<HTML>
<HEAD>
<TITLE>SVC 10-Q JUNE 30, 1999</TITLE>
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<BODY>

<P ALIGN="CENTER">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C.  20549</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">FORM 10-Q</P>
<P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER"><FONT FACE="Monotype Sorts">4</FONT>
</U>  Quarterly Report Pursuant to Section 13 or 15 (d) of <BR>
the Securities Exchange Act of 1934</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">For the quarterly period ended June 30, 1999</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Transition Report Pursuant to Section 13 or 15 (d) of<BR>
the Securities Exchange Act of 1934</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">For the transition period from ____ to ____</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Commission file number 1-2944</P>
<P ALIGN="CENTER"></P>
<CENTER><TABLE BORDER=0 CELLSPACING=1 CELLPADDING=1 WIDTH=620>
<TR><P ALIGN="CENTER"> </TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">STOKELY-VAN CAMP, INC.</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">(Exact name of registrant as specified in its charter)</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"> </TD>
<TD WIDTH="50%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">Indiana</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">35-0690290</TD></TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">(State or other jurisdiction of <BR>
incorporation or organization)</TD>
<TD WIDTH="50%" VALIGN="TOP"><P ALIGN="CENTER">(I.R.S. Employer <BR>
Identification No.)</TD></TR>
<TR><TD WIDTH="50%" VALIGN="TOP"> </TD>
<TD WIDTH="50%" VALIGN="TOP"> </TD>
</TR><TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">Quaker Tower</TD>
<TD WIDTH="50%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">P.O. Box 049001 Chicago, Illinois</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">60604-9001</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">(Address of principal executive office)</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">(Zip Code)</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"> </TD>
<TD WIDTH="50%" VALIGN="TOP"> </TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">(312) 222-7111</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">(Registrant's telephone number, including area code)</TD>
</TR>
</TABLE>

<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">Indicate by check mark whether the registrant:
(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file for such reports), and
(2) has been subject to such filing requirements for the past 90 days.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=1 WIDTH=657>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">YES <U><FONT FACE="Monotype Sorts">4</FONT></U>
</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">NO<U>    </U></TD>
</TR>
</TABLE>
</CENTER></P>

<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">The registrant had 2,989,371 shares of Common Stock outstanding on
July 31, 1999, all of which were held by The Quaker Oats Company.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"> </P>
<B><U><P ALIGN="CENTER">STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
INDEX TO FORM 10-Q</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=657>
<TR><TD WIDTH="80%" VALIGN="TOP"> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="CENTER">Page</U></TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"> </TD>
<TD WIDTH="20%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP">
<P ALIGN="JUSTIFY">PART I - FINANCIAL INFORMATION</TD>
<TD WIDTH="20%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"><DIR>

<P ALIGN="JUSTIFY">Item 1 - Financial Statements</DIR>
</TD></TR>
<TR><TD WIDTH="80%" VALIGN="TOP"><DIR>

<P ALIGN="JUSTIFY">Condensed Consolidated Statements of Income and Reinvested Earnings <BR>
   for the Six and Three Months Ended June 30, 1999 and 1998</P>
</TD>
<TD WIDTH="20%" VALIGN="CENTER">
<P ALIGN="CENTER">3-4</TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"><DIR>

<P ALIGN="JUSTIFY">Condensed Consolidated Balance Sheets <BR>
   as of June 30, 1999 and December 31, 1998</P>
</TD>
<TD WIDTH="20%" VALIGN="CENTER">
<P ALIGN="CENTER">5</TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"><DIR>

<P ALIGN="JUSTIFY">Condensed Consolidated Statements of Cash Flows<BR>
   for the Six Months Ended June 30, 1999 and 1998</P>
</TD>
<TD WIDTH="20%" VALIGN="CENTER">
<P ALIGN="CENTER">6</TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"><DIR>

<P ALIGN="JUSTIFY">Notes to the Condensed Consolidated Financial Statements</DIR>
</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">7-9</TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"> </TD>
<TD WIDTH="20%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"><DIR>

<P ALIGN="JUSTIFY">Item 2 - Management's Discussion and Analysis <BR>
   of Financial Condition and Results of Operations</P>
</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER"><BR>
10-14</TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="BOTTOM"> </TD>
<TD WIDTH="20%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP">

<P ALIGN="JUSTIFY">PART II - OTHER INFORMATION
<BR>
<DIR>Item 4 - Submission of Matters to a Vote of Security Holders</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER"><BR>
<BR>
15</TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP"> </TD>
<TD WIDTH="20%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP">

<P ALIGN="JUSTIFY">SIGNATURES
</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">16</TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 2</FONT COLOR="RED"></P>
<P ALIGN="CENTER"> </P>
<B><U><P ALIGN="CENTER">STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME<BR>
AND REINVESTED EARNINGS<BR>
(UNAUDITED)</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"> </P>
<TABLE BORDER=0 CELLSPACING=1 CELLPADDING=7 WIDTH=589>
<TR><TD WIDTH="68%" VALIGN="TOP"><BR>
<B><P ALIGN="JUSTIFY">Dollars in Millions</B></TD>
<TD WIDTH="32%" VALIGN="TOP" COLSPAN=4>
<B><P ALIGN="CENTER">Six Months<BR>
Ended June 30,</B></P></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP"> </TD>
<TD WIDTH="14%" VALIGN="TOP">
<B><P ALIGN="CENTER"><U>    1999   </U></B></TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP">
<B><P ALIGN="CENTER"><U>    1998   </U></B></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP"> </TD>
<TD WIDTH="14%" VALIGN="TOP"> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net sales<BR>
Cost of goods sold<BR>
Gross profit</TD>
<TD WIDTH="14%" ALIGN="RIGHT">$    814.5  <BR>
<U>     374.9 </U> <BR>
439.6  </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">$    718.6  <BR>
<U>     331.3 </U> <BR>
387.3  </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Selling, general and administrative expenses<BR>
Interest income <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>net</TD>
<TD WIDTH="14%" ALIGN="RIGHT">273.0  <BR>
<U>     (28.4)</U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">247.7  <BR>
<U>     (22.8)</U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Income before income taxes<BR>
Provision for income taxes</TD>
<TD WIDTH="14%" ALIGN="RIGHT">195.0  <BR>
<U>       77.0 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">162.4  <BR>
<U>       65.9 </U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net income</TD>
<TD WIDTH="14%" ALIGN="RIGHT">118.0  </TD>
<TD WIDTH="4%" VALIGN="TOP">  </TD>
<TD WIDTH="13%" ALIGN="RIGHT">96.5  </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP"> </TD>
<TD WIDTH="14%" VALIGN="TOP"> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Dividends on preference and preferred stock</TD>
<TD WIDTH="14%" ALIGN="RIGHT">(0.4) </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">(0.4) </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Reinvested Earnings <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>Beginning Balance</TD>
<TD WIDTH="14%" ALIGN="RIGHT">
<U>   1,105.7 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">
<U>     942.1 </U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Reinvested Earnings <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>Ending Balance</TD>
<TD WIDTH="14%" ALIGN="RIGHT">
<U>$ 1,223.3 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="TOP">
<U>$ 1,038.2 </U> </TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><I>See accompanying notes to the condensed consolidated
financial statements.</I></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">  </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 3</FONT COLOR="RED"></P>
<P ALIGN="JUSTIFY"> </P>
<B><U><P ALIGN="CENTER">STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME<BR>
AND REINVESTED EARNINGS<BR>
(UNAUDITED)</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<TABLE BORDER=0 CELLSPACING=1 CELLPADDING=7 WIDTH=589>
<TR><TD WIDTH="68%" VALIGN="TOP"><BR>
<B><P ALIGN="JUSTIFY">Dollars in Millions</B></TD>
<TD WIDTH="32%" VALIGN="TOP" COLSPAN=4>
<B><P ALIGN="CENTER">Three Months<BR>
Ended June 30,</B></P></TD></TR>

<TR><TD WIDTH="68%" VALIGN="TOP"> </TD>
<TD WIDTH="14%" VALIGN="TOP">
<B><P ALIGN="CENTER"><U>    1999   </U></B></TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP">
<B><P ALIGN="CENTER"><U>    1998   </U></B></TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP"> </TD>
<TD WIDTH="14%" VALIGN="TOP"> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net sales<BR>
Cost of goods sold<BR>
Gross profit</TD>
<TD WIDTH="14%" ALIGN="RIGHT">$    544.5  <BR>
<U>      242.8 </U> <BR>
301.7  </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">$    505.7  <BR>
<U>      224.4 </U> <BR>
281.3  </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Selling, general and administrative expenses<BR>
Interest income <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>net</TD>
<TD WIDTH="14%" ALIGN="RIGHT">165.1  <BR>
<U>       (13.3)</U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">160.0  <BR>
<U>      (11.2)</U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Income before income taxes<BR>
Provision for income taxes</TD>
<TD WIDTH="14%" ALIGN="RIGHT">149.9  <BR>
<U>         59.2 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">132.5  <BR>
<U>        53.6 </U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net income</TD>
<TD WIDTH="14%" ALIGN="RIGHT">90.7  </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">78.9  </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP"> </TD>
<TD WIDTH="14%" VALIGN="TOP"> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Dividends on preference and preferred stock</TD>
<TD WIDTH="14%" ALIGN="RIGHT">(0.2) </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">(0.2) </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Reinvested Earnings <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>Beginning Balance</TD>
<TD WIDTH="14%" ALIGN="RIGHT">
<U>    1,132.8 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">
<U>       959.5 </U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Reinvested Earnings <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>Ending Balance</TD>
<TD WIDTH="14%" ALIGN="RIGHT"><U>$  1,223.3 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT"><U>$  1,038.2 </U> </TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"><I>See accompanying notes to the condensed consolidated financial
statements.</I></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 4</FONT COLOR="RED"></P>
<B><U><P ALIGN="CENTER">STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED BALANCE SHEETS<BR>
(UNAUDITED)</P>
</U></B>
<TABLE BORDER=0 CELLSPACING=1 CELLPADDING=4 WIDTH=640>
<TR><TD WIDTH="53%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY"><BR>
Dollars in Millions</TD>
<TD WIDTH="22%" VALIGN="TOP"><P ALIGN="CENTER"><B>    June 30,<BR>
    <U>    1999   </U> </TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="22%" VALIGN="TOP"><P ALIGN="CENTER"><B>December 31, <BR>
<U>     1998    </U></B></TD>
<TR><TD WIDTH="53%" VALIGN="TOP">
<P ALIGN="JUSTIFY">ASSETS<BR>
Current Assets:<BR>
  Cash and cash equivalents<BR>
  Due from The Quaker Oats Company<BR>
  Trade accounts receivable <FONT FACE="Symbol">-</FONT> net of allowances<BR>
  Inventories:<BR>
    Finished goods<BR>
    Materials and supplies<BR>
       Total inventories<BR>
  Other current assets<BR>
       Total Current Assets<BR>
Other assets<BR>
<BR>
Property, plant and equipment<BR>
Less: accumulated depreciation<BR>
    Property <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>net<BR>
<B>         Total Assets</B></TD>
<TD WIDTH="22%" ALIGN="RIGHT"> <BR>
 <BR>
$       5.0         <BR>
1,013.5         <BR>
140.5         <BR>
 <BR>
80.1         <BR>
<U>        14.3 </U>        <BR>
94.4         <BR>
<U>        59.9 </U>        <BR>
1,331.3         <BR>
11.3         <BR>
<BR>
387.6         <BR>
<U>      113.4 </U>        <BR>
<U>      274.2 </U>        <BR>
<B>  <U>$ 1,616.8 </U>        </TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="23%" ALIGN="RIGHT"> <BR>
 <BR>
$       6.3          <BR>
924.0          <BR>
36.3          <BR>
    <BR>
48.1          <BR>
<U>          8.9 </U>     
    <BR>
57.0          <BR>
<U>        60.5 </U>       
  <BR>
1,084.1          <BR>
9.7          <BR>
<BR>
368.1          <BR>
<U>      102.7 </U>         <BR>
<U>      265.4 </U>         <BR>
<B>  <U>$ 1,359.2 </U>         </B></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">
<P ALIGN="JUSTIFY">LIABILITIES AND SHAREHOLDERS' EQUITY<BR>
Current Liabilities:<BR>
  Trade accounts payable<BR>
  Accrued payroll, benefits and bonus<BR>
  Accrued advertising and merchandising<BR>
  Income taxes payable<BR>
  Other current liabilities<BR>
    Total Current Liabilities</TD>
<TD WIDTH="22%" ALIGN="RIGHT"> <BR>
 <BR>
$     68.2         <BR>
29.9         <BR>
55.7         <BR>
91.4         <BR>
<U>       33.8 </U>        <BR>
279.0         </TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT"> <BR>
 <BR>
$      22.5          <BR>
19.8          <BR>
27.8          <BR>
43.3          <BR>
<U>       22.3 </U>         <BR>
135.7          </TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Long-term debt<BR>
Other liabilities<BR>
Deferred income taxes</TD>
<TD WIDTH="22%" ALIGN="RIGHT">1.7         <BR>
46.1         <BR>
--         </TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">1.4          <BR>
46.1          <BR>
3.6          </TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Redeemable Preference and Preferred Stock</TD>
<TD WIDTH="22%" ALIGN="RIGHT">15.3         </TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">15.3          </TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Common Shareholders' Equity:<BR>
  Common stock, $1 par value, authorized<BR>
    10 million shares; issued 3,591,381 shares<BR>
  Additional paid-in capital<BR>
  Reinvested earnings<BR>
  Treasury common stock, at cost, 602,010 shares<BR>
     Total Common Shareholders' Equity<BR>
        <B>Total Liabilities and
Shareholders' Equity</B></TD>
<TD WIDTH="22%" ALIGN="RIGHT"> <BR>
 <BR>
3.6         <BR>
68.7         <BR>
1,223.3         <BR>
<U>      (20.9)</U>      
  <BR>
<U>   1,274.7 </U>        <BR>
<B><U>$ 1,616.8 </U>        </B></TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="22%" ALIGN="RIGHT"> <BR>
 <BR>
3.6          <BR>
68.7          <BR>
1,105.7          <BR>
<U>      (20.9)</U>      
   <BR>
<U>   1,157.1 </U>       
  <BR>
<B><U>$ 1,359.2 </U>       
  </B></TD></TR>
</TABLE>
<P ALIGN="CENTER"></P>
<P ALIGN="LEFT">         
              
   <I>See accompanying notes to the condensed consolidated
financial statements.</I><BR>
<PAGE><FONT COLOR="RED">Page 5</FONT COLOR="RED"></P>
<B><U><P ALIGN="CENTER">STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
(UNAUDITED)</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<TABLE BORDER=0 CELLSPACING=1 CELLPADDING=7 WIDTH=620>
<TR><TD WIDTH="65%" ALIGN="LEFT"> <BR>
<B>Dollars in Millions<BR>
 </TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=4>
<P ALIGN="CENTER"><B> Six Months<BR>
 Ended June 30,<BR>
<U>  1999  </U>       
     <U>  1998  </U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P ALIGN="JUSTIFY"><U>Cash Flows from Operating Activities:</U><BR>
  Net income<BR>
  Adjustments to reconcile net income to net cash provided<BR>
       by operating activities:<BR>
         
 Depreciation and amortization<BR>
         
 Deferred income taxes<BR>
         
 Loss on disposition of property and equipment<BR>
         
 Increase in trade accounts receivable<BR>
         
 Increase in inventories<BR>
         
 Decrease (increase) in other current assets<BR>
         
 Increase in trade accounts payable<BR>
         
 Increase in income taxes payable<BR>
         
 Increase in other current liabilities<BR>
         
 Other items<BR>
<BR>
         
 Net Cash Provided by Operating Activities</TD>
<TD WIDTH="15%" ALIGN="RIGHT"> <BR>
$  118.0 <BR>
 <BR>
 <BR>
14.1 <BR>
(6.8)<BR>
1.7 <BR>
(104.2)<BR>
(37.4)<BR>
0.6 <BR>
45.7 <BR>
48.1 <BR>
49.5 <BR>
<U>       1.6 </U><BR>
 <BR>
<U>   130.9 </U></TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT"> <BR>
$    96.5      <BR>
 <BR>
 <BR>
12.0      <BR>
1.7      <BR>
0.4      <BR>
(100.4)     <BR>
(29.0)     <BR>
(0.7)     <BR>
42.6      <BR>
61.8      <BR>
37.4      <BR>
<U>      (1.1) </U>    <BR>
 <BR>
<U>   121.2  </U>    </TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<U><P ALIGN="JUSTIFY">Cash Flows from Investing Activities:</U><BR>
  Additions to property, plant and equipment<BR>
  Proceeds on the sale of property, plant and equipment<BR>
 <BR>
         
 Net Cash Used in Investing Activities</TD>
<TD WIDTH="15%" ALIGN="RIGHT"> <BR>
(25.2)<BR>
<U>       0.6 </U><BR>
 <BR>
<U>    (24.6)</TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT"> <BR>
(15.2)     <BR>
<U>       0.6 </U>   
  <BR>
<BR>
<U>    (14.6)</U>     </TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<U><P ALIGN="JUSTIFY">Cash Flows from Financing Activities:</U><BR>
  Change in amount due from The Quaker Oats Company<BR>
  Cash dividends<BR>
  Proceeds from long-term debt<BR>
 <BR>
         
 Net Cash Used in Financing Activities</TD>
<TD WIDTH="15%" ALIGN="RIGHT"> <BR>
(107.5)<BR>
(0.4)<BR>
<U>        0.3 </U><BR>
<BR>
<U>   (107.6)</U></TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT"> <BR>
(108.8)     <BR>
(0.4)     <BR>
<U>         --  </U> 
    <BR>
<BR>
<U>   (109.2)</U>     </TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net Decrease in Cash and Cash Equivalents<BR>
Cash and Cash Equivalents <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>Beginning of Year<BR>
Cash and Cash Equivalents <FONT FACE="Symbol">-</FONT>
<FONT FACE="Tms Rmn"> </FONT>End of Quarter</TD>
<TD WIDTH="15%" ALIGN="RIGHT">(1.3)<BR>
<U>        6.3 </U><BR>
<U>$      5.0 </U></TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT">(2.6)     <BR>
<U>         7.3 </U>  
   <BR>
<U>$       4.7 </U>    
 </TD>
</TR>
</TABLE>
<P ALIGN="CENTER"><I>See accompanying notes to the condensed consolidated financial
statements.</I></P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 6</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(UNAUDITED)<BR>
JUNE 30, 1999</P>
</U><P ALIGN="CENTER"></P>
</B><P ALIGN="JUSTIFY"> </P>
<B><U><P ALIGN="JUSTIFY">Note 1 - Basis of Presentation</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The condensed consolidated financial statements include Stokely-Van Camp, Inc.
(a wholly-owned subsidiary of The Quaker Oats Company, or Quaker) and its subsidiaries (the Company
or Stokely).  The condensed consolidated statements of income and reinvested earnings for the six
and three months ended June 30, 1999 and 1998, the condensed consolidated balance sheet as of June 30,
1999, and the condensed consolidated statements of cash flows for the six months ended June 30, 1999 and
1998, have been prepared by the Company without audit.  In the opinion of management, these financial
statements include all adjustments necessary to present fairly the financial position, results of operations
and cash flows as of June 30, 1999, and for all periods presented.  All adjustments made have been of a
normal and recurring nature.  Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed
or omitted.  The Company believes that the disclosures included are adequate and provide a fair presentation
of interim period results.  Interim financial statements are not necessarily indicative of the financial
position or operating results for an entire year.  It is suggested that these interim financial statements
be read in conjunction with the audited financial statements and the notes thereto included in the Company's
Form 10-K for the year ended December 31, 1998.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<B><U><P ALIGN="JUSTIFY">Note 2 - Redeemable Preference and Preferred Stock</P>
</B></U><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">5% Cumulative Convertible Second Preferred Stock</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As of June 30, 1999, authorized shares were 500,000 and issued and outstanding shares
were 9,131.  The voting 5% Cumulative Convertible Second Preferred Stock ($20 par value) is convertible at
the holder's option, on a share-for-share basis, into non-voting 5% Cumulative Prior Preference Stock
($20 par value).</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">5% Cumulative Prior Preference Stock</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As of June 30, 1999, authorized shares were 1,500,000, issued shares were 755,013 and
outstanding shares were 754,680.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Both issues are redeemable at the Company's option for $21 per share.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 7</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(UNAUDITED)<BR>
JUNE 30, 1999</U></B></P>
 </P>
<P ALIGN="JUSTIFY"><B><U>Note 3 - Estimates and Assumptions</B></U></P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The preparation of financial statements in conformity with GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.  Actual results could differ
from those estimates.</P>
<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Note 4 - Current and Pending Accounting Changes</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In January 1998, Statement of Position (SOP) No. 98-1, "Accounting for the
Costs of Computer Software Developed or Obtained for Internal Use," was issued.  This SOP
provides guidance on the accounting for computer software costs.  In April 1998, SOP No. 98-5,
"Reporting on the Costs of Start-Up Activities," was issued.  This SOP provides guidance on
accounting for the cost of start-up activities.  The Company's adoption of these standards in
January 1999 did not materially affect the Company's financial statements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In June 1998, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and
Hedging Activities."  The Statement establishes accounting and reporting standards requiring
that all derivative instruments (including certain derivative instruments imbedded in other
contracts) be recorded in the balance sheet as either an asset or a liability measured at its
fair value.  The Statement requires that changes in the derivative's fair value be recognized
currently in earnings unless specific hedge accounting criteria are met.
The accounting provisions for qualifying hedges allow a derivative's gains and losses to
offset related results on the hedged item in the income statement, and require that
the Company must formally document, designate and assess the effectiveness of transactions
that qualify for hedge accounting.  The Company has not determined its method or timing of adopting
this Statement, but will be required to adopt it by January 2001.  When adopted, this Statement
could increase volatility in reported earnings and necessitate separate reporting of
comprehensive income.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 8</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(UNAUDITED)<BR>
JUNE 30, 1999</U></B></P>
 </P>
<P ALIGN="JUSTIFY"><B><U>Note 5 - Derivative Commodity Instruments</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company actively monitors its exposure to risk from changes in commodity
prices and occasionally uses futures and options to manage price exposure on purchased or
anticipated purchases of corn sweetener.  The Company's policy is to use derivatives only
for purposes of managing risk associated with underlying exposures.  The Company does not
trade or use instruments with the objective of earning financial gains on the commodity
price fluctuations alone, nor does it utilize instruments where there are not known or anticipated underlying
exposures.  Complex instruments involving leverage or multipliers are not used.  Management
believes that its use of these instruments to manage risk is in the Company's best interest.
The Company does not use derivative foreign exchange or interest rate instruments because
underlying exposures are not material.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Instruments used as hedges must be effective at reducing the risks associated
with the underlying exposure and must be designated as a hedge at the inception of the contract.
Accordingly, changes in the market value of the instruments must have a high degree of inverse
correlation with changes in market values or cash flows of the underlying hedged item.  The
deferral method is used to account for those instruments which effectively hedge the Company's
price exposures.  For hedges of anticipated transactions, the significant characteristics and
terms of the anticipated transaction must be identified, and the transaction must be probable of
occurring to qualify for deferral method accounting.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Under the deferral method, gains and losses on derivative instruments are
deferred in the condensed consolidated balance sheets as a component of other current assets
(if a loss) or other current liabilities (if a gain) until the underlying inventory being hedged
is sold.  As the hedged inventory is sold, the deferred gains and losses are recognized in the
condensed consolidated statements of income  as a component of cost of goods sold.  Derivative
instruments that do not meet the above criteria required for deferral treatment are accounted
for under the fair value method with gains and losses recognized currently in the condensed
consolidated statements of income as a component of cost of goods sold.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 9</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF<BR>
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<B><U><P ALIGN="JUSTIFY">Six  Months Ended June 30, 1999 Compared With<BR>
Six  Months Ended June 30, 1998</P>
</B></U><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Operating Results</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Consolidated net sales for the six months ended June 30, 1999 (current year),
were $814.5 million, up 13 percent from the six months ended June 30, 1998 (prior year).
This increase was primarily due to higher <FONT COLOR="GREEN"><I>Gatorade</I></FONT COLOR="GREEN">
thirst quencher sales in the United States, where more than 97 percent of the total current year
sales were generated.  U.S. <FONT COLOR="GREEN"><I>Gatorade</I></FONT COLOR="GREEN"> volume and
sales grew 17 percent and 14 percent, respectively. New flavors, such as <FONT COLOR="GREEN"><I>Gatorade Fierce
</I></FONT COLOR="GREEN">, and new packaging, such as the expansion of the single-serve
<FONT COLOR="PURPLE"><I>E.D.G.E.</I></FONT COLOR="PURPLE"> sport bottle and 20-ounce wide-mouth bottle,
helped drive growth.  In addition, expanded availability, outside the traditional retail channels, drove
U.S. sales growth.  Price changes did not significantly affect the comparison of current and prior
year net sales.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gross profit margin was 54.0 percent compared to 53.9 percent in the prior year.  Selling,
general and administrative (SG&A) expenses increased 10 percent, primarily due to a 16 percent increase
in advertising and merchandising (A&M) expenses.  A&M in the current year was 24.0 percent of sales,
up from 23.6 percent of sales in the prior year as the Company increased media spending in the first quarter
of 1999 to support the <FONT COLOR="GREEN"><I>Gatorade</I></FONT COLOR="GREEN"> brand during its off-season.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Interest and Income Taxes</P>
</U><I><P ALIGN="JUSTIFY"></P>
</I><P ALIGN="JUSTIFY">Net interest income of $28.4 million in the current year increased $5.6 million from the
prior year as a result of higher average amounts due from The Quaker Oats Company. The effective tax rate was
39.5 percent and 40.6 percent as of June 30, 1999 and 1998, respectively.  The decrease primarily was due to a
reduction in the effective state tax rates compared to the prior year. </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 10</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF<BR>
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"><B><U>Three Months Ended June 30, 1999 Compared With<BR>
Three Months Ended June 30, 1998</B></U></P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Operating Results</P>
</U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Consolidated net sales for the three months ended June 30, 1999 (current year), were
$544.5 million, up 8 percent from the three months ended June 30, 1998 (prior year).  This increase was
primarily due to higher <FONT COLOR="GREEN"><I>Gatorade</I></FONT COLOR="GREEN"> thirst quencher sales
in the United States, where more than 97 percent of the total current year sales were generated.  U.S.
<FONT COLOR="GREEN"><I>Gatorade</I></FONT COLOR="GREEN"> volume and sales grew 9 percent and 7 percent,
respectively, despite difficult year-on-year comparisons.  In the prior year, U.S. <FONT COLOR="GREEN">
<I>Gatorade</I></FONT COLOR="GREEN"> volume and sales increased 22 percent and 17 percent, respectively.
New flavors, such as <FONT COLOR="GREEN"><I>Gatorade Fierce</I></FONT COLOR="GREEN">, and new packaging,
such as the expansion of the single-serve <FONT COLOR="PURPLE"><I>E.D.G.E.</I></FONT COLOR="PURPLE">
sport bottle and 20-ounce wide-mouth bottle, helped drive growth.  In addition, expanded availability,
outside the traditional retail channels, drove U.S. sales growth.  Price changes did not significantly
affect sales.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gross profit margin was 55.4 percent compared to 55.6 percent in the prior year.
Selling, general and administrative (SG&A) expenses increased 3 percent primarily due to a 6 percent
increase in advertising and merchandising (A&M) expenses.  A&M in the current year was 22.9
percent of sales, down from 23.3 percent of sales in the prior year.</P>
<P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">Interest and Income Taxes</P>
</U><I><P ALIGN="JUSTIFY"></P>
</I><P ALIGN="JUSTIFY">Net interest income of $13.3 million in the current year increased $2.1 million
from the prior year as a result of higher average amounts due from The Quaker Oats Company. The effective
tax rate was 39.5 percent and 40.5 percent as of June 30, 1999 and 1998, respectively.  The decrease
primarily was due to a reduction in the effective state tax rates compared to the prior year. </P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Liquidity and Capital Resources</P>
</U></B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Net cash provided by operating activities was $130.9 million and $121.2 million for
the six months ended June 30, 1999 and 1998, respectively, reflecting higher net income in the current
year.  Capital expenditures for the six months ended June 30, 1999 and 1998, were $25.2 million and
$15.2 million, respectively.  Capital expenditures are expected to continue at or above the current rate
as the Company continues to expand its production capacity. The Company expects that its future capital
expenditures and cash dividends will be financed through cash flow from operating activities.</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 11</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF<BR>
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"><B><U>Derivative Commodity and Financial Instruments</B></U></P>
<P ALIGN="JUSTIFY"></P>
</U><P ALIGN="JUSTIFY">The Company actively monitors its exposure to risk from changes in
commodity prices and occasionally uses futures and options to manage price exposure on purchased
or anticipated purchases of corn sweetener.  The Company's policy is to use derivatives only for
purposes of managing risk associated with underlying exposures.  The Company does not trade or
use instruments with the objective of earning financial gains on the commodity price fluctuations
alone, nor does it utilize instruments where there are not known or anticipated underlying exposures.  Complex instruments
involving leverage or multipliers are not used.  Management believes that its use of these
instruments to manage risk is in the Company's best interest.  The Company does not use
derivative foreign exchange or interest rate instruments because underlying exposures are not material.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company has estimated its market risk exposures using sensitivity analyses.  Market risk
exposure has been defined as the change in fair value of a derivative commodity instrument assuming a
hypothetical 10 percent adverse change in market prices or rates.  Fair value was determined using quoted market
prices.  The results of the sensitivity analyses as of June 30, 1999 did not differ materially from the amounts
reported as of December 31, 1998.  Actual changes in market prices or rates may differ from hypothetical changes.</P>
<U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"><B><U>Current and Pending Accounting Changes </B></U></P>
<P ALIGN="JUSTIFY"></U></P>
<P ALIGN="JUSTIFY">In January 1998, Statement of Position (SOP) No. 98-1, "Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use," was issued.  This SOP provides guidance on the accounting for
computer software costs.  In April 1998, SOP No. 98-5, "Reporting on the Costs of Start-Up Activities," was
issued.  This SOP provides guidance on accounting for the cost of start-up activities. The Company's adoption of
these standards in January 1999 did not materially affect the Company's financial statements.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities."  The
Statement establishes accounting and reporting standards requiring that all derivative instruments (including
certain derivative instruments imbedded in other contracts) be recorded in the balance sheet as either an asset
or a liability measured at its fair value.  The Statement requires that changes in the derivative's fair value
be recognized currently in earnings unless specific hedge accounting criteria are met.  The accounting provisions
for qualifying hedges allow a derivative's gains and losses to offset related results on the hedged item in the
income statement, and require that the Company must formally document, designate and assess the effectiveness of
transactions that qualify for hedge accounting.  The Company has not determined its method or timing of adopting
this Statement, but will be required to adopt it by January 2001.  When adopted, this Statement could increase
volatility in reported earnings and necessitate separate reporting of comprehensive income.</P>
<P ALIGN="CENTER"></P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 12</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF<BR>
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></U></P><FONT FACE="Tms Rmn">
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"><B><U>Year 2000</P>
</U></B></FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Stokely, through its parent company, Quaker, conducts the majority of its operations as an
integrated component of Quaker's business.  As such, Stokely, throughout its business, uses Quaker's software
and other related technologies that will be affected by the date change in year 2000. The three areas where year
2000 issues may affect Quaker include: (1) computer systems, both hardware and software; (2) imbedded systems,
as in computer chips in machinery and process controls; and (3) third parties with material relationships with
Quaker, such as major service providers, vendors, suppliers and customers.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">To address the year 2000 issue, Quaker has developed and is executing a detailed four-phase
comprehensive readiness plan.  The first phase of the readiness plan, the assessment of Quaker's internal systems,
has been completed. The second phase, the remediation, replacement and testing of computer systems and imbedded
systems, is nearly 100 percent and 97 percent complete, respectively.  The remaining equipment or controls of the
imbedded systems are scheduled for replacement during the remainder of the year.  The third phase, the assessment
of the year 2000 readiness plans of Quaker's material third parties, will continue through 1999.  All of Quaker's
major service providers, vendors, suppliers and customers who are believed to be critical to the business operations
after January 1, 2000, have been contacted to determine their stage of year 2000 compliance, with approximately 50
percent indicating that they are fully compliant.
The other half are in varying stages of completion. The fourth phase involves the development of contingency plans
to further mitigate the impact of possible year 2000 disruptions, including disruptions resulting from non-compliant, material third parties.
Although largely complete, the remaining contingency plans are expected to be completed by September 30, 1999.  These
contingency plans may include stockpiling raw and packaging materials, increasing finished goods inventory levels,
securing alternate suppliers and other appropriate measures.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">While Quaker's year 2000 readiness plans are nearly complete, the consequences of non-compliance
by Quaker, its major service providers, vendors, suppliers or customers, could have a material adverse effect on
Stokely's operations. Although Quaker does not anticipate any major non-compliance issues, some of the possible
consequences of non-compliance by Quaker or its material third parties include, among other things: temporary plant
closings; delays in the delivery and receipt of products and supplies; invoice and collection errors; and inventory
obsolescence. It is currently estimated that the aggregate cost of Quaker's year 2000 efforts will be approximately
$12 million, of which approximately $10 million has been incurred to date. These costs are being funded through Quaker's
operating cash flow. These amounts do not include any costs associated with the implementation of contingency plans.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Quaker's year 2000 readiness plan is an ongoing process and the estimates of costs and completion
dates for various components of the program as described above are subject to change.</P>
<P ALIGN="JUSTIFY"></P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 13</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>STOKELY-VAN CAMP, INC. AND SUBSIDIARIES<BR>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF<BR>
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<FONT FACE="Tms Rmn"><P ALIGN="JUSTIFY"><B><U>Cautionary Statement on Forward-Looking Statements</B></U></P>
</U></FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934,
are made throughout this Management's Discussion and Analysis.  Statements that are not historical facts, including
statements about expectations or projected results, are forward-looking statements.  The Company's results may differ
materially from those in the forward-looking statements.  Forward-looking statements are based on management's current
views and assumptions and involve risks and uncertainties that could significantly affect expected results.  For example,
operating results may be affected by factors such as: actions of competitors; changes in laws and regulations, including
changes in governmental interpretations of regulations and changes in accounting standards; customer demand; effectiveness
of spending or programs; fluctuations in the cost and availability of supply chain resources; weather; and the ability of
Quaker, its major service providers, vendors, suppliers and customers, to adequately address the year 2000 issue.  In
addition, capital expenditures may be affected by the amount of cash flow from operating activities; and the Company's market
risk exposures may be affected by actual changes in market prices of derivative commodity instruments if actual changes differ
from the hypothetical changes used in sensitivity analyses.  Forward-looking statements speak only as of the date they were
made, and the Company undertakes no obligation to update them.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Continued growth in sales, earnings and cash flows from the <FONT COLOR="GREEN"><I>Gatorade</I></FONT
COLOR="GREEN"> thirst quencher operations is dependent on, among other things: the level of competition from its two key
competitors, The Coca-Cola Co. and PepsiCo Inc.; the ability to obtain increasing points of availability; the projected
outcome of supply chain management programs; capital spending plans; markets for key commodities, especially PET resins,
corrugated materials and sweeteners; and the efficiency and effectiveness of A&M programs.</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 14</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>PART II - OTHER INFORMATION </B></U></P>
<P ALIGN="CENTER"></P>
</B></U><P ALIGN="LEFT"> </P>
<P ALIGN="LEFT">Item 4 - Submission of Matters to a Vote of Security Holders<BR>
<BR>
         (a)   The
Company held its Annual Meeting of Shareholders on May 5, 1999.<BR>
              
  The matters voted upon at the Meeting are described in (c) below.<BR>
<BR>
         (c)   To elect
three directors to each serve for a one-year term or until their successors are<BR>
              
  elected and qualified.  All nominees are named below.<BR>
<BR>
              
  -      Susan D. Wellington<BR>
              
         Votes for Election - 2,989,371<BR>
<BR>
              
  -      John G. Jartz<BR>
              
         Votes for Election - 2,989,371<BR>
<BR>
              
  -      Thomas L. Gettings<BR>
              
         Votes for Election - 2,989,371<BR>
<BR>
              
         There were no votes withheld,
against, abstentions or broker non-votes with<BR>
              
         respect to the election of any
nominee named above.
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">All other items in Part II are either inapplicable to the Company
during the quarter ended June 30, 1999, the answer is negative or a response has been
previously reported and an additional report of the information need not be made, pursuant
to the Instructions to Part II.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="CENTER"> </P>
<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 15</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>SIGNATURES</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized as an officer and as chief accounting officer.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="LEFT">             
                
                
                
                
           <U>Stokely-Van Camp, Inc. 
                
          <BR>
</U>               
                
                
                
                
         (Registrant)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">Date: <U>August 9, 1999    </U>    
                
                
              <U>
/s/ Richard M. Gunst             
                
    </U><BR>
                
                
                
                
                
        Richard M. Gunst<BR>
                
                
                
                
                
        Vice President and Corporate Controller</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
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<PAGE><P ALIGN="LEFT"><FONT COLOR="RED">Page 16</P>
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