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August 29, 2008

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Industry News

Consumers' food preferences are being driven to "extremes," according to new research from Rabobank. Customers continue to be driven by factors other than price, making purchases based on healthy lifestyles, convenience, or other influences. Full Story

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.

U.S. sales will remain sluggish through the holidays and well into next year, according to the National Retail Federation. Overall retail sales are expected to slow, with total growth for 2008 at 3.5% compared with last year's 3.7% increase, reported Reuters. Full Story

Freezers are being embraced again by shoppers who are stashing bulk-sized purchases of meats, fruits, and vegetables to combat rising food prices. U.S. shoppers bought more than 1.1 million freezers during the first six months of 2008, up more than 7% from the same period last year, according to NPD Group, reported The Associated Press. Full Story

Jamba Inc. will close an additional 20 stores in order to reduce costs and increase efficiency. The company's business model will also shift its focus from corporate store growth to franchising and in some cases re-franchising. Full Story

Giant Foods' sales are down despite price cuts and renovations, reported The Washington Post. However, sales are "going well" at several recently renovated stores, according to Ahold chief executive John Rishton, who declined to give specific figures. The company is also working on plans to increase pharmacy sales. Full Story (Free Registration Required)

Red seaweed microparticles may provide low-cost fat replacers for food and texturizers for beverages, according to a new study published in the Journal of Food Engineering. Researchers used a high-speed shearing technique to produce a range of microparticles that could also be used as bulking agents. The procedure was developed to produce an array of agarose microparticles that could be of use in many areas throughout the food industry, according to researchers from University College Dublin, reported Food Production Daily. Full Story

International News

Advertise in Frozen ExpressNineteen U.S. poultry producers will be barred from exporting their products to Russia because the producers ignored warnings from Russian inspectors who examined poultry companies last year, according to the country's Prime Minister, reported USA Today. Full Story

Mitsubishi-Kagaku Foods will construct its first Chinese emulsification factory by spring 2009 to provide emulsifiers to the Chinese baking industry. The facility will mix emulsifiers with other food ingredients for use in breads and other baked goods, and attempts to capitalize on increased Chinese demand for emulsifiers, which will rise from $68 million in 2006 to $200 million by 2013, according to Leatherhead International, reported Food Navigator Europe. Full Story

Health News

MSG consumption may increase the risk of being overweight, regardless of caloric intake, according to a new study in the Nature journal Obesity. The increased risk of weight gain was found to be 175% higher for those with a high-intake of the flavor enhancer. While animal studies have supported this theory, this is the first to show a link between MSG intake and weight gain in humans, claimed lead researcher Ka He, MD, reported Medical News Today. Full Story

The black community was targeted differently in terms of healthier-food marketing, according to a study examining marketing and advertising studies conducted between 1992 and 2006 published in the American Journal of Public Health. Data shows a disparity between marketing to white and black consumers, which creates an environment that contributes to obesity, reported Advertising Age. Full Story (Free Registration Required)

Washington News

A majority of food and beverage companies participated in at least one product recall in 2007, with more than half of the losses associated with those recalls exceeding $10 million, according to a new survey by AMR Research. Some 40% of respondents incurred losses of at least $20 million in 2007. Full Story

Zentox Corp. filed a petition proposing that the food additive regulations be amended to provide for the safe use of monochloramine as an antimicrobial agent in poultry process chiller water. Full Notice

Market News

This year's Massachusetts cranberry crop is predicted to be 1.90 million barrels, up 25% from 2007, according to New England Agricultural Statistics director Gary Keough. Last year, the average price per barrel was $46.60 per 100-pound barrel, while this year's prices are edging upward of $50 per barrel, reported The Cape Cod Times. Full Story

California farmers and ranchers saw a 15% gain in the sale value of its products in 2007, according to the California Department of Food and Agriculture. Dairy remains the state's top commodity, followed by grapes, nursery products, lettuce, and almonds, reported California Farm Bureau.

FSIS proposed to amend the Federal meat inspection regulations to remove the provision that states that FSIS inspection personnel will determine the disposition of cattle that become non-ambulatory disabled after they have passed ante-mortem inspection on a case-by-case basis. Full Notice

International Trade Administration issued its final results and the final partial rescission of the antidumping duty administrative review of certain frozen warmwater shrimp from Thailand. Full Notice

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