Hershey Reveals Review Plans
Foods Corp. here said that it will take a restructuring charge in the fourth quarter of 1994, a process which will include a new name for its North American operations.
The charge, said the company, is the result of a comprehensive review of domestic and international operations designed to enhance performance of operating assets by lowering operating and administrative costs, eliminating underperforming assets and streamlining the overall decision-making process.
The restructuring will include corporate-wide overhead reductions and the realignment of chocolate and confectionery manufacturing in North America. As a result, approximately 400 positions are being eliminated in the manufacturing and administrative areas.
The restructuring will be implemented over the next 12 to 15 months.
"As we assess the constantly changing market environment, we have adjusted our strategic plan to emphasize our mission is to be a focused food company in North America and selected international markets," said Kenneth L. Wolfe, chairman and chief executive officer.
"In view of NAFTA, our strategy in North America is to enhance our number one position in chocolate and confectionery. For this reason, we are realigning our North American chocolate and confectionery operations (U.S.A., Canada and Mexico) into a consolidated unit to be called Hershey Chocolate North America."
Hershey Chocolate North America will be under the leadership of Michael F. Pasquale, currently the president of Hershey Chocolate U.S.A., and will remain headquartered in here.
Doritos Get New Shape, Look
PLANO, Tex. -- Frito-Lay here has redesigned both the packaging and the actual product of its Doritos Tortilla Chips.
The chips are 20% larger, with rounded corners and more seasoning. Cutting tools in Frito-Lay's 23 Doritos plants have been changed to produce a chip with a thinner, more crispy texture.
To accompany the new chips, Doritos' packaging has been changed, eliminating the traditional yellow and orange block logo and replacing it with a hand-scripted triangle. According to the company, in Phoenix and Tucson test markets, the new packaging posted double digit sales increases.
Frito-Lay is backing the relaunch with a $50 million ad campaign that includes sampling events and integrated in-store promotional materials beginning Jan. 1. Doritos will also be the exclusive title sponsor of Super Bowl XXIX Halftime Show.
Salerno Enters Snack Aisles
NILES, ILL. -- Salerno here has introduced five new products, including two that will put the company into the snack aisle.
Salerno is entering the snack aisle with its introduction of corn crisps and salsa crisps. The triangular-shaped snack crackers come in 8-ounce packages and carry a suggested retail price of $1.79.
On the cookie front, Salerno is now offering a reduced fat version of its butter cookies, chocolate graham crackers and cafe crackers. The reduced fat butter cookies have a suggested retail price of $1.69 for an 8-ounce package. The graham crackers are available in 16-ounce packages with a suggested retail price of $2.29, and the cafe crackers have a suggested retail of $1.99 for a 15-ounce package.
Salerno is a division of Sunshine Biscuits, Woodbridge, N.J.
American Adds New Pop Corn
SIOUX CITY, Iowa -- The American Pop Corn Co. here has introduced American's Best Microwave Pop Corn, which it said is the first national brand of microwave pop corn grown without chemical pesticides.
American Pop Corn, which also produces Jolly Time Pop Corn, is supporting the introduction of its new brand through FSIs and a public relations program centered around the theme, "Good for you . . . Good for the Environment."
