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<TITLE>SVC 10-Q September 30, 1999</TITLE>
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<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 September 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"><U>            STOKELY-VAN CAMP, INC.            </U></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"><U>               Indiana               </U></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER"><U>   35-0690290   </U></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"><U> P.O. Box 049001 Chicago, Illinois </U></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER"><U>60604-9001</U></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"><U>                            (312) 222-7111        
                    </U></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 October 31,
1999, all of which were held by The Quaker Oats Company.</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </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">

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

<P ALIGN="JUSTIFY">Condensed Consolidated Statements of Income and Reinvested Earnings <BR>
   for the Nine and Three Months Ended September 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 September 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 Nine Months Ended September 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">

<P ALIGN="JUSTIFY">  Item 2 - Management's Discussion and Analysis of<BR>
      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</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">
15</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>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<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">Nine Months<BR>
Ended September 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">$ 1,315.4  <BR>
<U>   600.6 </U> <BR>
714.8  </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">$ 1,191.6  <BR>
<U>   547.0 </U> <BR>
644.6  </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">425.5  <BR>
<U>   (43.0)</U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">394.4  <BR>
<U>   (35.9)</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">332.3  <BR>
<U>   131.1 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">286.1  <BR>
<U>   114.9 </U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net income</TD>
<TD WIDTH="14%" ALIGN="RIGHT">201.2  </TD>
<TD WIDTH="4%" VALIGN="TOP">  </TD>
<TD WIDTH="13%" ALIGN="RIGHT">171.2  </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">(0.6) </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">(0.6) </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>1,306.3 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="TOP">
$ <U>1,112.7 </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>
<P ALIGN="JUSTIFY">  </P>
<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 September 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">$    500.9  <BR>
<U>   225.7 </U> <BR>
275.2  </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">$    473.0  <BR>
<U>   215.7 </U> <BR>
257.3  </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">152.5  <BR>
<U>   (14.6)</U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">146.7  <BR>
<U>   (13.1)</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">137.3  <BR>
<U>     54.1 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">123.7  <BR>
<U>     49.0 </U> </TD>
</TR>
<TR><TD WIDTH="68%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net income</TD>
<TD WIDTH="14%" ALIGN="RIGHT">83.2  </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">74.7  </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>1,223.3 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">
<U>1,038.2 </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>1,306.3 </U> </TD>
<TD WIDTH="4%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" ALIGN="RIGHT">$ <U>1,112.7 </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>
<P ALIGN="CENTER"> </P>
<P ALIGN="LEFT"><FONT COLOR="RED">Page 4</FONT COLOR="RED"></P>
<P ALIGN="JUSTIFY"> </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>    September 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>
$       7.4         <BR>
1,179.6         <BR>
74.9         <BR>
 <BR>
45.5         <BR>
<U>     11.4 </U>        <BR>
56.9         <BR>
<U>     62.2 </U>        <BR>
1,381.0         <BR>
12.4         <BR>
<BR>
410.1         <BR>
<U>   120.9 </U>        <BR>
<U>   289.2 </U>        <BR>
<B>  $ <U>1,682.6 </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>
$      44.0         <BR>
24.8         <BR>
56.0         <BR>
109.0         <BR>
<U>     27.4 </U>        <BR>
261.2         </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">2.3         <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<BR>
Common Shareholders' Equity:<BR>
  Common stock, $1 par value, authorized<BR>
    10 million shares; issued 3,591,381 shares<BR>
  Additional paid-in capital<BR>
  Reinvested earnings<BR>
  Treasury common stock, at cost, 602,010 shares<BR>
     Total Common Shareholders' Equity<BR>
        <B>Total Liabilities and Shareholders' Equity</B></TD>
<TD WIDTH="22%" ALIGN="RIGHT">15.3         <BR>
 <BR>
 <BR>
3.6         <BR>
68.7         <BR>
1,306.3         <BR>
<U>   (20.9)</U>        <BR>
<U>1,357.7 </U>        <BR>
<B>$ <U>1,682.6 </U>        </B></TD>
<TD WIDTH="3%" VALIGN="TOP"> </TD>
<TD WIDTH="22%" ALIGN="RIGHT">15.3          <BR>
 <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="LEFT">         
             
<I>See accompanying notes to the condensed consolidated financial statements.</I><BR></P>
<P ALIGN="CENTER"> </P>
<P ALIGN="CENTER"> </P>
<P ALIGN="LEFT"><FONT COLOR="RED">Page 5</P></P></FONT COLOR="RED>
<P ALIGN="CENTER"><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</B><BR>
 </TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=4>
<P ALIGN="CENTER"><B> Nine Months<BR>
 Ended September 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>
          Decrease (increase) in inventories<BR>
          (Increase) decrease 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>
$   201.2 <BR>
 <BR>
 <BR>
22.1 <BR>
(5.4)<BR>
2.1 <BR>
(38.6)<BR>
0.1 <BR>
(1.7)<BR>
21.5 <BR>
65.7 <BR>
38.3 <BR>
<U>    (0.9)</U><BR>
 <BR>
<U>  304.4 </U></TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT"> <BR>
$   171.2      <BR>
 <BR>
 <BR>
18.6      <BR>
3.2      <BR>
2.5      <BR>
(46.5)     <BR>
(15.1)     <BR>
4.0      <BR>
18.5      <BR>
63.8      <BR>
33.5      <BR>
<U>   (13.5)</U>     <BR>
 <BR>
<U>   240.2 </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>
(48.9)<BR>
<U>      0.9 </U><BR>
 <BR>
<U>  (48.0)</TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT"> <BR>
(30.5)     <BR>
<U>      0.6 </U>     <BR>
<BR>
<U>  (29.9)</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>
(255.6)<BR>
(0.6)<BR>
<U>      0.9 </U><BR>
<BR>
<U>(255.3)</U></TD>
<TD WIDTH="2%" VALIGN="TOP"> </TD>
<TD WIDTH="17%" ALIGN="RIGHT"> <BR>
(210.6)     <BR>
(0.6)     <BR>
<U>      --  </U>     <BR>
<BR>
<U>(211.2)</U>     </TD>
</TR>
<TR><TD WIDTH="65%">
Net Increase (Decrease) in Cash and Cash Equivalents<BR>
Cash and Cash Equivalents - Beginning of Year<BR>
Cash and Cash Equivalents - End of Quarter</TD>
<TD WIDTH="15%" ALIGN="RIGHT">1.1 <BR>
<U>      6.3 </U><BR>
$ <U>      7.4 </U></TD>
<TD WIDTH="2%"> <BR><BR> </TD>
<TD WIDTH="17%" ALIGN="RIGHT">(0.9)     <BR>
<U>      7.3 </U>     <BR>
$ <U>      6.4 </U>     </TD>
</TR>
</TABLE>
<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="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>
SEPTEMBER 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 nine and
three months ended September 30, 1999 and 1998, the condensed consolidated balance sheet as of September 30,
1999, and the condensed consolidated statements of cash flows for the nine months ended September 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 September 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 September 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 September 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>
<P ALIGN="JUSTIFY"> </P>
<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>
SEPTEMBER 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>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<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>
SEPTEMBER 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 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>

<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Note 6 - Subsequent Event</B></U></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Effective October 1,1999, Stokely entered into an agreement with Quaker Sales and
Distribution, Inc. (QSD), a wholly-owned subsidiary of Quaker, to provide sales and distribution
services for the Company in North America.  Under the terms of the agreement, QSD will purchase finished
goods from Stokely at a contracted price based on the sales price to the ultimate customer less an
agreed-upon amount to compensate QSD for services provided.  The agreement is automatically renewable
each year unless one of the parties notifies the other of its intention not to renew.  While Quaker
currently provides sales and distribution services and is compensated for this service by the Company,
under this agreement Stokely will transfer title to its products to QSD, a related party, who will sell
to the ultimate customer.  As a result, most of Stokely's sales on a going-forward basis will be to a
related party.
<P ALIGN="JUSTIFY"></P>
<P ALIGN="CENTER"> </P>
<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">Nine Months Ended September 30, 1999 Compared With<BR>
Nine Months Ended September 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 nine months ended September 30, 1999 (current year),
were $1,315.4 million, up 10 percent from the nine months ended September 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 14 percent and 11 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.  Expanded availability, outside traditional retail channels, also drove sales growth.  Price changes did not significantly affect sales.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gross profit margin was 54.3 percent compared to 54.1 percent in the prior year.  Selling,
general and administrative (SG&A) expenses increased 8 percent, primarily due to a 14 percent increase in
advertising and merchandising (A&M) expenses.  A&M expenses in the current year were 23.5 percent of
sales, up from 22.9 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 $43.0 million in the current year increased $7.1 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 40.2 percent as of September 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>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<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 September 30, 1999 Compared With<BR>
Three Months Ended September 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 September 30, 1999 (current year), were $500.9
million, up 6 percent from the three months ended September 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 6 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 and 18 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.  Expanded
availability, outside traditional retail channels, also drove sales growth.  Price changes did not significantly
affect sales.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gross profit margin was 54.9 percent compared to 54.4 percent in the prior year.  SG&A expenses
increased 4 percent primarily due to a 10 percent increase in A&M expenses.  A&M expenses in the current year
were 22.7 percent of sales, up from 21.7 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 $14.6 million in the current year increased $1.5 million from the prior
year as a result of higher average amounts due from The Quaker Oats Company.  The effective tax rate was 39.4 percent
and 39.6 percent as of September 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 $304.4 million and $240.2 million for the nine months
ended September 30, 1999 and 1998, respectively, primarily reflecting higher net income and lower working capital in
the current   year.  Capital expenditures for the nine months ended September 30, 1999 and 1998, were $48.9 million and
$30.5 million, respectively.  Capital expenditures are expected to continue at or above the current rate as the Company
continues to expand its production capacity in the United States.  The useful lives of assets that will be replaced in
conjunction with the expansion of U.S. beverage manufacturing were shortened, which increased depreciation expense by
about $0.7 million for the third quarter of 1999.  The Company expects that its future capital expenditures and cash
dividends will be financed through cash flow from operating and financing activities.</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<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 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 September 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>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<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) the 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 issues, 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, was completed.  The
second phase, the remediation, replacement and testing of internal systems, was completed for the computer systems and was 99
percent complete for the imbedded systems.  The remaining equipment or controls for 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 80 percent indicating that they are fully compliant.  All but a few of the
remaining 20 percent have plans in place to achieve compliance before the end of the year.  Completing 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.  These contingency plans have been completed and are
being monitored and fine-tuned as additional information becomes available.  Elements of these plans include stockpiling raw
and packaging materials, increasing finished goods inventory levels, assigning key personnel to be on-site or on-call during
the year-end rollover 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 $11 million has been
incurred to date.  All of 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>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"> </P>
<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>Subsequent Event</B></U></P>
</U></B></FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Effective October 1,1999, Stokely entered into an agreement with Quaker Sales and
Distribution, Inc. (QSD), a wholly-owned subsidiary of Quaker, to provide sales and distribution
services for the Company in North America.  Under the terms of the agreement, QSD will purchase finished
goods from Stokely at a contracted price based on the sales price to the ultimate customer less an
agreed-upon amount to compensate QSD for services provided.  The agreement is automatically renewable
each year unless one of the parties notifies the other of its intention not to renew.  While Quaker
currently provides sales and distribution services and is compensated for this service by the Company,
under this agreement Stokely will transfer title to its products to QSD, a related party, who will sell
to the ultimate customer.  As a result, most of Stokely's sales on a going-forward basis will be to a
related party.
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<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, including cost-reduction and production capacity expansion projects; 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.  Forward-looking statements speak only as of the date they were made,
and the Company undertakes no obligation to publicly update them.</P>
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<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 are 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>
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<P ALIGN="CENTER"><B><U>PART II - OTHER INFORMATION </B></U></P>
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</B></U><P ALIGN="LEFT"> </P>
<P ALIGN="JUSTIFY">All other items in Part II are either inapplicable to the Company during the
quarter ended September 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>
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<P ALIGN="LEFT"><FONT COLOR="RED">Page 15</P></FONT COLOR="RED>
<P ALIGN="CENTER"><B><U>SIGNATURES</B></U></P>
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<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>
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           <U>Stokely-Van Camp, Inc. 
                
          <BR>
</U>               
                
                
                
                
         (Registrant)</P>
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<P ALIGN="JUSTIFY">Date: <U>November 9, 1999    </U>    
                
                
          
<U> /s/ Richard M. Gunst            
                
  </U><BR>
                
                
                
                
                
        Richard M. Gunst<BR>
                
                
                
                
                
        Vice President and Corporate Controller</P>
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<P ALIGN="LEFT"><FONT COLOR="RED">Page 16</P>
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