Industry News

Wholesale finished consumer food prices advanced just four-tenths of a percent in July from the prior month after jumping 1.4% a month earlier, according to exclusive Food Institute analysis of just-released government data. The July Producer Price Index for finished consumer foods was 8.7% above July of 2007 -- the largest year-over-year increase in 27 years. Full Story (FI Membership Required)

Consumer Food Spending and the Changing Economy Although the slumping economy is impacting the restaurant industry and restaurant growth is forecast at the lowest level since 1991, concepts that offer unique and resonating value equation can find success, noted Kevin Higar, Senior Manager of Technomic Inc. during the Consumer Spending and the Changing Economy webinar presented by Technomic Inc. and The Food Institute. Additionally, opportunities to increase menu prices do exist, as not all menu price elasticities are created equal. Meanwhile, supermarkets can benefit from trading down, noted Ron Paul, President of Technomic. If you missed the webiner, but would like to purchase a recording of the event, click here.

ConAgra Foods began using between 30% and 40% post-consumer recycled plastic in nearly all of its frozen meal trays for Healthy Choice, Banquet, Kid Cuisine and Marie Callender's products. By incorporating post-consumer recycled plastic in its frozen meal trays, ConAgra estimates it will eliminate about eight million pounds of plastic from going to landfills, save 236 million BTUs of energy, and reduce greenhouse gas emissions by 15,200 tons of CO2 per year. Full Story

Many restaurant chains plan to keep absorbing some or all of rising food costs, risking further impact to their margins in order to keep attracting cost-conscious customers. Restaurant food costs were up more than 8% in the first half of the year; however, menu prices increased only about 4% in the first seven months of 2008. For example, Starbucks Corp is planning no increases for its upcoming fiscal year ending September 2009 and Chipotle limited its menu price rise to 4% so far this year, even though its food costs are among the highest in the industry, reported Reuters. Full Story

Dunkin' Donuts will expand to 14 locations across the U.S.: Harrisonburg and Bluefield, WV; Florida Keys; Erie, PA; Bowling Green, KY; Lima and Zanesville, OH; Columbus-Jefferson City and Ottumwa, MO; Jonesboro, AR; Jackson, TN; and Paducah, KY. Full Story

SYSCO and Dezina Marketing, Inc. entered into a joint venture to sell groceries online. The venture marks SYSCO's first foray into online grocery marketing to individual consumers. Full Story

International News

Brazil's farms are turning the country into an agricultural superpower. Some 70 to 80 million hectares are utilized of the 350 million hectares of land available, and the potential for growth is enormous, analysts claim, reported BBC News. Full Story

Japan's convenience stores are thriving as consumers prefer "conbinis" over supermarkets. Newscom Seven-Eleven Japan Co. claims that convenience stores might be ahead in adapting to a more budget-conscious period, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Sandella's Flatbread Cafe reached a master franchise deal with Abela & Co. to open 12 restaurants throughout the United Arab Emirates over the next five years, reported QSR Magazine. Full Story

Health News

Flavanol-rich chocolate may increase blood flow in the brain and reduce the risk of dementia and stroke, according to Boston-based researchers. The study, funded by Mars, supports previous studies linking consumption of flavanol-rich cocoa products to improved cardiovascular health, reported Food Navigator Europe. Full Story

Washington News

Federal inspectors at U.S. border crossings repeatedly turned back disease-ridden shipments of peppers from Mexico in the months before the salmonella outbreak, according to an Associated Press analysis of FDA records. Since January, 88 shipments of fresh and dried chilies were turned away. FDA officials insisted they were surprised by the outbreak because Mexican peppers were not previously a problem. However, peppers and chilies were consistently the top Mexican crop rejected by border inspectors over the last year, reported The Associated Press. Full Story

The National Advertising Division of the Council of Better Business Bureaus (NAD) ruled against Burger King's contention that Wendy's could not provide sufficient evidence of its use of fresh beef patties in U.S. chains. NAD also deemed Wendy's use of the word "always," which suggests consumers get a fresh beef patty every time, was appropriate in the context of its advertising, reported Brandweek.com. Full Story

Market News

A new quick-freeze trailer, using IQF technology, is designed to process and freeze vegetables on a farm. It can quick-freeze produce and berries at a rate of 600-lbs. per minute, reported ION News. Full Story

Demand for California-grown mangoes is increasing, and consumers will find the keitt variety in some stores later this week. Growers expect to harvest about two and a half million pounds of the green-skinned variety, which is raised in Southern California, reported California Farm Bureau.

Nature's Premium Brand claims it is the first North American pork company to track DNA for reliable and accurate traceability back to the farm where the animals were raised. The company will use IdentiGEN's DNA TraceBack system. Full Story

North Carolina will transfer its commercial bluefish quota to New York from its 2008 quota. Full Notice

U.S. & Foreign Sales Leads

USDA offers to purchase beef for processing. Offers are due by 1:30 p.m. (CT), Aug. 22. View Details