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The Food InstituteThe Food InstituteThe Food Institute
August 28, 2008
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Industry News

While family farms continue to decline across the country, the number of community-supported agriculture (C.S.A.) businesses increased from 50 in 1990 to more than 2,000 in 2008, according to www.localharvest.org, an internet guide to organic and local food, reported The New York Times on the Web. C.S.A.'s are so popular that many in Connecticut and New Jersey have waiting lists. Full Story (Free Registration Required)

Meanwhile, more school districts nationwide are signing on to the burgeoning "farm-to-school" movement. While that can be more expensive and may involve more work, food directors claim it pays dividends in fresher, better-tasting produce that more kids eat. In past years, the biggest obstacle to the go-local movement was the federal government, whose regulations restricted schools from "geographic preferences" in procuring food, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

As demand for premium chocolate soars, new high-tech confectioners are changing the industry with Silicon Valley-style innovation, antique German equipment, and a focus on the cocoa bean. For example, San Francisco, CA-based TCHO is seeking to improve the quality of chocolate through scientific experimentation with flavors and does not classify bars by cacoa content or origin. The company currently sells its chocolate only online in brown packets labeled "beta," and solicits feedback and reaches out to customers through social media outlets like YouTube, reported CNN. Full Story

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Foods claiming to deliver energy are finding a distinct place in the marketplace as consumers are looking beyond energy drinks for an added boost, according to Mintel. Mintel's Global New Products Database picked up a number of ‘energy' ingredients moving into foods, including ginseng, guarana and taurine, which are already popular in energy drinks and now appear in snacks, reported Market Watch. Full Story

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

Following a similar move made by Ralphs earlier this summer, Vons will only double coupons up to $1, reported The Orange County Register. Full Story

In the coming months, Argo Tea plans to expand to the East Coast with the opening of five new corporate stores. Within the past five years, the tea café evolved into a chain of 10 company-owned stores, all in the Chicago area. The cafés serve up "teappuccinos," green tea ginger twists, yerba mate lattes, and other proprietary blends. The menu features more than 30 hot and chilled beverages, reported QSR Magazine. Full Story

Food shortages and resulting high prices will be a greater problem for US consumers in the next decade than energy.


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Denny's is introducing an all-night Rockstar menu, featuring menu items created by popular bands such as Taking Back Sunday. The 10 p.m. to 5 a.m. menu includes Taking Back Bacon Burger Fries, Plain White Shake, Heart on a Plate, and The All American S.O.S, reported QSR Magazine. Full Story

Natural Harmony Foods, Inc.'s new breakfast lineup of SoLean grab-n-go products will be available in all Kehe Natural Foods warehouses. Full Story

Winn-Dixie Stores, Inc.'s current phase of its ‘Good ‘Til' program, which offers customers reduced pricing on over 1,000 products, will receive increased focus in its weekly circular. ‘Good ‘Til Fall' runs through Oct. 8 and gives shoppers the opportunity to take advantage of discounts throughout the store when they use their Customer Reward Card. Full Story

Acosta Sales & Marketing Co. acquired Top Line Food Sales & Marketing, a bakery sales and marketing agency serving the New England and Eastern Great Lakes markets. The Top Line acquisition allows Acosta to continue to build its fresh foods platform and to strengthen its bakery presence. Full Story

International News

Russia could cut poultry and pork import quotas by hundreds of thousands of tons, according to Agriculture Minister Alexei Gordeyev. Any substantial cuts would likely make an impact on U.S. poultry producers, such as Sanderson Farms Inc. and Pilgrim's Pride Corp., for whom Russia is the biggest market, reported The Associated Press. Full Story

Scientists from Newcastle University teamed up with Tesco to open the UK's first "pensioner-friendly" supermarket, complete with magnifying glasses and seats on trolleys, anti-slip flooring, and extra-wide aisles. If given the go-ahead, the store will be built in Newcastle, reported The Daily Mail. Full Story

The Waste Resources Action Programme asked the European dairy industry to develop more cost effective labels and adhesives for milk containers, as it seeks to meet EU requirements on waste reduction. Current labels and adhesives on high-density polyethylene milk bottles leak into the plastic polymers, decreasing the total amount of the bottle that can be recycled in packaging, reported Food Production Daily. Full Story

The cause of the deadly listeria contamination at a Maple Leaf Foods Toronto meat plant may never be known, according to president Michael McCain. So far, 29 cases of listeria are confirmed, including 15 deaths: 12 in Ontario and one each in British Columbia, Saskatchewan, and Quebec, reported The Globe and Mail. Full Story (Free Registration Required)

Deere & Company will invest approximately $80 million in its agricultural manufacturing and parts distribution operations in Brazil to increase manufacturing capacity for both tractors and combines as well as to improve service to customers. Full Story

Müller is launching a limited-edition black cherry and dark chocolate Fruit Corner yogurt next month. The new flavor, the first to incorporate chocolate, will be the first in a series of limited-edition Corner lines planned for the UK market, reported Just-Food.com. Full Story

Good Life China Corporation signed a Letter of Intent to acquire an unnamed Chinese-based agriculture company of similar size and financial stature to the company's current operations. Full Story

Mengniu Diary will use light-coated linerboard produced by China Sunshine Paper Holdings Company Limited for certain products as the top layer of the container boxes. Full Story

Health News

Olive leaf extracts may help reduce cholesterol and blood pressure levels, according to a study funded by Frutarom. A daily 1000mg supplement of olive leaf extract reduced cholesterol levels as well as systolic and diastolic blood pressure over eight weeks, according to researchers, reported Food Navigator Europe. Full Story

Milk can assist muscle recuperation after exercise, helping to minimize exercise-induced muscle damage from resistance weight training, according to a study published in the Journal of Applied Physiology, Nutrition and Metabolism. Certain proteins and carbohydrates in milk were found to be responsible, and the drink also functions as an effective rehydrator, reported Food Navigator USA. Full Story

Washington News

USDA's Food Safety & Inspection Service needs to strengthen its controls over the reinspection of imported meat and poultry items at U.S. ports and strengthen its methodology for selecting foreign establishments for review, according to a followup report by USDA's Office of the Inspector General, Controls Over Imported Meat and Poultry Products. Full Report

In a move that could lead to the use of International Financial Reporting Standards (IFRS) by U.S. issuers beginning in 2014, the Securities and Exchange Commission will publish a "Roadmap" for doing so, noting that more than 100 countries around the world, including all of Europe, currently require or permit IFRS reporting. The proposed multi-year plan sets out several milestones that, if achieved, could lead to the use of IFRS by U.S. issuers in their filings with the Commission. The SEC estimates at least 110 U.S. companies would qualify based on their market capitalization, among other factors. Full Release

Reversing a prior decision, the California Assembly approved a bill that would limit the amount of a chemical that was linked to cancer and is used in food packaging. The measure would allow no more than 10 parts per billion of a compound known as PFOA in fast-food wrappers, pizza boxes, beverage containers, and other food packaging, reported The Modesto Bee. Full Story (Free Registration Required)

ECONOMIC DOWNTURN PRESENTS OPPORTUNITIES & CHALLENGES FOR RETAILERS

The future of food retailing for the next three to five years will be dramatically affected by two major trends: food inflation and the emergence of small format stores, according to the annual Future of Food Retailing webinar presented by The Food Institute and Willard Bishop, which examined the state of the food and consumables retail industry in 2007 and beyond. Food price inflation will exceed current "conventional wisdom," and be a factor for three or more years, predicted Willard Bishop during the webinar. In fact, predictions about the rate of inflation have generally been underestimated. However, this food price inflation can benefit food retailers with winning shopper value equations and solid plans to take advantage. If you missed The Future of Food Retailing webinar and would like to purchase a recording, click here.

Los Angeles County's hundreds of taco trucks will be allowed to conduct business from set locations, a judge determined, eliminating a law requiring that the trucks move every hour, reported The Modesto Bee. Full Story (Free Registration Required)

USDA wants to remove the requirement that Chilean grape producers eradicate mites with methyl bromide. Instead, Chilean producers would follow a new system of registration and inspections, reported The Fresno Bee. Full Story (Free Registration Required)

FDA was praised for issuing a final rule allowing fresh lettuce and spinach to be irradiated in its ongoing efforts to reduce foodborne illnesses in both The New York Times on the Web Full Editorial (Free Registration Required) and The Wall Street Journal. Full Editorial (WSJ Subscription Required)

Market News

There are about 1.1 million hired workers in the U.S. and half of those lack legal authorization to work in the country, according to an updated profile of farmworkers. Most are located in the Southwest, with California and Texas accounting for almost one-third of the $22 billion spent in 2002 on hired farm labor, reported AZCentral.com. Full Story (Free Registration Required)

China's apple production should increase 15% for the 2008 season, according to an estimate provided by Joyce Cui to the U.S. Apple Association's 2008 Apple Crop and Marketing Conference. Ms. Cui claims China's 2007 crop was down about 10% from normal on average. China's shortfall, combined with a crop cut short by frost in Poland, sparked higher prices for apple juice concentrate in the 2007-08 season, reported The Packer Online. Full Story (Subscription Required)

Caused by lower-than-usual temperatures in the spring, a natural flowering phenomenon reduced the late summer supplies of pineapples. Prices are up as much as 50% compared to f.o.b.s a year ago, and they could go higher, reported The Packer Online. Full Story (Subscription Required)

The 2008 Idaho potato harvest began, according to Frank Muir, president of the Idaho Potato Commission. Shippers went through the 2007 crop faster than anticipated, so there is not much product in the marketplace. Added to that is the fact that the crop, delayed by cool, wet weather in the early spring, is running a little later than normal, reported The Produce News. Full Story

A small but rising number of newcomers are attempting to grow hops on a commercial scale outside the Pacific Northwest. The growers aim to capitalize on hop prices that are as much as sixfold higher than a few years ago, as well as the nation's boom in small-batch "craft" brewers, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Alcan Packaging Food Americas introduced sustainable, high-barrier packaging solutions with Ceramis-PLA biodegradable barrier films. Made from the annually renewable resource corn starch, Ceramis polyactic acid (PLA) structures are fully biodegradable and compostable to meet the market's increasing demand for environmentally responsible packaging, reported PackagingNetwork.com. Full Story

USDA invited some states to submit an Application for Federal Assistance and to enter into a Cooperative Agreement with the Agricultural Marketing Service for the Allocation of Organic Certification Cost-Share Funds. The states are Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming. Full Notice

USDA proposed to amend the fruits and vegetables regulations to allow the importation, under certain conditions, of sweet oranges and grapefruit from Chile into the continental U.S. Full Notice

FSIS will conform its regulations to the Agricultural Marketing Service regulations, entitled, "Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng, and Macademia Nuts." Full Notice


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