These are tough times to run a huge, age-old business. Just ask Sears or JC Penney, Radio Shack or Kodak. Or Conagra and many other big-name food and beverage companies. One by one, the CEOs and CFOs of 15 of the largest food and beverage companies told financial analysts in February to expect a year of lower sales but potentially higher profits, the latter thanks to aggressive cost-cutting. While it worked last year and may work again this year, lower sales plus cost-cutting is not a formula for long-term success. Six weeks later and half a world away, Ulf Mark Schneider, Nestle SA’s CEO of just three months, called that approach self-defeating. “Many companies are…Full Story
Instead of exporting finished goods, more non-U.S. food companies are exporting manufacturing capacity to North America.