April 22, 2011

Operator News

McDonald's Corp. will continue to cautiously raise prices due to higher commodity costs. McDonald's expects food costs to rise between 4% and 4.5% in the U.S. and Europe this year, up from its prior call for a rise of 2% to 2.5% in the U.S. and an increase of 3.5% to 4.5% in Europe, reported Reuters. Full Story

Federal agents investigated 15 locations of Chuy's Mesquite Broiler in California and Arizona on Apr. 20, arresting the owners and the chain's outside bookkeeper for allegedly hiding the employment of hundreds of undocumented immigrants, and detained 40 suspected illegal immigrants. The charges follow a yearlong investigation, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Fox and Hound Restaurant Group debuted a smaller prototype in Harrisburg, PA. The prototype is about 7,000-sq. ft., compared to the standard 9,000-sq. ft. outlet. The chain also introduced a chainwide menu revamp, adding items including upgraded pizzas and pot-roast sliders, reported The Post-Standard. Full Story (Free Registration Required)

Ben & Jerry's is rolling out franchises across Australia. The company focused its Australian menu on ice cream products and limited the number of perishable products it uses, reported The Sydney Morning Herald. Full Story

Retail News

Convenience store chain High's of Baltimore, Inc. sold 20 retail assets to multiple buyers, including national consolidators and individual store operators, reported ABFJournal. Full Story

Industry News

The organic food industry grew by 7.7% in 2010, according to the Organic Trade Association's 2011 Organic Industry Survey. Experiencing the most growth, organic fruit and vegetable sales reached nearly $10.6 billion in 2010, up 11.8% from 2009. Organic dairy, the second-largest category, experienced 9% growth to achieve a value of $3.9 billion, and captured almost 6% of the total U.S. market for dairy products. Full Story

General Mills launched an offer with Groupon in the Twin Cities and San Francisco. The deal, reportedly the first of its kind for a CPG company, includes 12 General Mills products for $20, a discount of more than 50%. The deal also includes a $15 coupon book for General Mills products, reported TwinCities.com. Full Story (Free Registration Required)

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

A growing number of companies are specializing in the "table-to-farm movement" by helping restaurants compost their food waste. New Hampshire-based EcoMovement hauls food waste from about 40 restaurants in the region and takes it to be composted, while Compost Cab in Washington, DC works with area farms. Since 1996, San Francisco composted more than 835,000 tons of food scraps, reported Bloomberg Businessweek. Full Story

In Indonesia's upper class, sales of liquid milk grew 18% in 2010. Smaller packages of cheese opened to the mid-lower income segment, as the category experienced 13% growth in sales value in 2010, with the annual sales value of smaller pack size doubling in 2010, reported Nielsen. Full Story

Washington News

A Florida judge allowed a lawsuit to proceed that claims Whole Foods Market Inc. violated the state's deceptive trade-practices law by selling frozen vegetables from China grown in a polluted region by prisoners and certified as organic. A Miami-Dade County Circuit Judge denied the grocery chain's motion to dismiss the suit filed on behalf of the Southeast Consumer Alliance Inc., reported Bloomberg.com. Full Story

USDA's Food and Nutrition Service published a rule for all institutions in Child Nutrition Programs, finalizing the geographic preference option that encourages the purchase of unprocessed locally grown and locally raised agricultural products. In effect from Oct. 1, 2008, institutions receiving funds through the Child Nutrition Programs may apply an optional geographic preference for unprocessed agricultural products, and the agency received 77 comments on the proposed rule that were "very supportive of the regulation as proposed." Full Notice

The Food Safety and Inspection Service is making available a compliance guide for small and very small meat establishments on the safe production of ready-to-eat meat and poultry products with respect to Salmonella and other pathogens. FSIS is also soliciting comments on this compliance guide until June 21. Full Notice, Compliance Guide

Market News

Wheat prices rose 14.5 cents to settle at nearly $8 a bushel on worries that dry weather damaged the winter crop from Kansas to Texas. A dry winter left about 38% of the U.S. winter wheat crop in poor to very poor condition, compared with 6% a year ago, while just 6% of this year's crop is in excellent condition compared with 14% in 2010. Meanwhile, spring rains and flooding may delay planting for grains and beans, reported ABCNews.com. Full Story

Buyers should expect stronger than normal volume of Florida sweet corn through Memorial Day. For the first time in several spring seasons, South Florida growers are enjoying normal April volume. Grower-shippers say peak production should hit in early May and run strong leading up to Memorial Day, reported The Packer Online. Full Story

Chilean clementine volumes could be down slightly this season because of weather-related growing problems, and sizing will be on the small side, but importers are expecting good quality. A drought in Chilean citrus growing regions, particularly in the north, will likely make a dent in the country's export program this year, reported The Packer Online. Full Story

Some animal producers are considering switching from corn to wheat as more subsidies are concentrated on producing ethanol and corn prices soar. Analysts forecast as much as an additional 50 million bushels of wheat could go toward feeding livestock before the next corn harvest, reported Reuters. Full Story

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.