Industry News

Although taste remains the top consideration (87%), 79% of consumers claim price impacts their decision when deciding which foods and beverages to purchase, a 6% increase from 2010 and a 15% increase since 2006, according to the International Food Information Council Foundation's 2011 Food & Health Survey. Healthfulness (66%), convenience (58%) and sustainability (52%) also ranked. Full Story

Kraft Foods Inc. is "likely to [implement] another round of pricing" as the company tries to further offset higher costs, according to the company's EVP and CFO. Earnings Report Meanwhile, the company will bring Gevalia coffee to retail stores in August. Gevalia has about $200 million in U.S. sales through mail-order, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Nestle Waters North America Inc. signed an agreement to acquire Sweet Leaf Tea Company, maker of Sweet Leaf and Tradewinds beverages. Nestle Waters made an initial investment in Sweet Leaf in March 2009. The Sweet Leaf and Tradewinds brands' combined sales totaled more than $53 million in 2010. Full Story Recording Now Available! Merger and Acquisition activity continues to be a driving force within the food sector, according to the Food Institute webinar Mergers and Acquisitions in the Food Industry: "The Art of the Deal". This webinar evaluated recent Merger and Acquisition activity and offered strategies for the future. To purchase, click here.

Purchased meals and beverages, which make up about 6% of personal consumption expenditures, rose nearly 2% in March from a year ago, the largest increase since November 2009, according to data from the Bureau of Economic Analysis. Higher-priced menus reflect growing confidence by eateries that consumers can afford to pay more for restaurant meals, reported Bloomberg.com. Full Story

Households with children under 18 are responsible for roughly half of all purchases of cereal, juice, fresh meat and prepared food (dry mixes). Meanwhile, mothers with children under 18 are 19% more likely than the general population to engage in social networking, and 31% more likely to become a fan of or follow a brand, reported Nielsen. Full Story

Latest sales & earnings for food related companies (Updated Daily - FI Membership Required)

Food Institute News

Sign Up Today! The Food Institute and Willard Bishop will present a one-hour webinar, The Future of Food Retailing, on June 15 at 12 p.m. (EST). Food inflation is making a comeback at levels that have not been seen in over 35 years, driven by rising commodity prices. Join Jim Hertel, Managing Partner, and Craig Rosenblum, Partner, both of Willard Bishop, and moderator Michael Sansolo, as they provide their unique and unparalleled insights into retailer strategies, identify specific actions that Walmart and others are taking and point out intended and unintended consequences of retailers' actions. They will also discuss winners and losers in the consumer spending turnaround and the effect this has had on the larger food retailers. To sign up and learn more, click here.

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International News

Carrefour SA indefinitely shelved plans to spin off its property unit and fired James McCann, the head of its core French business. Carrefour planned to deliberate a three-way breakup of the company at a shareholder meeting next month, with the split meant to be part of a wider restructuring plan that also includes a $2.2 billion revamp of the retailer's signature hypermarkets. The breakup plans came under heavy fire from analysts, unions and investors who argued that Carrefour management was catering to the demands of its biggest shareholder, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Washington News

Any FDA decision to administratively detain food would be based on a "case-by-case basis because such decisions are fact specific." The agency is more likely to use this authority under the new criteria in situations where exposure to the food may cause temporary or medically reversible health consequences, but the probability of serious adverse health consequences is remote (Class II recall situations), according to Food Institute counsel Olsson Frank Weeda Terman Bode Matz PC. Stay Updated - Register Now! The Food Institute and Olsson Frank Weeda Terman Bode Matz PC will offer a year-long webinar series on FDA implementation of the Food Safety Modernization Act (FSMA). The webinar series begins Wednesday, May 25. To learn more and sign up, click here.

U.S. Trade Representative Ron Kirk began negotiations with Congress to vote on trade agreements with Colombia, Panama and South Korea. Full Story Meanwhile, The American Frozen Food Institute (AFFI) and a group of 14 food industry trade associations wrote the leaders of the U.S. Senate and House of Representatives, urging that they approve pending free trade agreements with Colombia, Panama and South Korea. "America's food and beverage companies export more than $2 billion worth of products to Colombia, Panama and South Korea every year," stated AFFI President and CEO Kraig R. Naasz. Full Story

Market News

The initial subjective forecast for 2011 California almond production is 1.75 billion-lbs, 6% above last year, according to USDA. Estimated bearing acreage for 2011 is 750,000. Full Report

Changes are on the way for the Florida Citrus Commission following legislation placed in a budget implementing bill by Sen. J.D. Alexander. The legislation, now found in two different areas of the budget, make management changes and places a ceiling on box taxes with any increases to be approved by a legislative commission, reported The Lakeland Ledger. Full Story (Free Registration Required)

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