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July 30, 2002


Industry News

International Multifoods Corp. has agreed to sell its foodservice distribution business to an affiliate of Wellspring Capital Management LLC, a private equity investment firm. The firm valued the deal, which it expects to close before late September, at about $180 million and said it intends to use the proceeds to reduce its debt. Full Story

Sysco Corp. has unveiled its new vegetarian line, MoonRose Vegetarian, reported ID Management Report. It was introduced at the National Association of College & University Food Services National Conference. Full Story

Advertise in Frozen ExpressSupervalu Inc. will sign an expanded supply agreement with D'Agostino Supermarkets to include 29 Kings Super Market stores in New York and New Jersey, upon the completion of D'Agostino Supermarkets' acquisition of these stores. Full Story

Outback Steakhouse will ramp up its marketing expenditures in the second half of the year as it tries to reverse a same-store sales decline. Officials said the company is boosting ad outlays by 50 basis points, although it didn't provide a dollar figure. All of it will be spent on national-prime time TV, reported Restaurant Business. Full Story

Phil Lempert, known as the SupermarketGuru and one of the nation's leading food experts, announced the opening of "Phil's Take Out," a restaurant quality take-out service that will offer a daily selection of foods, quick service, high quality and affordable prices. Phil's Take Out plans to add additional locations in the greater Los Angeles area by January 1, 2003 and begin a national roll-out the following year. Full Story

Performance Food Group announced that an ammonia leak in the refrigeration system at its Springfield, MA broadline facility has caused certain physical damage at the facility, reported CBS MarketWatch. Full Story

Latest sales & earnings for food related companies (Updated Daily)

Wild Oats will open its much-anticipated unit in Portland, ME early next year, revealed MaineToday.com. Interior construction, which has been delayed while the Boulder, CO-based chain focused on straightening out its management and finances, began last week and will take five to six months to complete. In addition to the renewed effort to open long-delayed stores - Portland, ME, Lexington, KY and Costa Mesa, CA are at the top of the list - Wild Oats plans to open 10 others next year. In 2004, it hopes to add 20 new stores and then 25 in 2005. Full Story

ConAgra will formally end its contract for poultry deboning operations in Milan, MO and depart Milan before Thanksgiving, reported OregonLive.com. Full Story

International News

Koninklijke Wessanen nv has reached an agreement to acquire the UK's Kallo Foods. Kallo is the leading brand for an organic product range in the UK, which includes healthy products such as rice cakes and breadsticks. Full Story

Click here to find out more about 2001 Food Business Mergers & Acquisitions

Health News

A common antibiotic may be a useful weapon against the abnormal proteins that cause "mad cow" and other brain-wasting diseases, researchers in Italy report. Full Story

In the Minneapolis-St. Paul, MN school system, seventh graders in 16 schools who participated in a program aimed at getting them to eat more fruits and vegetables -- and eat food that had less fat -- actually changed their eating habits, reports an epidemiologist with the University of Minnesota. After fruit-and-veggie tasting sessions, tips in preparing healthy snacks and incentives to eat better foods, kids ate 1/2 to one whole serving more fruits and vegetables a day, reported WebMD. Full Story

Washington News

The House of Representatives voted to lift restrictions on travel and trade with Cuba on July 24. Despite a hard line on Cuba from the Bush administration, the Senate also is expected to lift restrictions, reported The Packer Online. Full Story (Free Registration Required)

Market News

It's a struggle for farmers along California's Central Coast, as low prices force them to sell vegetables at a loss. After hitting unheard-of prices around $60 dollars a box last winter, iceberg lettuce has plunged as low as $4 dollars now. Prices for broccoli, cauliflower, celery and leaf lettuce are also low, causing some farmers to plow their crops under in response, reported California Farm Bureau Federation.

Washington State's 2002 wine-grape crop should weigh in at a record of more than 118,000 tons, up from 100,000 tons last year, the Washington Association of Wine Grape Growers said, noted Seattle Post-Intelligencer. The non-profit association attributed the size of the crop to an increase in "bearing vines," those producing quality wine grapes. The amount of land in the state with bearing vines has increased to 24,800 acres from 17,000 acres in 1999, according to the association. Full Story, View Report

Click here to find out more about the Food Markets In Review Series

Grass-fed beef is creating a buzz at San Francisco's Bay Area restaurants among both diners and chefs, meat lovers and health enthusiasts, who say it is leaner and more humanely raised. Many traditional ranchers, however, consider it a flash in the pan, a product with inconsistent taste, severe production limitations, few retail outlets and a hefty price tag that is sometimes twice that of conventionally raised beef, reported The Mercury News. Full Story

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