Industry News

Consumers disapprove of food manufacturers' reduction of the size of products to manage prices, according to research by The Nielsen Company. Although U.S. consumers are cutting their budgets, they would still prefer to buy larger quantities of food at better values than smaller alternatives. Full Story

Some 77% of U.S.-based retailers expect their use of direct store delivery processes (DSD) will increase or remain constant in 2008, representing a significant opportunity to drive sales growth, according to Powering Growth Through Direct Store Delivery, a study released by the Grocery Manufacturers Association and conducted by AMR Research and Clarkston Consulting. As evidence of the sales opportunity that DSD can create for retailers, the study notes that sales of DSD products account for 24% of unit sales and 52% of retail profits in the grocery channel. Seven of the top ten largest grocery categories employ DSD, and these categories experienced nearly 15% growth in sales from 2003 to 2007. Full Story

Target is moving away from its classic cheap-chic reputation and making certain its prices are in line with Wal-Mart. In addition, its marketing messages are being tailored to focus on value and convenience as the economy continues to suffer, reported Advertising Age. Full Story (Free Registration Required)

Starbucks Coffee Company, PepsiCo, Inc. and Unilever teamed up to manufacture, market, and distribute Tazo Tea ready-to-drink beverages- including iced teas, juiced teas, and herbal infusions, in the U.S. and Canada. Tazo's RTD line will be integrated into the Pepsi/Lipton Tea Partnership, expanding the joint venture between PepsiCo and Unilever. Full Story

Upcoming "small but important menu changes" at Applebee's will bolster the chain's profile and profits, according to chief executive Julia Stewart. "Better" appetizers and bread will be introduced, according to the executive, who acknowledges that Applebee's has not aged well, and that it is indistinguishable from restaurants like Chili's or T.G.I. Friday's, reported The New York Times on the Web. Full Story (Free Registration Required)

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

As it celebrates its 25th anniversary, Panda Express proved itself to be an effective competitor against larger corporate fast-food chains and thousands of independent rivals. The 1,100 Panda Express restaurants dominate Chinese fast food and are ubiquitous residents of shopping-mall food courts, airports and sports stadiums across America. The company achieved 12 consecutive years of same-store-sales growth. Customers in California, Nevada and Arizona account for 70% of the chain's sales. Its highest-volume store is in Hawaii. Stores in North Carolina and Georgia do not do as well, reported The Idaho Statesman. Full Story

Frozen yogurt is making a comeback, but this time with an edge. Companies selling the treat are opening stores with hip decor and music that draws a young crowd. The concept behind newcomers Red Mango and Pinkberry is to keep customers in the store, rather than buy their yogurt and leave, reported The Associated Press. Full Story

My Organic Market will stop selling all bottled water products that are not sourced and bottled domestically because of questions being raised over the negative impact bottled water is having on the environment and local communities. Full Story

Cody's Convenience Stores entered into an agreement as a Hot Stuff franchisee for more than 20 units in existing and new stores, reported CSP Daily News. Full Story

Ocean's Flavor introduced a new taste-friendly salt, which it claims has up to 70% less sodium than table salt as part of an industry effort to reduce sodium chloride in their products. Full Story

A film coated with nanoparticles of silver and calcium phosphate could be used in food processing plants and packaging to inhibit pathogen growth, claims Swiss chemical engineers. The group developed a self-disinfecting polymer that is effective against pathogenic bacteria and is significantly more lethal than conventional silicon-based silver preparations against the bacterium E coli, reported Food Production Daily. Full Story

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Operators can make iced tea, a low-margin beverage, even more profitable by making flavor adjustments such as stirring in infused simple syrups and spirits, according to Restaurants & Institutions' 2008 New American Diner Study. The brewed beverage trails only soft drinks as the most-often-chosen accompaniment to lunch and dinner at restaurants. Full Story

Dairy Queen is introducing three new Iron Grilled Sandwiches at participating locations nationwide. The sandwiches include a deli-style turkey with Swiss cheese; the Classic Club with deli-style turkey, ham and cheddar cheese; and the Supreme BLT. In October, Dairy Queen will begin testing a Chicken Bruschetta Iron Grilled Sandwich. In 2007, sandwiches were a $21 billion industry, and in 2008 that number is expected to top $28 billion. Full Story

T.G.I. Friday's restaurants is featuring Jack Championship BBQ sauce on seven new menu items at its U.S. restaurants. Full Story

Rosa Mexicano plans to have 11 restaurants open by next summer, and up to 20 locations within the next three to four years, reported The Record. Full Story

Hat Trick Beverages Inc. will introduce a new vending machine concept that will offer a variety of hot beverages such as espresso, cappuccino, and hot chocolate, and light meal offerings such as hot soup. The company will begin importing the machines from an Italian manufacturer next quarter, according to Hat Trick Beverages CEO Sender Vaiser. Full Story

Bonefish Grill and Chick-Fil-A won platinum in their respective food categories in Restaurants & Institutions' 2008 Consumers' Choice in Chains. Full Story

Winn-Dixie Stores, Inc. became a member of Topco Associates LLC for procurement of its corporate brands products in the categories of Grocery, Frozen, Dairy, HBC, GM, and Perishables. Full Story

Costco partnered with LeverageCard.com to allow consumers to buy Costco Membership Certificates online and then receive Costco promotions and coupon booklets. The minimum purchase is $50. For each certificate purchased, LeverageCard.com will send one complimentary coupon booklet, which includes coupons for free items and discounts on Costco staples, including fresh meat and bottled water, worth over $40. Full Story

International News

Quiznos will significantly expand its international restaurant operations, with plans to open 175 restaurants in Brazil and 100 in India over the next 10 years. Another deal to add more outlets in India is under negotiation. Discussions are also underway for agreements to introduce the brand in Singapore, Chile, and Ecuador. The chain already announced agreements in the UAE and Saudi Arabia. In addition, Quiznos recently completed deals in Eastern Europe and the Dominican Republic. The company currently has restaurants operating in Canada, Central America, the United Kingdom, Korea, and the Middle East. Full Story

Cold Stone Creamery opened its 100th international store in Japan as well as its 25th store in the country. Full Story

Maple Leaf Foods is temporarily closing a Toronto plant that prepares meat products to evaluate food safety procedures as part of an investigation into a listeriosis outbreak, reported The Globe and Mail. Full Story (Free Registration Required)

Health News

Eating more fruits and vegetables helps men avoid developing cancer of the esophagus, according to a Japanese study. Those who ate the most fruit and vegetables had nearly half the risk of developing cancer than men who ate the fewest vegetables and fruits, reported California Farm Bureau.

Fortification of cheddar cheese with vitamin D3 may be an effective means of raising vitamin D levels in the population, suggest new results from Canada. Levels of the vitamin in cheese remained high after processing, with 91% of D3 added to the milk being measured in the final cheese. The findings indicate that cheddar and low-fat cheeses are suitable for D3 fortification, according to lead author Dennis Wagner, reported Food Navigator USA. Full Story

Washington News

Lawmakers in 12 states, including California, Connecticut, Minnesota, and West Virginia, proposed legislation that would require businesses to provide paid sick days in the past year. Some 46 million U.S. workers do not have them, reported CBSNEWS.com. Full Story

Simmering Soup, Inc. initiated a voluntary recall of approximately 987-lbs. of ready-to-eat chicken noodle products because they may contain undeclared soy. Full Story

Market News

The forecast for the 2008 cranberry crop is 6.89 million barrels, up 5% from 2007 and slightly below 2006. If realized, this will be the second largest production on record. Production is expected to be up in Massachusetts and Wisconsin but down in New Jersey, Oregon, and Washington. Full Report

In experiments, sweet potatoes yielded two to three times as much carbohydrate for fuel ethanol production as field corn, according to Agricultural Research Service scientists. The sweet potato carbohydrate yields approached the lower limits of those produced by sugarcane, the highest-yielding ethanol crop. Full Story

Chiquita Brands International, Inc. completed the sale of its wholly-owned German distribution business, Atlanta AG to UNIVEG Fruit and Vegetables BV for net proceeds of approximately $92 million, including working capital and net debt adjustments. The parties also entered a long-term strategic agreement in which Atlanta will continue to serve as Chiquita's preferred supplier of banana ripening and distribution services in Germany, Austria, and Denmark. Full Story

Almond crop forecasts are very high for 2008 but supply might be tight next year due to the California water crisis, and growers fear a turbulent year meeting "unrelenting global demand," reported Food Navigator USA. Full Story

A projected smaller pear crop in Europe could pay dividends for U.S. exporters this season. Mostly because of spring freezes, production in Europe is expected to be down about 14%, according to the World Apple and Pear Association, reported The Packer Online. Full Story (Subscription Required)

Water demand in California's western San Joaquin Valley fell enough to end a rationing program. Farmers remain restricted to 40% of their water allocations, but now have more flexibility as to when they can use it, reported California Farm Bureau.

The U.S. Potato Board launched a national print advertising campaign to educate consumers about the nutritional benefits of potatoes. Full Story

USDA amended the general regulations for Federal milk marketing agreements and marketing orders. Full Notice

NMFS prohibited directed fishing for Greenland turbot in the Aleutian Islands subarea of the Bering Sea and Aleutian Islands management area. Full Notice

The Western Pacific Fishery Management Council wants to amend the Fishery Management Plan for the Bottomfish & Seamount Groundfish Fisheries of the Western Pacific Region. Full Notice

NMFS proposed a regulation to implement the annual harvest guideline for Pacific mackerel in the U.S. exclusive economic zone. Full Notice