May 13, 2011

IFDA News

"You are not the enemy," said Representative Tom Price (R-GA) to IFDA members during a dinner speech, letting them know that not everyone in Washington is tone deaf to the business community. Rep. Price's comments were made at the IFDA Washington Insight & Advocacy Conference, where he told foodservice distributor leaders that we must again be able to proclaim that "the business of America is business," echoing the words of President Coolidge. Full Story

Operator News

Buffets Inc. is pursuing strategic alternatives, reported Minneapolis / St. Paul Business Journal. The company hired Moelis & Co. to evaluate options, including a potential sale. Full Story (Free Registration Required)

Retail News

Safeway's CEO is pleased with the early showing for "Just for U" pricing that offers special deals based on each shopper's purchasing history. The company is still testing the program in Northern California, Hawaii and Chicago before deciding whether to expand the program to other markets. The top 20% of the chain's customers account for more than 70% of sales, reported San Francisco Business Times. Full Story (Free Registration Required)

Wal-Mart Stores Inc. will buy a minority stake in Chinese e-commerce company Yihaodian, which sells groceries. The deal is expected to close within 60 days, reported Reuters. Full Story

Industry News

General Mills Inc. will implement further price increases to offset higher commodity costs. Next fiscal year, General Mills expects costs to be above the estimated 4% to 5% long term range. The higher prices are expected to drive sales growth in General Mills' cereal business, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

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

Ecolab Inc. plans to increase investment in China due to fast-growing demand. An initial investment of $900 million for a new production center in Jiangsu province is expected to produce disinfectant with a daily output capacity of 1.5 million tons, reported Reuters. Full Story

Mizkan Americas Inc. acquired Border Foods Inc., a processor of green chile peppers and jalapeno peppers. The company also processes tomatillo peppers and manufactures enchilada sauces for the branded and private label markets. Mizkan Americas is a subsidiary of Mizkan Group, reported New Mexico Business Weekly. Full Story (Free Registration Required)

Key trends defining the new Canadian consumer marketplace include: tepid consumer confidence, rising prices and the quest for value. The rising cost of commodities is fueling price increases within the top 100 categories, with the most affected categories being coffee (19%), bacon (17%) and sugar (11%). Top saving activities for consumers include buying when on sale (70%), using coupons (52%) and buying larger value packs (37%), reported Nielsen. Full Story

Washington News

Currently in California's legislature, Senate Bill 104 would provide an alternative to secret-ballot elections for farmworkers, allowing them to obtain union representation if a majority of employees sign petition cards, reported The Sacramento Bee. Full Story (Free Registration Required)

Market News

The Florida Citrus Processors Association joined other state citrus organizations in calling on Gov. Rick Scott to veto 11th-hour changes to the Florida Citrus Code sponsored by state Sen. J.D. Alexander. Other groups calling for a veto include Florida Citrus Packers, Florida's Natural Growers and the Highlands County Citrus Growers Association, reported The Lakeland Ledger. Full Story (Free Registration Required)

USDA will release its Potato Stocks report on May 13 at 3:00 p.m. EST. View Details

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