April 26, 2011

Distributor News

As of Apr. 25, U.S. average diesel fuel prices were $4.098 per gallon, down 0.007 cents per gallon from a week ago, and up $1.020 from one year ago. Full Story

Operator News

Yum! Brands is holding off on price increases, despite an anticipated 7% commodity cost increase in China and 6% in the U.S. Meanwhile, higher avocado prices alone will add about 0.5 to 0.6 percentage points to Chipotle Mexican Grill's total food costs this summer, making food costs 32% to 35% of its overall costs, up from 32% in the first quarter, reported TwinCities.com. Full Story (Free Registration Required)

Starbucks Corp. is developing a wider range of ready-made food and beverages, which it plans to roll out in 12 to 18 months. Meanwhile, sales of Via, available at 40,000 distribution points in six countries, exceeded the company's projections in every market. "Via will be a portfolio of products," stated the company's CEO. In addition, the company plans to double to 70 the number of Chinese cities in which it operates, reported Bloomberg.com. Full Story

Some 997 new food establishments in Florida were licensed by the state between January and Apr. 15, up 9.9% from the same time period last year, according to state records. However, 1,297 food establishments closed this year thus far across the state, compared with 905 for the same time period last year, reported Orlando Sentinel. Full Story (Free Registration Required)

Investment firm Angelo Gordon & Co. bought Firebirds International, which operates 18 Firebirds Wood Fired Grill locations in the Mid-Atlantic and South. The chain specializes in upscale casual dining, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

A number of hotel brands are revamping their executive club lounges to include healthier food. For instance, J.W. Marriott Hotels will focus its dining and beverage offerings on local and organic foods. Sheraton Hotels & Resorts and the owners of its hotels are spending about $108 million to upgrade 120 club lounges around the world to include wider food and beverage choices, reported The New York Times on the Web. Full Story (NYT Subscription Required)

Some 25 Fatburger restaurants owned by two bankrupt subsidiaries of Fog Cutter Capital Group Inc. were sold for $7.3 million. The restaurants, located in Southern California and Las Vegas, are owned by Fatburger Restaurants of California Inc. and Fatburger Restaurants of Nevada Inc. Fog Cutter's owner plans to open 25 new Fatburger restaurants this year and signed a deal with a South Korean group that plans to develop approximately 20 restaurants in that country, reported Portland Business Journal. Full Story (Free Registration Required)

Industry News

There are more than 9,500 Fair Trade Certified consumer products offered by more than 700 industry partners at more than 60,000 retail locations, according to Fair Trade USA's 2010 Almanac. Fair Trade citrus saw a 96% increase in growth in 2010, imports of sugar rose by 60% (89% also organic), and imported pounds of certified vanilla nearly quadrupled due to buyer commitments. Cocoa experienced a 67% growth in imports since 2009, 88% (3.9 million-lbs.) of which was also certified organic. Full Story

New! The Food Institute looks at store sales in the Apr. 26 edition of the Lempert Report, hosted by Phil Lempert. Also, get ready for the boomerangers. Click here to view.

Facebook launched a deals program in five U.S. cities: San Diego, San Francisco, Atlanta, Dallas and Austin. Facebook enlisted 11 companies that already supply deals elsewhere to help get the program started, including restaurant reservation service OpenTable. A user can buy a deal, click the "like" button to recommend it to others or share the offer with friends through Facebook's private messaging system, reported The Associated Press. Full Story

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

Canada's youngest generation, Post Millennials (born 1993 to present), is expected to skip more meal occasions across breakfast, lunch and dinner, according to A Look into The Future of Eating-Canadian Marketplace, a study by The NPD Group. In contrast, Generation X (born 1967 to 1975), is expected to increase consumption across a number of categories, including simple breakfast foods, center-of-plate proteins and easy meals. Canada's older baby boomers (born 1947 to 1955) will place more emphasis on convenience with heat-and eat-foods increasing in importance. Full Story

Groupe Lactalis offered to pay $4.9 billion in an unsolicited bid for the 71% of Parmalat SpA the company does not own, reported Bloomberg.com. Full Story

Resurgent global food prices are again threatening to push millions of people in developing Asia into extreme poverty, according to the Asian Development Bank's Global Food Price Inflation and Developing Asia report. Domestic food inflation in many regional economies in Asia averaged 10% in early 2011, which could push an additional 64 million people into extreme poverty based on the $1.25 a day poverty line. Full Story

Health News

High levels of heart-healthy omega-3 fatty acids in the blood may be associated with an increased risk for developing aggressive prostate cancer, while elevated levels of unhealthy trans-fatty acids may lower the risk, according to a study published in American Journal of Epidemiology, reported HealthDay. Full Story

Washington News

The Nevada Senate approved Senate Bill 230, which outlaws foods and beverages containing trans fats in vending machines and in school lunches, except those provided through school lunch programs, reported Las Vegas Review Journal. Full Story

Much of the nearly $1.2 billion in food stamp expenditures in Oklahoma in the past two years went to Walmart stores, which brought in about $506 million between July 2009 and March 2011, according to data supplied by the Oklahoma Department of Human Services and examined by Tulsa World. QuikTrip garnered $10 million in food stamp sales. Other convenience stores redeeming food stamps include: 7-Eleven stores, about $12.7 million; Kum and Go stores, about $2.7 million; JiffyTrip, about $648,000; and Stop and Save, about $385,900. Full Story

Oregonians for Humane Farms submitted a proposal that would mandate 1.5-sq. ft. of space per hen by 2019. Currently, chickens in Oregon get about 67-sq. in. apiece. The coalition includes The Humane Society of the U.S., ASPCA and the Center for Food Safety, reported OregonLive.com. Full Story (Free Registration Required)

Market News

Portions of Texas and a small part of Eastern Louisiana are the only parts of the nation that rank in the National Weather Service's worst drought condition category. Much of the rest of Texas and Louisiana are in extreme drought conditions, as are parts of Arizona, New Mexico, Oklahoma, Arkansas and Florida and small portions of Colorado and Kansas, reported USA Today. Full Story

USDA will release its Crop Production Historical Track Records report on Apr. 26 at 3:00 p.m. EST. View Details

Torrential rains and flooding in Colombia will boost food prices as farmers struggle to harvest crops and transport their produce, according to the country's Agriculture Minister. The agriculture ministry earmarked $224 million to help cattle ranchers and farmers, reported Bloomberg.com. Full Story

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