July 10, 2008

IFDA News

The Coalition for a Democratic Workplace has begun running ads in Minnesota identifying the positions of Senate candidates Norm Coleman and Al Franken on the Employee Free Choice Act. The ad, which features former Sopranos star Vincent Curatola, is a part of CDW's coordinated campaign to educate voters on EFCA. To view the ad, go to the CDW website, www.myprivateballot.com. Polls show that 80% of Americans believe a government supervised private ballot is the best way to determine if employees would like a union in their workplace. EFCA would replace the secret ballot with a public card check scheme putting employees at risk for intimidation and coercion. IFDA is a management committee member of the Coalition, the umbrella business group of more than 500 organizations dedicated to the defeat of EFCA. For more information on how you can help defeat EFCA, contact the IFDA government relations department.

The Food Industry Truck Driving Championship is a three-part competition recognizing driver safety, knowledge, and skills. Driving championships are an excellent element in an overall safety program, helping to reduce losses, improving moral, and showing your employees and insurance carrier that you are serious when it comes to safety. The event takes place September 12-14, 2008, in Orlando, FL. For full program information, click here.

Distributor News

Georges Enterprises acquired Harrison Co., a Louisiana-based food distributor that services convenience stores, reported CSP Daily News. Full Story

Operator News

Starbucks is testing several types of promotions in stores across the country, which will vary by region and timing. For example, through July 23, Starbucks is giving away 12-oz. iced coffees on Wednesdays to customers in New York City, Philadelphia, Washington, Boston and Detroit who present an "iced brewed coffee card," a reusable voucher distributed in stores and newspaper inserts, reported USA Today. Full Story

Retail News

Walgreens plans to reduce its organic drugstore growth beginning in fiscal 2009. Walgreens intends to reduce its expansion from a nearly 9% increase in net new organic stores in the current fiscal 2008 (which ends Aug. 31) to a goal of about 6% in fiscal 2010 and approximately 5% annual increases beginning in fiscal 2011. Walgreens will open more than 500 net new organic stores (after relocations and closings) in the current fiscal year. Its planned future expansion rates are the equivalent of opening about 495 net new organic stores in fiscal 2009, 425 in fiscal 2010 and 365 in fiscal 2011. Full Story

Stop & Shop held the first of three Affordable Food Summits at Stop & Shop stores in the New York metro area, to help customers save money on food, but still eat well, reported Progressive Grocer. The events, which will address how customers can get more value for their food dollar in the present economy, feature input from politicians, economists, dietitians, and food bank directors. Full Story

Harris Teeter is offering customers that use their loyalty cards one point for every dollar spent on a variety of ice creams. When 30 total points are earned, the customer will receive a $5 electronic coupon off their next purchase of $5 or more. The retailer is running the ice cream promotion through Aug. 5, reported Supermarket News. Full Story

K-VA-T Food Stores' Food City banner extended its fuel and pharmacy promotion. Under the promotion, customers who use the retailer's ValuCard can earn "fuel/pharmacy bucks," which are dispensed at the checkout, by purchasing private-label products as well as a six-pack of Coca-Cola half-liter bottles. The bucks must be used at either a Food City fuel center or pharmacy, reported Supermarket News. Full Story

Fred's Minit Mart LLC introduced a self-branded fountain drink line, Minit Mix. Minit Mix fountain drinks will be available in 29 Minit Mart locations, in 16 different varieties, reported CSP Daily News. Full Story

New Jersey liquor store merchants are offering more varieties in response to the region's diverse ethnic mix. Bergenfield Liquors in Bergenfield carries San Miguel from The Philippines, Sol from Mexico, Presidente from the Dominican Republic, and Kingfisher from India. The trend is likely to grow, vendors predict, reported The Record. Full Story

Carrefour SA will cut prices and reduce internal costs to counter rising gasoline prices, weak consumer spending in France, and an Olympics-related boycott at its China stores in the second quarter, explained Chief Executive Jose Luis Duran, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Poland's PKN Orlen unveiled its newest convenience store concept in Warsaw. The location includes a Stop Café Bistro that features a coffee bar as well as prepared sandwiches and other to-go foods. Full Story

Japan-based Aeon Co. plans to close 40 general merchandise stores by February 2010, reported Bloomberg.com. Full Story

Industry News

Sales of private label products increased 5% worldwide over the past eight years versus 2% for national brands, according to A New Look at the Private Label Consumer, a study by Catalina Marketing Corp. and Daymon Worldwide. In the U.S., private label has grown at twice the rate of national brands. Today, 71% of consumers are purchasing private label products on 35% of shopping trips, reported Retailing Today. Full Story (Free Registration Required)

Dow Chemical Co. reached a definitive agreement to acquire all outstanding shares of Rohm and Haas common stock for $78 per share in cash. Dow values the transaction at $18.8 billion. Financing for the acquisition includes an equity investment by Berkshire Hathaway and the Kuwait Investment Authority. Full Story

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

NutriSystem, Inc. acquired the assets of PowerChow LLC's Nu-Kitchen, which prepares and delivers meals designed to promote weight management and healthy living. NutriSystem plans to initially extend Nu-Kitchen's local daily delivery service from the New York City metropolitan region to the Northeastern U.S. and to eventually develop a national delivery service. Full Story

Frutarom improved its pear and strawberry flavor products to give them a more natural fruit taste. The company is also planning to expand the new fruit line to include flavors such as raspberry, blueberry and pomegranate and where possible, produce organic certified products, reported Food Navigator. Full Story

China's trade surplus fell 20% in June as export growth declined and analysts claim Beijing might try to help struggling exporters by slowing the rise of its currency in defiance of pressure from trading partners. Weaker export growth reflects slowing demand for Chinese goods amid slower global growth and fears of a possible U.S. recession, reported CBSNEWS.com. Full Story

Several EU governments will have to return a total of €410.3 million in misspent farm subsidies, according to the European Commission. For example, Italy will have to return about €145 million for not properly checking land areas eligible for EU subsidies. The commission also found poor controls in citrus processing in Italy, reported BBC News. Full Story

Unilever signed a definitive agreement to sell Turkish olive oil brand Komili to Ana Gida, part of the Anadolu Group. Full Story

The United Arab Emirates is forming a joint venture with United Food Technologies to farm its own caviar. Both companies are investing $80 million in the project, centered around a climate-controlled facility where 64 swimming-pool-sized basins will house thousands of sturgeon, ultimately producing 40-tons of caviar and 710-tons of smoked and sliced sturgeon meat per year, reported Financial Times. Full Story

Ireland-based dairy and ingredients group Glanbia opened its first plant in the Suzhou, China. The site will focus on manufacturing lactose ingredients, reported NutraIngredients.com. Full Story

Health News

Consumption of green leafy vegetables and fruit was associated with a lower hazard of diabetes, whereas consumption of fruit juices may be associated with an increased hazard among women, claims a new study from the American Diabetes Association. Study Abstract

Eating less is one method known to extend the human lifespan by up to five years, and is becoming accepted among leading researchers. Calorie restriction supposedly works by cutting risks for some diseases and by allowing all body cells to become healthier, reported LiveScience.com. Full Story

Higher intakes of vitamin D related to milk consumption and vitamin use during pregnancy may lead to stronger teeth in children, according to researchers from University of Manitoba, Canada, reported Food Production Daily. Full Story

Washington News

In response to rising costs for school meals, USDA will contribute an additional 10 cents per meal to help schools pay for lunches, increasing the maximum rate to $2.57, up from $2.47 in 2007. However, school nutrition directors say that does not keep pace with costs, which will climb 30 cents per meal this year to a national average of $2.88, according to the School Nutrition Association, reported USA Today. Full Story

A House of Representatives agriculture subcommittee is planning a July 15 hearing to investigate the federal government's handling of the tomato and spinach contamination outbreaks. Rep. Debbie Wasserman Schultz plans to add an amendment to FDA's spending bill that would require the agency to study its outbreak program, reported The Produce News. Full Story

Jalapeno peppers caused some cases of the 1017 Salmonella Saintpaul infections in the U.S., but they do not explain all illnesses, according to the CDC. Raw tomatoes, fresh serrano peppers, and fresh cilantro also remain under investigation. Investigators from many agencies are collaborating to track the source of the implicated peppers and other produce items. Full Story

In testimony on behavioral advertising, FTC told the U.S. Senate Committee on Commerce, Science, and Transportation that "the issues surrounding this practice are complex ... the business models are diverse and constantly evolving, and ... behavioral advertising may provide benefits to consumers even as it raises concerns about consumer privacy." While such advertising may provide a variety of benefits to consumers, including free content, personalization of ads, and a potential reduction in unwanted advertising, consumers have also expressed discomfort about the privacy implications of being tracked online, as well as the specific harms that could result. FTC Release

The recent Import Safety Summit brought together leaders from a wide spectrum of industries to discuss how to fortify public-private partnerships for strengthening the safety of imported products. Co-sponsored by the National Restaurant Association, industry panels focused on the food industry, standards and certifications, and consumer products. Secretary Leavitt delivered the keynote address. Full Story

Market News

The processing tomato yield is being impacted by unprecedented fuel prices, water shortages, and poor growing conditions in California. A change in the weather shortly after most planting was completed challenged farmers, as high winds during the early growing season caused blossoms to drop, which in turn reduced yields, reported California Farm Bureau. Full Story

California avocado growers lost at least $1 million worth of fruit and about 200 acres of orchards to the Gap wildfire in Santa Barbara County. County Agricultural Commissioner William D. Gillette estimated the cost to replace trees, farm equipment, and irrigation lines, plus lost production until new trees bear fruit, will be $9.5 million over the next five to seven years, reported The Modesto Bee. Full Story (Free Registration Required)

The recent heat wave in California is producing mixed results for farmers. For example, fruit are getting sweeter, while cows are making less milk and restaurants are ordering less food, reported The Sacramento Bee. Full Story (Free Registration Required)

Cargill Meat Solutions launched a new pork brand called Good Nature. The products will be sourced from hogs raised antibiotic-free on family farms in the Midwest, reported Meat & Poultry. Full Story

A long-running drought in Australia's main food-growing region worsened, a new report claims, with three months of dry weather and the driest June on record. The Murray-Darling river basin produces 40% of Australia's fruit, vegetables and grain, and experts think the drought will hit irrigated crops like rice and grapes the hardest, because other crops depend more on rainfall during specific periods, reported BBC News. Full Story

A growing variety of enhanced soybeans and soybean oils could increase consumer demand for soy products, according to the United Soybean Board. The number of consumers who tried soy products has more than doubled in the last decade to 40% and more than a third seek out soy products for health reasons, reported Food Navigator. Full Story

IFDA's Mission: The International Foodservice Distributors Association advocates the interests of the foodservice distribution community in government and industry affairs through research, education, and communications. IFDA represents foodservice distributors throughout the U.S., Canada, and internationally. For more information, click here.

FI's Mission: The Food Institute strives to be the best "single source" for current, timely and relevant information about the food industry from "farm to fork." The association serves as a trusted source of information, providing balanced coverage of the issues. It delivers information through multiple media so that industry professionals worldwide can tap in when and how they choose. For more information, visit, http://www.foodinstitute.com.