Industry News

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Wendy's International Inc. rejected a cash and stock takeover bid and an offer to combine with Arby's, as the hamburger chain argued both offers were low, reported Reuters. Nelson Peltz's Triarc Cos Inc. and Trian Fund Management proposed combining Wendy's and Arby's, which is owned by Triarc. They also offered to buy 100% of Wendy's "for over $900 million in cash with the balance in stock," Peter May, an executive at both Triarc and Trian, said in a letter addressed to Wendy's Chairman James Pickett and included in a regulatory filing. Full Story, Trian SEC Filing, Wendy's SEC Filing

In just two months, the number of consumers who said the U.S. is in or heading toward a recession or economic slowdown grew from 79% to 84%, according to The NPD Group, Inc.'s second research study in the series called: Fast Checks Study: Consumers Speak Out On the U.S. Economy. There are some bright spots in the survey's results; however, there are some industries that will most likely feel the pinch of consumers' spending cutbacks, including dining out. Full Story

Starbucks began an aggressive coupon program unlike anything in its history, reported Advertising Age. The coffee chain, which is estimated to have nearly doubled its marketing spending to $100 million, distributed coupons good for free tall-size coffees every Wednesday through May 28 in USA Today, The Washington Post and several other markets. It also passed out coupons in New York City good for a free cup of coffee. Full Story (Free Registration Required)

A chain that caters to Hispanics, Freshco International Supermarkets, quietly expanded in Central Florida during the past few months, opening grocery stores in Orange City, Kissimmee and Orlando. Frescho stores offer an expanded produce section with standard fruits and vegetables along with Hispanic staples such as plantains and yuca. A full-service deli sells Hispanic entrees and a bakery makes Cuban and Puerto Rican-style bread fresh daily. Freshco stores also have a full-service meat department with butchers who can offer custom cuts, according to Orlando Sentinel. Full Story (Free Registration Required)

Packaged food companies like ConAgra Foods increased prices to keep up with inflation even as consumers cut spending nationwide in the face of an economic downturn. ConAgra, however, does not expect that to chase customers away, in part because people want convenient, healthful meals and snacks - and costs are mounting not just for food, but for everything from gasoline to restaurants to groceries, reported Omaha World-Herald. Full Story (Free Registration Required)

Food Institute News

Households in the U.S. spent an average $5,931 on food in 2005, accounting for 12.8% (7.1% at-home; 5.7% away-from-home) of their average annual expenditures of $46,409, according to Food Institute analysis of the Bureau of Labor Statistics' 2005 Consumer Expenditure Survey (the latest data available) presented in the just published Demographics of Consumer Food Spending, 2007 Edition. Although spending on food increased 2.6% from the previous year, its share of overall annual expenditures declined from 2004, when consumer units allocated 13.3% of their annual spending towards food. Demographics of Consumer Food Spending, 2007 Edition is now available from The Food Institute. To place an order online or purchase a downloadable copy, click here. FI Members save 10% with your Member Rewards Card!

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International News

China's new draft food safety law covering food safety evaluation, monitoring, recall and information release, was published on the national legislature website, www.npc.gov.cn, for public discussion. According to the draft, producers of substandard food products face fines, the confiscation of their incomes and revocation of production certificates. In serious cases, they could face prison terms ranging from three years to life. The solicitation of public opinion will last until May 20, according to China Daily. Full Story

Health News

The lycopene content of orange tomatoes is more bioavailable than the form of lycopene found in the red variety, according to new research. Lycopene is an antioxidant that is present in red- and pink-colored fruits and vegetables. Its role in heart health and in reducing the risk of certain cancers is supported by a body of research, reported Food Production Daily. Full Story

Washington News

In Maryland, a proposed bill aims to add more local food to school cafeterias, and is part of a national Farm-To-School movement. The twin missions of boosting local farmers while trimming fuel costs for shipping food long distances found unanimous approval from Maryland legislators, but awaits the governor's signature, reported The Associated Press. Full Story

Market News

At a time of record agricultural profits, concerns are mounting that American farmers could be edging toward a financial crisis not seen since the 1980s farm-economy collapse. Soaring land values, increasing debt and a reliance on government subsidies for ethanol production have prompted economists to warn that what some describe as a golden age of agriculture could come to a sudden end, reported OregonLive.com. Full Story