IGA Coca-Cola Institute Perspective

Take Advantage of "Early Bird" Rates for ISMC

A message to the Alliance from...
The IGA Coca-Cola Institute Team

Registration is open for the IGA Coca-Cola Institute's annual International Supermarket Management Class (ISMC) in Atlanta, Ga. Since 2004, the ISMC has been a unique, hands-on immersion program focused on developing the managers of tomorrow.

International Supermarket Management Class (ISMC)
October 2 - 7, 2011
Atlanta, Georgia
Simultaneously translated into Spanish and Portuguese!

During the six-day class, students will hear from a faculty of 14 industry experts and learn effective management skills to improve operations, financials, strategy, people performance and leadership. The ISMC is more than a classroom experience; it presents the opportunity to learn from and network with people who are meeting today's food retail challenges, experience new and innovative store formats through visits to local supermarkets and participate in an optional Web-based certification program.

Last year's ISMC was met with huge success. Sixty-nine store owners and managers representing 15 countries and 12 U.S. states gathered to network, share experiences and learn new methods and ideas. This year, the Institute expects an even more diverse group of participants from around the world!

To learn more about the ISMC, please visit the Classroom Training page of our website, www.igainstitute.com. You can also take advantage of the Institute's "Early Bird" rates; register before August 25th, 2011 and save up to $400 off tuition!

Your IGA Coca-Cola Institute Team

HOW TO REGISTER:
Online: www.igainstitute.com
Email: igainstitute@igainc.com
Call: 773-695-2611 or 800-324-5442

Retail News

On the heels of a significant 8.1% jump in grocery store sales during April, sales during May rose 4.1% from a year ago. Eating and drinking place sales, meanwhile, rose 4.5% during the month and were up 4.9% for the year-to-date, according to exclusive Food Institute analysis of just-released government data. Full Story (FI Membership Required)

Alimentation Couche-Tard Inc. signed, through Circle K Stores Inc., an agreement to acquire up to 322 sites plus an additional 65 reseller contracts in Southern California from ExxonMobil. The transaction is anticipated to close in stages between the fourth quarter of the 2011 calendar year and the second quarter of 2012. Of these 322 sites, 72 are company-operated and 250 are dealer-operated. Full Story

Fewer households purchased fresh seafood in the past year than purchased beef, chicken or pork. Households that purchased fresh seafood averaged five purchase occasions per year, less than half the average number of beef purchases. However, when shoppers did buy fresh seafood, they spent an average of $11.57, greater than the average purchase size for beef, chicken and pork, according to FreshFacts Shopper Insights from Spire, reported Seafood Business Magazine. Full Story

Commissary growth over the next three years will exceed both convenience store and supermarket growth. Cold deli sandwiches, burritos and pizza account for the largest shipments from commissaries to convenience stores, according to a Technomic study. Full Story

Casey's General Stores, Inc. increased its store count nearly 7% in fiscal 2011, surpassing its goal to increase its total number of stores 4% to 6%. Growth included 20 new store constructions and 89 acquired stores, while the company replaced 15 stores and completed 120 major remodels. For fiscal 2012, the company intends to increase the total number of stores 4% to 6%. Full Story

Executives on the Move: The Kroger Co. appointed Reuben Shaffer Chief Diversity Officer. Mr. Shaffer will oversee the company's diversity initiatives, including supplier diversity. Full Story ... Hall of Fame Beverages named Jessica Gutierrez president. Full Story ... Agilence, Inc., a provider in point-of-sale video auditing solutions, selected Mike Mitchell as VP of Customer Service. Full Story

Manufacturer News

Wholesale food prices fell for the third straight month, led by sharp produce price declines. That is the largest monthly decline in 22 months. This put the annualized wholesale food price inflation rate at 4.8% through May, according to exclusive Food Institute analysis of just-released government data. Full Story (FI Membership Required)

Pierre's Ice Cream Co. opened a $9.2 million ice cream factory in Cleveland. The 35,000-sq. ft. addition to its corporate offices and distribution center already doubled Pierre's capacity, with extra room to grow. The expansion enables Pierre's to better control its production, mix-ins and sanitation processes, automating tasks previously done by hand, reported The Plain Dealer. Full Story

Sunny Delight Beverages Co. released its third annual Sustainability Report, which addresses company efforts to reduce its environmental footprint, improve the wholesomeness of its product portfolio and enhance employee wellness. The company reduced the average calories per serving from 92 calories in 2007 to 57.6 in 2010 and maintained zero waste to landfill at all of the company's plants. Full Story

New Product News: PepsiCo, Inc. will test a new reduced-sugar cola, Pepsi NEXT, in two markets in Iowa and Wisconsin beginning in July. The beverage contains 60% less sugar. Full Story ... Lindt & Sprungli added two varieties to its Excellence bar line. Full Story ... Cargill introduced FlakeSelect in four varieties at the Institute of Food Technologists Food Expo. The product enables manufacturers to reduce sodium content. Full Story ... Cargill also introduced Clear Valley 80 High Oleic Canola Oil at the show. Full Story ... Old Orchard Brands debuted Very Cherre, a line made from tart cherry juice in four varieties. Full Story

Reynolds Group Holdings Limited negotiated definitive terms and conditions to acquire all of the outstanding shares of Graham Packaging Company Inc. for approximately $4.5 billion. Graham's board of directors, upon recommendation of its special committee, determined that the Reynolds Group proposal is superior to its pending transaction with Silgan Holdings Inc. Full Story

Manufacturer News: Cargill is offering palm oil certified by the Roundtable on Sustainable Palm Oil to North American food manufacturers. Full Story ... SI Group, LLC will implement Arrowsight, Inc.'s third party 24/7/365 Remote Video Auditing food defense services in its five U.S. processing plants to guard against the threat of agroterrorism. Full Story ... Kraft Foods unveiled a three-season fruit and vegetable garden at its global headquarters. The Kraft Foods Garden will produce an estimated 14,000-lbs. of food every year, all of which will be donated to local hunger agencies. Full Story

Kraft is relaunching its five-year old gum brand with "Stride 2.0." The brand still comes in the same 15 flavors as the earlier version, but eight of the flavors were upgraded to give a better "chewing experience and taste profile," according to Kraft's senior director for U.S. gum marketing. This comes as a reaction to Stride seeing sales drop 17% in the year ending Apr. 17, with the brand falling from fourth to fifth place in market share at 7.4%, according to SymphonyIRI, reported Advertising Age. Full Story (Free Registration Required)

U.S. retail sales of natural and organic foods and beverages rose to nearly $39 billion in 2010, an increase of 9% over the previous year, and 63% higher than sales five years earlier, according to Natural and Organic Foods and Beverages in the U.S., 3rd Edition by Packaged Facts. Overall projections are that the market will grow by 103% between 2010 and 2015, with total annual sales exceeding $78 billion in 2015. Full Story

Kemps rolled out Root Beer Milk in a half-gallon size for retail. The flavor is currently in rotation for the summer season, but could become a permanent flavor if it sells well, reported Minneapolis / St. Paul Business Journal. Full Story (Free Registration Required)

The Coca-Cola Foundation awarded grants totaling more than $6 million to 31 organizations across the U.S. in the first quarter of the year, with sizable donations in Georgia, including $1 million to the Nature Conservancy and $1 million to the Atlanta Historical Society, reported The Atlanta Journal-Constitution. Full Story (Free Registration Required)

Foodservice News

Biglari Holdings Inc. paid about $100 million for 9.7% of Cracker Barrel Old Country Store Inc.'s stock, according to a SEC filing, reported San Antonio Express-News. Full Story

Burger King's "20/20" redesign price tag was cut in half by owner 3G Capital to $275,000 per store. The company is also offering an incentive package of reductions in franchise renewal and royalty fees. Burger King hopes to remodel 1,000 locations in the next 18 months. Owners of more than 800 restaurants are already onboard for the revamp, reported Advertising Age. Full Story (Free Registration Required)

Health News

A low-fat, low-glycemic diet may lower the risk of developing Alzheimer's disease if adopted early in life, according to research published in Archives of Neurology. Starting such an eating plan after symptoms surface does not seem to help prevent deterioration of brain function, however, reported HealthDay. Full Story

Washington News

Mexican Economy Minister Bruno Ferrari claimed his country will sign a formal agreement to end a trucking dispute with the U.S. as early as this month, ending a ban on Mexican trucks crossing the border and triggering the removal of some tariffs on $2.4 billion worth of U.S. products, reported Houston Chronicle. Full Story (Free Registration Required)

Wal-Mart Stores Inc. lost its appeal of a $187.6 million verdict in a case accusing the company of denying Pennsylvania workers rest and meal breaks. A three-member appeals court panel ruled that there was "sufficient evidence" in the record to conclude Wal-Mart violated state wage laws for contractual rest breaks, reported Bloomberg.com. Full Story

Perkins & Marie Callender's Inc. entered into a restructuring support agreement. Upon completion of the restructuring, the company will be majority controlled by private investment funds managed by Wayzata Investment Partners LLC. The company also entered into an agreement for a $21 million debtor-in-possession financing facility to maintain business-as-usual during the restructuring process. The company will close 58 Perkins and Marie Callender's restaurants. Full Story

Bob Evans Farms Inc. does not have standing to exclude a shareholder resolution involving voting on buying cage-free eggs for at least 5% of the chain's total, according to SEC, reported Business First of Columbus. Full Story (Free Registration Required), SEC Letter (48 page PDF)

Kim Son Food Co. issued a voluntary recall of approximately 84,000-lbs. of cooked beef and pork meatball products because the products were misbranded and contain an undeclared allergen. Full Story

Global News

Natural and man-made disasters as well as spiraling raw-materials costs will hit emerging-market sales at Nestle SA, as the company struggles to pass on higher costs to consumers. Nestle's Asia-Oceania-Africa zone was the fastest-growing of its three global regions in the first three months of 2011, but rapid rises in commodity costs will likely slow growth in the regions. Nestle is also looking to improve efficiencies and is re-engineering its products to use less expensive ingredients, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

China's inflation rose to its highest level in nearly three years in May, largely because of stubbornly high food prices, adding to economic and social strains fanning protests. The 5.5% rise in the consumer price index was in line with expectations but higher than April's 5.3% and March's 32-month high of 5.4%. The National Statistics Bureau stated the main factor was an 11.7% jump in food prices as drought and other weather disasters have decimated crops in wide parts of the country and rising consumer demand pushes prices higher, reported The Associated Press. Full Story

Experts predict China will import record amounts of corn from the U.S. this year. A senior researcher at the Academy of State Administration of Grain stated China needs to import at least two million metric tons of corn from the U.S. this year to stockpile and rotate its corn reserves, reported China Daily. Full Story

China's urban elite are increasingly shopping at high-end supermarkets that specialize in imported and organic food. The owner of CP Lotus and Super Brand Mall is seeking to capitalize on the trend, launching an upmarket food retail brand in Shanghai, Bazaar by Lotus. The retailer provides more than 7,000 products, of which 70% are imported, at the 3,200-sq. m. venue, reported China Daily. Full Story

Loblaw stores in the Greater Toronto Area will begin offering Marine Stewardship Council certified Pacific sockeye salmon, Pacific cod, Pacific halibut and Atlantic haddock at the fresh seafood counter. Full Story

Australian private equity firm Archer Capital purchased Quick Service Restaurant Holdings for $474 million, reported Reuters. Quick Service operates 620 Red Rooster, Oporto and Chicken Treat restaurants in Australia. Full Story

The UK will end restrictions on the export of sheep and cattle following a bluetongue outbreak four years ago on July 5. A protection zone, which enabled farmers to vaccinate livestock, covered Wales since 2008, reported BBC News. Full Story

Market News

The 13 major potato states held 35.5 million cwt of potatoes in storage June 1, down 36% from a year ago. Potato disappearance, at 316 million cwt, was 4% below June 1, 2010. Processors in the nine major states used 161 million cwt of potatoes this season, up 1% from the same period last year. Dehydrating usage accounted for 25.8 million cwt of the total processing, down 14% from last year. Full Report

Lychee is one of about 15 tropical fruits grown commercially in South Florida and has a short season, from May to July, according to the Tropical Fruit Growers of South Florida. The lychee is grown in Palm Beach County at a handful of farms, including Erickson Farm in Canal Point and Milans Farm and Kenari Groves, both in Loxahatchee. Prices are about $3 a pound, reported Palm Beach Post. Full Story

USDA and the United States Agency for International Development broke ground on a 2,880-sq. ft. state-of-the-art greenhouse that will play a key role in helping ARS scientists combat a growing global disease threat to the world's wheat and barley supplies. Full Story

The Federal Crop Insurance Corporation will award approximately $3.5 million to fund the Risk Management Education and Outreach Partnerships Program. The purpose of this combined cooperative partnership agreements program is to deliver crop insurance education and risk management training to U.S. agricultural producers to assist them in identifying and managing production, marketing, legal, financial and human risk. Full Notice

The California Date Administrative Committee proposed five amendments to Marketing Agreement and Order No.987, which regulates the handling of domestic dates produced or packed in Riverside County, CA. The proposed amendments are intended to improve administration of and compliance with the order and reflect current industry practices. In addition, AMS proposes to further amend the order by providing for a continuance referendum every six years and by establishing term limits of up to six consecutive years for committee members. Full Notice