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Yum! - Corporate Social Responsibility

LOUISVILLE, KY - Yum! Brands (NYSE:YUM), parent of KFC, Pizza Hut and Taco Bell, today launched the world’s largest hunger relief effort in an attempt to help stop world hunger. Called “World Hunger Relief Week,” the program supports the United Nations World Food Programme, the frontline agency in the fight against global hunger. During October 14-20, 35,000 company and franchised restaurants located in 112 countries will be participating in some way, including KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W All-American Food.

More than 850 million people know what it is like to go to bed hungry in all corners of the globe. More people die from hunger each year than from war, tuberculosis and AIDS combined. In fact, every five seconds, a child somewhere dies from hunger.

The company partnered with the U.N. World Food Programme, the world’s leading humanitarian agency feeding 90 million poor people, including 58 million hungry children, in 80 of the world’s poorest communities.

Yum! hopes to raise awareness of the hunger problem, mobilize nearly 1,000,000 employees across its company and franchise system to volunteer their efforts, and raise funds from the more than 125 million customers that visit its restaurants each week. Yum! Brands Chairman and Chief Executive Officer, David C. Novak, will lead a massive volunteerism movement by dedicating volunteer service at a food bank in Louisville, Kentucky. All other above restaurant leaders are being given a day of community service during the week to volunteer their time, and restaurant employees are encouraged to hold fund raising drives and food collections as well.

The Yum! Foundation also will be donating to the cause by covering the WFP’s low administrative fee so that all funds collected from customers and employees will go directly toward purchasing a nutritious school meal or food for the world’s hungry. It costs the WFP just $.19 per day on average to feed a hungry child a nutritious school lunch meal. With funds raised, the company hopes to save hundreds of thousands of people from starvation.

During World Hunger Relief Week, Yum! plans to generate the equivalent of nearly $50 million worth of awareness through television and print advertising, public service announcements, public relations, web-based communications and in-restaurant posters and signage. The integrated marketing materials will be available in English and translated into nine different languages, including English, Spanish, French, Arabic, Chinese, German, Japanese, Korean and Portuguese.

“World hunger is a problem of epic proportions, and unfortunately it is increasing each day. As the world’s largest restaurant company, we believe it is our privilege and responsibility to use our clout and make a difference in the lives of others less fortunate who are starving around the globe,” said David C. Novak, Yum! Brands Chairman and Chief Executive Officer. “Our World Hunger Relief efforts will continue year after year. Our goal is to create a global movement to help stop the dying, and start the living. We believe we can truly make a difference in the lives of others by helping them move from hunger to hope.”

Yum! and its brands have been committed to fighting hunger for more than a decade by donating $50 million of prepared food annually to the underprivileged in the United States. The company also has been the primary sponsor of the Dare To Care Food Bank based in Louisville, Kentucky for seven years. Its employees donate thousands of hours each year to the food bank. The company is now expanding these efforts on a global scale through the creation of World Hunger Relief Week. The initiative coincides with the company’s 10th anniversary as a publicly traded company on the New York Stock Exchange. It was spun-off from PepsiCo in October, 1997.

World Hunger Relief Week addresses the harsh reality that there are 850 million people suffering from hunger every day. The situation has become worse than ever due to the convergence of: rising commodities and higher global food prices; increased competition for products that produce energy; severe droughts and flood due to climate change; a surge in conflict and wars as well as a growing population. At the rate things are going, food prices are expected to jump 35% over the next two years, thereby decreasing the number of people fed.

“This campaign will raise awareness among tens of millions of people around the world,” said Josette Sheeran, executive director of the World Food Programme, who added that the world’s largest humanitarian organization will use any funds raised to fund its greatest needs. “With demographic trends, climate change and soaring commodity prices — the challenges of feeding the hungry are increasing,” she said, adding that innovative approaches to public awareness and fundraising are critical.

The efforts of Yum! and its five brands are making it possible for funds to go directly to feeding people in WFP’s areas of greatest need - such as expanding school feeding programs to serve more children and families; providing essential food assistance to new mothers and their infants and increasing school attendance among girls by providing take-home food rations.

The company is leveraging the power of the internet to reach millions of people through the www.fromhungertohope.com website and other on-line activity. The interactive web site includes information about hunger, the WFP, how to donate to World Hunger Relief Week, updates on WFP outreach activities, Google mashup map highlighting volunteer updates from around the world and much more.

“I’m incredibly proud of the passion that our global team has for this critical initiative,” said Novak who has visited poverty-stricken areas in Guatemala and seen the needs firsthand. Novak is donating all proceeds from his newly released book, The Education of an Accidental CEO - Lessons Learned from the Trailer Park to the Corner Office (Crown Publishing) to the World Food Programme.

PRESS RELEASE

Google to invest $10 million in green startups

Google will be investing $10 million in green startups, the company writes on its Google.org blog today. The company is specifically looking to invest in companies in the “green” transportation industry (e.g. hybrid, electric cars).

Today, Google.org has issued a request for investment proposals (RFP) to the tune of $10 million in order to advance sustainable transportation solutions. We are inviting entrepreneurs and companies to show us their best ideas on how they can contribute to this important cause. We need catalytic investments to support technologies, products and services that are critical to accelerating plug-in vehicle commercialization. That is why we have structured this RFP to offer investment dollars to for-profit companies to promote social and environmental change. The severity of global warming requires solutions from NGOs, governments, individuals and (very importantly) the private sector. We have already made $1 million in grants to a group of outstanding non-profit organizations, and want to expand our impact by spurring innovation in the private sector. While $10 million is a fraction of the total investment needed to transform our transportation sector, we hope this RFP will help catalyze a broader response. We need the automakers to bring these cars to market, but plug-in vehicles also need an entire ecosystem of companies to flourish.

iPod Touch, New iPod Nano, Cheaper iPhone

The new iPod Nano is both fat and thin, the iPod Touch is just an iPhone without the phone, and the iPhone with the phone is cheaper now. That’s what Apple announced yesterday, packed into one sentence.

Bill Gates House

Bill Gates’ house: http://www.goehner.com/gates.htm

Take the tour: http://www.usnews.com/usnews/tech/billgate/gates.htm

Will Google meet its Growth Targets?

Many analysts expect Google to grow its earnings by close to 40% a year for the next five years. Google will probably report a net income of $4.8 billion in 2007, and it should be very difficult to grow such bulk earnings for every company. In addition, the US search ad market has just slowed down a bit, forcing Google to make more money overseas. Another way of growing earnings is to go into other ad markets like online video, newspaper, radio and television ads. Google has already done experiments on these sectors, but the company hasn’t rolled out any competitive business units, yet. After all, analysts should watch Google’s progress in these areas before recommending bulk stock acquisitions.

Yahoo Mail better than Google’s Gmail

Yahoo has been testing the beta version of its Yahoo Mail service since September 2005. Now it finally launched in finished form. Yahoo Mail has been worth the wait, because it is slightly better than Google’s popular Gmail service, in my opinion. Unlike Gmail and Microsoft’s Hotmail, Yahoo Mail allows users to exchange text messages with cell phones, too. It also offers unlimited storage of emails and attachments free of charge. In comparison, Gmail offers 2.9 gigabytes for free and sells additional storage space from $20 (6GB)  to $500 (250GB) per year. Hotmail is going to offer 5GB for free and 10GB for $20 a year shortly.

What is nice about the new Yahoo Mail version, is that it acts more like a stand-alone computer program than a web-based application. For instance, you can now drag messages into folders, select groups of messages and right-click on messages to get a menu of options such as marking messages as read/unread or deleting them. Another handy feature is that you can open new tabs in Yahoo Mail, so you can have your inbox in one tab, a new email you’re composing in another tab and a live conversation in yet another one.

Overall, Yahoo Mail offers lots of features that Gmail and Hotmail still lack. But to be fair, Gmail has been in beta status since April 2004 and is still waiting to be released as final version.

Big Apple Event

Apple is announcing a big event at the Moscone Center in San Francisco on September 5, 2007. Damon Darlin from the New York Times’ Bits blog has a list of rumors as to what Apple might be announcing:

1. iPods
2. Beatles music
3. New wide-screen iPods
4. Logic 8, iPod tablet or ultra-light laptops
5. WiFi iPods

Personally, I think Apple TV could use some promotion.

Google’s Finance Chief to Resign

According to the Wall Street Journal, Google’s Chief Finance Officer George Reyes plans to leave the company, but he will help finding a successor for the top management position. Mr. Reyes will be the first top-ranked manager to resign at Google.

Fotolog.com sold for $90 million

Photo sharing site Fotolog has been acquired by French company Hi Media for $90 million. The service is popular in Europe and Latin America, but not so much in the USA. Fotolog’s 2007 revenue is expected to reach $2.3 million. I think the purchase price is quite high, considering that Hi Media paid a 39-year multiple and that Fotolog hasn’t been able to establish its service in the USA, yet.

Samsung No. 2

I’m considering buying a new cell phone this year, so I was doing a little research. I found interesting news on Samsung. The Korean electronics maker has quietly surpassed Motorola to become the No. 2 seller of mobile phones. In this year’s second quarter Samsung shipped 37.4 million devices, Motorola shipped 35.5 million. As said, the company “quietly” achieved this milestone (it didn’t even issue a press release). This leads me to the conclusion that Samsung is up to much greater achievements. Samsung’s telecom chief Gee Sun Choi said Samsung was going to catch up with market leader Nokia, which sold 100 million mobile phones Q2 2007. If Samsung is serious about achieving this goal, and I’m sure it is, the company must get into the Chinese mass market, but China is a highly competitive market where Nokia and Motorola are still the market leaders and where lots of local brands have gained the trust of Chinese consumers.




All right, Mr. DeMille, I'm ready for my close-up.

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