U.S. Beverages

Sales for U.S. Beverages were $189 million for the first quarter, a decrease of 5 percent compared to the year-ago period. A breakdown of the change in sales follows:
  • Volume and mix subtracted 4 percent
  • Increased promotional spending subtracted 1 percent

The decrease in sales was due to declines in “V8” vegetable juice and “V8 V-Fusion” beverages, partially offset by an increase in “V8 Splash” beverages.

Operating earnings for the quarter were $30 million, comparable to the prior year. The impact of lower volume was offset by lower advertising and consumer promotion expenses.

Bolthouse and Foodservice

The balance of the portfolio includes the Bolthouse Farms business, which was acquired on Aug. 6, 2012, and the North America Foodservice business.

Sales were $323 million for the first quarter, with the acquisition of Bolthouse Farms contributing $171 million. Organic sales in North America Foodservice declined 6 percent compared with a year ago. A breakdown of the change in organic sales follows:
  • Volume and mix subtracted 3 percent
  • Increased promotional spending subtracted 3 percent

North America Foodservice sales decreased primarily due to declines in frozen and canned soup sales, partially offset by volume-driven gains in fresh chilled soup sold at retail.

Operating earnings increased by $7 million to $34 million driven by the acquisition of Bolthouse Farms, partially offset by lower earnings in North America Foodservice.

Unallocated Corporate Expenses

Unallocated corporate expenses for the quarter were $63 million compared with $30 million a year ago. The current quarter included $21 million of restructuring-related costs and $10 million of transaction costs related to the Bolthouse Farms acquisition.

Non-GAAP Financial Information

A detailed reconciliation of the reported financial information to the adjusted financial information is included at the end of this news release.

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