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Flooding has cost an estimated $1 billion in damage in Cedar Rapids, Ia. alone.
Vending and foodservice operators in flooded areas of the Midwest had business operations
disrupted for as long as two weeks and were getting back to normal in late June. The flooding,
which reportedly broke more than 35 levees, struck towns in the Mississippi River basin.
Water levels peaked in St. Louis, Mo. at 37.27 feet, lower than earlier forecast and below
the record of 49.58 feet set in 1993.
In submerged Cedar Rapids, Ia., the PepsiAmericas Inc. plant was evacuated.
Vending and foodservice operators in affected regions said most of the flooding hurt residential areas more than businesses, but operators were forced to reroute deliveries and many accounts were closed temporarily.
Automatic Vending Service Inc. in Burlington, Ia. was forced to move equipment from accounts, noted Brendan Markey, co-owner. Some OCS equipment could not be saved. One employee who lived in Gulfport, Ill. lost his home but was able to find housing with relatives, Markey noted. The company donated ice, snacks and coffee to repair crews.
Hasty Tasty Food Service Inc., based in Davenport, Ia., was forced to use lengthy, alternate routes due to road closures, noted Galen Starkweather, owner. He said deliveries were halted for several days. In addition, some employees missed a few days of work to repair flooded basements.
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Swanson Corp., based in Madison, Wis., removed equipment from some accounts, noted Jeff Parks,
president. He said locations were closed in Cedar Rapids, Ia. and in Jefferson, Wis. and
Fort Atkinson, Wis.
The most devastating impact will be from the cost of lost crops, which will affect operators
nationwide.
Crop damage in Iowa alone reportedly surpassed $2.7 billion, nearly half of it in just one town, Cedar Rapids. Corn prices reportedly hit an all-time high near $8 a bushel in late June, but many other crops were also devastated, especially wheat in Missouri and Nebraska and soybeans in Indiana and Kentucky.
Refreshment service companies contributed to flood recovery efforts.
» Court rules currency discriminates against the blind; NAMA
mulls its options
The U.S. Court of Appeals for the District of Columbia ruled that because different denominations
of paper money are indistinguishable by touch, the government is discriminating against
blind people, according to news reports. The decision could force the Treasury Department
to make significant changes to currency, such as printing different-sized bills for different
amounts or giving them raised markings.
The court issued the ruling in response to a lawsuit by the American Council of the Blind. The government has been fighting the case for about six years and could appeal the ruling. The National Automatic Merchandising Association (NAMA) will look into the next steps that should be taken to protect the vending industry. NAMA initially responded to this issue when the first lawsuit was filed against the U.S. Treasury by the American Council of the Blind which said U.S. currency should be redesigned to help blind and visually impaired people distinguish among denominations.
» J. M. Smucker Co. to acquire Folgers from Procter & Gamble
Co. for $3.3 billion
The J. M. Smucker Co. and Procter & Gamble Co. announced a definitive agreement to merge
the Folgers coffee business into The J. M. Smucker Co. in an all-stock reverse transaction
valued at approximately $3.3 billion, including the assumption of an estimated $350 million
of Folgers debt.
As part of the transaction, Smucker will issue a one-time special dividend of $5 per share to Smucker shareholders as of the record date, prior to the merger.Following this one-time special dividend, Procter & Gamble shareholders will receive approximately 53.5 percent of Smucker in a tax-free stock-for-stock merger.
» General Mills Inc. buys nutrition bar maker
Humm Foods
General Mills Inc. has bought organic foods maker Humm Foods, according to The Minneapolis
St. Paul Business Journal in Minneapolis, Minn. The company stated Humm's Larabar and Larabar Jocalat
health bars will become part of Small Planet Foods, General Mills' natural and organic
products group.
» Performance Food Group finalizes merger with Vistar: Holm to
be chief executive officer
Performance Food Group Co. announced that the acquisition of the company by affiliates of
The Blackstone Group and Wellspring Capital Management has been completed.
The transaction is valued at approximately $1.4 billion.
Performance Food Group is being merged with a wholly owned subsidiary of Vistar Corp. The newly combined company, known as Performance Food Group, is expected to have revenues approaching $10 billion and more than 10,000 associates.
George Holm, president and chief executive officer of Vistar, will assume the role of chief executive officer for Performance Food Group.
» Flowers Foods Inc. will merge with
Holsum Bakery Inc.
Flowers Foods, Inc., which owns Mrs. Freshley's, recently entered into a definitive
merger agreement with Holsum Bakery, Inc. whereby Holsum Bakery will be a wholly owed subsidiary
of Flowers Foods in exchange for cash and Flowers stock. Holsum Bakery, which operates profitably on annualized sales of approximately $146 million,
is a family-owned business with two bakeries in the Phoenix, Ariz. area.
Holsum Bakery employs 580 people and sells its products through independent distributors that serve retail and foodservice customers in Arizona, New Mexico, Southern Nevada and Southern California with fresh breads and rolls under the Holsum, Aunt Hattie's, and Roman Meal brands.
» SandenVendo America markets
La Cimbali self serve espresso machines
SandenVendo America, Inc. has teamed with La Cimbali, an Italy-based manufacturer of espresso
machines, to market Cimbali self-service espresso solutions to North America.
» Dr
Pepper Snapple Group to build plant in Victorville, Calif.
Dr Pepper Snapple Group, Inc. has finalized an agreement to open a production and distribution
center in Victorville, Calif. The $120 million facility is expected to employ 200 people and will become the company's
western hub in a regional manufacturing and distribution footprint serving California and
parts of the desert Southwest. The company will produce a wide range of soft drinks, juices,
juice drinks, ready-to-drink teas, energy drinks and other premium beverages at the Victorville
plant.
» Imperial Companies, Jackson Brothers of the South swap business
in Arkansas and Missouri
Imperial Companies, a vending/foodservice operation based in Tulsa, Okla., recently traded
most of its Missouri business with Jackson Brothers of the South in exchange for some of
that company's Arkansas business, officials from both companies reported. Imperial Companies acquired about $11 million worth of business and about 100 employees from
Jackson Brothers of the South. In exchange, Jackson Brothers of the South acquired about
$4.2 million worth of business and about 35 employees from Imperial Companies.
Jackson Brothers of the South will purchase Imperial Companies' facility in Joplin, Mo., according to Paul Tims, owner of Imperial Companies, and Nick Branham, owner of Jackson Brothers of the South. Imperial Companies will lease Jackson Brothers of the South's facility in Russellville, Ark. on a temporary basis until it builds a new facility in Fort Smith, Ark., Tims said. Jackson Brothers of the South still has facilities in Harrison, Ark. and Jonesboro, Ark. in addition to Joplin, Mo., Moberly, Mo. and Mt. Pleasant, Ia. Jackson Brothers of the South is separate from St. Louis, Mo.-based Jackson Brothers.