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The Food InstituteThe Food InstituteThe Food Institute
August 22, 2008
The Food InstituteThe Food Institute
 

Industry News

Cost-conscious grocery store habits U.S. consumers developed during the first six months of 2008 are destined to have a long-term impact on national shopping behavior, according to research results issued by Precima. Some 82% of U.S. consumers in a nationwide survey said they intend to keep cooking at home instead of eating out even after the economy improves and they have more money to spend. Also, 80% will continue to cook at home instead of buying take-out meals; 84% will keep looking for specials in store flyers; 80% plan to use coupons as much as possible; and 78% are determined to make fewer trips to the store in order to save on gasoline. Full Story

Independent and small-chain coffeehouses boast the largest share of coffee and doughnut sales in the U.S., with 34% of the market in 2006, according to Mintel. Starbucks has the next largest share at 29%, reported The Seattle Times. Full Story (Free Registration Required)

Overall wine consumption in the U.S. rose 3.2% percent in 2007 to 292.1 million nine-liter cases, marking the fourteenth consecutive year of case gains, according the Beverage Information Group's 2008 Wine Handbook. Total wine retail dollars increased to $27.9 billion last year. Full Story

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Mars is raising prices on various items to offset the higher costs of raw materials, packaging, and energy. The company did not say which products will go up in price, or by how much. The majority of the price increases will take effect Oct. 17, while several other changes will be introduced through next March. It is the company's second price increase this year, reported The Associated Press. Full Story

In an effort to reduce increasing ingredient costs, Burger King is testing smaller Whopper Jr. hamburgers, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

About 25% of fish samples with identifiable DNA from several restaurants and grocery stores in New York City were mislabeled, according to research by two high school students, reported Reuters. For example, sushi sold as white tuna turned out to be Mozambique tilapia, flying fish roe was actually from smelt, and seven of nine samples called red snapper were mislabeled. The students tested the DNA of the fish to arrive at their conclusions. The results of the research are being published in Pacific Fishing magazine, a publication for commercial fishermen. Full Story

Bob's Big Boy is making a return in California, as the chain plans to expand with 40 to 50 restaurants scheduled to open in the next few years. Although popularity of the franchise declined after the 1980s in the state, new franchisers intend to open restaurants which pay homage to the burger joints' original style, reported The Los Angeles Times. Full Story (Free Registration Required)

Food processing companies have become too reliant on corn starch, corn syrup, and high fructose corn syrup.


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Controlling the temperature of confections prevents oil from leaking from the filling into the chocolate coating, according to a new study from the University of California, Davis. The research, performed with the intent to monitor peanut oil migration in a two-layer chocolate bar, could influence the way that confections are stored after production, reported Food Navigator Europe. Full Story

Schlotzsky's will introduce new sandwiches: the Chicken Bacon Smokecheesy Sandwich and the Chicken Cordon Bleu Sandwich. Full Story

United Airlines will launch a food test in its business and economy classes during the fourth quarter. United will be offering United Business customers complimentary fresh sandwiches, salads, snack boxes, or snacks, depending on the length of flight, on domestic flights with three cabins of service. The products will be the same as the Buy on Board sandwiches and salads offered in United Economy. Full Story

A 20,000-sq. ft. kosher supermarket, Pomegranate, opened in Brooklyn. The store offers delicacies like sushi, organic pear juice and fresh kumquats along with such traditional Jewish foods as gefilte fish, matzo meal and kishke, a kind of sausage. There is full-time rabbinical supervision and even valet parking, according to The Associated Press. Full Story

International News

Mars Inc's. marketing blitz for its Snickers bar in China is paying dividends, according to The Wall Street Journal. The candy bar's sales rose 75% over the same period last year in the first quarter and is now the No. 2 brand in China's $438 million chocolate market. About 70% of Mars's $22 billion in annual revenue is generated outside the U.S. Full Story (WSJ Subscription Required)

The UK's apprehension to introduce nanotechnology in the food industry might leave it behind, according to an expert from Leatherhead Food International. While the technology still remains an emerging science, it is being implemented in a wide variety of products in many industries, reported Food Navigator Europe. Full Story

Cadbury will cut 330 factory positions in Australia in New Zealand as it looks to restructure its production. The cuts are to be enforced at the start of the new year, reports The New Zealand Herald. Full Story

Health News

Americans eat less nutritional foods as they become more stressed or hungry, according to a report from USDA's Economic Research Service. While greater awareness of healthy eating and diet is observed, individuals are more influenced in their eating choices by visceral feelings and seek immediate gratification if they work longer hours or space meals further apart. Full Story

Substituting beef with mushrooms in meals may reduce reduce caloric intake by over 400 calories per day, according to a new study published in Appetite. Subjects accepted mushrooms as a palatable substitute and did not compensate for the decrease in calories by eating more later in the day, according to researchers from Johns Hopkins University, reported Food Navigator Europe. Full Story

Washington News

A federal government lawsuit accuses SK Foods of a bribery scheme implicating individual employees at several food companies. SK Foods allegedly paid bribes to purchasing agents of corporate customers to ensure sales and maintain higher prices than competitors, the civil suit charges, reported The Sacramento Bee. Full Story (Free Registration Required)

Labeling of nutrition bars in the U.S. is accurate, according to testing body ConsumerLab. The analysis looked at 20 different protein bars, energy bars, and meal replacement bars. The data reverses previous tests from 2001 that found most bars to be mislabeled, resulting in FDA warnings, and now observes that "all bars met their nutrient claims," according to Food Navigator Europe. Full Story

The Connecticut Attorney General asked USDA to look into Aramark Corp. finances, saying documents obtained during his investigation into the foodservice company raised sufficient concern to make the federal government aware. "I am concerned that New Haven may have been denied the benefit of possible food rebates and discounts Aramark may have received after purchasing food from processors and manufacturers," Attorney General Richard Blumenthal said in a July 25 letter to USDA. Aramark lost the New Haven Public Schools contract earlier this year amid mounting union discontent, reported New Haven Register. Full Story

A federal court jury rejected the claims of feed manufacturer Cargill, which sought $10.2 million in damages against three former employees who left the company to form their own dairy nutrition and management consulting business. The claims sought by Cargill included misappropriation of trade secrets, breach of contract and fraud, reported The Fresno Bee. Full Story (Free Registration 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.

In a federal lawsuit filed in Los Angeles, Sprinkles Cupcakes accused rival Famous Cupcakes of allegedly stealing its trademarked "Modern Dot" cupcake design to lure away clientele. Sprinkles Cupcakes alleges that Famous Cupcakes incorporated its "nested circle design" on its packaging, store decor, and "each and every page" of its website, reported Fox News. Full Story

Nestlé Prepared Foods Company initiated a voluntary recall of approximately 215,660-lbs. of frozen stuffed pepperoni pizza sandwich products because they may contain foreign materials. Full Story

Market News

The number of introductions of almond-containing packaged food products in North America grew 30% from 2006 to 2007, according to the Mintel Global New Products Database (GNPD). Almond introductions strongly outpaced the growth of nut products in general (2%). The U.S. introduced 312 almond products in 2007, up from 183 in 2003. Canada more than doubled its launches over the same period, from 42 to 109. In 2007, the top category for new almond products in the U.S. was snacks and in Canada it was confectionery. Full Story

Diesel prices are falling, according to the California Energy Commission. However, the price is still more than a dollar a gallon higher than it was last year at this time, reported California Farm Bureau Federation.

Oregon officials are seeking a tenfold boost in the amount of "fish consumption" built into Oregon's water regulations. The proposed standard of 175 grams (6.2-oz.) a day would protect people who eat 23 8-oz. servings of fish a month. The existing standard, 17.5 grams (0.62-oz.), translates to about two servings a month. Oregon's Environmental Quality Commission will examine the proposal, reported OregonLive.com. Full Story

USDA wants a referendum to be conducted among eligible Florida avocados growers to determine whether they favor continuance of the marketing order regulating the handling of avocados grown in South Florida. Full Notice

The spiny dogfish commercial quota available to the coastal states from Maine through Florida for the semi-annual quota period was harvested. Full Notice


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