March 21, 2013

 IGA Global Rally Perspective

Register for the IGA Global Rally Today!

A message to the Alliance from...
Mark Batenic

Have you registered for the 2013 Global Rally taking place in Chicago this coming April? If not, what are you waiting for?

In our two days together in Chicago, we're going to be addressing the really tough questions about the future of the grocery business. We'll talk about where our industry is headed, what challenges we should be prepared to face, and most importantly, how we can turn those challenges into opportunities that will help your business and your brand thrive.

From forward-looking views into what the coming months and years hold for global retail and the supermarket industry as a whole, to a glimpse of upcoming changes in supermarket look and layout, to insights about important consumer trends and tips on staying relevant in an evolving environment, we'll be covering it all.

And here's the best part: We're not just talking theory here. If you've been reading the speaker Perspectives in The Independent View, you already know that we've enlisted the help of the industry's most revered experts—many of whom are trusted friends of IGA—to provide you with real solutions you can put in play immediately, as well as innovative ideas that help you prepare for long-term success.

You'll love the destination; the networking and celebration; the speakers and topics; but most of all, you'll love leaving with solid information that will help you make sure your business comes out on top. We're almost out of room at the Rally, so if you're on the fence, it's time to hop off and take action.

Register today to reserve your place!

Mark Batenic

Visit the Rally website today to download the agenda and register to attend!


Retail News

One in every five dollars spent at Target Corp. stores is for food and pet supplies, according to company reports and Citi Research. In 2012, 20% of sales came from this sector, up from 19% in 2011 and 17% in 2010. Full Report

Tesco does not know if it will continue to own Fresh & Easy Neighborhood Market, according to an e-mail sent to shoppers. Tesco invested $1 billion in the 200-store operation in California, Arizona and Nevada, and reported about $1 billion in cumulative annual losses. "Tesco's failure will rank as one of the biggest among food retailers in modern supermarket history," stated Burt Flickinger III, managing director at retail consulting firm Strategic Resource Group, reported The Los Angeles Times. Full Story (Free Registration Required)

Walmart is tripling the number of U.S. stores in a pilot program that lets shoppers scan items with their iPhones and pay at self-checkout counters. Walmart's "Scan & Go" program will soon be in more than 200 stores, up from about 70. The pilot began near its home office in Bentonville, AR in late 2012, then expanded to Atlanta. For now, "Scan & Go" only works on Apple devices. An Android version should be out soon, reported Reuters. Full Story

Starbucks will expand its loyalty and rewards program in May to enable customers to earn rewards for grocery channel purchases that can be redeemed in Starbucks retail stores, and the company is expected to double the number of customers enrolled in the company's programs in fiscal 2013. Starbucks mobile payment platform is also now generating more than three million U.S. mobile payment transactions per week, and the company will integrate the Starbucks Card and My Starbucks Rewards loyalty program across several brands, including Teavana. Full Story

Publix came in at No. 1 in the latest Temkin study based on feedback from 10,000 customers about their latest interactions with given companies, followed by Trader Joe's with a rating of 83%. With a rating of 80%, H-E-B was in a four-way tie for the No. 7 spot, along with grocery chain Save-a-Lot, and fast-food chains Little Caesars and Sonic Drive-In, reported San Antonio Business Journal. Full Story

Some 39% of undergraduates ages 18 to 24 owned a credit card in 2012, down from 49% in 2010, according to a Sallie Mae and Ipsos Public Affairs survey. Even young adults who do have credit cards are carrying smaller balances: A median of $1,700 in 2010 compared with $2,500 in 2001 for under-35 households, according to Federal Reserve data. The trend, rooted in stricter lending rules and weaker job outlooks for young Americans since the 2008-09 recession, has implications for the strength of the economy, reported Chicago Tribune. Full Story (Free Registration Required)

New Store News: Walgreens will officially open its newest Well Experience flagship store in Washington, DC March 21. The store showcases a unique pharmacy format that includes: hundreds of fresh food items such as produce and high-quality, on-the-go meal options made fresh daily; A Coca-Cola Freestyle machine dispensing 130 varieties of Coca Cola fountain drinks; self-serve frozen yogurt accompanied by an enticing toppings bar; an Upmarket Cafe offering a barista preparing fresh brewed premium coffee and espressos; and a juice and smoothie bar featuring fresh fruits and vegetables. Full Story... Safeway is close to finalizing its plan for a 219,000-sq.-ft. mixed-use development which will include a 55,000-sq.-ft. Safeway store in the Shadelands business park in Walnut Creek, CA, reported San Francisco Business Times. Full Story

Manufacturer News

PepsiCo and two independent bottlers -Pepsi Bottling Ventures and the Honickman Group's Pepsi-Cola Bottling Company of New York – intend to transfer certain franchise ownerships in New York, North Carolina, Idaho and Vermont. PepsiCo agreed to swap five counties of its company-owned North Carolina territory - including Charlotte - to PBV in exchange for PBV's 11 counties in Vermont and 18 counties in Idaho, which are close to other PepsiCo-owned bottling territories. PBV in turn agreed to sell its Long Island, N.Y., territory, including Nassau and Suffolk counties, to the Honickman Group's PCNY, which already operates in each of New York City's five boroughs and New York's Westchester County. Full Story

Green Mountain Coffee Roasters' Nantucket Blend is now 100% Fair Trade Certified, and will represent approximately 5 million-lbs. of Fair Trade Certified coffee for fiscal year 2013. Full Story

Post Holdings is considering closing its manufacturing facility in Modesto, CA to improve operational efficiency. Post will be soliciting input from the union that represents the hourly employees to ensure that employees' interests are represented before it makes a final decision on the matter, which is expected by the end of April 2013. Full Story

New Product News: Lean Cuisine and Fresh Express teamed up with four new Lean Cuisine Salad Additions using Fresh Express lettuce. The salads are customized, prepared in minutes and portioned to be 350 calories are less. Full Story... RiceBran Technologies is launching a new family of ingredients based on rice bran protein under the trademark Proryza. Products to be sold under the brand will be natural, gluten-free, non-GMO, and hypoallergenic premium proteins. Full Story

Executives on the Move: Novel Ingredient Services hired three new executives to help manage the company's recent growth: Frank J. Kimmerling, CFO; David I. Chipkin, VP of Operations; and Eugene Lepelletier, Quality Assurance Manager. Full Story

ConAgra Foods announced the winners of its 2013 Sustainable Development Awards, an internal awards program that drives and rewards innovative approaches to sustainability and produces tangible business results. The 90 entries collectively: reduced carbon emissions by more than 26,700 metric tons; reduced landfill waste by 23,000 tons; optimized and improved packaging while using 3 million-lbs. less material; and conserved 646 million gallons of water. Additionally, the projects delivered more than $22 million in savings, demonstrating the economic value of the company's commitment to sustainability. Full Story

Foodservice News

McDonald's views its upcoming McWrap as capable of taking share from Subway and similar sandwich chains, according to people familiar with the launch. The restaurant also considers the new product its biggest launch of 2013 and biggest brand opportunity since the McCafe line. Though the McWrap is available in some locations already, it's thought the official national launch will be within the next few weeks and will include a major national marketing push, reported Crain's Chicago Business. Full Story (Free Registration Required)

Restaurant Roundup: Fuddruckers is adding a gluten-free bun option. The gluten-free bun is in partnership with Dallas-based Local Oven. Full Story ... Baristas Coffee Company is rolling out its collection of coffee ice cream featuring classic flavors like "Caramel Cappuccino" and new specialty creations like "Coconut Cafe Latte" Select Baristas locations in Seattle and Tampa with all other locations rolling out over the next two weeks. The products will also be available in high-end supermarkets and specialty retailers throughout New York City beginning in April. Full Story

Health News

Lower prices influence shoppers to buy more healthful food, according to a new study from South Africa. Discover, a South African health insurance company, offered a rebate of up to 25% on grocery purchases of fresh fruits, vegetables and other healthy foods. The researchers found that the discount on healthy foods increased the proportion of healthy foods by about 10%. At the same time, the purchases of unhealthy foods went down by 6%, reported Voice of America. Full Story

Chewing gum may lead to increased junk food consumption and may not curb appetite as once thought, according to a study published in Eating Behaviors. The study found that gum, especially the mint variety, may create a bitter flavor, altering the taste of fruits and vegetables and subsequently making it more tempting to reach for something less healthy, reported New York Daily News. Full Story

Washington News

A bipartisan amendment to avoid furloughs of food-safety inspectors was included in a continuing resolution passed by the Senate. The bill, passed with a vote of 73 to 26, now heads to the House of Representatives for final passage. House Speaker John Boehner (R-OH) stated the Senate's changes to the resolution will likely not face much opposition in the House, reported ABCNews. Full Story

The Department of Commerce made change to the margin calculations of the new shipper reviews on certain frozen fish fillets from Vietnam. The Preliminary Results also rescinded the administrative review with respect to seven companies, which was made final, and rescindedthe administrative review with respect to the New Shipper Respondents. Full Notice

Republican Representatives introduced a bill to eliminate the requirement that businesses automatically enroll new workers in company health plans. Reps. Richard Hudson (R-NC) and Robert Pittenger (R-NC) introduced H.R. 1254 March 20, and warned the auto-enroll provision would bury employers of 200 workers or more in paperwork, particularly for industries that experience high employee turnover, reported The Hill. Full Story

Daesang America is recalling its 500 gram packages of Sesame and Garlic flavored Mixed Soy Bean Paste because they may contain undeclared peanuts. Full Story

Global News

3G Capital's Jorge Paulo Lemann purchased a 20% stake in Brazilian ice-cream maker Diletto for approximately $50.5 million. The deal was concluded in January and was handled through Innova, a fund controlled by Mr. Lemann, according to a person familiar with the transaction. Diletto, based in Sao Paulo, has 3,000 sale points in Brazil and aims to expand overseas, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Chinese intake of trans fatty acids is lower than the limit recommended by the World Health Organization due to the typical Chinese diet, which involves fewer dairy products. The recommended trans fatty acids level is no more than 1% of total energy intake, or 2.2 grams per day. In Beijing and Guangzhou, where higher levels are consumed, trans fatty acids account for only 0.34% of the people's total energy intake, reported China Daily. Full Story

Market News

A new series of citrus varieties was presented for launch this year from The Citrus Crops Program at the University of California. Presented during the first day of Citrus 2013, the two new varieties plans to launch this summer, after investigating them for more than 15 years. With less seeds, high brix and resistance to fungus, the new varieties should be able to produce two seasons in one year, reported Fresh Plaza. Full Story

Prices for avocados are increasing due to rising demand, weather-related issues and a decrease in production. Some 30 million-lbs. are expected to be harvested, and while it is a lot of fruit, it is less than the winter production. Mexican production is expected to continue until June and California deals could extend into October, reported The Packer Online. Full Story

The mango season in South Africa will likely finish earlier than normal this year. "The climatic conditions during the growing season were not particularly good either, volumes this year will be down from last year's 65,000 tonnes to 50,000 tonnes. The season will come to a close at the end of March instead of April, but there may still be some fruit available into April," stated Rudolf Badenhorst, reported Fresh Plaza. Full Story

The Florida Department of Citrus' 2013-14 advertising effort will more specifically focus on Millennials as the rising market for OJ consumers while still keeping faith with baby boomers, the traditional market. In their beverage purchases, millennials tend to favor smaller sizes that they consume frequently and on-the-go, reported The Lakeland Ledger. Full Story (Free Registration Required)


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