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» BILL SEEKS FEDERAL NUTRITION STANDARDS FOR SCHOOL VENDING
Senators Tom Harkin (D-Ia.) and Lisa Murkowski (R-Alaska) introduced legislation designed to improve student health by updating decades-old nutrition standards in schools. The bill seeks to establish school nutrition standards for foods and beverages offered in school vending machines, stores, a la carte lines and other venues outside of the school meal programs.

Currently, more than $11 billion in federal money is invested annually in student health through the National School Lunch and School Breakfast Programs, according to the senators. However, the U.S. Department of Agriculture has little authority over what can be sold to students outside of these programs. Because of this, students have ready access to food and drinks that are high in calories, fats and sodium, thus undermining the intention of providing healthy meals for students.

The legislation would presumably improve children’s health by allowing the Secretary of Agriculture, through established notice and comment procedures, to establish nutrition standards for the foods and beverages that are sold in school vending machines and similar outlets.

“Our legislation requires common-sense nutrition standards for the foods and beverages that are sold in school vending machines and similar outlets,” Harkin said in a prepared statement. “Absent this action, sugary snacks and sweetened beverages will continue to undermine the $11 billion that taxpayers provide annually to reimburse schools for provided nutritious meals.”

» PEPSICO INC. MAKES OFFERS FOR PBG AND PEPSIAMERICAS; PBG SAYS ‘NO’
PepsiCo Inc. offered to buy its two largest bottlers, Pepsi Bottling Group Inc. and PepsiAmericas Inc., for about $6 billion. The deal valued the companies at a 17 percent premium to their respective shares’ closing prices on April 17.

Pepsi Bottling Group (PBG) Inc.’s board rejected the proposal to acquire all outstanding shares not owned by PepsiCo for cash and PepsiCo common stock, saying the bid was “grossly inadequate” and that
its board has approved adoption of a stockholder rights plan.

PBG said PepsiCo’s proposal tried to take advantage of its low stock price ahead of its April 22 earnings that beat Wall Street estimates and prompted a lift to its full-year guidance and operating cash flow. The proposal also failed to take into account the company’s plans to cut about $250 million from its costs later this year, PBG claimed.

Furthermore, PBG accused PepsiCo of understating cost savings that would come from a deal by “multiples” of the $200 million PepsiCo suggested.

“PBG values its longstanding relationship with PepsiCo, but the PBG board will not agree to a proposal which does not reflect the true value of PBG,” PBG said in a statement.