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Retail News
The world's largest retailers are scaling back their global
expansion activities, particularly in Asia, and turning
their attention inward by integrating operations and strengthening
their store, internet and mobile sales channels, according
to an analysis by Accenture. Moves by retailers into the six
key markets in "Emerging Asia" during the Oct. 16,
2012 to Jan. 15 quarter fell to two new-market entries, down
from 13 of 43 total entries in the prior quarter. At the same
time, big retailers made five market entries in the U.S. in
the July 15 to October 15 quarter, indicating the country
remains a popular target for expansion. Full
Story
Low-income consumers frequent convenience
stores more often and spend more than high-income shoppers,
according to Convenience Store News' 2013 Realities
of the Aisle consumer study. Low income (less than $35,000
a year) consumers typically shop c-stores for cigarettes and
food to consume at home. In the past month, they purchased
the following items more often than the average: canned/bottled
soda, packaged salty snacks, cigarettes, cigars/snuff/chewing
tobacco, grocery items, fresh produce, frozen food and phone
cards. Full
Story Meanwhile, Consumers in the Northeast
are more likely to frequent convenience stores in the late
night hours than shoppers in any other region of the nation,
according to Convenience Store News. Some 13.5% of
northeast consumers shop at a convenience store almost every
day. Commonly purchased items include lottery tickets, newspapers/magazines,
prepared food, food for at-home consumption and fill-in grocery
items. Full
Story
New Store News: Walmart is expected to be one of the
two anchor stores at Teterboro Landing, the 55-acre retail,
industrial and office project planned for Teterboro, NJ. Meadowlands
authorities claim the developer has indicated Costco
could be the other, reported The Record. Full
Story
Manufacturer News
Hostess Chief Executive C. Dean Metropoulos stated the
company will pump $60 million in capital investments into
the plants between now and September and aims to hire
at least 1,500 workers. But it won't be represented by unions,
including the one whose nationwide strike sparked the 86-year-old
company's decision to shut down in November, reported The
Wall Street Journal. Full
Story (WSJ Subscription Required)
Inventure Foods signed a letter of intent to buy
the berry processing business of Willamette Valley Fruit Company
(WVFC). Terms of the deal were not disclosed. The agreement
includes building and ground leases. WVFC began in 1999 as
a small frozen processing operation and has since become one
of the Pacific Northwest's largest processors of high-quality
berry products. Each summer WVFC processes, on average, 13
million lbs. of fruit, including strawberries, raspberries,
boysenberries, blueberries, a variety of blackberries, cranberries
and Marionberries. Full
Story
Dave's Killer Bread named a new CEO as the company's plans to expand into
the national bread market moves into second gear. The
company has 280 employees and recorded more than $50 million
in sales in 2012. Its lines are available in 13 states, mostly
in the Northwest and Southwest, and the company is aiming
for 30% to 40% growth this year. Most of the baking is done
at its "breadquarters" in Milwaukie, but ensuring the quality
of its organic whole-grain products is a concern as the company
expands, as bread can not be shipped across state lines while
maintaining adequate freshness, reported OregonLive.com.
Full
Story
Hershey's consolidated net sales were about $1.83 billion
in the first quarter of 2013, compared with about $1.73
billion for the first quarter of 2012. Reported net income
for the company was approximately $241.9 million, compared
with $198.7 million in the prior period. Hershey's president
and CEO stated first quarter U.S. marketplace performance
was strong, driven by "solid volume and unit trends"
with market share gains in every channel. Hershey's U.S. candy,
mint and gum retail takeaway for the quarter was up 8.6% when
excluding the impact of Easter seasonal activity in the year
ago and current period. Full
Story
Executives on the Move: Giumarra Vineyards hired
Mimi Corsaro-Dorsey in its sales and marketing division, reported
The Packer Online. Full
Story... Hershey appointed Humberto P. Alfonso
to president, International, effective May 13. David W. Tacka
will also become SVP, CFO, and Michele G. Buck will become
president, North America. Full
Story ... Clif Bar & Company promoted president
and COO Kevin Cleary to CEO. Full
Story... Land O'Lakes named Autumn Veazey director
of government relations and that Daryn McBeth director of
state affairs and industry relations. Full
Story... Soupman appointed Lloyd Sugarman
CEO. Full
Story... Good Times Restaurants hired
Scott Somes chief operating officer of Bad Daddy's Franchise
Development. Full
Story
Foodservice
News
More than anything else, technology will pave the way
for innovative change at Starbucks, according to its CEO.
Already, Starbucks is producing more than 3 million mobile
payments per week. For consumers, that will mean much more
one-to-one marketing, stated the executive. That is, specific
deals and promos could be specially targeted to individual
consumers based on their buying habits, reported USA Today.
Full
Story
The Cheesecake Factory reported total revenues were $463
million in the first quarter of fiscal 2013, compared
with $435.8 million in the prior year first quarter, with
a net income of $25.3 million. Comparable restaurant sales
at The Cheesecake Factory grew 1.6% and declined 0.9% at Grand
Lux Cafe, but were negatively impacted by approximately 0.6%
due to storms in the Northeast. Excluding the weather impact,
comparable restaurant sales increased a combined 2% for both
concepts. Full
Story
Dunkin' Brands Group net income declined 8.3% in its first
quarter ended March 30, though Dunkin' Donuts U.S. comparable
store sales grew 1.7% and adjusted operating income increased
12.2%. Dunkin' Donuts U.S. comparable store sales growth in
the first quarter was driven by increased average ticket resulting
from guests purchasing more units per transaction, including
add-on items such as hash browns and Turbo Shots, and positive
mix as guests purchased more premium-priced limited time offer
breakfast sandwiches and beverages. The company also added
108 net new restaurants worldwide, including 78 net new Dunkin'
Donuts in the U.S. Full
Story
Restaurant Roundup: Smashburger will open airport
locations in Dallas, TX, Philadelphia, PA and San Jose, Costa
Rica through three new franchise partnerships. Full
Story... Jamba Juice Company will open of several
stores in the St. Louis area over the year. Full Story...
Checkers will more than double its local presence in
New York City by 2015 - adding 22 outposts to the 19 it now
boasts, reported Crain's New York Business. Full
Story
Health News
Ground beef and chicken are the riskiest meat and poultry
products in the American food supply and pose the greatest
likelihood of hospitalization, according to the Risky Meat:
A Field Guide to Meat & Poultry Safety report from the
Center for Science in the Public Interest (CSPI). The report
also found chicken nuggets, ham, and sausage pose the lowest
risk of foodborne illness. E. coli O157:H7 was responsible
for 100 outbreaks associated with ground beef in the 12-year
study period, giving the meat the highest severity index of
the 12 meat and poultry categories, followed by Salmonella
in chicken. Full
Story, Report
Drinking just one can of sugar-laced soda drink a day
increases the risk of developing diabetes by more than a fifth,
according to a large European study. Using data from 350,000
people in eight European countries, researchers found that
every extra 12 fluid ounce (340 ml) serving of sugar-sweetened
drink raises the risk of diabetes by 22% compared with drinking
just one can a month or less, reported Reuters. Full
Story
Washington News
FDA will conduct fewer food safety inspections this year
because of the government sequester, commissioner Margaret
Hamburg stated in an exclusive interview with USA Today.
While consumers may not feel the impact immediately, the loss
of $209 million from its budget will force the agency to conduct
about 2,100 fewer inspections, an 18% decline compared to
last year. Full
Story
Meanwhile, FDA will extend the comment period for the
FSMA proposed rules published in the Jan. 16 Federal
Register to Sept. 16. FDA extended the comment period
for the rules, "Current Good Manufacturing Practice and
Hazard Analysis and Risk-Based Preventive Controls for Human
Food" and "Standards for the Growing, Harvesting,
Packing, and Holding of Produce for Human Consumption,"
in response to requests for an extension to allow interested
persons additional time to submit comments. Federal
Register Pre-publication Notice No. 1, No.
2
U.S. Sen. Barbara Boxer (D-CA) and Rep. Peter DeFazio
(D-OR) introduced the Genetically Engineered Food Right-to-Know
Act April 24, legislation that would require FDA to
clearly label genetically engineered (GE) foods. The bipartisan
measure would require clear labels for genetically engineered
whole foods and processed foods, including fish and seafood,
and direct FDA to write new labeling standards that are consistent
with U.S. labeling standards and international standards.
This legislation follows a 2012 letter from Sen. Boxer, Rep.
DeFazio and 54 Senate and House lawmakers urging FDA to require
the labeling of GE foods. Full
Story
7th Heaven Bakeries is recalling oatmeal raisin cookies
because they may contain undeclared dry eggs, soy lecithin,
and whey solids. Full
Story
Lawmakers in Vermont are considering a bill that would
allow brewers to ship their beer directly to consumers to
expand their markets and reach their niche customers nationwide.
The state already allows wineries to ship wine directly to
consumers after changing the law, but beer shipments are illegal,
reported Burlington Free Press. Full
Story
A legislation to fund efforts to eradicate citrus greening
disease in Florida is close to passing. Florida's House
is recommending $8 million to fight huanglongbing or HLB which
is also known as citrus greening for the 2013 to 2014 season,
reported The Packer Online. Full
Story
Global News
BASF plans to invest $500 million at its joint
venture with Malaysian state-owned oil and gas firm Petronas
to boost production of aroma ingredients. The new facility
in Kuantan, Malaysia, will start making ingredients for citrus,
rose and mint flavors for food and consumer products from
2016, reported Reuters. Full
Story
Walmart's aggressive expansion into Canada is impacting
other retailers and putting pressure on supermarkets such
as Metro and Loblaw to find new avenues of growth. Both companies
are expanding their ethnic offerings to cater to a growing
population of new Canadians as well as improving fresh offerings
to serve as a key differentiator. The companies have also
increased loyalty programs and acquisitions, reported The
Globe and Mail. Full
Story
Yum Brands expects sales KFC restaurants in China to
recover by the end of the year and fears surrounding a
bird flu outbreak to be short-lived. With prior health crises,
the company saw sales to improve over six to nine months,
reported Reuters. Full
Story
AarhusKarlshamn's operating profit reached a record high
of approximately $36.78 million, an improvement of 10%
compared with the corresponding quarter in 2012, while volumes
increased 6% The Food Ingredients segment reached a record
high operating profit of about $24 million, an improvement
of 15%. The Chocolate & Confectionery Fats and Technical Products
& Feed divisions both improved operating profit by 4% as well.
Full
Story
Chuck E. Cheese's opened its first franchised store is
open in Panama City, Panama April 4 as part of a multiyear
plan to bring several new stores to Central America. Full
Story
Market News
Sales of soybeans from Argentina are lagging due to expectations
for higher world prices and domestic financial uncertainty.
Farmers in the country are to saving in beans rather than
pesos. Argentina's high inflation is causing "money in the
bank" to be not as secure as storing soybeans next to their
fields, reported Reuters. Full
Story
Mexico is experiencing lower watermelon volume and Florida's
slow start to the deal will continue the strong markets.
Markets are expected to stay strong until Texas begins shipping,
with light supplies and strong demand, reported The Packer
Online. Full
Story
California tree fruit growers and shippers claim the weather
to date has been ideal for the 2013 crop. While some crops
are experiencing lighter-than-normal sets, cherry, apricot,
peach, nectarine, plum, aprium and plumcot orchards are reporting
good sets with a potential for full crops of good size, color,
flavor and quality, reported The Produce News. Full
Story
New York apple growers elected to continue the state's
marketing order. The vote also continues the work of the
New York Apple Association, which New York State Department
of Agriculture and Markets contracts to carry out the marketing
order's activities, reported Fruit Growers News. Full
Story
Apples top the Environmental Working Group's (EWG) annual
Dirty Dozen list of most pesticide-contaminated produce,
followed by strawberries, grapes and celery. Other fresh fruits
and vegetables on the list are peaches, spinach, sweet bell
peppers, imported nectarines, cucumbers, potatoes, cherry
tomatoes and hot peppers. EWG's Clean Fifteen list, fruits
and vegetables with the least pesticide contamination, consists
of corn, onions, pineapples, avocados, cabbage, frozen sweet
peas, papayas, mangoes, asparagus, eggplant, kiwi, grapefruit,
cantaloupe, sweet potatoes and mushrooms. Full
Story
An AMS final rule permanently adopts changes to the manufacturing
cost allowances and the butterfat yield factor used in
Class III and Class IV product-price formulas applicable to
all federal milk marketing orders. The amendments were adopted
by an interim final rule issued July 25, 2008 that became
effective Oct. 1, 2008. Full
Notice
AMS increased the assessment rate established for the
Citrus Administrative Committee for the 2012-13 and subsequent
fiscal periods to $0.008 per 4/5 bushel carton of citrus handled,
from $0.0072. Full
Notice
AMS increased the assessment rate established for the
Texas Valley Citrus Committee for the 2012-13 and subsequent
fiscal periods to $0.16 per 7/10-bushel carton or equivalent
of oranges and grapefruit handled, from $0.14. Full
Notice
USDA is adopting as final an interim rule that revised
the reporting requirements prescribed under the marketing
order for cranberries grown in Massachusetts, Rhode Island,
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon,
Washington, and Long Island. The interim rule changed the
dates covered by the third reporting period and the date by
which the Handler Inventory Report (Form HIR) is due to the
Committee to July 20, from Aug. 20. Full
Notice
USDA is also adopting as final an interim rule that temporarily
suspended the handling regulations and inspection requirements
prescribed under the marketing order for apricots grown in
designated counties in Washington. The interim rule suspended
the minimum grade, size, quality, maturity, and inspection
requirements for the 2012-2013 fiscal period. Full
Notice
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