Industry News

Food price inflation continued upward in May, according to The Food Institute's analysis of just-release government data. The index for food-at-home increased an unadjusted 0.5% in May versus April, following a 1.3% rise a month earlier. This index was up 5.8% from a year earlier and marked the largest such increase in 19 years. This brought the food-at-home inflation rate to 5.5% through the first five months of 2008. Food away-from-home prices rose 0.4% during May, bringing year-to-date inflation for this market to 4.1%. Full Story

Although "food commodity prices may come down from their current peaks, the rises already seen in the real cost of food represent a permanent step change," according to Deloitte Touche Tohmatsu's Food and Beverage 2012 - A Taste of Things to Come report. The rising cost of basic commodities such as wheat and rice is likely to have profound impact on consumer behavior, retailer strategy and on the responses of suppliers and primary producers, reported TalkingRetail.com. Full Story

Winn-Dixie Stores does not expect Publix's acquisition of 49 Albertsons in Florida to have a major impact on its business. Based on its analysis, only 10 of the 49 stores are within a two-mile operating radius of a Winn-Dixie location that does not currently compete with an existing Publix," noted Winn-Dixie's CEO Peter Lynch, reported Supermarket News. Full Story

Anheuser-Busch held preliminary talks with Mexican brewer Grupo Modelo SAB de CV about a possible tie-up that could thwart an unsolicited takeover bid by InBev NV, according to the The Wall Street Journal, reported Reuters. Full Story

Meanwhile, U.S. politicians and activists are protesting InBev's proposed acquisition of Anheuser-Busch, claiming it could cost jobs in the U.S. and send ownership of an iconic American company overseas, reported The Associated Press. Full Story

Food Institute News

Escalating food prices caused exceptionally high price sensitivity among consumers, driving declining demand across multiple categories, growth in private label, trial of lower-priced brands and accelerated channel migration, according to Information Resources Inc.'s Times & Trends Special Report: Competing in a Transforming Economy. For the report, click here. (FI Membership Required)

NEW FI PODCAST: 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.

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International News

Japan is set to increase floor prices for domestic meat for a second time this year and boost subsidies to livestock farmers due to rising corn prices. Japan is the world's biggest corn importer. The floor price for locally produced pork would rise 5.3% to ¥400 a kilogram in July. The base price for beef would climb 3.2% to ¥815, according to The Japan Times. Full Story

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Health News

Extracts from tree bark and citrus may boost heart health and improve weight management among people with osteoarthritis, according to a study published in Nutrition Journal. The potential benefits include significant improvements in cardiovascular risk factors, namely lipid levels and blood pressure, reported Food Production Daily. Full Story

Washington News

Lawmakers voted to subpoena nine companies responsible for analyzing the most dangerous food entering the country as part of an investigation that gained more urgency with the outbreak of salmonella from tomatoes. Foods posing a potential danger can enter the marketplace only after a laboratory determined they are safe, according to FDA rules. But investigators have been told that it is a routine practice for private labs to test food until a clean result is obtained, reported USA Today. Full Story

Market News

The global vegetable oil market will continue to tighten in 2008/09 as demand from countries such as Indonesia, China, and India outpaces production. Meanwhile, a rise in petroleum prices and a tighter outlook for crop supplies have spurred another increase in soybean oil prices. Soybean oil exports in 2007/08 are expected to reach a record 3.1 billion-lbs. ERS Report