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MITSUI FOODS INTERNATIONAL INTEGRATES LOS ANGELES UNIT

(Norwood, N.J.) — Mitsui Foods International, an importer and manufacturer of fine foods and specialty ingredients for the U.S. food market, is integrating Mitsui & Co. (USA)’s Los Angeles Foods Department. The department will be renamed Mitsui Foods International–West Coast Division and remain based in Los Angeles.  
The West Coast Division markets a variety of natural, frozen, and processed foods and feed ingredient products across South America and the Pacific Rim.  


PACKAGING SERVICE NAMES CATEGORY DEVELOPMENT EXEC

(Houston)—Les Hill has joined Packaging Service Company (PSC) as National Sales Manager. Hill formerly was with Federated Group and had held positions with Marketing Management and Presto Products. At PSC, Hill’s responsibilities include sales and marketing, primarily in the food class of trade. PSC is a family-owned charcoal briquet distribution and chemical packaging company, servicing the paint, automotive, grocery, and housewares markets.  


PL DEVELOPMENTS ACQUIRES ASSETS OF PAL LABORATORIES

(Westbury, N.Y.)—PL Developments has acquired the assets of PAL Laboratories, which operates a state of the art, pharmaceutical manufacturing facility in Miami. This facility is capable of manufacturing pharmaceutical, over-the-counter (OTC) and nutritional tablets, caplets, and two piece hard-shell capsules. The acquisition will pave the way for the formation of a new PL Developments’ subsidiary, Avéma Pharma Solutions.  Avéma will focus on developing and manufacturing innovative new products for the Pharmaceutical, OTC, and nutritional markets.  


PERRIGO ACQUIRES GALPHARM HEALTHCARE

(Allegan, Mich.)—Perrigo Company has acquired Galpharm Healthcare, Ltd., a privately-held supplier of over-the-counter (OTC) store brand products based in Barnsley, Yorkshire, U.K. The acquisition for $86 million in cash is expected to add more than $55 million in sales each year.    


CONTESSA OPENS “GREEN CUISINE” PLANT

(Los Angeles Harbor, Calif.)—Contessa Premium Foods has opened a 4 million cu. ft.  Green Cuisine Plant, promoted as the first and largest LEED-certified frozen food manufacturing facility in the world. The LEED rating system is the national standard for the design, construction and operation of “green” buildings.  


WEBSTER’S BAGS CERTIFIED FOR RECYCLED-CONTENT

(Peabody, Mass.)—The kitchen and trash bags made by Webster Industries have been certified for recycled content by Scientific Certification Systems. SCS is an independent, third-party auditing and certification firm that evaluates environmental and sustainable claims.      







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PLMA Annual Meeting Calls for Industry Commitment to Best Practices

Private Label Executives Join Dialogue on Blueprints for Industry Growth

TUCSON, AZ - PLMA’s 2008 Annual Meeting & Leadership Conference last week concluded with a call for manufacturers and retailers to affirm their commitment to best practices as a means to help propel the next surge of private label growth.

The annual event, which was presented here March 27-30 at Loews Ventana Canyon Resort, brings together manufacturing and retailing executives for the purpose of exploring strategies for achieving store brand success. The program for 2008 offered participants a focused series of seminars and workshops by:

• John Rand, director of Retail Insight, Management Ventures, Inc.
• Neil Stern, partner, McMillan Doolittle
• Frank Dell, president, Dellmart & Company
• Brenda Hambleton, executive vice president for ES3, LLC, a division of C&S Wholesale Grocers
• Michael Sansolo, former executive vice president of the Food Markeing Institute and contributing editor of Morningnewsbeat.com
• Ed McDonough, professor of Innovation Management, Northeastern University

Topics central to best practices included meeting the challenge of the private label partnership and what private label can accomplish as an industry. In addition, the agenda addressed strategies for managing innovation internally and externally and the skills required for private label executives to make changes happen within their companies as well as in their customer relations.

In a session titled “Worst Practices: What Not to Do and Why We Do It Anyway” a panel of experts identified three critical issues as practices that can stand in the way of private label growth:

An over-reliance on price, which subverts retailers’ efforts to create high quality private label programs;

“National brand equivalency” as a fixation on “me-too” private label, even after a number of retailers have demonstrated they have the capability to do better than national brands;

Retailers subordinating private label to the promotional strategies of the national brands, rather than building their retail franchise by promoting private label first.

Attendees were especially cautioned against complacency amid projections of tough economic times ahead.

“It is a myth that consumers temporarily forsake national brands in the face of higher gasoline prices, inflation and eroding home equity,” according to Bill Bond, vice president, Willert Home Products and Chairman of the Board of Directors of PLMA. “Just as soon as things improve, this myth implies, consumers will flock back and again be happy to pay a premium price for the national brands they love.”

“But private label’s success was never an effect of hard times and cheap prices,” noted Bond. “Rather, it has been a hard-won consequence of consumer confidence built up over years of high quality, consistency, product improvements, innovation, packaging and marketing commitment on the part of leading retailers to the development of their brands.”

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For more information about store brands and to arrange an interview with Brian Sharoff, President, PLMA, contact Dane Twining, Director of Public Relations, at (212) 972-3131. The Private Label Manufacturers Association represents more than 3,000 companies around the world and offers trade shows, programs and services for its members and retailers.


More Innovation, Creativity Needed For Sales Momentum

PLMA President Says Investments are Essential to Capitalize on Market Opportunities

TUCSON, AZ -The future growth of private label across the U.S. will depend on innovation and creativity, according to Brian Sharoff, President, Private Label Manufacturers Association, speaking at the PLMA Annual Leadership Meeting and Leadership Conference here on March 28.

“In today’s hyper-competitive marketplace, private label programs must go beyond the ‘me-too’ mentality that seldom ventures far from the standards set by the big national brands,” Sharoff affirmed.

“Private label needs to focus more than ever on building a new product development capability that effectively responds to the changing needs of American consumers. This may require significant investments in production facilities, consumer research and marketing, but it is absolutely essential to capitalize on the opportunities in the marketplace,” he said.

Priorities have clearly changed for private label during the past decade, the PLMA executive believes. “It used to be that manufacturers were preoccupied with product quality, making sure that store brand products were at least equal to the leading national brand competitor. This goal has now been accomplished.”

Shoppers recognize this achievement and are buying larger quantities of private label products than ever. One of every five products they purchase in supermarkets is now a store brand, totaling $49 billion in annual sales, according to the latest Nielsen statistics.

This success is reflected in a growing population of loyal store brand shoppers. A nationwide consumer survey conducted for PLMA reveals that a large percentage of shoppers, 41%, now identify themselves as frequent buyers of store brand products. This represents an increase from five years ago when 36% described themselves that way and an ever bigger change from 15 years ago when only 12% said they were frequent shoppers.

“But to realize the full potential of store brands, manufacturers and retailers must become more innovative and creative,” Sharoff said. “Some private label programs are already adopting this new approach. You can see it in Safeway’s O organics and Eating Well health-oriented ranges, as well as Kroger Co.’s licensing agreement with Disney for children’s products and the steady stream of creative new food products offered by Trader Joe’s.”

There is likely to be a big financial payoff for those who take this approach. A recent study by McKinsey & Co. identifies a group of best-in-class retail private label innovators and says if other chains follow their examples there could be a massive $55 billion shift in annual sales to private label and away from national brands.

Such a shift has already occurred in Europe. Retailer brands there have made dramatic market share gains in recent years, climbing to 40% and above in Great Britain, Germany, Belgium, and Switzerland and to more than 30% in France and Spain. “In all these countries, retailers are investing heavily in new product development and marketing their store brands,” Sharoff explained.

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Bill Bond of Willert Home Products to Serve Second Term as PLMA Chairman

New Officers and Directors Elected at PLMA Annual Meeting

TUCSON, AZ – Bill Bond, Vice President of Willert Home Products, was elected to serve a second one-year term as Chairman of the Board of Directors of PLMA. The election was held March 28 during the Association's Annual Meeting and Leadership Conference here. Bond has served on the PLMA Executive Committee since 2003. Previously, he served as member of the Board of Directors from 2000-2003, and as Chairman of the Household Products Industry Task Force.

Peter Pappas, President of Clement Pappas & Co. was elected to the position of First Vice Chairman. Pappas was first elected to the Board of Directors in 1997 and was subsequently elected to serve two additional terms. In addition, he served as Chairman for both the Food Industry Taskforce and the Education and Program Committee.

Tom Chaffee, National Manager, Trade Relations, Reynolds Consumer Products, was elected to the Second Vice Chairman post. Chaffee was elected to the Board of Directors in 1993 and was subsequently elected to serve three additional terms. He has also served as Chairman of the Household Product Industry Task Force, as well as of the Communications Committee and the Membership Committee.

Five individuals were elected to the Board for three-year terms from 2008-2011. They are: Greg Dragan, Ralson Foods; Lynn Sutter Hall, Windsor Foods; Howard Kirschenbaum, Webster Industries; George Miketa, ConAgra Foods; and Christian Strong, Can-Am Care. In addition, Mary Aagesen, Triad Pharmaceuticals, was elected to fill an unexpired term ending in 2010.

Continuing members of the PLMA Board of Directors include: Beth Sobel, Accumed, Inc.; Kent Dell, ADM; Jerry Dear, American Italian Pasta Co.; Greg Baskin, Hormel Foods; Edward Salzano, LiDestri Foods; Peggy Davies, McCain Foods USA; Jim Tomshack, Perrigo; Tom Ewing, T. Marzetti Co.; and Randy Rudolph, Rockline Industries. Also continuing are Robert Snyder, Sinco, Inc., representing PLMA member brokers, and Gene Damon, Shuster Labs, representing member suppliers. Arthur Handler of Handler & Goodman, continues to serve on the board as General Counsel.

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