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September 03, 2008
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Industry News

Consumers are altering their shopping behaviors as food and gasoline continue to grab a larger wallet share, according to TNS Retail Forward's American ShopperScape 2008. Shoppers are trading down to save money and seeking one-stop shopping venues and stores closer to home to save time and gasoline. Discount and value retailers are benefiting from an influx of cost-conscious shoppers at the expense of conventional and high-end retailers. In addition, store brands are benefiting at the expense of national brands. Full Story

The global market for non-alcoholic beverages will remain dominated by more perceivably healthy soft drink options, according to research group Global Industry Analysts. Global growth within the beverage segment is attributed to a shift away from carbonated beverages to products like juices, sports and energy drinks, ready-to-drink teas and coffee-based beverages, reported Beverage Daily. Full Story

The Coca-Cola Co. is testing a new proprietary fountain that can dispense more than 100 branded sparkling and still beverages from a single freestanding unit. The new dispenser takes up about the same space as the current eight-valve dispenser. The very high concentrate ingredients the new dispenser uses will cut packaging waste and energy use, and will reduce the storage space now needed to support fountain dispensers, according to the company, reported Atlanta Business Chronicle. Full Story (Free Registration Required)

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Campbell Soup Company will launch Campbell's Select Harvest soup line this fall. None of the 44 different flavors of soup contain MSG2, high fructose corn syrup, hydrogenated oils, or artificial flavors. Full Story

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

A small but growing number of restaurateurs believe they can launch successful seafood chains in Dallas. For example, Neighborhood Ventures plans to open 10 Fish City Grill and Half Shells Seafood Grill restaurants in 2008 and 10 in 2009, and Dallas Restaurant Group plans to open three more Fish Express restaurants by the end of 2009, reported The Dallas Morning News. Full Story (Free Registration Required)

Several New York, NY-based restaurants are making changes to adapt to the souring economy. For instance, some are offering delivery to increase revenues, and others are turning their attention toward more casual restaurants with heartier, more filling fare. In addition, bar menus around the city are growing longer as more diners move away from properly set tables and conventional meals with higher checks, reported The New York Times on the Web. Full Story (Free Registration Required)

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


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Kum & Go LC will break ground on a new environmentally friendly convenience store in Johnston, IA. The new store will be the first Leadership in Energy & Environment Design (LEED) store for Kum & Go, and the first LEED c-store in the Midwest, according to the company. Full Story

Rise & Dine Restaurants, Inc. signed a 10-store agreement for Central Florida, its first entry into the state. Full Story

Richelieu Foods, Inc. completed its acquisition of the Sauces and Dressings business from Sara Lee Foodservice. Full Story

"PANKs," "professional aunt, no kids," is the new demographic marketers are targeting, reported The Charlotte Observer. "People are just starting to realize how huge this segment is," stated Melanie Notkin, founder of SavvyAuntie.com, which launched in August. Some 20% of women ages 40 to 44 were childless in 2006, a figure that doubled over the past three decades, according to a recent Census Bureau report on fertility. "Aunties have more discretionary income to indulge those nieces and nephews with gifts or activities," stated Ms. Notkin. Full Story (Free Registration Required)

United Airlines backed off from a plan to begin charging for coach-class meals on its flights to Europe after some customer backlash. On Oct. 1, United will still begin serving cold sandwiches or snack boxes instead of hot meals to business-class customers on about 16 domestic flights a day, reported Newsday. Full Story

All Coffee Bean & Tea Leaf stores now offer free Wi-Fi. Full Story

Owners of a Washington, DC-based Safeway are planning to turn the current grocery store into a "Social Safeway" shopping center that will be almost 50% larger. The new establishment is envisioned as a curbside, two-level shopping complex complete with an outdoor terrace and two parking levels, reported The Hoya. Full Story

International News

The Coca-Cola Company offered to purchase China Huiyuan Juice Group Limited for $2.4 billion. Full Story

Meanwhile, Groupe DANONE agreed to tender all of its shares in Huiyuan for a total of $2.4 billion to the pre-conditional takeover bid to be launched by Coca-Cola. Full Story

Kraft Foods Inc. will focus on 10 countries and 10 brands to expand internationally, rather than taking a blanket approach to launching U.S. brands overseas, the head of its international business told Reuters. China, Russia, Brazil, and Southeast Asia are the four "growth engines" in the 10 international markets Kraft plans to focus on, and the six other markets, Australia, the UK, Spain, France, Italy, and Germany are "scale markets," where annual sales are expected to grow 1% to 3%. The international unit should produce more than $18 billion in sales in 2008. Full Story

Wal-Mart Stores Inc. is considering opening its first stores in Southeast Asia and expects to approach 10% growth in international sales to $100 billion this fiscal year despite a global economic slowdown, reported The Globe and Mail. Full Story (Free Registration Required)

Chinese poultry meat will begin to appear in Europe as the result of an EU decision to lift a six-year import ban. The European Commission released a list of nine Chinese companies, all in the eastern Shandong Province, that were approved to export heat-treated poultry meat products to the EU. China's annual exports of heat-treated poultry products to the EU could reach 100,000 tons worth $1 billion, reported China Daily. Full Story

InBev NV's South Korean unit claims that its Belgian parent does not plan to sell the division to fund its $52 billion Anheuser-Busch Cos. takeover, denying a report. Reuters claimed Sept. 2 that InBev would sell Oriental Brewery after that deal was done, potentially raising $2 billion, reported Bloomberg.com. Full Story

Simply Organic launched a range of soups and ready meals under new branding to coincide with Organic Fortnight in the UK. The line is composed of five ready meals and six soups using 100% organic ingredients, reported Just-Food.com. Full Story

Health News

Antioxidant-rich foods, such as blueberries and artichokes, may help protect against macular degeneration. Antioxidants disrupt a link between two processes in the retina that, in combination, contribute to macular degeneration. Antioxidants also extend the lifetime of irreplaceable photoreceptors and other retinal cells, according to U.S. researchers, reported HealthDay. Full Story

The timing of dietary protein intake affects feelings of fullness throughout the day, according to a study published in the British Journal of Nutrition. Those that ate high-quality protein foods for breakfast had a greater sense of sustained fullness throughout the day compared to when more protein was eaten at lunch or dinner. Full Story

Washington News

A U.S. District Judge ruled in favor of Gristedes workers in their lawsuit against the supermarket chain. The grocer violated federal and state labor laws by failing to pay some 400 current and former workers overtime wages, according to Judge Paul Crotty of the Southern District. The workers seek nearly $15 million in back pay and damages for salaried employees, and the judge will determine the extent of Gristedes' compensation, reported Crain's New York Business. Full Story (Free Registration Required)

Schools can keep their budgets in the black while serving nutritious lunches, according to case studies evaluated in a USDA report, Balancing Nutrition, Participation, and Cost in the National School Lunch Program. Some schools succeeded by reducing costs, and others have raised revenues through increased student participation. Federal nutrition guidelines, meal reimbursement, and commodity donations can help schools meet their objectives, although variation in food prices and nutrition goals present added challenges. Full Story

USDA's Food Safety & Inspection Service (FSIS) needs to collect and analyze a more representative sample of intact product during a foodborne illness investigation to be able to conclude whether contamination occurred at the establishment under investigation. In addition, FSIS should finalize and implement the new directive for investigating foodborne illnesses and the revised directive for handling recalls, according to an audit by USDA Office of the Inspector General: Food Safety and Inspection Service Recall Procedures for Adulterated or Contaminated Product. Full Report

Meanwhile, Food Safety and Inspection Service did not conduct a review of the interim final rule, Control of Listeria monocytogenes in Ready-to-Eat Meat and Poultry Products, in 2007 as stated in its amended schedule plan for reviewing regulations. Full Notice

Market News

Louisiana-based industries including sugar and coffee appear to have escaped damage from Hurricane Gustav. Sugar analysts believe that the state's crop did not sustain enough damage from Gustav to affect prices, reported Reuters. Full Story

Jamaica Producers Group will temporarily halt banana exports after Hurricane Gustav flattened entire plantations. The storm damaged more than 70% of farms producing bananas, and it is not clear when exports will resume, stated chairman Marshall Hall, reported The Associated Press. Full Story

Colombia will double aid to coffee growers in the next four years, aiming to boost its top export and make existing bean yields more efficient, according to Agriculture Minister Andres Arias and Finance Minister Oscar Zuluaga and the National Coffee Growers Federation. Growers, researchers, and vendors will receive about $700 million in cash, credits, and farm supplies between 2008 and 2011 to help double coffee exports and increase total output by 37 %, reported Chicago Sun-Times. Full Story

Fewer people are ordering lobster due to the economy, driving down lobster prices and further impacting lobster fishermen encountering high fuel and bait costs. However, lobster fishermen are capturing large catches, and as a result, restaurants including Legal Sea Foods are being more creative with their lobster offerings, reported The New York Times on the Web. Full Story (Free Registration Required)

Sen. Charles Schumer (D-NY) is proposing to build a centralized maple syrup bottling plant in New York that would allow the state to tap the full potential of its underdeveloped maple syrup industry. New York's 1,500 maple producers generated $8 million in sales in 2006, producing about 224,000 gallons of syrup. New York State is the third largest state for maple syrup production, behind Vermont and Maine, and is ranked second in value behind Vermont, reported The Associated Press. Full Story

California's Imperial Valley farmers are preparing their fields to plant winter vegetable crops. Lettuce, carrots and other winter vegetables will be ready to market in December. Planted acreage is much lower than last year because there is not enough water available, reported California Farm Bureau.

Researchers hope to keep Oregon pear growers ahead of international competition by creating "flat" orchards. The orchards would be denser, with trees three times closer than they are now, and more compact, with trees eight to 10 ft. tall rather than the conventional 16 ft. Those growth characteristics and a trellising system would allow orchards to be tended without ladders, reported OregonLive.com. Full Story (Free Registration Required)

USDA amended the brucellosis regulations concerning interstate movement of cattle by changing the classification of Montana from Class Free to Class A. Full Notice


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