Restructuring and Cost Reductions Consume Food Industry.

Chemical Market Reporter, July, 1999 by Chang, Joseph

After years of strong sales and earnings growth fueled by price increases, top-line growth in the packaged foods industry has slowed. Increasingly competitive pricing and reduced volumes stemming from the Asian/Latin American economic crises have major food companies scrambling to implement a new round of restructuring programs in order to maintain double-digit earnings growth.

Leading food companies such as ConAgra, Nabisco, Campbell Soup, H.J. Heinz and Quaker Oats have been actively restructuring and making acquisitions in order to bolster leading positions and competitive advantages. However, large-scale mergers between public companies have been scarce. "In 1998 and so far in 1999, food companies on average have continued to show low...

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