theodoro Baking Co. in St. Louis, which filed for bankruptcy in August. Nature’s “stalking horse” bid is for the 117,000 square-foot baking facility that makes frozen breads, rolls, bagels, cakes and donuts for local and national customers.
Nature’s Bakery is seeking to buy Theodoro Baking and bring $30 million in new business making fig bars and gluten-free breads to the facility, according to Nature’s Bakery owner and president, Dave Marson.
“The facility will service everything for us east of the Mississippi,” Marson said.
Founded in 2010, Nature's Bakery projects its revenue will reach $100 million in 2014 and it plans to sell the St. Louis bakery’s products to Sam’s Club stores, Marson said.
If Nature’s Bakery’s bid is selected by the bankruptcy court, the company will keep all 112 current employees and adding 100 more in its first year of ownership and an additional 100 employees in its second year of ownership.
• Cargill unveils line of frozen turkey burgers
To meet consumer demand in the growing turkey burger category, Cargill said it's rolling out six new varieties of frozen turkey burgers under the Honeysuckle White and Shady Brook Farms brands.
Cargill said the firm spent more than a year developing these products after extensive consumer research to determine shopper preferences.
Created for retail with additional opportunities in foodservice, restaurant and K-12 school sales and distribution channels, the Honeysuckle White and Shady Brook Farms turkey burgers represent a nutritious and convenient source of protein and they are 87% to 93% lean, the company noted in the release.
“We did our homework, listened to consumers and are meeting their desire for a line of premium, frozen, turkey burgers available nationwide. In particular, we found that millennial moms, age 25-54, want high-quality protein for their families and they are looking more closely at ingredients, nutritional value, convenience and affordability. Consumer tasting panels overwhelming favored our new turkey burgers for their flavor, juiciness, texture and overall desirability when compared to similar existing products,” said Mary Richardson, marketing manager for brands.
Cargill is a supplier to Wal-Mart Stores Inc. and operates a large turkey plant in Springdale, which is the largest supplier of ground turkey products for Cargill Honeysuckle White.