April 21, 2011

Operator News

The board of McCormick & Schmick's Seafood Restaurants, Inc.'s rejected LSRI Holdings Inc.'s $123.4 million tender offer for the company, reported OregonLive.com. The company's board also approved a stockholder rights plan, or so-called poison pill. Full Story (Free Registration Required)

U.S. prosecutors joined an investigation into the hiring of illegal workers by Chipotle, requesting the chain turn over documents. The U.S. Immigration and Customs Enforcement (ICE) is auditing Chipotle restaurants in Virginia and Washington, DC as the company began using the ICE-recommended E-Verify system in all its U.S. restaurants to check that new employees are legally eligible to work in the U.S., reported Reuters. Full Story

EQT Infrastructure entered into an agreement to acquire Restaurant Technologies Inc., a company that services frying oil at 17,000 restaurants, including many McDonald's, reported TwinCities.com. Full Story (Free Registration Required)

Industry News

Approximately 60% of consumers are cutting back on driving, according to NPD Group analysis. NPD research shows that drivers made significant changes in driving behavior in 2008 when gas reached a high of $4.16 a gallon. Notably, 49% reduced or consolidated shopping trips, a behavior consumers are likely implementing once again. Gallons purchased are down 1.2% from a year ago, according to The NPD Group's Motor Fuels Index. Full Story

A.L. Bazzini Co. will close its Hunts Point, Bronx plant at the end of July and consolidate in Allentown, PA. The 125-year-old A.L. Bazzini Co., known for making the "official peanut of Yankee Stadium," stated that the FDA Food Safety Modernization Act's increased food safety regulations required the company to update its production facilities. Instead, A.L. Bazzini Co. will centralize operations at its facility in Allentown, reported Crain's New York Business. Full Story (Free Registration Required)

Sales of frozen processed potatoes to restaurants declined by 500 million-lbs. since 2007, according to the U.S. Potato Board. Fries make up 13.2% of restaurant meals today, down from 14.5% in 2004, according to The NPD Group. Consumption of French fries are unlikely to return to previous levels, claim experts, while consumers are ordering less combo meals. In response, fast-food chains are finding ways to offset the decline in fry sales, such as emphasizing breakfast and specialty drinks, reported Chicago Tribune. Full Story (Free Registration Required)

Utz Quality Foods collaborated with Disney Consumer Products to introduce co-branded snack foods in the shape of Disney characters, beginning with a pretzel assortment shaped as Cars racer Lightning McQueen. Other assortments will be branded with Phineas & Ferb, Disney Fairies and Mickey Mouse & Friends, reported CBS21. Full Story

View Today! Supermarket dietitians need a bigger wellness role, according to the Apr. 21 edition of the Lempert Report, hosted by Phil Lempert. Click here to view.

Revenue for Kraft Foods' SnackWell's was $32.3 million in the 52 weeks ending Mar. 20, a drop of 8.6% from the previous year, excluding Wal-Mart, according to SymphonyIRI Group. Kraft is rolling out new products for the brand, some of which are packaged in 130 and 150 calorie portions. Women are more interested in snacks and drinks sold in portion-controlled packages, with 19% claiming they buy such products, compared to 8% of men, according to Mintel, reported The New York Times on the Web. Full Story (Free Registration Required)

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

Coca-Cola Co. stated that a joint venture running the Spartanburg, SC bottle recycling plant needs to be restructured after closing. Coca-Cola spent more than $40 million on the project, and plans are in place for the facility to continue to operate, though it is not currently producing new recycled content. The Spartanburg complex was intended to test technology that would increase access to recycled content for use in Coca-Cola's bottles, reported The Atlanta Journal-Constitution. Full Story (Free Registration Required)

Graphic Packaging International will close its beverage carton plant in Evendale, OH by the end of August. The plant's operations will be relocated to other facilities in Monroe, LA and Perry, GA, reported The Cincinnati Enquirer. Full Story

Kraft Foods Inc. will invest $150 million in Africa over the next three years to develop manufacturing of brands including Stimorol chewing gum and Cadbury chocolate. The company will also increase capacity at research and development facilities in Alexandria and Johannesburg, reported Bloomberg.com. Full Story

U.S. exporters shipping food and agriculture products to Mexico may encounter problems during the border entry process. To avoid problems, exporters should ensure that their product meets applicable Mexican import regulations, has the proper certification and is correctly labeled. In addition, exporters should use an experienced freight forwarder and Mexican customs broker, noted FAS. FAS Report

Washington News

FDA released the final version of a strategic priorities document, Strategic Priorities 2011 - 2015: Responding to the Public Health Challenges of the 21st Century, outlining the goals that will guide the agency, including an integrated global food safety system focused on prevention and improved nutrition expanded efforts to meet the needs of special populations. Full Story, Full Report

Market News

A prolonged drought from Kansas to Texas likely caused U.S. ranchers to sell more cattle to feedlots last month, according to a Bloomberg survey of 14 analysts, signaling increased supplies for meat processors including Tyson Foods Inc. and lower beef prices. Deteriorating pasture conditions in the southern Great Plains and record cattle prices prompted the sale of two million head to feedlot operators, up 4.2% from March 2010, reported Bloomberg.com. Full Story

Aggressive new strains of wheat rust disease decimated up to 40% of harvests in some regions of North Africa, the Middle East, Central Asia and the Caucasus, according to researchers. The countries most affected are Syria and Uzbekistan, with Egypt, Yemen, Turkey, Iran, Morocco, Ethiopia and Kenya also hit hard, reported AFP. Full Story

USDA will release its Cold Storage report on Apr. 21 at 3:00 p.m. EST. View Details

The IFDA Daily Update

For information on advertising in The IFDA Daily Update, published in conjunction with The Food Institute, click here. To view our editorial policy, click here.

IFDA Membership

For more information about becoming a member or partner
of IFDA, click here.