In Premium Dairy, which includes Horizon Organic ® branded dairy products, volume growth drove net sales to increase 3 percent in the third quarter of 2013 compared to the third quarter of 2012. Growth was driven by Horizon Organic ® brand half-gallon offerings. The growth rate in the quarter was negatively impacted by approximately 3 percentage points due to the Company’s decision to exit some private label manufacturing arrangements, and the discontinuation of a contract with a national coffee chain that is now focused on only offering its own brands within its stores. The volume associated with these two arrangements was not a material profit contributor for the Company. The organic milk category grew by 3 percent during the third quarter, and Horizon Organic ® continues to hold a leading market share.
Coffee Creamers & Beverages
In Coffee Creamers and Beverages, which includes coffee creamers under the International Delight ® and LAND O LAKES ® brands, as well as International Delight Iced Coffee®, net sales increased 9 percent in the third quarter of 2013 compared to the third quarter of 2012, due in part to strong growth in club stores, foodservice, convenience stores and other away-from-home channels. The refrigerated flavored creamer category grew 8 percent during the third quarter, driven by continued increases in coffee consumption and coffee flavoring trends.EUROPE SEGMENT The Company’s Europe segment is comprised of its European Plant-based Foods and Beverages platform, which operates primarily under the Alpro ® name. Net sales in the segment increased 19 percent in the third quarter of 2013 compared to the third quarter of 2012, on a reported basis; and increased 15 percent on a constant currency basis. Operating income in the segment increased 23 percent to $8 million for the third quarter of 2013, compared to the same period in 2012.
| Europe Segment
Third Quarter Summary
|In millions||2013||2012||% Change|
|Segment Operating Income||$8||$6||+23%|