March 30, 2012

 IGA Red Oval Partner Perspective

WWP, IGA and Kraft Foods...Together We Are Better!

A message from...
Red Oval Advisory Council Chairman &
Kraft Foods Representative
Steve Holdiman

IGAs are known as the "hometown proud" store of choice at the heart of the communities all over the world because IGA's "hometown proud" retailers continue to exemplify their community spirit and support in so many innovative ways. Take the IGA Wounded Warrior Project (WWP), for example, which enables IGA retailers to stake an IGA claim in support of WWP's mission to empower our nation's wounded service members.

Here at Kraft Foods we are proud to again have the opportunity to partner with IGA retailers in support of the IGA/WWP program, running in IGA stores from Memorial Day to Labor Day. And again this year, the process is pretty simple. Kraft is helping IGA retailers create the ultimate WWP summertime meal solution by making our popular beverage display shippers available to merchandise along with WWP-branded IGA Exclusive brand water and hotdog and hamburger buns.

The goal is to place a minimum two displays per store, but like last year, the more displays placed in IGA stores, the more money Kraft will donate to WWP in the name of IGA. Just take a look at the performance brackets.

Performance Brackets

SILVER Performance: 1600 shippers placed = $20,000

GOLD Performance: 2000 shippers placed = $30,000

PLATINUM Performance: 2400 shippers placed = $50,000

Last summer in our inaugural year of WWP programming, IGA and Kraft Foods delivered 1200 shippers, qualifying for a $20,000 donation to the cause. While we were pleased with the results and the opportunity to add to the IGA donation, we think this year's program enhancements will lead to a much larger donation. With better lead-time and planning we've been able to increase the number of shippers offered from nine in 2011 to 11 in 2012. Along with last year's products, we're also including two new MiO water enhancer flavors and Crystal Light Energy. Even better news is that each shipper will have a tear-pad coupon offer, and all shippers ordered from March through September will be counted toward the donation.

In order to maximize the program opportunity, we will need each and every IGA store to support this wonderful project. With a goal of placing two shippers per store during the promotional period, we know we can reach that $50,000 mark.

Let's RALLY your Hometown Proud communities! Let's leverage the Kraft category leadership in the beverage mixes!

Together, we can and will make a Hometown Proud difference for our Wounded Warriors!


Steve Holdiman

IGA retailers: Visit the Alliance site for more information or contact your IGA LDC to order.


Retail News

U.S. retail and foodservice sales of specialty foods and beverages increased 6.9% in 2011, topping $75 billion, according to NASFT's The State of the Specialty Food Industry 2012 report. Cheese claimed the top spot in spending for specialty foods, with $3.44 billion in retail sales last year. The next largest retail sales categories are: meats, poultry and seafood; chips, pretzels and snacks; coffee, coffee substitutes and cocoa; and bread and baked goods. Functional beverages are the fastest-growing segment, followed by yogurt and kefir. Full Story

Whole Foods Market will no longer carry red-rated wild-caught fish in its seafood departments beginning Apr. 22. Fish species including Atlantic halibut, grey sole and skate will no longer be available. Full Story

New Jersey has a substantial untapped demand for food stores and does not have enough supermarkets in lower-income areas, according to a report from the New Jersey Food Marketing Task Force. Full Report

Valero will introduce an additional 50 private label SKUs to its Corner Stores during 2012. Upcoming products include an extension of the company's salty snacks line, a new line of energy shots and an extension of Valero's sports drink line that will include flavors such as coconut water, reported Convenience Store News. Full Story

Manufacturer News

Bremner Food Group will close its 250,000-sq. ft. snack food plant in Poteau, OK on June 29 and plans to move its operation to Kentucky. Bremner, owned by Ralcorp, has seven facilities that produce crackers, sugar wafers, sandwich cookies and other snacks, reported Full Story

Approximately 14% of Kraft Foods' annual chocolate revenue is related to Easter sales. More consumers purchase chocolate during Easter than any other season, according to the company. Top international markets leading Kraft Foods Easter chocolate sales are the UK, Brazil, Germany and Australia. Full Story

Sargento Foods Inc. plans to close its 65,000-sq. ft. Bellingham, WA facility in the next nine to 16 months, with a final closing date to be announced later this spring. The decision to close was due to several factors including the plant's primary customer not renewing its contract with Sargento. The contract expires at the end of the year, reported The Bellingham Herald. Full Story

Foodservice News

Wendy's and Smashburger added items incorporating avocado and guacamole to their menus for a limited time.

Washington News

The Northeast Seafood Coalition urged the governors of New England's coastal states and New York and New Jersey to issue a joint request for a federal "fisheries failure" declaration nearly two years into an experiment in catch share fisheries management. Such a finding would make federal financial aid available for assessing and mitigating economic and social dislocations, reported The Gloucester Times. Full Story

Mosul Kubba initiated a voluntary recall of approximately 1,100-lbs. of stuffed, layered beef products due to possible contamination with Listeria monocytogenes. Full Story

Topnotch Cookies & Cakes initiated a voluntary recall of 550 Chocolate Chip Chunk Cookies because they may contain undeclared traces of milk in the "butter vanilla flavor" "containing milk ingredients." Full Story

Castellini Company LLC initiated a voluntary recall of certain jalapeno peppers distributed from its Wilder, KY facility because they have the potential to be contaminated with salmonella. Full Story

Global News

Maple Leaf Foods will build a 282,000-sq. ft. distribution center in Puslinch Township, Ontario. The facility will operate as the company's prepared meats distribution hub for central and eastern Canada. Full Story

Target detailed its confirmed stores in Canada. The company will open 13 stores in Alberta; 13 stores in British Columbia; three stores in Manitoba; one store in Nova Scotia; 32 stores in Ontario; 12 stores in Quebec and two stores in Saskatchewan. Full Story

The Canadian Wheat Board (CWB) revealed a series of grain contracts that the board will offer farmers this year. The board also reached a grain-handling agreement with Cargill, which will take delivery and handle CWB contracts for a fee. The board hopes to enter into deals with other handlers including Viterra, reported The Globe and Mail. Full Story (Free Registration Required)

Sobeys Inc. expanded the capabilities and utility of its customer insights initiatives, utilizing Self Serve, a customer analytics tool through its strategic partnership with Aimia. The tool allows Sobeys to work more broadly and collaboratively with suppliers. Full Story

KFC represents almost half of the roughly 37,000 restaurants Yum! Brands operates in 120 countries. China was home to 3,701 KFC outlets at the end of last year; McDonald's had 1,464, reported Bloomberg Businessweek. Full Story

PepsiCo, Inc. and Tingyi (Cayman Islands) Holding Corp. received all necessary regulatory and shareholder approvals required to complete their transaction to create a strategic beverage alliance in China. Full Story

Stevia Corp. signed a letter of intent with Fish International Sourcing House Pte Ltd., a Singapore-based international seafood company with processing facilities and offices in China, Hong Kong, Indonesia and Thailand. Full Story

Market News

Corn growers intend to plant 95.9 million acres of corn for all purposes in 2012, up 4% from last year and 9% higher than in 2010. If realized, this will represent the highest planted acreage in the U.S. since 1937. Soybean planted area for 2012 is estimated at 73.9 million acres, down 1% from last year and down 5% from 2010. All wheat planted area is estimated at 55.9 million acres, up 3% from 2011. USDA Report

The Sugar Cane Growers Cooperative produced 3.1 million tons of sugarcane grown on 68,456 acres of land primarily in Palm Beach County, FL, yielding 374,266 short tons raw value sugar and 18 million gallons of blackstrap molasses. Sugar yields were at 11.65%, nearing the record high of 11.73% set in the 2002-03 crop season. Full Story

Two days of frost in parts of Michigan likely damaged fruit crops. Damage of peaches and cherries is expected in west central and northern Michigan from a Monday frost, while damage from a Tuesday frost is projected in the eastern part of the state, reported The Detroit News. Full Story

Strawberries made an early appearance in South Carolina due to warm temperatures. Traditionally, the first crops of strawberries appear between Apr. 1 and Apr. 15, reported The State. Full Story

New bee research suggests that exposure to neonicotinoid pesticides did not kill bees directly, but changed their behavior in harmful ways. The studies, published in Science, also found that in particular, the insecticide made the honeybees and bumblebees somewhat less able to forage for food and return with it to their hives, reported The Washington Post. Full Story (Free Registration Required)

NASS will release its Honey report on Mar. 30 at 3 p.m. (EST). Full Story

California's San Joaquin Valley stone fruit production is in transition. An oversupply of peaches, nectarines and plums in 2008 prompted some grower-packer-shippers to take action, ranging from removing unprofitable orchards to getting out of the business altogether. Peach and nectarine crops appeared normal, however it is too early to tell about plums, reported The Packer Online. Full Story

CASS will release its Grape Acreage Summary Report report on Mar. 30 at 3 p.m. (EST). Full Story

ERS will release its Vegetables and Melons Outlook report on Mar. 30 at 4 p.m. (EST). Full Story

ERS will release its Fruit and Tree Nuts Outlook report on Mar. 30 at 4 p.m. (EST). Full Story

NASS will release its Quarterly Hogs and Pigs report on Mar. 30 at 3 p.m. (EST). Full Story

Chile's agricultural sector increased 11% in 2011 over the previous year. Strong growth in the fruit sector led the pack, followed by forestry and agriculture; fruit production increased in three of the four quarters of 2011. USDA Report

The Commerce Department issued several proposals regarding seafood in the Mar. 30 Federal Register. The proposals are: Atlantic Highly Migratory Species: Atlantic Highly Migratory Species; 2006 Consolidated Highly Migratory Species Fishery Management Plan; Amendment. Full Notice; Atlantic Highly Migratory Species; 2012 Atlantic Bluefin Tuna Quota Specifications. Full Notice; Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Snapper-Grouper Fishery Off the Southern Atlantic States; Amendment. Full Notice; and Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Snapper-Grouper Fishery Off the Southern Atlantic States; Amendment. Full Notice

According to the Apr. 2 Federal Register, the Department of Commerce will announce plans to conduct administrative reviews of the antidumping duty orders on certain frozen warmwater shrimp from Brazil, India and Thailand (Full Notice) as well as certain preserved mushrooms from China. Full Notice


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