IFDA's Daily Update

July 18, 2008

IFDA News

To friends of the Thoms family of PFG - Thoms Proestler Company, the company has asked us to let IFDA members know that Mary Thoms passed away on July 17 after a brief bout with cancer. Mary was the wife of Stuart Thoms, chairman of the board at the company, mother of Tom, Mike, and Ted Thoms who are involved in the business, and of Steve and Mary Beth Thoms who were not. Service information will most likely be placed in the local newspaper over the weekend. Their website is www.qctimes.com. Our sincere condolences to the family.

Operator News

Amid the confusion surrounding recent outbreaks of foodborne illness, major fast-food chains are ratcheting up marketing messages about "quality," explaining to consumers why their food is fresh and reasonably healthy, reported Advertising Age. Full Story (Free Registration Required)

Burger King Corp. acquired 72 Burger King restaurants in Iowa and Nebraska from franchisee Simmonds Restaurant Management. Full Story

Papa Bello Enterprises expanded its franchise business into Colorado. The first Papa Bello restaurant outside of a Wal-Mart will opened in Castle Rock, CO. Full Story

E-Z Mart Stores added a new foodservice program - Two Chicks Cafe, a full-service restaurant that will be connected to one of its convenience stores, reported CSP Daily News. Full Story

Retail News

Irving Oil's convenience stores across New England and Atlantic Canada were recently converted to the Circle K banner. The conversion includes 252 of Irving Oil's Blue Canoe, Mainway and Big Stop convenience stores in the area, reported Bangor Daily News. Full Story

Seven Little Sue Marts are being converted to 7-Elevens in Gloucester and the Middle Peninsula, VA. Neighborhood Convenience Inc. sold the stores in January to 7-Eleven, which has been renovating them since April, reported Daily Press. Full Story

Consumer Food Spending and the Changing Economy

Although the slumping economy is impacting the restaurant industry and restaurant growth is forecast at the lowest level since 1991, concepts that offer unique and resonating value equation can find success, noted Kevin Higar, Senior Manager of Technomic Inc. during the Consumer Spending and the Changing Economy webinar presented by Technomic Inc. and The Food Institute. Additionally, opportunities to increase menu prices do exist, as not all menu price elasticities are created equal. Meanwhile, supermarkets can benefit from trading down, noted Ron Paul, President of Technomic. If you missed the webiner, but would like to purchase a recording of the event, click here.

Industry News

Nearly half of Americans are concerned they may get sick from eating contaminated food and are avoiding items they normally would buy, according to an Associated Press-Ipsos poll. Although three in four remain confident about the overall safety of foods, 86% of consumers support setting up a tracing system for produce and 80% stated they would support new federal standards for fresh produce, reported The Associated Press. Full Story, Full Study

Coca-Cola Enterprises will implement post-Labor Day price increases in the U.S. "Continued significant declines in the North American economy, coupled with unprecedented escalating commodity costs, are negatively impacting our results and restricting our outlook for near term growth," according to John F. Brock, chairman and CEO. "As a result, we are taking action including establishing pricing levels that cover input costs, strengthening execution, restoring growth to immediate consumption by recruiting new consumers, and reducing operating expenses," noted Mr. Brock. Full Story

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

Nature's Path Foods is establishing a manufacturing facility in Sussex,WI and will receive a $250,000 training grant from the state, according to Governor Jim Doyle. The company is turning a former Kraft plant it into an organic cereal manufacturing facility. Full Story

The EU Blending Company was established by Erie Foods International. The new company will focus on creating custom blends for use in dairy products, bakery and other foods, reported Food Navigator. Full Story

The EU proposed a $1.6 billion two-year emergency fund to help poor countries cope with the global food crisis. European Commission President Jose Manuel Barroso explained that the fund will aim to help mostly African nations and stabilize supply markets, reported The Associated Press. Full Story

Canada-based Maple Leaf Foods increased its ownership of Canada Bread Company. Full Story

Lion Capital intends to acquire Advang Holding B.V., owner of Mora, a branded producer of frozen snacks and appetizers. Full Story

An initial investigation by the European Competition Commission raised serious concerns about the proposed merger of Friesland Foods and Campina, prompting the commission to launch an in-depth investigation, reported Food Navigator. Full Story

The Swiss takeover board approved the method chosen by Hiestand Holding AG and IAWS Group Plc to merge the two companies, reported Irish Examiner. Full Story

Health News

Just the smell of freshly brewed coffee can help relieve stress, according to researchers at Seoul National University in South Korea that was published in the Journal of Agricultural and Food Chemistry. Roasted coffee bean aroma created higher activity in a number of genes in sleep deprived rats, including some that produce proteins with antioxidant activities, reported Beverage Daily. Full Story, Study Abstract

The proportion of U.S. adults who report they are obese increased nearly two percentage points to 25.6% between 2005 and 2007, according to the CDC's Morbidity and Mortality Weekly Report. Full Story

Probiotic bacteria may reduce the occurrence of gut complications in premature infants, suggests new research, reported Food Production Daily. Full Story

Washington News

FDA removed the warning to avoid certain types of tomatoes, claiming that the tomatoes currently on the market are not contaminated with Salmonella Saintpaul. CDC and FDA will continue with their investigation into jalapeño and serrano peppers. Full Story

The Federal Trade Commission issued a complaint charging that Pernod Ricard's proposed $9 billion acquisition of V&S Vin & Sprit would be anticompetitive and in violation of U.S. antitrust laws because it would effectively combine the two most popular brands of "super-premium" vodka sold nationwide, Absolut and Stolichnaya. Full Release

More than $4 million will be awarded to the University of Georgia to study the causes of Colony Collapse Disorder and other diseases affecting bee populations, whose pollination is valued at $15 billion annually to U.S. agriculture, according to Agriculture Secretary Ed Schafer. Full Story

Alcohol and Tobacco Tax and Trade Bureau clarified a ruling that certain brewed products classified as "beer" under the Internal Revenue Code of 1986 do not meet the definition of a "malt beverage" under the Federal Alcohol Administration Act. Full Notice

The Government Accountability Office issued a new report - Preliminary Observations on Efforts to Implement Changes in the Highway Safety Improvement Program Since SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users). Full Report

Market News

Pork producers are likely to see profits again in 2009, despite being in the red for the past nine months, according to Rabobank's U.S. Pork report. U.S. demand for pork rose 2.5% in 2007 and was 0.2% higher than one year ago in the first quarter of 2008, according to an index calculated by the University of Missouri. Meanwhile, beef demand was down 3% and poultry demand up 3.2% over the first quarter. Full Story

In 2007, seafood consumption declined slightly (1%), with Americans consuming a total of 4.9 billion-lbs. of fish and shellfish during the year, according to a National Oceanic and Atmospheric Administration's Fisheries Service study. However, the U.S. continues to be ranked the third largest consumer of fish and shellfish, behind China and Japan. Full Story

Soaring grain costs are forcing catfish farmers to drain their ponds, reported The New York Times on the Web, noting that Dillard & Company, which raised 11 million fish this year, will raise none in 2009. Feed costs now make up more than half the total cost of raising catfish, compared with a third of the cost of beef and pork production, according to a Mississippi State analysis, making it more vulnerable to price increases. Full Story (Free Registration Required)

An aggressive campaign to stop Asian citrus psyllid was launched on California-Mexico border. Growers claim say the bug, which spreads citrus greening disease, has the potential to be more damaging than the Mediterranean fruit fly because entire groves, not just fruit, are at risk, reported The Associated Press. Full Story

The plum pox virus spread from Niagara County eastward to beyond Rochester, NY. The New York State Department of Agriculture and Markets notified Wayne County fruit growers that an ongoing survey also detected the aphid-spread virus in Williamson, reported Business First of Buffalo. Full Story (Free Registration Required)

AM Todd introduced two new citrus products that were developed in response to lemon oil shortages and price increases, reported Food Navigator. Full Story

Supercenter Sales Hit $208.3 Billion In 2006

Supercenter sales reached $208.3 billion in 2006, up 15.5% from 2005 and up 34.3% from 2004, according to the latest edition of the Supercenter Industry Overview, part of the Supermerchants series published by alternative format expert James M. Degen & Co. The number of supercenters in the U.S. Increased 12.5% to 2,837 in 2006. This report covers company specific market size and growth, top companies, physical characteristics, consumer demographics, competitive response and an outlook for future developments. Click here to order.