IGA CEO Perspective

Our Thoughts are with Those Affected by Irene

A message to the Alliance from...
Mark Batenic
CEO
IGA, INC.

It's true that Hurricane Irene may not have been as catastrophic as first predicted, but for many along the eastern seaboard of the U.S., Irene was devastating all the same. From South Carolina to Maine, people are now dealing with widespread flooding and damages that amount to billions of dollars. And with more than 4 million businesses and homes without power, those damages can only grow.

And yet, right in the middle of all this past weekend's chaos, local news outlets along the east coast were filled with stories of IGA Retailers staying open and doing their part to help their local communities prepare for Irene. Now as those of you affected by the hurricane try to get your businesses and your communities back on track, please know that thoughts and prayers of the entire IGA Family are with you. Your resilience and dedication to the communities you serve make us proud.

Thanks,

Mark Batenic

Retail News

Food volume has been negative for four of the past five months, according to Nielsen Co. data from Sanford C. Bernstein. Private-label shares started picking up at a faster pace in the four weeks ended Aug. 6. As prices went up 6.3% in the period, volume declined 3.5%, reported Advertising Age. Full Story (Free Registration Required)

Winn Dixie will spend approximately $125 million on its remodeling program and new store development. The chain expects to complete 17 transformational format remodels in fiscal 2012 and to begin to build the pipeline for remodels and new store development for fiscal 2013. Full Story

BJ's Wholesale Club considered a takeover from a rival in April, but antitrust concerns undermined the deal, according to a SEC filing. The strategic buyer was only identified as "Party A," reported Boston Business Journal. Full Story (Free Registration Required)

Consumers around the world are concerned about environmental issues such as air and water pollution, water shortages, packaging waste and use of pesticides, according to Nielsen's 2011 Global Online Environment & Sustainability Survey of more than 25,000 internet respondents in 51 countries. Full Story

Groupon Inc. and LivingSocial both saw declines in web visits in July from June, according to Kantar Media Compete. Groupon's unique visits fell 8.9% to 30.6 million in July, the first month-to-month decline this year, while LivingSocial saw a decrease of 28% to 10.6 million unique visitors, reported Crain's Chicago Business. Full Story (Free Registration Required)

Manufacturer News

Starbucks Corporation's coffee K-Cup Portion Packs for the Keurig Single Cup Brewing system will be available throughout grocery stores and specialty retailers in the U.S. starting in November. Starbucks coffee K-Cup Portion Packs will be available in Canada CPG channels in March 2012 and through Starbucks and GMCR's direct-to-consumer websites in August 2012. Availability at Starbucks retail stores in the U.S. and Canada is targeted for later in 2012. Full Story

Multi-Color Corporation agreed to acquire 100% ownership of York Label Group to strengthen its position in the Food & Beverage; Wine & Spirit; and Home & Personal Care label markets in North America and Chile. The approximate purchase price is $356 million. The deal is expected to close on or about Oct. 3. Full Story

New Product News: PepsiCo's Frito-Lay North America introduced Doritos and Cheetos Fiery Fusion snacks, available in convenience stores across the U.S. Full Story ... The YoCrunch Yogurt Company, LLC launched the YoCrunch Greek Parfait Multipack. Full Story ... Dean Foods launched TruMoo chocolate milk across the U.S. Full Story ... The Great Atlantic & Pacific Tea Company, Inc. will carry Artichoke Basille's Pizza Co.'s line of 10-in. pies at more than 300 stores. Full Story ... Galeos Miso Dressings introduced Miso Southwest dressing. Full Story

Executives on the Move: Sara Lee Corp. appointed Michiel Herkemij EVP and CEO of its International Beverage business. The executive will also serve as CEO of 'CoffeeCo' once it is spun-off from Sara Lee Corp. Full Story ... Berlin Packaging named Richard Chapman VP of Supply Chain. Full Story

Foodservice News

The Top 75 limited-service burger chains saw their sales grow 1.6% last year, reaching $65 billion, according to Technomic's Top 75 Limited-Service Burger Chains Restaurant Report. More than half of the Top 75 burger chains are now fast-casual brands. McDonald's is the driver of sales growth within the category, offsetting declines by other large burger chains, while unit growth is primarily coming from emerging brands as they continue to take share from both limited and full-service restaurants. Full Story

Domino's Pizza refranchised 30 company-owned stores in Atlanta to four local owner-operators. Franchisee Mike Orcutt purchased 14 stores, bringing his ownership total to 93 stores, making him the second-largest Domino's Pizza franchise owner in the U.S. Full Story

Health News

Individuals who eat chocolate regularly may be lowering their risk for heart disease, according to a study published in BMJ. However, experts state it should be consumed in moderation, reported HealthDay. Full Story

Washington News

The final compliance guide on the use of video or other electronic monitoring or recording equipment in federally inspected establishments is available from USDA's Food Safety and Inspection Service (FSIS), according to a notice to be published in the Federal Register. FSIS made changes to the final compliance guide based on comments received on the draft guide. FSIS posted this final compliance guide, which makes clearer which video records are subject to routine access by FSIS. Such records would include HACCP and Sanitation SOP records and records associated with other programs that are prerequisites to HACCP. Pre-Publication Notice

As a result of a new shipper review under the antidumping duty order on honey from Argentina, the Commerce Department found that Villamora S.A, an Argentine exporter, was bona fide and not sold below normal value (NV). The review was requested by Villamora S.A, and the domestic interested parties for this proceeding are the American Honey Producers Association and the Sioux Honey Association. Pre-Publication Notice

A Delaware bankruptcy court approved the reorganization plan of Harry & David Holdings Inc., clearing the way for the company to emerge from bankruptcy under the control of senior noteholders, reported Reuters. Full Story

Potential buyers emerged for Chicago grocery chain Moo & Oink. The company is reportedly negotiating with more than one suitor, reported Chicago Tribune. Full Story (Free Registration Required)

Fourteen company-owned properties of Giordano's are available for sale, either as a portfolio or individually. The deadline for initial indications of interest is set for Sept. 8. Full Story

Global News

Some 33 locations in a 62-mile radius of the crippled Fukuskima Daiichi nuclear plant had cesium-137 in excess of 1.48 million becquerels per square meter. The first comprehensive survey of soil contamination also found another 132 locations had a combined amount of cesium 137/134 over 555,000 becquerels per square meter, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Ulker Biskuvi sold 6% of chocolate maker Godiva to main shareholder Yilding Holding for $29.4 million, reported Reuters. Full Story

Quiznos signed a master franchise agreement to bring the chain to Northern and Western India. Local customization will include new custom sauces and dressings; Indian grains incorporated into the bread; and a broader variety of vegetarian selections. Full Story

South Africa's Bidvest is committed to spinning off its foodservice unit eventually, reported Reuters. Full Story

Market News

The 2011-12 corn and soybean marketing years will be characterized by the need to reduce consumption of both crops, but the magnitude of those needed reductions are not yet known and the prices needed to make those cuts will depend on the strength of underlying demand, stated a University of Illinois agricultural economist. "Based on the most recent USDA projections, and the assumption that year-ending stocks need to be maintained at or above 5% of consumption, corn use would need to be reduced by only about 30 million bushels, or 0.2%, during the year ahead," reported Southeast Farm Press. Full Story

The arrival of Irene at the start of North Carolina's crop harvest season was the worst possible timing for most farmers, according to the state's Agriculture Commissioner. Though numbers are still pending, Hurricane Irene caused serious losses to North Carolina food crops including soybeans, sweet potatoes and corn. Poultry and hog farms lost power, cutting off ventilation and cooling systems. In some cases, backup generators were flooded, reported Reuters. Full Story

Omega Protein Corporation's Reedville, VA-based facility suffered no material property damages from Hurricane Irene. All of the company's fishing vessels, its fish processing plant and its Health and Science Center were unharmed except for minor problems. The Reedville facility currently is without power, which will restrict normal operations. Full Story

Sugar prices may drop at least 13% by early next year as an increase in supplies from Europe and Asia counter a drop in production in Brazil, according to broker and researcher Kingsman SA, reported Bloomberg.com. Full Story

USDA will release its Peanut Stocks and Processing report on Aug. 30 at 3:00 p.m. EST. View Details

Kinze Manufacturing introduced autonomous row crop technology that uses GPS to allow tractors to run without human operators, reported USA Today. Full Story

Blue Diamond's Sacramento, CA-based manufacturing facility was named "Plant of the Year of the Pinnacle Club" by the American Council for Food Safety & Quality. Full Story