Industry News

Several private equity teams bid for Ahold NV's U.S. Foodservice unit, including a group made up of Bain Capital, Blackstone Group, and Wellspring Capital Management, sources said, reported Reuters. A team of Clayton, Dubilier & Rice and Kohlberg Kravis Roberts & Co. also bid for the unit, sources said. Buyout firm Thomas H. Lee Partners is also in the process, but sources say it is unclear who it is teamed up with. Full Story

FOOD BUSINESS MERGERS & ACQUISITIONS 2006 Annual Listing of the Mergers & Acquisitions Shaping the Food Industry In 2006, 348 mergers & acquisitions were completed in the food industry - and an additional 102 were announced, but not yet completed by the end of the year, according to The Food Institute’s Food Business Mergers & Acquisitions 2006. Activity was up 7.7% from 2005, but still remains 13.6% below the total five years ago. Food Business Mergers & Acquisitions 2006 is now available from the Food Institute. This publication gives the specifics of each of the deals that took place in 2006 in over 25 categories, plus an overall comparison of the activity over the past five years, providing valuable insight into one of the most influential aspects of the food industry. For more information or to order the book, click here.

Sales of carbonated soft drinks in the U.S. were down for the second year in a row, according to an annual study by Beverage Digest. Sales fell by 0.6% in 2006, three times the 0.2% slide the year before. Coke's total volume fell 1.2%, while Pepsi's volume dropped 1.3% in the U.S., according to the report. Cadbury Schweppes volume increased 1.3%. Together, the three companies, Coke, Pepsi and Cadbury, account for close to 90% of the industry's volume. Full Story

Jones Soda is now being sold at some of the nation's largest retailers, including Wal-Mart, Kmart, Safeway and Kroger, increasing its presence from just 2% of all food and drugstore outlets to 25%. Until recently, Jones Soda sold cans only through Target, which had an exclusive arrangement and will continue to carry the brand. Jones Soda plans to add more retailers over the coming year, reported The Seattle Times. Full Story

Through its Circle K Stores Inc. subsidiary, Alimentation Couche-Tard Inc. signed an agreement to acquire 53 stores in Oklahoma City from Star Fuel Marts, LLC. Full Story

Food retailers have been intensifying their efforts to win back consumers' dining-out dollars through new and appealing meal solutions. These new and expanded meal offerings place a much stronger emphasis on quality and variety, integrating many of the trends shaping restaurant menus, such as ethnic foods, premium ingredients, customization and updated preparation techniques, according to Technomic. As more retailers increase these efforts, manufacturers need to step up their efforts to assist them by providing culinary expertise, new products, and assistance with training and merchandising, noted Ron Paul, president of Technomic. Furthermore, restaurant operators, both chains and independents, need to recognize these developments as a direct competitive threat targeting their customers. Full Story

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International News

The European Union blocked a World Trade Organization investigation of its banana tariffs, temporarily delaying the inevitable reopening of a decade-old dispute with Latin American countries and the U.S. over claims of unfair trade discrimination, reported The Associated Press. Full Story

What distinct regional patterns affect restaurant usage the most? Find out how several factors converge to build a unique foodservice market at a brand new Food Institute webinar on March 19, featuring Scarborough Research's Josh Chasin. The restaurant guru will identify these factors and a much more about the demographics of quick serve restaurant patrons. Click Here for details!

Washington News

Federal transportation officials are weighing a proposal to require devices on commercial trucks that would limit their top speeds to 68 mph. The idea is supported by many large trucking companies, but opposed by many smaller, independent carriers, reported USA Today. The Department of Transportation is accepting public comments on the proposal until Mar. 27, but the National Highway Traffic Safety Administration will have the final say. Full Story

Market News

The U.S. all orange forecast for the 2006-07 season is 7.43 million tons, down 9% from the previous forecast, and 18% below last season's revised final utilization of 9.0 million tons. View Report

Chinese fruit juice producer Huiyuan Juice Group will provide fruit juice to more than 3,000 Wal-Mart outlets across the U.S. over a year's period. Huiyuan, covering 42% of China's domestic market, entered the U.S. market in 2004 and saw its annual sales up 30% year on year to reach 20 million yuan last year, according to People's Daily Online. Full Story