March 28, 2013

 IGA Global Rally Perspective

Joining Us for the Rally Store Tour?

A message to the Alliance from...
Doug Fritsch
Sr. VP. Retail & Business Development

Tours of area grocery stores have become an integral part of the IGA Rally in recent years, and our 2013 Global Rally in Chicago is no exception. During this year's store tour, we will visit a number of innovative grocery formats in the Northwest suburbs of Chicago, including:

Joe Caputo and Sons Fruit Market IGA in Palatine, IL
Joe Caputo and Sons Fruit Market has been a staple in the Northwest suburbs of Chicago for more than 20 years. The three family-owned and operated, full-service grocery stores are known for offering shoppers hand-picked fresh fruits and vegetables and the finest quality imported Italian specialties. All three locations adopted the IGA brand in 2011, bringing IGA back to Chicago.

Owners Nat and Vito Caputo have said, "No matter where you go in the world, people recognize the IGA logo and equate it with hometown community pride. That's what Joe Caputo and Sons Fruit Market has always been about so it was a natural fit to join our family-owned and operated brand with IGA's."

Whole Foods Market in Killdeer, IL
Widely known as a pioneer in health-and-wellness, Whole Foods Market is the world's #1 natural foods chain by far. The company operates more than 340 stores throughout the US, Canada, and the UK. The stores emphasize perishable and prepared products, which account for about two-thirds of sales. Whole Foods Market offers some 2,400 items in four lines of private-label products. The Killdeer location opened in early March of this year.

Mariano's Fresh Market in Palatine, IL
Roundy's owns and operates about 160 grocery stores in Milwaukee and Chicago under five banners: Pick 'n Save, Copps Food Centers, Rainbow Foods, Metro Market, and its newest format, Mariano's Fresh Market. Mariano's focuses on delivering quality products—both locally and from around the world—with customer-focused service. The format was an instant success in Chicago. Two years after opening its first Mariano's location, the company now operates eight stores in the Chicagoland area.

Heinen's Fine Foods in Barrington, IL
Heinen's Fine Foods is a family-owned-and-operated company with 17 stores throughout northeast Ohio, and one—the Barrington location—in Illinois. Known for specialty foods and friendly, personalized customer service, customers also choose to shop Heinen's for the quality offerings in the "Joe's Meat Market" department, named after the founder, Joe Heinen, who started his original store in 1929 as a first class meat market. The Barrington location opened in the summer of 2012.

The tour is currently full, but we anticipate that some spots may open up as we get closer to the Rally. If you would like to add your name to a waiting list, please email IGA's Nancy Vicelli.

We look forward to seeing you there!

Thanks, Doug Fritsch


Retail News

SoloHealth and Safeway signed a multiyear deal to rollout the SoloHealth Station kiosk to almost 700 Safeway stores nationwide. Starting this April, the SoloHealth Stations will begin being installed in stores, giving Safeway's customers access to free health screenings, personalized assessments and valuable health information. Full Story

ShopRite in Warminster, PA, launched an in-store health resource center provided by a local hospital. The center, "Health Connections by Doylestown Hospital," features a concierge that refers interested shoppers to area doctors, health services and programs, and coordinates free skin cancer, blood pressure and blood sugar screenings, reported Supermarket News. Full Story

Manufacturer News

Orpheum Property has re-acquired Coscina Brothers Coffee Company. In June 2010, CBCC had been sold to a former director of the company who jointly worked with the CBCC's management in order to reorganize its focus and operations. These efforts have led to increased profitability and sales growth. CBCC offers private labeling services on custom coffee roasts and pancake mixes for its customers. These customers include many Hawaii-based retailers, hotels and restaurants. Full Story

Pinnacle Foods priced its initial public offering of 29 million shares of common stock at $20 per share. The shares will begin trading on the NYSE March 28 under the ticker symbol "PF," and the offering is expected to close April 3. Pinnacle Foods granted its underwriters a 30-day option to purchase up to an additional 4.35 million shares at the IPO price, and Pinnacle Foods intends to use the approximately $545.2 million in proceeds from the offering to reduce debt. Full Story

New Product News: Hillshire Farm is introducing a new line of premium, preseasoned and precooked Angus beef smoked sausages, in Smoked Beef, Polska Kielbasa and Italian Style Angus Smoked Sausage flavors. Full Story... Schwan's Consumer Brands launched Freschetta Brick Oven Chicken Club Pizza, Freschetta Naturally Rising Margherita Pizza and Freschetta Naturally Rising Sausage and Pepperoni Pizza. Full Story... WP Rawl is rolling out Nature's Greens organic cut and washed kale bags, reported The Packer Online. Full Story

Executives on the Move: John B. Sanfilippo & Son appointed John Accardo VP of International. Full Story

Scientists developed a novel screening procedure to provide DNA sequencing of animal, plant and microbial substances present in food, according to the Institute of Molecular Genetics, Genetic Security Research and Consulting at Johannes Gutenberg University Mainz. Researchers adapted DNA sequencing for human sequencing to identify materials in food, down to which products were used and the actual amount with a high level of precision, reported Science Daily. Full Story

The "fridge-test" theory to determine the validity of extra virgin olive oil has been disproved, according to researchers at the UC Davis Olive Center. The fridge test is unreliable in detecting the purity or quality of olive oil, reported the University of California. Full Story

Foodservice News

Two McDonald's alums are poised to take on the Chicago market with Lyfe Kitchen, expected to open this fall in River North. Meanwhile, the Protein Bar, a fast-casual concept offering breakfast and lunch, has eight locations and five more opening soon. Vegan chain Native Foods Cafe moved from Southern California to Chicago in 2011. Since then, the chain has doubled to 14 locations, including three in Chicago, reported Chicago Tribune. Full Story (Free Registration Required)

Ninety-three percent of American adults that dine out for lunch stated price is important when choosing their destination, and 51% of millennials are more likely to make a complete meal choice for lunch if it includes a dessert, according to a Harris Interactive online survey commissioned by Dairy Queen. The survey was commissioned as part of the April 1 launch of the DQ Lunch, which offers a 1/4-lb. GrillBurger with cheese, three-piece Chicken Strip Lunch or a Chili Cheese Dog, all served with fries, a beverage and sundae. Full Story

Restaurant Roundup: KFC is introducing Li'l Bucket Kids Meals, which include a Kentucky Grilled Chicken drumstick, green beans, a GoGo squeeZ applesauce on the go and a Capri Sun Roarin' Water. The $3.99 kids meals can also be customized with other chicken choices, homestyle sides and drink options. Full Story

Health News

There is no strong association between living within walking distance of food stores and being overweight, researchers stated after interviewing nearly 100,000 Californians. The survey found unclear evidence as to whether "promoting or discouraging a particular type of food outlet is an effective approach to promoting healthful dietary behavior and weight status." Additionally, "shopping patterns are weakly related, if at all, to neighborhoods [in the U.S.]" because of motorized transportation, the researchers stated, reported The Los Angeles Times. Full Story (Free Registration Required)

The menus offered to children by most U.S. restaurant chains have too many calories, too much salt or fat, and often not enough vegetables or fruit, according to a study by the Center for Science in the Public Interest. The group found that among almost 3,500 combinations surveyed, kids' meals failed to meet nutritional standards 97% of the time. That was a marginal improvement over 2008 when such meals failed to meet standards 99% of the time, reported Reuters. Full Story

Washington News

Restaurant owners now predict the health care overhaul law may not be as costly as they previously claimed, as many employees will not qualify for coverage or will decline company-offered insurance. Wendy's initially estimated the health care law would increase the cost of operating each of its 5,800 U.S. restaurants by $25,000 a year, but CFO Steve Hare stated executives cut the estimate by 80%, to $5,000 a year, primarily because they expect many employees to decline the insurance offering. Executives of restaurant chains such as Chipotle, Jack in the Box and Popeye's offered similar cost estimates in recent months, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Enrollment in SNAP increased 70% to a record 47.8 million in December 2012 from 2008, and is not decreasing as the economy recovers. The Congressional Budget Office predicts SNAP enrollment will drop slightly to 43.3 million by 2017, down 4.5 million from the current level. The government spent a record $74.6 billion on SNAP benefits last year, while the average monthly benefit was $133 per person last year. USDA officials claim expanded eligibility policies of 43 U.S. states and territories were largely responsible for the increased enrollment, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

USDA will hold a public hearing to receive evidence on proposed amendments to Marketing Order No. 905 regulating the handling of oranges, grapefruit, tangerines, and tangelos grown in Florida. Nine amendments are proposed by the Citrus Administrative Committee responsible for local administration of the order. The proposed amendments would authorize regulation of new varieties and hybrids of citrus fruit, among other changes. The hearing will be held April 24 and 25 in Winter Haven, FL. Full Notice

A former mechanic for J&J Snack Foods has sued the food manufacturer, claiming J&J bilked him out of pay and then retaliated against him for complaining. Swartz Swidler LLC is seeking class-action status for the case, reported The Philadelphia Inquirer. Full Story

The Gift Shop at Buffalo Trace Distillery voluntarily recalled various non-expired marinade and sauce products due to mislabeling and undeclared allergens. Full Story

Global News

A group led by investment firm Joh. A. Benckiser is in talks for a potential takeover of Douwe Egberts coffee for more than $9.7 billion. Benckiser is looking to further build its presence in the $75.8 billion global coffee market, and approached D.E. Master Blenders, which listed on the Amsterdam stock exchange last June, with an indicative offer of €12.75 a share, including dividends. DE is the third largest global coffee roaster with $4 billion in annual sales, behind Nestle's $12 billion and Kraft Foods's $6 billion, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Belgian chocolate makers think their pralines should have similar protection to that enjoyed by French champagne or Italy's Parma ham. They want the term "Belgian chocolate" to be their exclusive preserve and also want to crack down on foreign rivals dressing up their products as "Belgian style" or of a "Belgian recipe." The industry federation will meet regional governments from next month to decide how Belgium might apply to the EU to protect Belgian chocolates or perhaps seek a trademark to safeguard their treats, reported Reuters. Full Story

Global Franchise Group is expanding Great American Cookies in Puerto Rico with multiunit operators Dan Margolis , Carol Margolis and Wilson Castillo of A.M.A. Pretzels International, LLP. Great American Cookies is managed by GFG Management. Great American Cookies currently operates in mall-based locations across the U.S., as well as internationally in Bahrain, Guam, Mexico, Puerto Rico, Saudi Arabia and the United Arab Emirates. Full Story

Syngenta and Bayer proposed a plan to support bee health by averting a EU ban on their products. The companies claim their pesticides' effects are unproven and that a ban would cause a blow to the EU economy. Syngenta and Bayer's plan includes the creation of more flowering field margins to provide habitats for bees and a field monitoring program to detect the neonicotinoid pesticides blamed for the decline of honeybees, reported Reuters. Full Story

Market News

Wheat traded near a five-week high as freezing weather threatened the winter crop in the U.S., the world's largest shipper. Wheat for May delivery was little changed at $7.375 a bushel on the Chicago Board of Trade; prices are up 3.2% this month, paring a quarterly decline to 5.2%, reported Full Story

An Indiana farm is now turning extra manure into fuel for its delivery trucks. Fair Oak Farms is powering 42 tractor trailers that make dairy runs to raw milk processing plants in Indiana, Kentucky and Tenessess. Officials from the federal Department of Energy called the endeavor a "pacesetter" for the dairy industry, reported The New York Times. Full Story (NYT Subscription Required)

Louis Dreyfus Commodities reported its largest-ever annual profit, due to robust global demand for food products and historically high crop prices. Net earnings for the company jumped 25%, to $1.1 billion in 2012, excluding a $93 million loss in BioSev, reported Reuters. Full Story

Pesticides may negatively affect bees' ability to learn following exposure, according to two studies, one in Nature Communications and the other in Journal of Experimental Biology. Pesticides commonly used in agriculture interfere with learning circuits in the bee's brain, causing exposed bees to be slower to learn or completely forget important associations between floral scent and food rewards, reported Science Daily. Full Story

The recent cold weather in Florida and Georgia could mean promotable volumes of blueberries for the region. Despite a predicted earlier-than-normal start, growers in Florida began harvesting light volumes in late March, and grower-shippers are now pushing back harvesting to more normal times in early April, with promotable volumes in the middle to later half of the month, reported The Packer Online. Full Story

The unseasonably cold weather in Oklahoma could be taking a toll on the state's peach crop. The cold killed the few flowers that had already bloomed but many of the buds that have not opened yet are safe. It only takes about 10% of a crop of peaches to make a bountiful harvest, reported Full Story


First Time Viewer?

Click here to see a message from IGA CEO Mark Batenic.

About The
Independent View

The Independent View is published daily in conjunction with The Food Institute. If you are interested in advertising in The Independent View, click here to find out more.

The Lempert Report

New episodes of "The Lempert Report" are uploaded every Monday, Tuesday and Friday.

Why IGA?

For more information about becoming a member or partner
of IGA, click here.