Gourmet News

AAK Sells NJ Foodservice Facility to Stratas Foods

Published October 23, 2024

AAK has entered into an agreement to divest its foodservice facility in Hillside, N.J. This move aligns with its portfolio-based strategy to further optimize foodservice operations. While the standalone Hillside site will be sold, AAK is also planning to invest in enhancing its European foodservice structure, with a focus on strengthening its strong presence in the United Kingdom and Nordic regions.

A binding transaction agreement has been signed with Stratas Foods LLC, and the transaction is expected to be completed before the end of the year, subject to customary closing conditions. Until completion, Hillside will continue to be reported as part of Food Ingredients. The transaction is expected to generate a one-time positive cash flow impact of approximately SEK 600 million at closing, with no anticipated material effect on the profit and loss statement. Hillside represents approximately 5 percent of AAK’s total volumes and contributes around 1 percent to its
operating profit.

As a result, the divestment is expected to positively impact the group’s operating profit per kilo by approximately 4 percent, all else being equal. At the same time, to future-proof and strengthen its remaining foodservice operations in Europe, AAK is looking to invest in a new site to replace the existing facility in Dalby, Sweden. Additionally, it is enhancing and modernizing its Hastings Foodservice site in the United Kingdom.

The total capital investment for the European foodservice expansion is approximately SEK 400 million, spread over 2025-2026. These investments will further strengthen AAK’s competitiveness in the United Kingdom and northern Europe.

Johan Westman, president and CEO: “In line with our strategy, we are optimizing our foodservice business by focusing on Europe, where we see critical mass and growth potential. As part of this shift, we will divest the Hillside plant while strengthening our European presence by investing in a new facility in Sweden to replace the existing site in Dalby. Additionally, we are enhancing and modernizing our Hastings Foodservice site in the UK. These strategic investments will improve operational efficiency and position AAK for future growth in the foodservice sector.”

Erik Heggen, CEO Stratas Foods, LLC: “The acquisition of AAK Hillside underscores our commitment to expanding our footprint and capabilities in the Northeast. Along with our Englewood, N.J., site, AAK Hillside fortifies a robust platform that empowers us to grow with our customers today and well into the future. At Stratas, our Team is focused on re-defining what is possible to help our customers thrive. Together, our Hillside and Englewood locations are poised to deliver unparalleled value to our customers and stakeholders alike.”

AAK Foodservice manufactures over 300 specialty products, including oils, condiments, sauces, dressings, frying oils and ingredients. Following the divestment of Hillside, AAK operates three foodservice facilities worldwide – Runcorn and Hastings in the United Kingdom and Dalby in Sweden – collectively accounting for around 5 percent of the group’s total production volume. Once completed, the new site will replace the existing site in Dalby.

Stratas Foods, LLC is the leading supplier of fats, oils, mayonnaise, dressings and sauces to the foodservice, food ingredients and retail private label markets in North America. Stratas Foods was formed in October 2008 as a 50/50 joint venture between Associated British Foods and Archer Daniels Midland.

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CPG Industry Drives US Economy, Study Shows

Published October 22, 2024

The Consumer Brands Association released a study on the consumer packaged goods industry’s growing economic footprint across the United States.

Conducted by PwC, the study found that the CPG industry is the largest manufacturing sector by employment. It supports 22.3 million jobs, which is almost three times the population of New York City and contributes $2.5 trillion — or nearly 10 percent — to the U.S. economy, which is more than Canada’s 2023 total gross domestic product.

“As one of the nation’s top job creators, the makers of the products consumers choose and the brands they trust play a crucial role in our national economy,” said Genna Gent, executive vice president of industry engagement for Consumer Brands. “When you look at how many jobs our industry proudly supports to make the food that families serve at the dinner table or the household and personal care products we use every day – from the scientist ensuring product safety, the farmer growing wheat for bread or the trucker on the road to the retailer, it’s clear the human-powered CPG industry has a massive impact on the economy.”

The study examined the total contribution of the CPG industry, including employment, labor income and economic value added, at the national, state and congressional district levels in 2022.

According to the study, the industry directly and indirectly supports:

22.3 million jobs, or 10.5 percent of total U.S. employment.
$1.5 trillion of labor income, including $195.2 billion directly, which is a 30 percent increase in CPG wages over five years.
$2.5 trillion in U.S. GDP, accounting for nearly 10 percent of the national total.

“Each one of the 22.3 million jobs the CPG industry supports is part of a greater purpose — contributing to the industry’s commitment to delivering for consumers every day — and the results can be found in nearly every American household,” Gent said. “The findings in this report also reinforce the need for federal and state policies that facilitate job creation, spur innovation and build consumer trust.”

The Consumer Brands Association champions the industry that makes the products you choose and the brands you trust. From household and personal care to food and beverage products, the consumer packaged goods industry plays a vital role in powering the U.S. economy, contributing $2.5 trillion to U.S. GDP and supporting 22.3 million American jobs.

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Hy-Vee President Tweeten Announces Retirement

Published October 21, 2024

Longtime retail leader and nationally recognized marketing icon Donna Tweeten has announced her retirement from Hy-Vee, Inc., effective Jan. 24.

In 2022, Tweeten became the first woman in Hy-Vee history to serve as the company’s president.

Tweeten has guided Hy-Vee’s brand and image strategy and helped double the size of the Iowa-based grocery chain during her tenure. Under her leadership, Hy-Vee also became the first retailer to engage in a name, image, likeness contract with basketball star Caitlin Clark, as well as sign partnerships with Kansas City Chiefs players Patrick Mahomes and Travis Kelce, and U.S Olympic gymnast Shawn Johnson East.

“No one has shaped the Hy-Vee brand with such skill, precision and creativity more than Donna Tweeten,” said Jeremy Gosch, Hy-Vee’s chairman and CEO. “Throughout her career, Donna has served as an innovator, trailblazer and creative thinker in nearly every aspect of Hy-Vee’s operations. There’s no doubt that her influence will be felt across Hy-Vee for decades to come.”

Tweeten came to Hy-Vee with an extensive background in advertising, working for such firms as Davis Harrison Dion–Chicago, Anderson Communications and serving as the president and chief creative officer of The Meyocks Group, Hy-Vee’s agency of record.

Tweeten joined Hy-Vee in 2006 as assistant vice president, communications and was promoted to assistant vice president, marketing in 2009. In 2011, she was selected as vice president, brand image. Tweeten was promoted to vice president, marketing/communications in 2013, and in 2014, she was named senior vice president, chief marketing officer. In 2016, she was promoted to executive vice president and elected to Hy-Vee’s board of directors, and later that year she became executive vice president, chief marketing officer/chief customer officer. In 2020, she was also named chief of staff. In 2022, Tweeten transitioned to executive vice president, chief of staff, chief merchandising officer and then was promoted to executive vice president, chief of staff, chief marketing officer. In late 2022, Tweeten was promoted to her current role as president of Hy-Vee.

Tweeten has been nationally recognized for her influence in the advertising and sports marketing industries, including being named a 2024 Champion of Change by ADWEEK and receiving Ad Age’s Leading Women Forward award. This year, she also received FMI’s prestigious Esther Peterson Award for Consumer Service.

Tweeten has received a number of other honors throughout her career including being named one of Progressive Grocer’s Top Women in Grocery in 2011, 2013 and 2019, and received the publication’s highest honor, the Top Women in Grocery Trailblazer award, in 2023. In 2016, she received several awards, including Shopper Marketing magazine’s Women of Excellence, Marketer of the Year by Supermarket News for her innovation and success throughout the grocery industry, and People Who Made a Difference by Mass Market Retailers for combining Hy-Vee’s fundamentals and guiding principles with modern marketing efforts and creativity to enhance the customer experience. In 2022, Tweeten received the Lifetime Achievement Award by Women Impacting Storebrand Excellence (WISE) and Store Brands magazine.

Tweeten received her Bachelor of Arts degree in journalism from Drake University and obtained certification from the Kellogg School of Management’s Executive Leadership program at Northwestern University. She plans to consult and continue to mentor others after her retirement from Hy-Vee.

Hy-Vee, Inc.is an employee-owned corporation operating more than 570 business units across nine Midwestern states with sales of more than $13 billion annually. The supermarket chain is synonymous with quality, variety, convenience, healthy lifestyles, culinary expertise and superior customer service. Hy-Vee was recently named the No. 1 grocery store in America by USA TODAY. The company’s more than 75,000 employees provide “A Helpful Smile in Every Aisle” to customers every day. For additional information, visit www.hy-vee.com.

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