April 28, 2011

IFDA News

Now in its second year, the IFMA/IFDA Sales & Marketing Conference is an important landmark opportunity for distributors and manufacturers to get insights on the biggest issues facing marketers in foodservice. "We have more than a dozen sessions planned at this year's conference that will make you a better resource to your customers," said planning committee member Diane Chandler, director of marketing and merchandising at Martin Brothers Distributing Co. "In addition to what you hear, there are also many opportunities for dialogue with peers and manufacturers-both in group settings or one on one," said Chandler. Full Story

The Food and Drug Administration has released an updated edition of the Fish and Fishery Products Hazards and Controls Guidance detailing the agency's latest thinking regarding seafood food safety hazards. The document is a significant revision of this guidance which was last updated in 2001. The guidance along with an introductory video is available here. IFDA will be providing a summary of the changes shortly. For more information contact the IFDA government relations department.

Operator News

Buffalo Wild Wings Inc. is taking advantage of record-low chicken wing costs and plans to launch local promotional programs to encourage Sunday traffic and continue price increases if necessary to offset potential losses due to a possible NFL lockout. Analysts estimate NFL game days contribute as much as 10% to Buffalo Wild Wings' annual profit, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Some U.S. restaurants are weighing the possibility of increasing menu prices as accelerating costs for ingredients squeeze profits. Panera Bread Co., which raised prices about 2% year-over-year, plans to raise prices again by roughly 1% in September, reported Reuters. Full Story

Starbucks has no plans to raise drink prices across the board to offset higher costs, executives told analysts during a conference call. However, while the company is not planning on raising prices immediately, "they've been making surgical price increases in certain markets," stated a William Blair & Co. analyst, reported The Seattle Times. Full Story (Free Registration Required)

MTY Food Group Inc. agreed to buy the assets of Jugo Juice International Inc., a Canadian food chain that specializes in selling fruit smoothies, for C$15.5 million in cash. Jugo Juice operates 133 outlets in seven provinces, reported Reuters. Full Story

Restaurant companies including Pinkberry are expanding internationally earlier in their growth cycles as they face a saturated U.S. restaurant industry and more globalized demand. Pinkberry, which has stores in countries including Kuwait, Bahrain, Mexico, and Peru, plans to operate in at least 19 countries by the end of the year. In 2011, its 30 expected international store openings will match the number of openings anticipated in the entire U.S., reported Fortune. Full Story

Retail News

7-Eleven Inc. agreed to buy the Wilson Farms convenience store chain, an ownership change that eventually will result in the rebranding and franchising of the stores. Wilson Farms has 188 stores in New York, reported The Buffalo News. Full Story

Apollo Management reportedly submitted a buyout bid for BJ's Wholesale Club that insiders estimate is worth more than $3 billion, according to sources, reported The New York Post. Full Story

Winn-Dixie Stores is generating annual sales of $500 per-sq. ft. at new stores and recent remodels, compared with $300 per-sq. ft. at earlier remodels. The company plans to use the same design at new stores in Apopka and Jacksonville, FL, reported Supermarket News. Full Story

Total UK grocery sales rose 3.6% year-on-year in the 12 weeks to Apr. 17, improving on a 2.6% increase in the 12 weeks to Mar. 20, according to data from Kantar Worldpanel. However, sales growth was outstripped by a 4.3% rise in price inflation, suggesting consumer demand remains subdued. Sales growth at Aldi and Lidl rose 15% and 14.7% respectively, taking their market shares to record highs of 3.3% and 2.6%, reported Reuters. Full Story

Industry News

Some shippers expect to raise fuel surcharges due to rising diesel costs. The trucking industry anticipates spending $142 billion for diesel this year, quadruple the $35 billion cost last year, according to American Trucking Associations. Transportation companies are looking at various avenues to avoid passing along all costs. For instance, Union Pacific is testing an aerodynamic shipping container and trucking company Werner Enterprises is reducing truck idling, reported The New York Times on the Web. Full Story (NYT Subscription Required)

At least three-quarters of all U.S. adults place importance on fresh (89%), fiber (81%), whole grains (81%), fat content (80%), portion size (79%), calories (77%) and saturated fat (76%) when making food and beverage purchases, according to a Harris Poll conducted by Harris Interactive. Matures (66-years-old and up) are the most likely of all generations to pay close attention to nutritional facts and translate their health consciousness into behavior. Over half of U.S. adults (57%) place some type of monitor or restriction on their diet. Full Story

View Today! The Apr. 28 edition of the Lempert Report, hosted by Phil Lempert, takes a look at the aging boomer population and nutrition. Click here to view.

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

Hilmar Cheese Co. plans to build an administration building and two renewable energy projects near its Hilmar, CA plant. A solar electricity system, planned for space next to the new office building, would trim Hilmar's consumption of utility power. Another planned system would produce gas from organic matter in waste water, reducing purchases of natural gas, reported The Modesto Bee. Full Story (Free Registration Required)

Health News

Some 14 pathogens in foods cost the U.S. $14 billion a year in human disease and deaths, hospitalizations and long-term complications, according to the Ranking the Risks: The 10 Pathogen-Food Combinations with the Greatest Burden on Public Health study from the University of Florida's Emerging Pathogens Institute. The top 10 pathogen-food combinations were responsible for more than $8 billion in direct medical costs and lost wages, while Salmonella causes the most disease overall and costs $3 billion annually. Policy Brief, Full Report (70 pages)

Washington News

The government is planning to propose voluntary guidelines for marketing foods to children Apr. 28, according to three people familiar with the process. Under the guidelines, companies looking to continue advertising to children would have to reduce unhealthy ingredients in their products. The proposed guidelines would be phased in over five years, reported The Associated Press. Full Story

Associated Grocers of Maine is closing due to continuing financial losses that forced it into receivership. The company distributes products to hundreds of small independent grocery stores across Maine, New Hampshire and Northern Massachusetts, reported Beaumont Enterprise. Full Story

The Florida Citrus Commission agreed to support a legislative proposal that will limit its authority to increase state citrus taxes. The Florida Department of Citrus receives about 85% of its annual revenue from a tax paid by Florida growers, reported The Lakeland Ledger. Full Story (Free Registration Required)

Los Angeles schools will remove high-sugar chocolate- and strawberry-flavored milk from their lunch and breakfast menus, according to L.A. schools Superintendent John Deasy. The plan will require approval by the Los Angeles Unified Board of Education, reported The Los Angeles Times. Full Story (Free Registration Required)

Market News

Cargill Inc. is buying a hog production facility in North Texas for $33 million from Smithfield Foods. Cargill will take over the 21,500-acre hog production facility near the town of Dalhart, which has been idle since last spring, reported The Minneapolis Star-Tribune. Full Story (Free Registration Required)

Coachella grape growers anticipate a good season with high quality and strong demand. The season normally runs from mid-May to mid-July. In April, the crop was set and progressing normally, reported The Packer. Full Story Meanwhile, Coachella's sweet pepper crops are running slightly late because of a February freeze, but grower-shippers report quality is good and supplies should be normal, according to The Packer. Full Story

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