Business news in brief

Keurig coffee catapults with Kraft deal

Shares of Keurig Green Mountain Inc. surged the most in more than three months Friday after announcing a deal to bring Kraft Foods Group Inc. coffee brands such as Maxwell House, Yuban and McCafe to its home-brewing system.

Kraft will offer its coffees in portion packs for Keurig machines as part of a multiyear licensing, manufacturing and distribution pact, according to a statement Friday. That includes K-Cup packs, which make single cups of coffee, as well as the K-Carafes and Bolt packs for larger portions.

The move brings another high-profile partner to Keurig, which also is working with Coca-Cola Co. on a system for producing cold beverages. In February, Coca-Cola bought a 10-percent stake in Keurig for about $1.25 billion. The beverage giant announced that it was increasing its investment to 16 percent in May, making it Keurig's largest shareholder.

The Kraft agreement helps Keurig by giving it the biggest family of coffee brands that isn't already on its system, Mark Astrachan, an analyst at Stifel Financial Corp. in New York, said in a research note.

Keurig shares jumped $15.61, 0r 13 percent, to close at $133.36 in New York. Shares of the Waterbury, Vt.-based company climbed 56 percent this year through Thursday, bringing it near a record high. Kraft shares fell 4 cents to $57.22.

-- Bloomberg News

Beanbag chairs recalled after 2 kids die

LOS ANGELES -- Following the suffocation deaths of two children, Ace Bayou Corp. is recalling 2.2 million of its beanbag chairs.

The zippers on the chairs are not locked, allowing children to climb inside, where they can suffocate or choke on the foam beads, the U.S. Consumer Product Safety Commission said Friday.

The voluntarily recalled chairs were sold before July 2013 at Bon-Ton, Meijer, Pamida, School Specialty, Wayfair and Wal-Mart stores. The New Orleans company's chairs were also sold online at Walmart.com, Amazon.com and Meijer.com.

A 3-year-old girl from Lexington, Ky., and a 13-year-old boy from McKinney, Texas, died when they climbed inside the chairs and suffocated after inhaling the foam beads, the consumer agency said.

Consumers can contact Ace Bayou for a free repair kit to ensure the zippers cannot be opened.

-- Los Angeles Times

460 Iowans laid off as Deere cuts persist

MOLINE, Ill. -- Agricultural equipment maker Deere & Co. is laying off about 460 employees indefinitely from an Iowa tractor factory as it continues to adjust to market demand.

The Moline, Ill., company said Friday that the latest round of layoffs will be effective October 20. Because of slumping demand, Deere said last week that it would lay off more than 600 employees at four Midwest factories that manufacture harvesting and other agricultural equipment.

The latest layoffs will happen at the company's Waterloo, Iowa, operations. Last week's announcement involved factories in East Moline and Moline, Ill., as well as Ankeny, Iowa, and Coffeyville, Kan.

The company said also said last week that it was implementing both seasonal and inventory-adjustment shutdowns and temporary layoffs at those factories, as well as one in Ottumwa, Iowa.

Deere's third-quarter profit dropped 15 percent as sales weakened, and the company said earlier this month that it planned to reduce agricultural equipment production for the remainder of the year. The company had hired several hundred manufacturing employees in recent years to meet demand for products made in its Midwest factories.

"We match the size of our manufacturing workforce with market demand," spokesman Ken Golden said on Friday.

Deere & Co. is the world's biggest farm equipment supplier and employs about 31,000 people in the United States and 67,000 overall.

Deer & Co. shares fell $1.45, or 1.7 percent, to close Friday at $84.76.

-- The Associated Press

Fitbit denies selling users' personal data

ALBANY, N.Y. -- The maker of a popular line of wearable fitness-tracking devices said it has never sold personal data to advertisers, contrary to concerns raised by U.S. Sen. Charles Schumer.

San Francisco-based Fitbit said Friday that it has clarified its privacy policy to make it clear the company doesn't share information about its users.

Schumer raised concerns about the company's privacy policy earlier this month and called for federal rules to allow consumers to protect their data.

But the company said Friday that it's never sold private data and has updated its online privacy policy to make that clear.

Schumer said Friday he hopes other manufacturers of wearable devices adopt similarly transparent rules.

Many Americans have begun wearing fitness bracelets and monitors or use mobile apps to monitor their activity.

-- The Associated Press

McDonald's taps 2nd new lead in 2 years

NEW YORK -- McDonald's named a new president for its U.S. division on Friday, marking the second change in the high-profile spot in less than two years.

The world's biggest hamburger chain said it's bringing back a longtime McDonald's executive, Mike Andres, to fill the role Oct. 15. Andres replaces Jeff Stratton, who is retiring, and inherits some major challenges.

Stratton, 58, took over in late 2012 and replaced Jan Fields. That shakeup was made shortly after McDonald's Corp. reported its first monthly sales drop in nearly a decade. Sales in the U.S. have remained weak ever since, with the company facing intensifying competition and changing eating habits. In the April-to-June quarter, the company reported a 1.5 percent sales decline at established U.S. locations. Then for July, it reported a 3.2 percent drop.

McDonald's, which is based in Oak Brook, Ill., has blamed its performance on a variety of factors, including its own missteps. For instance, the company has said it introduced too many items too quickly, which complicated kitchen operations.

McDonald's Chief Executive Officer Don Thompson has said the chain is working on fixing basics, such as the speed of service and order accuracy.

-- The Associated Press

Business on 08/23/2014

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