July 24, 2008

IFDA News

The House Education and Labor Committee will markup H.R. 1338, the Paycheck Fairness Act, today. The Paycheck Fairness Act introduced by Rep. Rosa DeLauro (D-CT), eliminates the caps on punitive and compensatory damages and makes punitive and compensatory damages available for even unintentional pay disparities. The bill eliminates employer defenses for pay disparities, such as paying people differently because they work in different parts of the country with different costs of living. H.R 1338 also makes it easier for trial lawyers to file large class actions. In addition to significant compliance costs, H.R. 1338 would also result in increased litigation and backlogs in the courts. The bill is expected to be considered by the full House of Representatives for a vote next week where it will likely pass. For more information on this issue contact the IFDA government relations department.

Operator News

Europe is now McDonalds' largest region by revenues, despite having only about one-fourth as many outlets as in the U.S. "A huge chunk of the company's success comes from giving locals the kind of foods they like, instead of force-feeding American menu items to them," said Ron Paul, president of Technomic Inc. There's porridge in Britain and pasta freshly cooked to order in Italy. In France, there's a smaller-sized burger on a ciabatta roll slathered with a sophisticated mustard sauce and served with a glass of wine. High design restaurants feature green swivel armchairs, modernist murals, elegant wood, leather and stainless steel instead of retro plastic and formica fittings. Last year, McDonald's remodeled 640 restaurants in Europe, with another 805 on tap this year. This represents a significant investment, considering that the work can cost between $411,000 and $686,000 on average, according to The Atlanta Journal-Constitution. Full Story (Free Registration Required)

Meanwhile, McDonald's warned that it expects beef and chicken costs to rise substantially in the U.S. and Europe through the rest of this year, and is testing several options that may change the makeup of its dollar menu, reported The Associated Press. Full Story

Papa Bello Enterprises began a nationwide marketing and awareness plan to build its franchise base and expand its business. The company currently has contracts in place for more than 100 stores in Colorado, Alabama, South Carolina, Georgia, and China. Full Story

YF Systems of Texas, LLC plans to open 30 Yogen Früz locations in the state over the next ten years. Full Story

Retail News

Minyard Food Stores Inc. entered into an agreement to sell 37 stores and its Hispanic-focused Carnival brand to a group led by The Grocers Supply Co., Inc. Grocers Supply's decision to acquire the Carnival brand and stores confirms the chain's strategic focus on the growing Latino food market, according to Minyard management. Full Story

Food Lion is adding Childress Classic Scupperdine to its line of private label wines. The new wine follows the introduction of Surf Point, in June; Josef Wienberg, in April; and Pinecroft, in March, reported Supermarket News. Full Story

Stop & Shop, Giant Food and Giant Food Stores will support the Conservation Alliance for Seafood Solutions' Common Vision, a program focused on protecting the oceans, and the long-term seafood supply, reported Supermarket News. Full Story

Industry News

Indications of slowdowns in certain categories within the organic market and a plateauing of overall organic sales are beginning to surface, according to a new report from The Hartman Group titled The Many Faces of Organic 2008. While self-reported consumer purchase activity is leveling off, the organic market is far from reaching an expiration date or even a saturation point. Full Story

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

Marfrig Group acquired the Pemmican beef jerky brand and related production equipment from ConAgra Foods, Inc. through its subsidiary Mirab USA Inc. for $25 million in cash. Marfrig and ConAgra Foods also entered into a sales and distribution agreement for five years under which ConAgra Foods will sell and distribute the Pemmican brand beef jerky for Marfrig. Marfrig will also co-pack "Slim Jim" beef jerky for ConAgra Foods pursuant to a co-pack agreement between ConAgra Foods and Mirab USA, not including the "Slim Jim" beef stick business. Full Story

H.J. Heinz Company started construction on a frozen food facility in South Carolina. The $105 million facility will increase the company's production of Weight Watchers Smart Ones and Boston Market frozen entrees, reported Industrial Info Resources. Full Story (Subscription Required)

PepsiCo expects production to be back to full capacity at its Quaker manufacturing facility in Cedar Rapids, IA in mid-August, after being shut down due to flooding. Full Story

The Government of Canada is proposing new labeling requirements for food allergens, gluten sources and added sulphites contained in prepackaged foods. Health Canada will also launch several allergy studies, including a large national study of food allergy prevalence, and two studies on the dietary habits and coping skills of people with celiac disease who are on a gluten-free diet. Full Story

In an effort to tackle obesity in the UK, more than £200 million was pledged by several food and drinks companies, including Coca-Cola, Kellogg's, Mars and Nestle, to a government-led campaign. The campaign, Change4Life, will launch in the fall, reported BBC News. Full Story

Pernod Ricard SA will focus on its existing labels, soon to include Absolut vodka, signaling a change in its growth strategy. The company, which has been emphasizing acquisitions, plans to stop buying for the next few years and nurture the labels it already owns, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

The Australian Competition and Consumer Commission will not intervene in the acquisition of Australian Co-operative Foods Ltd by National Foods Ltd and Warrnambool Cheese and Butter Factory Company Holdings Ltd. The Commission accepted a court-enforceable undertaking from National Foods and its holding company Kirin Holdings Pty Ltd, according to chairman Graeme Samuel, reported Queensland Country Life. Full Story

Washington News

The Government Accountability Office reviewed how states are progressing with the Implementation Plan for the National Strategy for Pandemic Influenza and identified several areas where there are "major gaps." The agency suggested that additional regional meetings be held to provide a forum for state and federal officials to address the gaps in states' planning and to maintain the momentum of states' pandemic preparedness through this next governmental transition. Full Report

Georgia Department of Agriculture Commissioner Tommy Irvin will ask supermarkets to put Georgia-grown jalapeno peppers back on their shelves if they prove free of the salmonella strain that caused the widespread outbreak. "I don't want to be too harsh on Food and Drug, but we think that they're overreacting," Irvin said. Irvin sent agriculture department staffers to collect samples from Georgia farms and results should be available by July 28 at the latest, according to The Atlanta Journal-Constitution. Full Story (Free Registration Required)

Market News

New-crop sweet potatoes will be in retail stores by the end of July, according to California farmers. Demand for frozen, french-fried sweet potatoes continues to grow, but farmers probably will not sell into that market until September, as demand for fresh market sweet potatoes remains strong, reported California Farm Bureau.

The average U.S. household throws out nearly a quarter of the fruits and vegetables they buy, according to a study by the University of Arizona. Consumers are encouraged to learn the best methods of selecting and storing their produce so it does not get to the point where they have to throw it out, reported MSNBC. Full Story

Agricultural Research Service scientists found that proper storage temperatures are essential to minimize bacterial growth and adaptability inside sealed, bagged salads. Full Story

Hot weather and wind during bloom took a toll on the California olive crop. Many farmers surveying their olive groves claim there is so little fruit on the trees that they will not try to harvest any, reported California Farm Bureau.

A public hearing will be held to consider and take evidence on a proposal to temporarily adjust certain Class I differentials in the Mideast milk marketing order. Full Notice

USDA relaxed the incoming quality control requirements prescribed under the California almond marketing order. Full Notice

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