IFDA's Daily Update

July 03, 2008

Editor's Note: IFDA's Daily Update will not be published on July 4.

Operator News

In 2007, the top five food chains were McDonald's, KFC, Burger King, Starbucks, and Subway, according to the 2008 Restaurants & Institutions' Top 400 Restaurant Chains report. Aggregate systemwide sales for this year's 400 largest brands were $292.1 billion, up 5.4% from the previous year. Full Story, Full List

Marble Slab Creamery opened a new store in Kuwait as part of the company's expansion plans in Europe, Asia and the Middle East. Since September 2007, the company opened 12 stores in the United Arab Emirates and Bahrain, and anticipates opening nine stores in the United Arab Emirates, Bahrain, Oman and Saudi Arabia during 2008, reported QSR Magazine. Full Story

Retail News

Alternative gasoline retailers, including supercenters, supermarkets, and warehouse clubs, are garnering more of the convenience store industry's gasoline shopper base, according to TNS Retail Forward. One-third of shoppers are buying most of their gasoline at alternative outlets, up from 22% just three years ago. "Fewer shoppers filling their tanks at convenience stores mean fewer shoppers filling their stomachs with higher-margin goods inside the store," comments Jennifer Halterman, Senior Consultant with TNS Retail Forward. "Sky rocketing gasoline prices also leave little change in shoppers' pockets for in-store purchases," she adds. Full Story

Several of the Buffalo, NY area Wilson Farms Neighborhood Food stores are getting a makeover. The first store targeted for remodeling will more than double in size, from just over 2,500-sq. ft. to more than 4,600-sq. ft. and will feature a new facade style that will be the new brand standard for the convenience store chain, according to The Buffalo News. Full Story

BP Products North America sold 23 BP-branded retail sites to Atlas Oil Co. The sale is scheduled to close in the fall and includes retail locations owned by BP in northwest Indiana, reported CSP Daily News. Full Story

No Frills Supermarkets finalized the sale of the company to its current seven-member management team, reported Progressive Grocer. Full Story

ECONOMIC DOWNTURN PRESENTS OPPORTUNITIES & CHALLENGES FOR RETAILERS

The future of food retailing for the next three to five years will be dramatically affected by two major trends: food inflation and the emergence of small format stores, according to the annual Future of Food Retailing webinar presented by The Food Institute and Willard Bishop, which examined the state of the food and consumables retail industry in 2007 and beyond. Food price inflation will exceed current "conventional wisdom," and be a factor for three or more years, predicted Willard Bishop during the webinar. In fact, predictions about the rate of inflation have generally been underestimated. However, this food price inflation can benefit food retailers with winning shopper value equations and solid plans to take advantage. If you missed The Future of Food Retailing webinar and would like to purchase a recording, click here.

Industry News

H. J. Heinz Company intends to acquire Bénédicta, a French manufacturer of table top sauces, mayonnaise and salad dressings. Full Story

Barry Callebaut opened a research and development center at its manufacturing facility in Pennsauken, NJ. The center will focus on the development of unique chocolate products and applications to meet the specific needs of its U.S. customers. Full Story

Rancho Poultry LLC plans to construct a 100,000-sq. ft. facility in Lebanon, KY. Two processing lines will be installed capable of producing 60 million-lbs. of partially cooked, battered and breaded chicken products. An additional third product line is already being considered by the company. Full Story

Latest sales & earnings for food related companies (Updated Daily)

Distillers are expanding production as the popularity of bourbon grows worldwide, reported The Associated Press. Surging exports, the weak U.S. dollar, and rising popularity among younger Americans are driving the boom. For example, Wild Turkey sold more than one million cases worldwide last year for the first time; its $36 million expansion will nearly double its production. Full Story

Fonterra is still looking to grow internationally, and is targeting key markets such as Asia. Although the New Zealand-based company remains committed to driving low-cost sustainable production domestically, it is actively seeking new ventures and markets for its operations, reported Food Production Daily. Full Story

South Korean President Lee Myung-bak called for an end to lingering disputes over American beef imports, stating it was time for the nation to concentrate on overcoming domestic and economic difficulties, reported The Associated Press. Full Story

Health News

Many consumers overstate their fruit and vegetable consumption, according to a study in Nutrition Journal. Consumers know they are expected to eat five or more servings of fruits and vegetables a day, so that is what they say when asked, even though it may not be true, reported The New York Times on the Web. Full Story (Free Registration Required), Study Abstract

Beets, cabbage, cinnamon, and Swiss chard are among the 11 healthy foods most people should eat but do not, reported The New York Times on the Web. Full Story (Free Registration Required)

Washington News

Fresh salsas made with tomatoes and other ingredients are now a suspect in the search for the source of the nationwide salmonella outbreak, according to the Centers for Disease Control and Prevention. The agency asked state and local health officials to focus their efforts on items commonly used in the production of fresh salsa, particularly that made in local restaurants, said CDC spokesman Glen Nowak. The focus does not involve commercially produced salsas, reported USA Today. Full Story

Two new states, Alabama and South Carolina, reported cases of of salmonella linked to the nationwide outbreak. Since April, 887 infected persons have been identified in 38 states and the District of Columbia. Over 180 people became ill on June 1 or later. Full Story

The Center for Science in the Public Interest (CSPI) requested that FDA take action to halt false and misleading "structure/function" claims for numerous food products, which claim to protect immunity, nourish the brain, support a healthy digestive system, or protect cartilage and joints. CSPI cited several major food companies, including Dole, Kraft Foods, and General Mills, for selling foods with such claims. Full Story

Meanwhile, Kraft disputes the notion that its company falsely labeled its products, noting labeling rules allow a company to tout the basic benefits of nutrients in a product, reported Crain's Chicago Business. Full Story (Free Registration Required)

Market News

By 2008, the price per pound of a chicken breast could climb to $2.63 and beef round roast to $4.22, both up 10%. Meanwhile, the price per pound of a pork chop could also be up to $4.78, a 30% increase. These increases are being driven by the rising cost of corn, reported CBSNEWS.com. Full Story

A newly designed program of "swath grazing" will allow cattle to graze year-round, according to Agricultural Research Service researchers. The concept involves pushing harvested crop leftovers into row piles up to 16-in. high, to keep them within reach of cows in winter. Winter grazing can save farmers as much as 24 cents per cow per day, compared to the costs of baling hay for winter corral feeding. Full Story

Produce dealers claim shoppers will find ample supplies of all the fruits and vegetables that consumers typically seek for the July 4th holiday, albeit more expensive this year, reported California Farm Bureau.

Californian peaches, plums and nectarine farmers are on pace to meet expectations for this year's crop volumes. Temperatures in fruit-growing regions are expected to be only in the 90s this week, reported California Farm Bureau.

Farmers in California's San Joaquin Valley are pleased by cooperative efforts to address their water shortage. But a set of water trades and loans will still leave farmers far short of the water needed to grow crops already planted. A combination of dry weather and endangered-species protections resulted in a cut in Central Valley Project water supplies, reported California Farm Bureau.