April 25, 2013

 IGA Guest Contributor Perspective

Looking to Expand Your On-the-Go Foodservice Business? Register Today for FARE!

A message to IGA retailers from...
Abbie Westra
EduNetworking Development—Foodservice at Retail Exchange

The Foodservice at Retail Exchange (FARE) is an annual event from CSP Business Media, publisher of a number of magazines for the retail and restaurant industries. At FARE, being held this year from June 18 - 20 at the Renaissance Schaumburg in Chicago, retailers will learn strategies and best practices for expanding their foodservice offering.

The channel lines between retail and foodservice are blurring and everyone is going after the on-the-go foodservice consumer—making the need to ignite the spark of innovation at your company so crucial. Foodservice at Retail Exchange (FARE) brings operators and suppliers together to incite ideas and innovation to keep you creative, consistent and competitive. By discussing the changes, challenges and choices facing foodservice across retail channels, FARE kindles the flame within you and your company to find success in this booming industry.

Highlights of this outstanding event include:

Innovative Insights
Retailers are increasingly focused on building their foodservice offerings to gain a leg up on the competition. FARE offers nearly 11 hours of educational sessions that discuss today's challenges and opportunities facing foodservice operators across retail channels.

Superior Networking
Meet one-on-one and pick the brain of top professionals from various retail and foodservice channels in unique settings such as the Food Pavilion, strolling dinner and the FARE After-Dark Lounge.

New Product Offerings
Experience the latest and greatest in food, beverages, equipment, services and supplies while mingling with suppliers of these products during the always-popular Food Pavilion.

Culinary Competition
Operators representing the core channels of foodservice at retail will choose from a market basket of ingredients to create and prepare the perfect portable meal in 75 minutes.

Ignite the spark of innovation with key players of the dynamic, fast-growing foodservice at retail industry. For more information and to see a full agenda of events, visit us at www.FoodserviceAtRetail.com, or click here to register as a retailer/operator and attend the event for free!


Abbie Westra


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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