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September 02, 2008
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Industry News

Restaurant industry performance remained sluggish in July, as the National Restaurant Association's comprehensive index of restaurant activity stood below 100 for the ninth consecutive month. The Association's Restaurant Performance Index stood at 98.3 in July, unchanged from its June level. Full Story

Although products from cloned animals cannot be sold directly to consumers, products from their offspring are entering the U.S. food supply, albeit in very small quantities, reported The Wall Street Journal. FDA stated that such products are safe to eat; however, the agency reportedly received some 150,000 letters opposing doing so without some label requirements. Full Story (WSJ Subscription Required)

CKE Restaurants, Inc. sold 29 Hardee's restaurants as part of its ongoing strategic refranchising program that was originally announced in April 2007. To date, CKE sold 224 restaurants to franchisees and secured commitments for 105 new franchise restaurants under development agreements for those markets. CKE most recently completed the sale of 23 restaurants in Indiana and Ohio to Midwest First Star Inc., which also committed to build a minimum of seven new Hardee's restaurant locations over the next seven years in these markets. Full Story

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Many school foodservice operators are exceeding local and federal nutrition requirements. For example, the New York City Department of Education, which serves more than 860,000 meals each day, reformulates products constantly to boost their nutritional value, reported Restaurants & Institutions. Full Story

With food prices rising and packages shrinking, parents are changing their food-buying habits to keep costs down. For example, some children will receive baggies full of snacks like home-packed chips and crackers instead of prepackaged ones, reported CBSNEWS.com. Full Story

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

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


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Reed's, Inc. formed an enhanced partnership with Quality Food Centers (QFC), expanding its presence throughout Western Washington and Oregon. QFC carries a large variety of natural and organic products, including select Reed's Ginger Brews & Virgil's All Natural Sodas. Full Story

Pilot Travel Centers owners the Haslam family and two other investors purchased Subway sandwich shops in Knox County, TN, and others in Oak Ridge and is looking to expand. The total deal includes 38 restaurants; 35 of them were bought from an investor group in Fort Wayne, IN and three Oak Ridge restaurants were brought from individual franchise owners, reported CSP Daily News. Full Story

Honey may help prevent spoilage in salad dressings and naturally sweeten the condiment, according to researchers from Kraft Foods. The study, which analyzed the sweetening potential and antioxidant levels of 19 honeys and explored their use as alternatives to chemical preservatives, will be published in the Journal of Agricultural and Food Chemistry, reported Food Navigator Europe. Full Story

Danone Waters, Highland Spring and Nestlé Waters teamed up to create a new group designed to promote the economic and social value of their products, amidst continuing pressures surrounding their alleged environmental impact, reported Beverage Daily. Full Story

Weight Watchers will introduce Lose for Good, a campaign created to empower people to get healthier while also giving back to others in need. For every pound lost by Weight Watchers Members during a six-week period, beginning Sept. 7 and ending Oct. 18, Weight Watchers will donate the cost of one pound of food up to one million dollars to Share Our Strength and Action Against Hunger. Full Story

Cadbury will launch fruit and granola variants of its Dairy Milk brand, Cadbury Dairy Milk Cranberry and Granola and Cadbury Dairy Milk Apricot Crumble Crunch, on Sept. 8, reported TalkingRetail.com. Full Story

Mars Snackfood U.S. will introduce limited-edition pink M&M's, a MY M&M's "Promise Blend," pink Dove Promises of Hope candies, and MY Dove Personal Promises of Hope candies that will support Susan G. Komen for the Cure. Full Story

International News

The proposed EU regulation on food labeling is too complicated, makes unrealistic demands on font size, and will be burdensome for SMEs, according to a Brussels hearing on food information regulation. The different sides of the industry generally agreed that the proposal makes food labeling more complicated rather than simpler, reported Food Navigator Europe. Full Story

Britian imports poultry, lamb, and beef at the same rate as it exports the products. Part of the explanation lies in different national tastes, as British consumers prefer the white meat of chickens to the darker legs and wings, so the latter are exported to parts of Europe, while white meat is imported from as far away as Thailand, reported Financial Times. Full Story

Supermarkets are offering too many promotions for fatty or sugary foods, British campaigners claim. The National Consumer Council went into eight chains and found over half of promotions were for unhealthy foods, double the level seen in 2006, reported BBC News. Full Story

Wild is introducing a range of bake-stable fruit fillings in Europe, ready to use by manufacturers with or without the addition of flavorings. The ingredients company launched the fruit fillings in Australia and New Zealand six years ago, and the snack bars and pastries containing the filling are becoming very popular in Europe. The European snack bar market could be worth €2.7bn by 2010, reported Food Navigator Europe. Full Story

Total Produce completed its acquisition of 60% of Dutch salad firms Haluco and Nedalpac, reported Thomson Financial. Full Story

Health News

Food price increases are being acutely felt by people trying to fight serious illnesses, as healthier foods, like whole-wheat bread and fresh fruits, are already more expensive than white bread and processed foods, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Concentrated freeze-dried extracts from black raspberries may help prevent certain cancers, suggests a new Ohio State study using rats. Over 2,000 genes were affected in animals when they were exposed to a carcinogen, but normal function was restored in 460 after supplementation with freeze-dried black raspberries. Full Story

Washington News

The government can prohibit meat packers from testing their animals for mad cow disease, according to a ruling from a federal appeals court, reported The Wichita Eagle. Creekstone Farms Premium Beef sued USDA for the right to do the testing. The U.S. Court of Appeals for the District of Columbia Circuit overturned a lower court ruling that would have cleared the way for the testing. 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.

Trans-Ocean Products, Inc. initiated a voluntary recall of its 4-oz. Cracked Pepper Style Smoked Salmon as it has the potential to be contaminated with Listeria monocytogenes. Full Story

Quality Food Centers initiated a voluntary recall of five deli tuna salad items because the salad dressing may contain milk not listed on the label. Full Story

Landshire, Inc. initiated a voluntary recall of its American Sub sandwich because it has the potential to be contaminated with Listeria Monocytogenes. Full Story

Market News

California's contracted processing tomato production is forecast at 11.6 million tons, down 1% from the May forecast and 3% below the 2007 season. This year's processing tomato crop is about a week behind schedule, and frosty weather in mid-April caused spot damage in tomato plants in some growing areas. Dry conditions and high winds during the spring delayed fruit setting. Full Report

SunOpta entered into an agreement to acquire the Pure Nature Organics brand to develop supply sources for organic broccoli, green beans, and other vegetables and fruits. Full Story

The 2008 California wine harvest could be 20% smaller than last year and as much as one-third less than a bumper 2005, according to growers and winemakers. Deep frosts followed by hot weather and insufficient rain are responsible for the shortage, and it comes as demand for domestic wine is growing by 3% to 5% a year and the market for $12-to-$20 wines is increasing by 18%, reported The Los Angeles Times. Full Story (Free Registration Required)

The drought-stricken Southeast U.S. received several inches of rain last month, reducing the potential of a disastrous season. The rain helped tobacco, cotton, peanuts, and hay, which are heading toward harvest, according to the South Carolina Agriculture Department, reported TheState.com. Full Story

California gross farm sales for 2007 were led by a 63% increase in dairy prices. However, that followed a very poor year for dairy producers in 2006. Production costs for all California farmers rose in 2007 and 2008, making the increase in gross receipts especially welcome, reported California Farm Bureau.

Farm advocates in Sacramento County are looking to reduce barriers that local farmers encounter when they sell food through supermarkets, restaurants, and farmers markets. The Grow & Buy Local Committee is attempting to set up a new distribution system, supported by $50,000 in funding from Sacramento County, to meet increasing demand for locally grown produce and extend wholesale availability beyond farmers markets, which only supply about .5% of county residents, reported the Sacramento Business Journal. Full Story (Free Registration Required)

Table grapes are rolling out of California's central San Joaquin Valley, and despite a setback from an unexpected frost in late April, the crop appears to be on course to match harvest expectations of 96 million 19-lb. boxes statewide. That is up about 5% from last year, according to Barry Bedwell, who heads the California Grape and Tree Fruit League, reported The Fresno Bee. Full Story (Free Registration Required)

The Associated Press profiles "you-pick" farms in New Mexico. For example, Las Cruces, NM-based Joe Lujan Farms has 40 acres with five varieties of chili as well as squash, okra, onions, tomatoes, cucumbers, and a small pecan orchard. Most successful "you-pick" farms are located near large cities, offer more than one commodity, and have staggered plantings in order to keep a steady flow of customers, stated Terry Crawford, an agricultural business professor with New Mexico State University. Full Story

Alexander & Baldwin, Inc.'s Matson Global Distribution Services subsidiary completed the acquisition of Pacific American Services, LLC, a regional, asset-light warehousing, packaging, and distribution company. Full Story

Farmers in California's Salinas River Valley are increasingly hunting wild animals to keep E. coli and other harmful bacteria from contaminating crops. While pressure is coming from the companies purchasing the greens, many officials question whether the measures are necessary, reported The Associated Press. Full Story

NMFS prohibited directed fishing for Atka mackerel in the Eastern Aleutian District and the Bering Sea subarea of the Bering Sea and Aleutian Islands management area. Full Notice


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