IFDA's Daily Update

June 3, 2003

IFDA News

House to Consider Family Time Legislation This Week: H.R. 1119, The Family Time Flexibility Act is expected to come before the U.S. House of Representatives late this week. This legislation would allow private sector employees to accept compensatory time in lieu of overtime wages, providing greater flexibility for the demands of work and family. Comp time, as such arrangements are often called, is currently available for public sector employees but prohibited in the private sector. With the increase in two-income families it would be a way for employers to offer flexibility to attract and retain productive employees. Employers would not be required to offer such an arrangement, and employees would be allowed the choice of receiving wages or compensatory time.

IFDA will include this vote in our annual vote ratings, which are the basis for the food distribution industry's Thomas Jefferson Awards to be given to Members of Congress whose voting records demonstrate consistent support for our legislative agenda. IFDA urges all its member companies interested in this legislation to contact their Member of Congress and express their support. For more information on the petition or the new rules, please contact Jon Eisen, IFDA Director of Government Relations at jeisen@ifdaonline.org or (703) 532-9400.

Foodservice News

Despite some signs of a turnaround in the restaurant and foodservice sectors, Technomic Inc. revised its foodservice industry forecast to what is the lowest nominal growth rate in 30 years. The food-consulting firm now projects a 1.3% nominal growth rate for the foodservice industry in 2003, down from its original forecast of 3%. In 2002, the industry grew at a nominal rate of 2.4%, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

In its "Cranky Consumer" column, The Wall Street Journal compared the various pay-for-food inflight programs the major airlines offer. Full Story (WSJ Subscription Required)

AFC is still rolling out new restaurants despite sluggish demand and is trying to get its footing with new menu items, like po' boys at Popeyes and a light cinnamon roll at Cinnabon, according to The Atlanta Journal-Constitution. Full Story

Fast food restaurants from Arby's to McDonald's are now testing gourmet-like sandwiches from portofino turkey with smoked mozzarella cheese to fancy chicken salad served on a fresh baguette. The trend acknowledges consumers' changing tastes, as upscale sandwich chains like Panera Bread and Cosi are posting double-digit growth and even mainstream shops like Subway are outpacing other fast foodies, reported USAToday. Full Story

Arizona-based Cold Stone Creamery, which already inked deals for three suburban Maryland locations, now has more than 40 leases in negotiation in the Washington, DC area, reported Washington Business Journal. Full Story (Free Registration Required)

Romacorp, Inc. entered into an Asset Purchase Agreement for 11 company-operated restaurants in Texas and Oklahoma to be sold to Romadal, LTD I, a new franchisee of the Tony Roma's concept. Full Story

Retail News

Wal-Mart Stores Inc. opened its first enclosed mall in Long Island's NY Massapequa community, reported Retail Merchandiser. Unlike Wal-Mart's typical "greenfield" locations that prevail elsewhere in the U.S., the two-level, 131,000-sq. ft. location combines a department store-style layout with typical Wal-Mart merchandise and services. Full Story

Winn-Dixie, an operator of more than 1,070 stores across 12 southeastern states and the Bahamas, will leverage neXpansion's Endless Aisle technology to expand Winn-Dixie's product offerings via the web. Branded as Winn-Dixie's "Express Special Purchase" or "E.S.P." and available to shoppers in June 2003, the service will provide Winn-Dixie's customers with easy online and telephone access to more than 30,000 items above and beyond those carried in the supermarket's retail stores. Full Story

Canadian grocery store operator Metro acquired food distributor Alexandre Gaudet for an undisclosed sum, reported Just-food.com. Alexandre Gaudet, which distributes food to small grocery stores under six different banners, has annual revenues of over C$75 million. Full Story

Greek retailer Metro plans to invest up to $14 million in a distribution center in the industrial area of Inofyta, near Athens. The supermarket and cash & carry chain operator said the move was aimed at improving Metro's delivery and supply network, reported Just-food.com. Full Story

Industry News

Coca-Cola plans a national launch of Hi-C Blast fruit drinks this August, coupled with the end of a short-lived product line called Disney Xtreme! Coolers. Hi-C Blast will be sold in four flavors, aimed at kids ages eight to 13, revealed The Atlanta Journal-Constitution. Full Story

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

Since May 14, members of the International Longshoremen's Association have refused to let goods go on or off ships owned by Evergreen America Corp.'s sister company, Evergreen Marine Corp., accusing Evergreen of illegally refusing to bargain with the union. So far, at least 10 Evergreen ships have been affected by the action, which has "effectively closed all Evergreen operations" at Port Elizabeth, NJ, Norfolk, VA and Baltimore, MD, a company statement said, reported NorthJersey.com. Full Story

The Hilliard, OH division of Rich Products Corp. formed a new deal to make 500,000 cases of doughnuts for supermarket retailer Meijer Inc., reported Business First of Columbus. Full Story (Free Registration Required)

British Columbia will review a U.S. court ruling that ordered the closure and cleanup of some Atlantic salmon farms in Maine to determine if the province's salmon farms rules should be changed, British Columbia's Agriculture, Food and Fisheries minister said. The U.S. ruling found that open-net systems pollute the marine environment and farmed fish pose a danger to wild stocks, reported CBS MarketWatch. Full Story (Free Registration Required)

Authorities in Hong Kong are considering banning live chicken sales as part of new hygiene measures being rolled out as they recover from the SARS crisis and try to avoid future disease outbreaks. Full Story

Washington News

In response to a request from Wuhan Bee Healthy Co., Ltd., the Department of Commerce is conducting a new shipper review of the antidumping duty order on honey from the People's Republic of China. The period of review covers the period Dec. 1, 2001 through May 31, 2002. Full Notice

The Department of Commerce is extending the time limit of the preliminary results of the administrative review of the antidumping duty order on freshwater crawfish tail meat from the People's Republic of China until no later than Sept. 30, 2003. The period of review is Sept. 1, 2001 through Aug. 31, 2002. Full Notice

Market News

Florida importers of foreign citrus juice would get a $1.5 million payment and credits on future taxes under a proposed settlement reached June 2 with the Florida Department of Citrus. In addition, any importers of foreign juice can opt out of paying two-thirds of the tax on imported processed juice if they object to the advertising programs on which the Citrus Department spends the money, reported The Tallahassee Democrat. Full Story

In Florida, a trial is set to begin June 9 to determine whether The Department of Citrus can continue its advertising and whether the growers deserve three years' worth of refunds totaling $12 million to $14 million, noted The Tampa Tribune. Six of the state's largest growers have sued the department on First Amendment grounds, challenging its ability to tax the growers on each box of processed citrus and then use the money to pay for generic advertising. A victory by the growers could eviscerate the department if it is forced to end the box tax and get out of the advertising business. Full Story