Industry News

Sales remain tepid for McDonald's Corp.'s new specialty coffees in two initial test markets, Michigan and Kansas City, even after months of aggressive advertising and marketing, company documents show. Weekly sales of specialty coffee in those markets averaged about 300 drinks per store during the four weeks ended Mar. 6, well below the number needed to reach McDonald's goal of adding $125,000 in annual revenue per restaurant, or about $1.5 billion company-wide, according to Crain's Chicago Business. Full Story (Free Registration Required)

Brandweek examines how consolidation among large candy companies may cause small candy manufacturers to get shut out at retail. One major reason is assortment, as the big product portfolios of large firms such as Hershey, Nestle and others let wholesalers and retailers spread the total cost of shipments from one supplier to a per-unit cost figure that is low enough to provide an attractive profit margin. Should more large candy companies combine and further pool sales, order and shipping functions, then trade channel buyers will have a bigger pool of products from a single supplier to lower per-unit costs. Smaller competition lacks that extent of brands. Full Story

The market for teas, of which ready-to-drink varieties account for 75%, was valued at $7.4 billion at retail in 2007, and is expected to reach nearly $15 billion by 2012, according to research firm Packaged Facts, reported Advertising Age. Full Story (Free Registration Required)

Revolution Tea partnered with Kraft Foodservice for national distribution in the foodservice channel. Kraft Foodservice will distribute Revolution's iced tea and dispensing system, as well as single serving hot teas. The growth in the tea category is a key factor in Kraft's decision to add Revolution's product line. Full Story

Americans will spend $4.4 billion on graduation gifts this year, according to the National Retail Federation's 2008 Graduation Consumer Intentions and Actions survey, conducted by BIGresearch. Nearly 32% will purchase at least one gift, with gift cards (35.6%) remaining the popular among consumers. Full Story

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Food Institute News

The Food Institute's podcast on Food Business Mergers & Acquisitions is now available. To listen to this free podcast, which takes a look at the transactions that occurred in 2007 and reveals some of the emerging trends, click here.

LAST CHANCE TO REGISTER! Health & Wellness: Opportunities for the Food Industry - A Webinar presented by The Food Institute and Mintel
Join The Food Institute and Mintel on Wednesday, May 14, 2008 at 2PM (EST) for an insightful webinar that will explain how food manufacturers and marketers can target today's health & wellness oriented consumers. This 1-hour webinar, led by Lynn Dornblaser, Mintel Custom Solutions Director, will focus on health & wellness issues pertaining to food and beverage, revealing what drives consumer purchase behavior. It will take a look at how consumers perceive health & wellness, the abundance of messages concerning health issues, and the types and number of products on the market making health & wellness claims. Lastly, Dornblaser will provide some interesting thoughts for the future. For more information or to register click here. LAST CHANCE TO REGISTER!

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International News

Loblaw's PC Organics line is expected to have 400 items available by early 2009. The PC Organics line debuted with 25 products and now has about 350, according to Paul Uys, V.P. of control brands for Loblaw Brands Ltd. Those first few products were extremely popular, but they appealed largely to the seriously health-conscious consumer. Interest in the brand leveled off for a while, then, in the last two years, it is again seeing double-digit growth as more supermarkets have begun carrying organic lines, says Uys. Organic food still makes up only about one per cent of all groceries sold in Canada, but that share is increasing each year, according to Times Colonist. Full Story

Health News

Increased dietary intakes of acrylamide could raise the risk of kidney cancer by 59%, according to a study in the American Journal of Clinical Nutrition. Five thousand women took part in the research that is one of only a handful of studies showing significant increases in cancer risk, and highlighting the need for reformulation or process changes in the food industry to reduce the presence in food, reported Food Production Daily. Full Story

Washington News

In a report on U.S. offshore aquaculture, the Government Accountability Office notes an effective federal regulatory framework will be critical to facilitating the development of an economically sustainable aquaculture industry, while at the same time protecting the health of marine ecosystems. The GAO points out that Congress will need to consider a number of important issues, such as designating a lead federal agency and determining the best species to raise offshore and the most effective offshore aquaculture practices. In this context, there may be a role for the federal government in funding the research needed to help answer these questions and facilitate the development of an ecologically-sound offshore aquaculture industry. GAO Report

Market News

The price California dairy farmers receive for their milk will jump 8% in June, which will likely drive up retail milk prices about 10 cents per gallon, according to the California Department of Food and Agriculture. Since March, a gallon of reduced-fat milk has been selling for a minimum of $2.70 in Northern California, after a November-to-January plateau of $3.15, reported The Sacramento Bee. Full Story (Free Registration Required)