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June 17, 2010
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The pace of change is accelerating as technology, marketing trends and retail formats converge to redefine how CPG retailers and manufacturers interact with consumers, according to The Nielsen Company's Retail 2015 Forecast. By 2015, Nielsen predicts mass supercenters and e-commerce to be the big winners by dollar share gains, growing by a combined five share points between 2009 and 2015. Warehouse clubs and dollar stores will also grow share positions. Nielsen forecasts that supermarkets will continue to lose share, but at a declining rate. Full Story

Just Posted! The Food Institute takes a look at the future of food retailing in the June 17 edition of the Lempert Report. Hosted by Phil Lempert, The Lempert Report comes out every Thursday. Click here to view.

Kroger is considered the best-positioned national grocery chain to withstand Wal-Mart's latest "Rollback" grocery price cutting campaign after taking steps years ago to offer lower prices, according to analysts. Kroger also built up customer loyalty by investing in service. A recent J.P. Morgan pricing survey of Virginia supermarkets also found Wal-Mart's average price of 31 items fell 3.5% since the end of April, most among the supermarkets measured, while Kroger cut the average price 2.1%, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Wal-Mart is prepared to build "dozens" of Chicago stores if Mayor Daley can find a way to break a six-year-old City Council stalemate over demands that the company pay employees at least $11.03 an hour, according to City Hall sources, reported Chicago Sun-Times. Full Story

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Consumers visit fast-casual chains two to three times per month or less, about the same frequency customers say they visit casual-dining chains, according a survey conducted by Morgan Stanley. Fast-food chains, meanwhile, are visited at least once a week by half of their customers. About 35% of respondents said they would visit fast-casual restaurants operated by the likes of Panera Bread Co. and Chipotle Mexican Grill Inc. more often if the locations were more convenient; nearly 30% stated lower prices would entice them through the doors, reported Nation's Restaurant News. Full Story (Free Registration Required)

International News

EU lawmakers backed a proposed requirement for companies to label the energy, sugar, salt and fat content of their foodstuffs on the front of packages, and added protein, unsaturated fats and fiber to this list. Members also added a requirement for country-of-origin labels on meat, dairy, and fruit and vegetables, as well as meat and fish products used in processed food, reported Reuters. Full Story

The European Commission will set up a new forum on the effectiveness of the European food chain, reported Food Navigator. Full Story

Health News

Extracts from black tea may help reduce weight gain and cut body fat levels, claims a study published in Nutrition, reported Food Navigator. Full Story

Washington News

The Environmental Law Foundation filed Notices of Violation of California Proposition 65 Toxics Right to Know law against 49 companies, alleging that lead was found in a variety of children's and baby foods. The food categories are: apple juice, grape juice, packaged pears and peaches (including baby food) and fruit cocktail. Full Story

Click here to find out more about the FDA Inspection Manual

Funding was authorized through the Food, Conservation and Energy Act of 2008 for American farmers and ranchers outside the 48 contiguous U.S. that experience high transportation costs. Full Story

Market News

U.S. tart cherry production is forecast at 195 million-lbs., 46% below the revised 2009 production, according to USDA. Michigan, the largest producing state, expects a crop of 140 million-lbs., down 47% from the revised 2009 crop. The crop potential was reduced markedly by frosts during bloom. U.S. sweet cherry production is forecast at 315,400 tons, down 27% from 2009. The Washington crop forecast of 160,000 tons is down 35% from 2009. The crop has fallen behind on maturity due to cool, wet weather this spring. Cherry Production Report

Meanwhile, despite the coldest, wettest May in half a century, Washington is expected to produce a decent-sized cherry crop, and an earlier-than-expected end to the California deal should mean strong demand heading into July 4th. Between 13 and 14 million boxes will likely ship from Washington this season, stated B.J. Thurlby, president of the Northwest Cherry Growers. That is down from initial estimates of 16 to 18 million boxes, reported The Packer Online. Full Story (Subscription Required)


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