Panelists will dig into retailer strategies and identify actions/consequences
that retailers will face in the year ahead. A thorough understanding
of the impact that food deflation will have on food retailers
will be analyzed and explored. Additional information and registration
for the event can be found by clicking
here or by contacting Doreen Pfeiffer at 201-791-5570, ext.
FDA Records Access Under
FSMA - A Major Impact
Upper Saddle River, NJ (April 19, 2012) While the FDA proposed
rules implementing the Food Safety Modernization Act have been
temporarily delayed, don't be lured into a false sense of stasis.
FSMA implementation is coming, and companies should be preparing
One of the most significant changes wrought by FSMA will be
the greatly expanded access that FDA will have to company records.
Prior to FSMA, for most food facilities, FDA access was limited
to labels and records of interstate shipment, and FDA needed
to make a written request for shipment records. Under FSMA,
FDA's records access authority is radically expanded. During
routine inspections, FDA will be entitled to inspect and copy
the inspected facility's hazard analysis, preventive controls
plan, records validating its preventive controls, verification
records, monitoring records, food safety training records and
more. For importers, FDA may see its Foreign Supplier Verification
Program and related records. And, that's just the beginning.
In response to these looming changes, The Food Institute will
host a one-hour webinar on Tuesday, May 15, 2012 from 12pm-1pm
EST to discuss recordkeeping requirements which require immediate
action from all food and beverage companies. For more information
and to register for this event, please click
Dollar Stores: Challenge
or Opportunity for Food Marketers?
TEMPE, AZ (April 17, 2012): Food retailers and manufacturers
are faced with numerous challenges and opportunities this year
and beyond according to Food Institute President, Brian Todd,
who spoke on April 17 at the National Frozen & Refrigerated
Foods Executive Conference in Tempe, AZ. “Faced with more
and more places for consumers to purchase food, traditional
supermarkets have to compete more aggressively for budget-conscious
consumers. At the same time, however, food marketers can now
approach more diverse types of retailers to sell their products
to,” commented Mr. Todd.
One retail format that will continue to sell more food is dollar
stores, which will grow rapidly over the next 5-8 years and
stock up their food aisles and freezer cases as well. Some sources
project there will be 33,000 dollar stores operating by 2020.
Consumers get a bit of a break on retail food prices this year
compared to last, as they are projected to rise 2.5% to 3.5%
in 2012, well below the 4.8% rate increase experienced in 2011.
Unfortunately several of the categories that drove prices sharply
higher in 2011 will continue to rise above the average in 2012
noted Mr. Todd. Beef prices, which jumped 10.2% in 2011 will
likely increase over 5% or more this year due to limited supplies
and higher feed costs. What impact, if any, the commotion over
finely textured beef has on prices yet to be seen, but some
analysts project that could contribute to further increases
in beef prices.
And while the population of the U.S. is still increasing, and
is the only developed nation to be doing so, Mr. Todd notes
that growth is slowing from prior years. “In 2011, the
U.S. population grew by just 0.74% according to the Census Bureau,
down from 0.84% in 2010 and well under the 1% annual growth
that was the norm in the 1990s. The current population of 311.6
million is actually 1.6 million less than the Census has projected
a few years ago. And that means that retailers will have to
work harder to increase sales that had been positively impacted
by an ever-growing population.
It will be an interesting and exciting year for the food industry
and The Food Institute, based in Upper Saddle River, NJ, will
continue to keep members informed in an unbiased, timely and accurate
manner, as it has since 1928.
Changing Demographics impact Food Industry
Upper Saddle River, NJ (April 4, 2012) Updated with the most
recent U.S. Census Bureau data, The Food Institute's Demographics
of Consumer Food Spending 2012 Edition contains over 170 pages
of invaluable data for any marketer of consumer goods. The questions
that CPG companies and restaurants should be asking when considering
target markets and consumers' willingness to spend can be answered
by the information included within the publication and is readily
available in an organized format. One of the multiple books
available in The Food Institute's suite of products, the Demographics
of Consumer Food Spending 2012 Edition fits within any marketer's
library and offers direct, actionable information that both
reflects current demographic compositions in the U.S. and provides
a forecast for the future based on measurable trends.
While it will surprise no one that consumers spent less money
for the third consecutive year in 2010, where that money was
spent is not as obvious. While the average consumer spent $1
more on fresh vegetables, they spent $14 more on processed vegetables
- suggesting that the frugal consumer will purchase the product
with the longer shelf life. And while the data may confirm some
assumptions that consumers in the Western region of the U.S.
spent 2.3% more of their food budget on fresh fruit and 1.2%
more on fresh vegetables than consumers in the Northeast, those
aged 25 to 34 spent 0.5% more of their total budget on fruits
and vegetables than their Western counterparts. With the Demographics
of Consumer Food Spending 2012 Edition, no one need rely on
conjecture when evaluating their customer base.
Recent Census data also reported that the Asian population
in the U.S. grew by 46% to total 14.7 million between 2000 and
2010, more than any other major race group. The Asian population
was largest in California at 5.6 million, followed by New York
at 1.6 million. Where are those consumers spending their food
budgets? Do they purchase more food for consumption at home
more than any other ethnic group? Which types of meats do they
typically buy? These and other detailed questions can easily
be answered by the latest version of The Food Institute's intuitive
publication. Population data is broken down into age, region,
pre-tax income, occupation, gender and household composition,
among other segments, and cross-referenced among categories
to give the most complete picture of the diverse households
in the U.S.
The Food Institute's Demographics of Consumer Food Spending
2012 Edition is now available in both physical and digital form
and at multiple price points to fit any budget. The extensive
data is assembled in a variety of formats to offer visual representations
of the changing demographic landscape in the U.S. Simply scanning
over the contents will provide a detailed look of consumer spending
faster than one could be communicated in any other medium. Whether
it is the first tool applied or the last, the Demographics of
Consumer Food Spending 2012 Edition will make an immense contribution
to any market research endeavor. Books can be ordered online
here or by contacting Sue Antista at (201) 791-5570, ext.
What's Trending with Juice Products?
Upper Saddle River, NJ (March 28, 2012) Each year, The Food
Institute publishes a comprehensive Almanac series which follows
important market trends. The newly published Almanac of Juice
Products, 2012 Edition, provides the necessary tools to
analyze and understand the variables which impact the juice
business. This all-inclusive reference guide, compiled by and
unique to The Food Institute, details all the information you
need to know from a multitude of sources.
This timely guide reports on five years of data, discusses
sourcing decisions and defines market strategies, thereby enhancing
knowledge and providing the power to make key strategic decisions
for any business. This manual offers exclusive Food Institute
price trend data, collected from industry sources and U.S. Census
Be one of the first to have the Almanac of Juice Products,
2012 Edition. CLICK
HERE or contact Sue Antista at firstname.lastname@example.org
(or call 201-791-5570, ext. 212.)
The Future looks bright for Mergers
Upper Saddle River, NJ (March 15, 2012) The recent Food Institute
webinar, "Looking to Buy or Sell a Business? What you MUST know
before signing" featured Calabasas Capital's Rick Andrade. In
discussing merger and acquisition activity, Mr. Andrade stated
that "cash is ready to be deployed in 2012", referencing the
increasing number of deals that we have seen and are expected
to see this year. And, while we have not yet returned to the
heightened activity that The Food Institute was seeing before
the financial crisis, we are back on target with the levels
seen in 2005 and 2006. He stressed the ideal that buyers and
sellers alike must focus their efforts on a multitude of factors,
and not solely on business performance.
In discussing the "anatomy of a food deal", Mr. Andrade identified
and provided what he calls the " four key pillars" which support
merger and acquisition activity. Seller motivation addresses
the real reason behind the sale of a business, whether it is
simply that the owner wishes to retire or a completely different
issue, perhaps increasing global competition or the fact that
partners might no longer have the same vision. Selection of
the buy/sell advisory team sets up the sales process and ultimately,
the structure of the deal.
As merger and acquisition activity has picked up in recent
months, many industry experts believe that the bigger deals
are ready-to-go, after the lackluster performance of recent
years. The Food Institute follows each and every deal in the
food and beverage business and reports this information in an
annual reference guide, which can be purchased by clicking
here. The webinar has also been recorded and is now available
for viewing by registering
here or by contacting Sue Antista at 201-791-5570, ext.
Recalls on the Rise - Be Prepared with
Food Products Recall Manual
Upper Saddle River, NJ (March 6, 2012) Recalls of food products
continue to climb and The Food Institute reports that recalls
in the fourth quarter of 2011 were up in excess of 50% over
the same period as the previous year. The Food Products Recall
Manual has been utilized by thousands of companies over the
past decade, and had just been updated with cutting-edge information
on dealing with food recalls.
The decision to remove a product from both distribution channels
and consumer hands involves a multitude of legal and business
considerations. Food firms, from the largest consumer product
manufacturers to the smallest specialty food producer, must
be prepared to react expeditiously to any potential recall.
This fourth edition of the Food Products Recall Manual includes
step-by-step guidelines, starting with the basics of dealing
with the press in the event of a recall. Many companies do not
even have an idea what their responsibilities are to government
agencies, such as the Food & Drug Administration and the Department
of Agriculture, and what penalties could be incurred for not
following the rules. Furthermore, under the new Food Safety
& Modernization Act, the government has an even larger stake
of what happens during a recall.
Recalls are not pleasant experiences. Given the public's growing
concern about food safety, a recall can quickly escalate into
a local, national or even international news story. But, it
need not be a cause for panic. Following responsible and sensible
procedures, as outlined in the updated Food Products Recall
Manual, can help contain any fallout. The manual also includes
special sections on "Handling the Logistics of a Product Recall",
contributed by Stericycle ExpertRECALL, and a section on "Handling
the Media" by Dezenhall Resources.
The guide can be ordered online by clicking
here, or by calling Sue Antista at (201) 791-5570, ext.
Merger & Acquisition Activity is Healthy
Upper Saddle River, NJ (March 1, 2012) The Food Institute just
released the Food Business Mergers & Acquisitions 2011 guide,
the newest edition of the annual publication. The 2011 version
recounts a shaky year in dealmaking as buyers and sellers watched
an up and down swing as markets reacted to daily updates in
the Eurozone and threats by rating agencies of downgraded assets.
The book contains a list of all mergers involving U.S. firms
recorded by the Food Institute, and includes analysis of every
industry segment. Trends observed over the year are included
in the 2011 edition, such as consolidation in the foodservice
industry as well as distressed retail assets coming under new
ownership among other retailers.
The book contains a record of the 381 mergers executed in fiscal
2011, an increase of about 20% over the 317 deals in 2010. While
the numbers are comparatively high when considering the lull
in 2009 that followed the recession, with mergers dipping to
264, the 20% rise in activity reflects growing M&A interest
in growing segments such as online services and analytics and
the re-entry of private capital and investors into the food
The first half of the year started positively with a combined
196 announced and finalized mergers, a rise of approximately
27% over the previous year and about a 65% rise from 2009's
117 total mergers, but a 17.6% drop when compared with 2008's
238. Boosted by a strong first quarter, M&A declined somewhat
in the second quarter, partly a reaction in the market to uncertainty
fostered by poor economic data in the U.S. and the debt crisis
in Europe. At the time, many analysts predicted that cash-rich
strategics would return to the market ahead of private equity
in deals unless logical buyers did not exist for assets. Companies
that waited through the recession and saved capital emerged
to scoop up companies and make acquisitions that supplemented
organic growth, as growing economies could no longer be relied
on for revenue.
In a year that saw the merger of two large supermarket chains
as well as the falling apart of a Diamond Foods/Procter & Gamble
deal for the Pringles business that would have reshaped the
snack food industry, the Food Business Mergers & Acquisitions
2011 book recaps the deals that were completed or left open
at the end of the year while also providing an outlook into
2012 and beyond. The deals being made today will indicate what
can be further expected as an economic recovery continues to
gain traction, and offer an informed resource when forecasting
The Food Business Mergers & Acquisitions 2011 book represents
information which can be used by both industry and equity analysts
seeking data available nowhere else. Alongside balance sheets
and multiples charts, Food Business Mergers & Acquisitions 2011
offers information that can put a potential deal into better
focus or provide a unique perspective with records of similar
here for more information and to purchase this unique publication.
Looking to Buy or Sell a Business?
What you must know before signing
Upper Saddle River, NJ (February 23, 2012) As the markets begin
their slow climb back this year, many business owners and entrepreneurs
have emerged from hiding to once again consider a serious move
to either buy a new business, or sell their existing one.
If the time has come to consider buying or selling a food or
beverage business, it is important to understand that there
are many issues to address. Whether the company is being bought
out by family members or acquired by a multinational consumer
packaged goods (CPG) conglomerate, having a plan and knowing
your options can make a big difference. For sellers, 2012 is
seeing "sales multiples" return to pre-recession levels, making
this year an ideal time to test out the waters. And for buyers,
there's nothing more satisfying than the ability to control
your own destiny, or add a new acquisition to an existing product
The Food Institute is hosting a one-hour webinar on March 13,
2012 which will address the key steps to a successful sale/purchase,
including finding the right fit, determining a company's worth,
the importance of the seller, due diligence, finding the right
team to manage the deal and finally, closing the deal. Registration
details can be found by clicking
Asia's Growing Interest in the U.S. Food
Upper Saddle River, NJ (February 23, 2012) On March 16, six
representatives from the China-based Hunan Science & Technology
Department will visit The Food Institute headquarters in Upper
Saddle River, NJ to increase their understanding of the United
States' food safety system, including the inspection process
and changes currently being implemented under the Food Safety
This is the second visit from Chinese food industry representatives
as last year, executives from the Hunan Provincial Quality &
Technology Supervision Bureau visited with Food Institute President
& CEO Brian Todd to learn of the U.S. food industry.
"The Food Institute's rich history makes us an ideal source
of information for foreign companies looking to learn more about
working with and within the U.S. food industry. Since 1928,
we have been the best single source for current, timely and
relevant information about the entire food industry from farm
to fork. We remain committed to delivering unbiased and complete
information and the fact that the world's most populous nation
is turning to this organization, is a testament to our success,"
stated Brian Todd, President & CEO of The Food Institute.
The Food Institute has become a resource for several foreign
governments and food companies, having hosted a delegation of
food retailers from Vietnam and Cambodia and secured members
that represent Germany, Italy, Peru and the food sector of several
Food Mergers up in 2011, but slow
in second half
Upper Saddle River, NJ (January 24, 2012) A robust start to
2011 provided a reason for optimism among eager dealmakers and
analysts that a nascent economic recovery was already being
borne by the markets. Private equity investors were active during
the first half of the year, peaking with affiliates of Leonard
Green & Partners, L.P. reaching an agreement to acquire BJ's
Wholesale Club for approximately $2.8 billion in cash. Roark
Capital Group also continued to pursue interests in the food
industry, purchasing the beleaguered Arby's Restaurant Group,
Inc. for about $430 million, while the chic Crumbs Holdings
LLC merged with 57th Street General Acquisition Corp.
Those deals were among many that fostered increased expectations
for the second half of the year, as some analysts began questioning
whether their forecasts for 2011 had perhaps been too conservative.
Predictions for an expedient recovery in mergers and acquisitions
were leveled, however, at around the midpoint of the year when
an acknowledgment that Greece would require a second bailout
package to prevent a collapse sent markets reeling.
At the midpoint of the year, analysts responded to the disconcerting
news by amending their previous outlooks and adopting a bearish
stance. "Dealmakers sat on their hands and coffers, waiting
for further developments as the M&A market hobbled along, buoyed
by smaller deals that demonstrated a conservative attitude toward
acquisitions," commented The Food Institute's Henry Mollman,
who tracks food industry mergers and acquisitions.
Rather than focus on acquisitions to improve profits or increase
a banner's footprint, many organizations instead sought to streamline
their own operations rather than expand into new territory with
uncertain consequences. Food processors looking to divest pieces
that do not fit the larger portfolio of brands were sold off
while other interests were retained, a trend expected to continue
in a rosier, but still uncertain 2012. Sara Lee Corp.'s sale
of its North American foodservice coffee and tea operations
to The J.M. Smucker Company for $350 million and concurrent
establishment of a long-term partnership to collaborate on liquid
coffee innovation may represent the model for many transactions
The Sara Lee sale, Ralcorp Holdings' decision to separate Ralcorp
and Post Foods and Kraft Foods' split into two companies all
indicate a shift in corporate attitude toward internal concerns
rather than external interests. "Distressed or undervalued asset
purchases and business spin-offs are the transactions that corporations
will be attracted to, both to assist reorganization efforts
and placate investors by removing value-sapping assets from
the ledger," predicts Mollman. Rather than lock up considerable
assets in a deal that may be consummated long after the debt
crisis in Europe is resolved and markets react, dealmakers will
seek mergers and acquisitions that are in line with wider corporate
strategies without significantly altering their path.
The freezing of the markets was thawed somewhat by the announced
merger of BI-LO, LLC and Winn-Dixie Stores, Inc. While the $560
million agreement will create an organization of approximately
690 grocery stores in eight states throughout the southeastern
U.S., its surprising announcement is more of an outlier within
the industry than a harbinger of increased M&A activity, and
many analysts have not adjusted their own forecasts in light
of the development. While the timing of the merger does encourage
higher expectations for future deals, it should not be read
as an indication of anything but two formerly bankrupt assets
recognizing an operational opportunity without each of the companies'
retail footprints causing conflicts, Mollman advises. Both Bi-Lo
and Winn-Dixie had been the subject of acquisition rumors for
some time, but when a cautious M&A environment produced no suitors,
the retailers entered into a merger that would increase their
respective sizes without forcing changes in both companies'
After engaging in fewer food industry mergers and acquisitions
in 2010, private equity was involved in 69 deals last year,
an increase of 50% over 2010 but still below the two consecutive
years of 96 mergers and acquisitions recorded in 2009 and 2008.
Within the food industry, investment firms and banks were responsible
for about 18% of acquisitions in 2011, compared with about 14.5%
in 2010. In total, The Food Institute tracked 384 mergers in
fiscal 2011, an increase of about 21% over the 317 deals in
New Food Safety Rules Generate More
Than 600 Comments -- Be Ready When Additional Regulations Surface
Upper Saddle River, NJ (January 17, 2012)- The most sweeping
reforms of the nation's food safety rules in over seventy years
are being implemented by the Food & Drug Administration and
have led to an influx of comments from the industry and the
public. Through mid-January, FDA had already received 614 comments
on various aspects of the proposed regulations, according to
a tally by The Food Institute, an Upper Saddle River, NJ based
trade association. "Knowing that these new regulations will
have a substantial impact on the way companies do business for
years to come, the food industry has been very vocal regarding
the new rules, as it looks to work with the Food & Drug Administration
in further ensuring the safety of the U.S. food supply," commented
Brian Todd, President & CEO of The Food Institute.
The FDA Food Safety Modernization Act (FSMA) was signed into
law by President Obama just over a year ago and while FDA has
made substantial progress since then, the industry eagerly awaits
several proposed rules, including an integral one on the safety
of fresh produce, which will likely be in excess of 125 pages.
Already delayed by several weeks, The Food Institute reports
that FDA will likely not release three additional proposed rules
until early February. The rules nearing release focus on Hazard
Analysis & Preventive Controls for Human Food and Animal Feed/Pet
Food; and the Foreign Supplier Verification Program.
The Food Institute will sponsor an informative 90-minute webinar
on February 6, 2012 from 12:00pm - 1:30pm EST to review the
latest proposed rules. Robert Hahn and Jolyda Swain, partners
with Washington, D.C.-based firm OFW Law, will guide attendees
through these complex new laws. Dr. Purnendu C. Vasavada, coordinator
for the Food Safety Preventive Controls Alliance, will share
his vast knowledge on the subject matter with all in attendance.
This webinar will deliver the most updated information and analysis
and is designed for anyone in need of the most up-to-date information
pertaining to food safety. Register online at http://www.foodinstitute.com/FSMAwebinar.cfm
Contact Doreen Pfeiffer, 201-791-5570, ext. 218, The Food Institute,
for additional information.
Seneca's Dean Erstad elected Chairman of
The Food Institute
Upper Saddle River, NJ (December, 12, 2011)- At
the most recent meeting of the Food Institute's Board of Trustees,
Dean Erstad, Senior Vice President Sales for
Seneca Foods Corp. was unanimously elected
Chairman of the 83-year old trade association as his predecessor,
Donna George President and Chief Operating
Officer of Dr. Schar USA Inc. concludes her
service and becomes Past Chair of the Institute.
Michael Sansolo, of Sansolo Solutions
was elected Vice Chairman, followed by Doug Fritsch,
Senior Vice President Retail & Business Development of IGA
USA who, at the same meeting, was elected Treasurer of
Other members of the Board include: Bill Bishop,
Chairman, Willard Bishop; Susan T. Borra,
Senior Vice President, Communications, Food Marketing
Institute; Paula K. Correy, Vice President,
Western Region, Hy-Vee. Inc.; Frank DiPasquale,
Chief Executive Officer, School Nutrition Association;
Jamie Gronowski, President of Operations, Acosta;
Peter Lavoy, former President of Foodtown;
C. Winston (Win) Taylor, Saint Joseph's
University, and Brian Todd, President
of The Food Institute.
Cost of Thanksgiving Dinner
Upper Saddle River, NJ (November 14, 2011) -Wholesale prices
for ingredients of a traditional Thanksgiving dinner are a mixed
bag in 2011 when compared to prices in 2010, according to data
compiled by The Food Institute. The percent change is wide, varying
from a decrease of 29% for 2 ½ dozen packs of celery to an increase
of 40% on 5/10-lb. bags of fresh potatoes from Idaho. The main
component of dinner, the turkey, is looking at an increase of
The Consumer Price Index (CPI) for all food is now projected
to increase 3.5% to 4.5% in 2011, with food-at-home (retail) prices
forecast to rise 4% to 5% but trending toward the upper end of
that range, according to Food Institute projections, as noted
in the Oct. 31, 2011 edition of the Food Institute Report. Center-of-the-plate
items contributed significantly to the higher price projection
for 2011, with meat, poultry and fish accounting for one-eighth
of the entire food-at-home CPI figure and for which prices are
seen climbing as much as 6.5% this year following almost no inflation
the prior two years. Wholesale food price advances outpaced those
at retail for the fourth straight month in September, as retailers
continued to slowly pass along increases they began encountering
back in early 2010. The Food Institute projects that retail food
prices by the end of 2011 will be about 7% higher than a year
Price increases from feed corn, soybeans and fuel affected turkey
prices in 2011. A bushel of feed corn stood at $6.45 as of Nov.
2, compared to $5.75 the same time last year, a 12.2% increase.
The 2009, the price was $3.82. (The Food Institute tracks feed
corn futures prices weekly - see page 24 of the Food Institute
Report.) According to USDA's Agricultural Marketing Service, preliminary
October prices received for live turkeys was 77.2 cents per pound,
compared to 73.4 cents in October 2010 - a 5.2% increase. However,
turkeys raised in the U.S. during 2011 were 248 million, up 2%
from the number raised during 2010, noted National Agricultural
Statistics Service's Turkeys Raised September report. This indicates
that while wholesale prices of the bird is up almost 10%, there
continues to be strong demand.
With the exception of frozen carrots, traditionally-used processed
fruit and vegetables all saw increased prices in 2011 as compared
to 2010, according to prices exclusive to The Food Institute.
Prices for canned sliced apples have been increasing since last
year due to an expansion of the worldwide market for the item,
as well as increased demand. Higher pecan prices, being seen up
almost 20%, are being contributed to the drought in the Southern
U.S. dropping yields, and also increased demand for the product.
The market situation for frozen carrots is doing better than in
2010, but prices will be back on the rise towards the end of this
year as production in 2011 was lackluster due to low yields.
here to view Wholesale Prices for Thanksgiving Staples - 2011
Food Industry Mergers And Acquisitions
Up Sharply In 2011
Upper Saddle River, NJ (Oct. 14, 2011) -Mergers and acquisitions
within the food industry were recorded by The Food Institute at
273 total deals through the first nine months of 2011, a 39.2%
increase over the previous year's 196. Of the 273 transactions,
180 were completed and 93 remained unclosed or had fallen apart.
In the third quarter of 2011, companies engaged in 77 mergers
or acquisitions, or about 28.2% of the year-to-date total. At
the same time, private equity deal volume fell 23% in the third
quarter from the same period last year, according to Thomson Reuters
data. The total number of third-quarter deals also declined by
9% from the second quarter.
M&A bankers stated that fears of a "double dip"
recession, the European debt crisis and continued market volatility
held up a lot of acquisition activity, and those problems are
not anticipated to be resolved in the near future. Investment
banks and investors showed particular interest in the retail industry,
where the most significant acquisition was made by Beacon Holding
Inc., an affiliate of Leonard Green & Partners, L.P., and
funds advised by CVC Capital Partners, who purchased BJ's Wholesale
Club in an all-cash transaction valued at approximately $2.8 billion.
Other notable deals included the acquisition of Arby's Restaurant
Group for $430 million by a Roark Capital Group in the third quarter.
The Atlanta-based sandwich chain was divested by the Wendy's/Arby's
Group, which will retain an 18.5% ownership interest in the Arby's
business. On Oct. 3, Sara Lee Corp. also completed the sale of
its North American Refrigerated Dough business to Ralcorp Frozen
Bakery Products, Inc., a division of Ralcorp Holdings, Inc., for
$545 million, a business that generated revenues in excess of
$300 million in fiscal 2010. Finally, Diamond Foods, Inc. signed
a definitive agreement to acquire the Pringles business from The
Procter & Gamble Company (P&G) in the third quarter, a
transaction valued at $2.35 billion. Under the terms of a split-merge
agreement, P&G will establish a separate entity to hold the
Pringles business, which will be distributed to electing P&G
shareholders in a tax-efficient transaction with a simultaneous
merger with Diamond.
For the remainder of 2011, and looking ahead to next year, any
stability gained over the past year evaporated in the minds of
private equity buyers and firms looking to spend cash to expand
in markets that are becoming more and more competitive. Consumer
attitudes, commodity prices and thinning profit margins are all
contributing to larger trends within the mergers and acquisitions
market, and the comprehensive research and analysis performed
by The Food Institute provides insight into the micro- and macroeconomic
factors that impact the food industry. The 83-year old organization
reports on markets within the sphere of food processors as well
as the infrastructure supporting the industry and capital from
private equity. Specifically, the Food Institute offers a constantly
updated merger database, consumer and producer food price tracking,
market reports and multiple publications that include specific
data as well as information relevant to any individual or firm
with a business interest in one of the many segments of the food
The Food Institute Partners with the IGA
Upper Saddle River, NJ (August 15, 2011) - The IGA Coca-Cola
Institute, founded by IGA (Independent Grocers Alliance) with
the support of The Coca-Cola Company, is dedicated to providing
learning resources for food retailers worldwide. A recent commitment
to form a strategic alliance with The Food Institute, one of the
food industry's oldest and most respected news and information
providers, will add a new venue for communication to the food
Under the partnership, The Food Institute will promote IGA's
portfolio of retail learning options via The Food Institute website
This includes the unique International Supermarket Management
Class slated for October 2-7, 2011 and the Retail Executive Leadership
and Family Business Program scheduled for next year. Meanwhile,
a bevy of Food Institute publications will be featured and available
for purchase on the Institute's website at http://www.igainstitute.com/Community/FoodRetailArticles.aspx
"No single source of information is more respected in the food
industry than The Food Institute," cited a recent quote from IGA.
"Our members will now have access to the best, most up-to-date
industry information available without leaving our website."
"The partnership between the IGA Coca-Cola Institute and The
Food Institute will benefit members of both organizations," adds
Food Institute President Brian Todd.
About the IGA Coca-Cola Institute
The IGA Coca-Cola Institute's mission is to increase the people
performance and business effectiveness of a worldwide retail community
through online learning, classroom training and a resources center.
The Institute cultivates not only the improvement of work skills
and job performance, but also the personal growth of individuals
committed to life-long learning, ethical standards, and full participation
in their communities.
For the last 20 years, the Institute has been dedicated to providing
learning resources for food retailers worldwide. They recognize
that to remain relevant, retailers need to improve their performance
everyday. Currently, the Institute serves 5,000 stores and 41,000
students in six languages. This is why the Institute provides
training programs that are customizable, easy, effective and specialized
for the food retail industry. For more information, visit the
Institute's website, email email@example.com,
or call (773) 695-2611.
About the Food Institute
Founded in 1928, The Food Institute is a non-profit, membership-based
information and reporting association. Membership includes more
than 2,000 companies spanning the entire food distribution system.
Benefits of membership include Today In Food, a daily e-mail update;
weekly issues of the Food Institute Report, which covers breaking
news, government news, and market news in addition to commodity
pricing information; specialty reports and publications, including
the comprehensive annual publication of the Food Industry Review;
and access to http://www.foodinstitute.com.
For more information visit their website or call (201) 791-5570.
Food Policy Issues Explored at National
Food Policy Conference
Upper Saddle River, NJ (August 8, 2011) -The Food Institute is
pleased to announce that it will partner with the Consumer Federation
of America for the 34th Annual National Food Policy Conference,
scheduled for October 3-4 in Washington, D.C. This conference
is designed to focus on key food policy issues affecting consumers,
the food industry and the government.
The conference will examine consumer food priorities and trends;
analyze the impact of efforts to reduce federal spending on government
food programs; and consider how our global food system must evolve
to feed a growing world population. Speakers and panelists will
examine reauthorization of the 2012 Farm Bill; explore key nutrition
initiatives; and identify the next steps in food safety.
Collaboration between these trade organizations provides food
industry personnel with vast resources. The Food Institute provides
its membership with timely and relevant information about the
food industry through a variety of media channels, as the Consumer
Federation of America strives to advance consumer interest within
the food industry through research, advocacy and education.
For additional information and to register for this event, please
Private Equity Behind Bevy of Food
Upper Saddle River, NJ (July 20, 2011) Merger and acquisition
activity was heightened in the first half of 2011 compared to
the previous year, with The Food Institute recording 196 announced
and closed deals through June. These numbers represent an approximate
27% increase in total M&A over the same period in 2010 and about
a 65% rise from 2009's 117 total mergers. "Investment firms and
banks continue to play an influential role in food industry M&A
activity, showing interest in devalued assets or in companies
well-positioned to thrive in a down economy. A prime example is
William Ackman's five million share investment in Family Dollar
Stores Inc., making his Pershing Square Capital Management the
retailer's largest shareholder," commented Brian Todd, President
& CEO of the 83-year old trade association.
Private equity firms helped shape numerous deals within the food
industry. Investment firms and banks participated in 39 acquisitions
in the first half of 2011 versus 24 the prior year. A notable
deal included BJ's Wholesale Club agreeing to be acquired by affiliates
of Leonard Green & Partners, L.P. and funds advised by CVC Capital
Partners in an all cash transaction valued at approximately $2.8
Deals among food processors increased as well, with 45 deals
either announced or completed, a rise of about 32.4% from 2010
and 50% over 2009. Specialty food makers continue to be an attractive
target for acquisitions. Meyer Natural Foods acquired organic
beef brand Dakota Beef.
Sara Lee Corp. acquired Aidells Sausage Company for $87 million.
Among gourmet and specialty sauce and condiment manufacturers,
Beaverton Foods Inc. acquired Pacific Farms, making it the largest
processor of wasabi products in North America.
Retailers were also involved in more acquisitions through mid
2011 vs. the prior year; 43 deals this year compared to just 23
in 2010. The Great Atlantic & Pacific Tea Co. sold seven Super
Fresh stores in Maryland and one Super Fresh location in Washington,
DC to Mrs. Green's Natural Market. A&P received bids for 12 of
the 25 Super Fresh stores put up for sale. The Lowe's grocery
store chain purchased Super S Foods.
The Food Institute has the expertise to provide an informative
view on the current merger environment as well as the regulatory
burdens faced by dealmakers. Weekly publications from The Food
Institute, coupled with a comprehensive merger database, allows
The Food Institute to keep pace with timely industry happenings.
A recent M&A webinar, "The Art of the Deal", featured legal and
financial experts and is now available in a recorded version.
And, the annual Food Business Mergers & Acquisitions publication
offers proprietary information and a unique perspective to all
who seek a thorough understanding of mergers and acquisitions.
here for additional information.
The Food Institute's "Top Ten"
Facts about FSMA
Upper Saddle River, NJ (July 19, 2011) The Food Institute is
pleased to present the Top Ten reasons that you need to
attend the Food Safety Modernization Act Webinar Series.
10. FDA now has the authority to order recalls -- even
if you refuse -- how can that be?
9. Is it possible? is there a chance? - that some food
from your facility could cause serious health consequences? If
so, your registration can be suspended!
8. FDA will soon be able to "sneak-a-peek" at many of your
new records during an inspection - what will they find? What are
they allowed to look for?
7. Domestic food facilities - Are you considered "high risk?"
- If so, FDA will be watching more frequently - what made you
"high risk" ... and, how can you remove that stigma?
6. Do you have a hazard analysis plan? How do you even
begin to implement it? And when? FDA's required preventative controls
coming very soon ........
5. Have you sold "reportable foods" that could pose a health
risk? What's your plan? How will you notify your customers?
Better find out - or your business could be compromised!
4. Fruits and vegetables - you must be safe too - new FDA standards
coming - do you know what they are?
3. And, what exactly are Food Defense Mitigation Measures?
Don't know - they will soon be required - and you will need to
2. How often do you need to re-register with the FDA? What
happens if you don't? And, what are the re-registration rules?
And the #1 reason to attend the FSMA webinar Series ....... Fees
and fines for re-inspections are looming! - Taking a chunk
from your profits - Don't let that happen - Better safe than sorry!
For more information and to register, visit www.foodinstitute.com/FSMAwebinar.cfm
Changing Marketplace impacts Food Inflation
Upper Saddle River, NJ (June 17, 2011) According to Michael Sansolo,
moderator of the recent Food Institute-sponsored webinar on the
Future of Food Retailing, "some tumultuous changes are now impacting
the food industry." The latest U.S. Dept. of Agriculture reports
indicate that food inflation will stay with us, and, will be driven
primarily by commodity pricing. Shoppers paid 4% more for their
basket of groceries in recent months, according to a recent Dow
Jones report. This webinar explored the increasing pressure on
the food industry and shed much insight into the forces behind
food inflation and unique ways to circumvent what is happening.
Jim Hertel, Managing Partner at Willard Bishop, suggested varying
ways to target better pricing in what many consider a fairly dismal
market. His three-step approach included getting smarter on cost
structure, examining costs on profit & loss statements and leveraging
"vendor resources." His associate, Craig Rosenblum, also of Willard
Bishop echoed his thoughts, stating, "a good price image is about
more than price."
Food inflation, coupled with variables such as unemployment,
private label and commodity pricing, continues to impact traditional
grocers, non-traditional grocers and convenience outlets. The
Future of Food Retailing 2011 webinar explores this and offers
a valuable resource to all who view it. The webinar has been recorded
and is now available for viewing by registering at http://www.foodinstitute.com/foodretailing2011.cfm
or by contacting Sue
Antista via email or at 201-791-5570, ext. 212.
FDA's Enactment of FSMA Predicted to be
Upper Saddle River, NJ (June 2, 2011) Passed on four months ago,
provisions of the Food Safety Modernization Act (FSMA) are already
being implemented by The Food & Drug Administration. "FDA is going
to do everything humanly possible to meet these deadlines," commented
John Bode, partner at OFW Law, at a webinar on implementing the
FSMA, and sponsored by The Food Institute.
"There has been a fair amount of trade press that the appropriations
are not going to be there, and therefore, the FSMA is going to
be delayed because Congress won't appropriate the money that the
act needs for implementation. I think that's rubbish. The FSMA
has expansive new enforcement authorities, it has major new self-funded
programs and it has an ambitious program for expansion of agency
inspections. Only the third one, the FDA inspections, is highly
dependent upon dramatic increases in agency funding. It doesn't
really take much money to write regulations," added Mr. Bode in
response to a question about possible delays in the regulatory
In the inaugural event of the of The Food Institute's 12-part
webinar series, it was noted that there are numerous deadlines
for FSMA implementation following the January 4, 2011 enactment
of the legislation and these will discussed in future webinar
segments. The Food Institute will hold the 12 one-hour webinars
throughout the course of the next year. Our first segment, held
on May 25th, kicked off the series and will be followed a second
event on Tuesday, June 28th. These webinars will be offering information
on topics including FDA rulemaking activity, proposed rules and
extensions of comment periods, guidance document developments
and FDA public meetings, speeches and other outreach activities.
All sessions will be recorded for future access. For additional
information, please visit http://www.foodinstitute.com/FSMAwebinar.cfm
or contact Sue Antista
at or 201- 791-5570, ext. 212.
Webinar Series addresses new Food Safety
Upper Saddle River, New Jersey (May 2, 2011) The Food Institute
and Washington,D.C.-based law firm Olsson Frank Weeda Terman Bode
Matz PC will offer a year-long webinar series on FDA implementation
of the new Food Safety Modernization Act (FSMA.) Twelve one-hour
webinars will be offered throughout the year, offering information
on the following topics -- FDA rulemaking activity -- Guidance
Document Developments -- FDA public meetings, speeches and other
outreach activities -- Significant studies, reports and notices
mandated by FSMA -- Agreements between FDA and other government
agencies regarding FSMA implementation -- Food traceability pilot
programs -- FDA's use of new FSMA enforcement powers -- Upcoming
deadlines -- Analysis, and so much more!
Each webinar will offer attendees a broad overview of step-by-step
implementation of the Food Safety Modernization Act and how all
pieces will fit together. Each registrant will also be provided
with useful tools, including a calendar, detailing relevant statutory
and regulatory deadlines. Don't miss out on this informative series.
For more information and to register for this one-of-a-kind event,
please visit www.foodinstitute.com/FSMAwebinar.cfm
Food Retailers Cope With Higher Inflation
For the past 17 months food retailers have been feeling the
pinch of higher food prices more than consumers, and it looks
like that will continue even longer,stated Brian Todd, President
& CEO of The Food Institute, a trade association that delivers
food industry information, headquartered in Upper Saddle River,
That said, February marked the tenth straight month in which
retail food prices increased over prior year levels, with the
February Consumer Price Index for food-at-home up 2.8% from
2010. This is a contrast to the nine months of food price deflation
experienced in 2009.
Wholesale food prices jumped 3.9% in February alone, bringing
the Producer Price Index for finished consumer foods 7.3% above
last February. That was the largest year-over-year gain in that
index since late 1974.
Wholesale food prices have been on the rise since October of
2009 and retail food prices have been rising since December
of that year. Those retail increases, however, averaged 3.2
percentage points less than increases seen at the wholesale
level over the16 months prior to February, according to The
“Retailers have been very reluctant to pass along all
of the higher costs they have been facing to consumers,”
noted Mr. Todd.
The Food Institute utilizes two government reports in its analysis:
The Consumer Price Index (CPI) which is a survey of products
purchased at retail outlets in the U.S.; and the Producer Price
Index which is a survey of food manufacturers.
The Producer Price Index (PPI) is a family of indexes that
measures the average change over time in selling prices received
by domestic producers of goods and services. This contrasts
with other measures, such as the Consumer Price Index (CPI),
that measure price change from the purchaser's perspective.
Producer Prices Highest since 1974
UPPER SADDLE RIVER, NJ (March 16, 2011)- February 2011 marked
the largest one-month increase in 37 years for wholesale food
prices, climbing by 3.9%.
An analysis of the latest Producer Price Index Report by The
Food Institute, Upper Saddle River, N.J., indicates that wholesale
prices have not experienced an increase this great in many years.
This number was only exceeded in November 1974 when spiraling
oil prices resulted in sharp food price increases amounting
"Food retailers in the U.S. have been very adept at holding
price increases at a minimum for the past 18 months but the
February surge will make that task more difficult in future
months," commented Brian Todd, President and CEO of the
non-profit trade association that has been providing information
about the food industry since 1928.
This latest increase in the Producer Price Index for
finished consumer foods is driven by a 49% jump in fresh vegetable
prices due to freezes and other crop issues in many farming
areas. Price increases of 4% or more during the
month for beef and pork also added to the surge
in the overall index.
Of the 17 categories the Food Institute tracks on a regular
basis, 13 posted increases during February, led by fresh vegetables,
and followed by a nearly 10% jump in shortening and cooking
oil, a 7.6% jump in egg prices, a 4.1% gain in dairy prices
and a 3.2% jump in coffee prices.
Consumer Price Index released March 17, 2011
Retail food indices will be released soon by the government.
The Food Institute will be ready with its analysis of how these
latest figures may impact how much consumers will be paying
for food purchased at retail outlets. A companion release from
The Food Institute is coming soon.
The Food Institute strives to be the best "single source"
for current, timely and relevant information about the food
industry from "farm to fork." The Food Institute serves
as a trusted source of information, providing balanced coverage
of the issues, delivers information through multiple media so
that industry professionals worldwide can tap in when and how
The Food Institute
201-791-5570 x. 214
Food Institute Announces April 2011 Webinar
UPPER SADDLE RIVER, NJ (March 14, 2011) - The Food Institute
will host two informative webinars designed to address key issues
impacting the food business. Each webinar is one hour in length
and will offer those in attendance up-to-the-minute information,
followed by a question & answer session.
Join us on Apr. 6th as we explore the role of Shopper Insights
within the food industry. Shopper Insights have become a "must-have"
decision-making tool for category managers, brand and retail marketers
and merchandisers. Anyone intent on intensifying their efforts
via more sophisticated segmentation channels and tighter collaboration
with trade partners will benefit from the in-depth analysis of
this market research study which will be shared with all registered
attendees. For further information, or to register for this unique
event, please visit http://www.foodinstitute.com/consumerinsights.cfm
And, on Apr. 12th, The Food Institute will examine Merger and
Acquisition activity within the food sector. Two experts in the
field will share their thoughts on past activity and offer strategies
for the future. This webinar will explore key factors, which must
be considered when determining whether a company is potentially
appealing to buy, or sell. Analysis on expanding through acquisition,
as well as economizing operations through consolidation, will
be discussed. A legal expert will explain how the government -
specifically the Justice Department and Federal Trade Commission
- evaluates each potential union and why, they may or may not
be considered favorably. As an added bonus, those registered for
this event will have the opportunity to purchase an electronic
version of the "just-published" Food Business Mergers and Acquisitions
book for a discounted price! Registration and additional information
for this webinar can be found at http://www.foodinstitute.com/mergers2011.cfm
New Food Safety Law Will Be A "Game
UPPER SADDLE RIVER, NJ (January 20, 2011) - Speaking at a recent
Food Institute webinar, Dr. David Acheson, former Commissioner
for Food Protection at FDA, described food safety legislation
signed earlier this month into law by President Obama as "unquestionably...a
game changer in the context of new food safety legislation and
the impact on multiple sectors." The webinar, Understanding the
New Food Safety Legislation, also featured John Bode, Principal
Attorney at law firm Olsson, Frank Weeda Terman Bode Matz PC.
While the food safety act been covered extensively by the national
media, particularly the law's granting of mandatory recall authority
to the FDA, many issues most relevant to the food industry have
been glossed over. The law will grant a more aggressive FDA with
greater regulatory authority, including the responsibility for
defining "high risk" foods, which will determine the frequency
that facilities or food producers are inspected.
As a result, according to the webinar, a facility that processes
or holds an article of food particularly susceptible to one type
of contamination may result in that facility, regardless of compliance
history, being inspected at a similar rate to a facility with
a pattern of regulatory noncompliance. Additionally, when FDA
believes that there exists a "reasonable belief" that an article
of food may cause severe adverse health consequences, a firm must
provide access to all records concerning that article. Any articles
of food that may have come into contact with the potentially contaminated
food, or that may have been impacted in a similar manner, are
also subject to total records access by FDA. Essentially, the
bar is lowered from the existence of "credible evidence" required
to support FDA's claims to "reasonable belief" in accessing records.
Many of the webinar participants were particularly interested
in the overwhelming task of establishing a third-party system
of accreditation bodies and auditors that FDA was given responsibility
for. To clear the target of 600 inspections of foreign facilities,
which represents a six-fold increase over the 100 inspections
last year, FDA will need to rely on third-party auditors to shoulder
the burden. Despite an uncertain amount of resources to accomplish
this task, the number of foreign inspections are to double every
year, finally reaching 19,200 inspections in 2016, a goal that
Dr. Acheson described as "frankly impossible."
Much uncertainty remains surrounding the legislation, as funding
is certainly going to determine how successful the government
will be in reaching the ambitious goals set in the FDA Food Safety
Modernization Act. It is unlikely that the FDA will accomplish
its targets for foreign inspections, and the agency will encounter
resistance from states and local agencies in accepting a significant
portion of the responsibility in domestic inspections. How the
agency's budgetary restrictions will affect the initiatives remains
to be seen, but many of the fiscal concerns that plagued the bill
in its progression through Congress will continue to affect food
safety efforts by the government both at home and internationally.
Now that the work in passing the bill is concluded, the consequences
of the law and its reach over industry remain cloudy, dependent
on FDA's ability to accept its new responsibilities while balancing
its limited funds.
To purchase of recording of the entire webinar, please visit
Webinar set for January 6, 2011- Understanding
the New Food Safety Legislation
UPPER SADDLE RIVER, NJ (December 20, 2010) - The long-stalled
Food Safety legislation passed through the Senate on Sunday evening
and is slated for discussion and, most likely, a vote, on the
House floor before the end of the week. The Food Institute has
been following the developments alongside Washington-based law
firm Olsson Frank Weeda Terman Bode Matz PC. Legislation is expected
to pass through the House before Congress enters the holiday break.
The Food Institute will offer an informative 90-minute webinar
on January 6, 2011, exploring and explaining the impact of this
new Food Safety Legislation. Be amongst the first to know how
this proposed bill would increase the FDA's regulatory authority
over the food production system in order to prevent contamination
and food-borne illness outbreaks. The proposed legislation would
give the FDA mandatory recall authority, require food producers
to have qualifying plans in place for identifying and addressing
safety risks, require importers to verify the safety of all imported
foods, and more.
Scheduled to speak at the webinar are two experts in the area
of food safety legislation. Dr. David Acheson, currently Managing
Director, Food & Import Safety Practice, at Leavitt Partners,
has also held numerous executive level positions within the Food
& Drug Administration in which he was afforded an agency-wide
leadership role for all food & feed issues, including health promotion
and nutrition. Mr. John Bode, a principal at Olsson Frank Weeda
Terman Bode Matz PC, concentrates his practice in legislative
and regulatory matters. He actively participated in the legislative
efforts resulting in the enactment of the FDA Food Safety Modernization
Act of 2010. Before joining the firm, Mr. Bode served in three
Presidential appointments at the U.S. Department of Agriculture
and was responsible for approximately half of the USDA budget.
This webinar is a MUST for anyone involved in the area of food
safety legislation. Up-to-the-minute information from our expert
panel will provide in-depth coverage of the changing laws and
their impact on each and every sector of the food industry. A
question and answer session will follow to reply to any remaining
concerns. For more details on this webinar, please visit www.foodinstitute.com/foodsafety2011.cfm
A&P was a 'force to reckon with' notes The
UPPER SADDLE RIVER, NJ (December 13, 2010) - "Looking back almost
60 years into the Food Institute archives, The Food Institute
reported A&P as a force to reckon with, as the retailer
accounted for some 13% of all food store sales back in 1951,"
said Food Institute President Brian Todd.
The Great Atlantic & Pacific Tea Company, Inc. - A&P -
filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy
Code, to help facilitate A&P's financial and operational restructuring.
The 395 A&P stores will continue to operate, according to the
company's press release. Food Institute Report archives
show A&P as an industry leader that operated upwards of 4,000
stores just 60 years ago.
In 1951, "A&P accounted for some 4,600 stores nationwide, and
boasted $3.0 billion in sales. Nowadays Wal-Mart claims
that position, with its nearly 3,000 stores ringing up an estimated
$154 billion in food sales, accounting for about 18%-19% of all
U.S. retail food sales," Brian Todd said.
A&P has gone through several configurations over the past 80
years or so, according to The Food Institute.
For example, the May 26, 1951 edition of The Food Institute
Report sites signs of streamlining as a result of the growth
of the traditional supermarket. "By 1930...A&P had 15,422 stores
and was selling a billion dollars worth of foodstuffs per year.
Six year's later [it] reluctantly read the handwriting, plumped
for supermarkets." By 1951, its 4,600 stores did $3 billion in
Press Only Invited to Preview 2010 Edition
of Food Industry Review
UPPER SADDLE RIVER, NJ (November 10, 2010) - The Food Institute
is pleased to present a FREE OF CHARGE one hour, PRESS ONLY WEBINAR
EVENT. This event will feature the unveiling of the 2010 edition
of the Food Institute's flagship publication, Food Industry Review,
a proprietary book containing invaluable information for anyone
with a connection to the food industry! Everyone in attendance
will be offered a free CD of the newly published book to use when
quoting statistics and highlighting trends throughout your media
channels. All we ask is that anything you pull from the
webinar or from the complimentary CD cite The Food Institute as
your source of information.
"Putting the food industry together for you" marks
the theme of this year's publication. Throughout the year, WE
do the research, so you don't have to! The 2010 Edition is filled
with comprehensive write-ups and detailed sales charts, and now
includes chapters on social media, new concepts and sustainability.
Other topics explored in-depth include retailing formats, private
label, food business mergers and acquisitions, vending, restaurant
and foodservice, new product launches, consumer trends, demographics
of consumer food spending, organic, specialty and natural food
and food processing.
Mergers & Acquisitions Continue to Set
Record Pace within the Food Industry
UPPER SADDLE RIVER, NJ (November 8, 2010) - The Food Institute
continues to explore merger and acquisition activity within the
food sector as the record pace remains strong well into the 4th
quarter of 2010. Several noteworthy trends have appeared as a
result of this heightened activity. A strong increase in mergers
within the Food Processors category as multi-product processors
experienced the largest share in volume, and as fruit and vegetable
processors doubled their totals. A commanding presence of investment
firms and banks within the food industry has also been noted,
as we have observed activity from these types of organizations
in 14 transactions within the last three months. As investment
firms and banks look to become a force in the food industry, we
find that some companies may actually be better off as a privately
held entity. Burger King Holdings, Inc. was recently acquired
by 3G Capital. As Burger King Chairman John Chidsey
indicated to investors, "We look forward to partnering with 3G
Capital, whose proven track record as an investor, together with
its financial and consumer brands experience, will serve to further
strengthen the company, our restaurants and franchisees worldwide."
The recent purchase of American Italian Pasta Company
by Ralcorp Holdings, Inc. marks a significant food processor
acquisition. As stated by Ralcorp's Co-Chief Executive Officer
& President, David P. Skarie, "through this acquisition,
we have gained a complementary business and we intend to continue
to invest in the combined businesses for sustainable and profitable
growth." This trend continued into the snack segment with the
July announcement that Lance, Inc, and Snyder's of Hanover,
Inc. will merge their two leading snack food companies and
emerge with a commanding presence in the salty snack field. "This
historic transaction, based on initiatives that have been in the
works for the past few years, have positioned us for this opportunity",
declared Snyder's Chairman Michael A. Warehime. Many in
the food industry echo thoughts of consolidating businesses and
exploring opportunities, whenever available.
Food Institute members have the opportunity to explore all mergers
and acquisitions through our members-only database on the Food
Institute website. Additionally, the Food Institute markets an
annual publication, Food Business Mergers & Acquisitions, which
provides a comprehensive look into the significant deals of the
year. This publication provides an analysis on the current deals
and their anticipated effect on the food industry as a whole.
For more information or to order the most recent version, please
Thanksgiving Turkey Prices Alone May Result
in More Expensive Holiday
UPPER SADDLE RIVER, NJ (November 4, 2010) - With Thanksgiving
around the corner, consumers will soon be purchasing and preparing
the holiday dinner, which, in all liklihood, will be slightly
more expensive than in 2009, according to data from The Food
Institute. Meanwhile, retail food prices have been outpaced
by wholesale advances for the past year (for more on this, see
Food Institute Report dated Oct. 25, page 1) and food-at-home
prices are up 1.4% compared to a year ago, the largest increase
this year so far, according to data from the Bureau of Labor
Statistics (for more on this, see Food Institute Report dated
Oct. 25, page 2.) Prices for tom turkeys thus far in 2010 are
up over 30% compared to last year, averaging $1.05 per pound.
The main reason for this large increase is the rising cost of
feed for the birds, which is currently standing at $5.77 per bushel
as of Oct. 27, compared to $3.70 in the same time period in 2009,
a 56% increase. (The Food Institute tracks feed corn futures prices
weekly - see Commodity Graphs, page 24.) Also, overall production
of turkeys is down, according to USDA's NASS, with a 2% decrease
to 242 million. In terms of the fruits, vegetables and nuts that
are traditionally served, it seems to be a mixed bag compared
to 2009. Canned pumpkin prices are up after two straight years
of poor harvests and little carry-over from year-to-year. Pecan
prices, meanwhile, are up over 40% from last year, attributed
mostly to increased demand for the crop from China, leaving little
for the domestic market. On the positive side, the other main
canned vegetables are seeing a price decrease from 2009 due to
last year's strong pricing across the board.
here for details on price fluctuations for Thanksgiving Commodities
- 2009 versus 2010.
Food Institute Partners With Capital Roundtable
On Seminar Series
UPPER SADDLE RIVER, NJ (Sept. 13, 2010) -The Food Institute
is pleased to announce a partnership with The Capital Roundtable
to promote informational exchange and professional networking
among business leaders in the food industry and financial sectors.
America's leading provider of conferences for the middle-market
private equity community, The Capital Roundtable is offering
a series of private equity MasterClasses on private equity investing
in food, restaurant, and heathcare companies.
Food Institute members will benefit from a $400 discount off
The Capital Roundtable's standard rates to each of the three
MasterClasses. Friends of the Capital Roundtable will receive
a $300 discount on a full Food Institute membership.
Founded as a nonprofit organization in 1928, The Food Institute
has served as a trusted source of news and information throughout
the food and beverage industry.
A partnership with The Capital Roundtable will now afford Food
Institute members an opportunity to come face-to-face with private
equity experts interested in the food and beverage business.
The conferences will take place in New York City. The first
MasterClass, on Private Equity Investing in Healthcare
Companies, is slated for October 21, 2010, from 8 a.m. to
5 p.m., at The University Club in Manhattan. Dates and times
for subsequent conferences, Private Equity Investing in Food
and Beverage Companies; and Private Equity Investing
in Restaurant Companies, will appear on the Food Institute's
Tradeshow calendar, online at www.foodinstitute.com.
For more information, contact:
The Food Institute
201-791-5570 ext. 214
The Capital Roundtable
212-832-7333 ext. 103
About The Food Institute
The Food Institute is a nonprofit organization with a single
purpose: to provide information. The Food Institute strives
to be the best "single source" for current, timely
and relevant information about the food industry from "farm
to fork." The association serves as a trusted source of
information, providing balanced coverage of the issues. It delivers
information through multiple media so that industry professionals
worldwide can tap in when and how they choose. In addition to
providing members with timely material via daily and weekly
reports, the Food Institute also maintains a database on mergers
and acquisitions impacting the industry, economic statistics
and marketplace trends. Webinars are also offered to members
and nonmembers, providing an educational base for people in
the industry to interact with experts in a specific field. For
more information, visit www.foodinstitute.com.
About The Capital Roundtable
The Capital Roundtable is America's leading conference
company for the middle-market private equity community, focusing
on the "need-to-know" information needs of general
and limited partners, and their teams. Their conferences are
regularly praised as among the best-managed
and best-attended in the alternative asset industry. For more
information, visit www.capitalroundtable.com.
Food Industry M&A's Up 30% In First
Contact: Henry Mollman
201 791-5570, ext. 215
UPPER SADDLE RIVER, NJ
(July 23, 2010) - Following a relatively quiet year for mergers
and acquisitions in 2009, the first half of 2010 demonstrated
a marked uptick in deals across many segments in the food industry.
The Food Institute published its merger and acquisition
analysis through the first half of 2010, reporting a 29.9% increase
in mergers over the previous year. Investment capital flowed a
little more liberally, demonstrated by the 20% increase in mergers
among investment firms and banks in the first half of 2010. (Click
for table http://www.foodinstitute.com/fi6mos.pdf)
Venturing into numerous segments in the food industry, private
investment flooded into restaurants such as the iconic CKE
Restaurants, Inc. as well as rapidly expanding upstarts like
Wingstop Restaurants, Inc. Additionally, the 165-year-old
Pabst Brewing Company changed hands from the charitable
foundation parent of The S&P Company to Metropoulos
& Co. and chief investor C. Dean Metropoulos for about
$250 million. The deal placed the value and cache of the brand
in Mr. Metropoulos' experienced hands, generating interest in
the press due to the investor's history of reviving major food
brands such as Vlasic Pickles and Chef Boyardee.
Elsewhere in the industry, activity among food processors grew
at a modest rate with the biggest increases occurring in the multi-product,
snack food and fruit and vegetable processors. Kraft Foods
acquisition of Cadbury PLC captured the attention of
the mainstream media across the Atlantic, but the finer stipulations
of the deal, including Kraft's required divestiture of its frozen
pizza business to Nestle S.A., were glossed over by many.
Mergers and acquisition activity in the supermarket category remained
lively in 2010, doubling the total number of deals in 2009's first
half, with many acquisitions following bankruptcy filings and the
divestiture of regional assets by larger retailers. The most significant
deal of the year was the Tops Friendly Markets' successful bid for
Penn Traffic's assets, following the latter's Chapter 11 filing
in November 2009. Tops acquired 79 Penn Traffic locations on Jan.
29, and subsequently sold five locations in western Pennsylvania
to Giant Eagle,
Inc. The thinning pool of distressed supermarkets and grocers makes
such blockbuster deals less likely than in the recent past, but
opportunities still exist for retailers with capital and the distribution
reach to supply stores in new markets.
Looking ahead to the second half of 2010, M&A activity almost
assuredly will exceed 2009's totals and continue to widen the
margin between the years, expects the Food Institute. Anticipation
for the remaining year will only be marked by optimism when compared
to the previous year's subdued activity, with many economic signifiers
indicating growth failing to meet expectations. Discouraging economic
expansion has consistently reduced hopes for a large-scale and
speedy recovery, however buoyed by hope, as unemployment numbers
remain stuck at around 10% and consumers continue to spend at
a tempered rate with confidence rebounding slowly and at a lesser
rate than predicted.
The Food Institute merger database, updated weekly, provides
a comprehensive record of all the notable and marginal M&A
activity occurring within the food industry. Deals that change
the landscape of the industry as well as those that serve as bellwethers
for larger trends are reported, granting a perspective that ranges
from the macro to the micro. All of the information is located
in one archive on the Food Institute website, and is available
to all members. In a business as segmented and diverse as the
food industry, novice investors and veteran dealmakers alike can
take advantage of the resources offered by The Food Institute.
Food Institute hosts webinar entitled
"The Future of Food Retailing - 2010"
UPPER SADDLE RIVER,
NJ (June 8, 2010) -The Food Institute will
partner with Willard Bishop to host a webinar entitled The
Future of Food Retailing - 2010. This informative review
will be held on Tuesday, June 29, 2010 at 12pm EST.
Food retailers are facing issues that leave many unanswered questions
in today's economic environment. This webinar will address many
queries concerning consumer-shopping behavior, such as when, and
if, consumers will be buying more store brands as the economy
improves. What is happening with food prices and what can retailers
do to capitalize on current trends? And, what opportunities exist
for grocery retailers with the abundance of empty storefronts?
The information gathered in this webinar will provide retailers
with a solid way to explore opportunities in 2010 and beyond.
The panel will investigate Walmart's Marketside exiting the market
and uncovering the consequences, intended and unintended, of their
actions. As the end of the current economic recession appears
to be on the horizon, this webinar will provide critical information
on the future of the food-retailing landscape.
A knowledgeable panel has been assembled which includes Jim Hertel
and Craig Rosenblum, both of Willard Bishop, who will provide
their unique and unparalleled insights into the Future of Food
Retailing. Mr. Hertel sums it up best when he states "These
have been turbulent times for food retailers. Most, but not all,
have made it through and they wonder "now what?" Will shoppers
return to buying premium products or has "value-seeking" become
part of their DNA?" The panel will dig into retailer strategies,
identify specific actions that retailers are taking and point
out the winners and losers in today's ever-changing market. Michael
Sansolo, the webinar moderator, has an excellent perspective of
today's diverse shopper and how their habits impact the food industry.
This meeting is designed for food and beverage retailers, but
should also appeal to manufacturers, restaurants, suppliers, distributors,
consultants to the industry and the trade press. A copy of the
report will be available to all participants. Sign up for this
webinar at http://www.foodinstitute.com/retailfuture2010.cfm
Cracking The Code For "Eating In"
To Be Topic Of New Webinar
Upper Saddle River,
NJ (March 8, 2010) - The combination of
food inflation and the recession has had predictable and well-documented
consequences, such as growth in private label shares. However,
some retailers, notably Wal-Mart, appear to be leveraging the
economic down turn as they fundamentally change their shopper
value propositions. If successful, these changes will alter supplier
relationships as well as the landscape for competitive food retailers,
in potentially seismic magnitude and with long-lasting dimensions.
A new webinar from The Food Institute will delve
into this topic which is detailed extensively in a new study called
"Eating In," sponsored by the Coca-Cola Retailing and
Research Council - North America.
This study brings together a powerful base of information from
The NPD Group, sourced both from its ongoing work, as well as
a custom survey done for the Council and this webinar featuring
Joe Derochowski, Executive Director The NPD Group, Food
and Beverage Services & Bill Bishop Chairman Willard
Bishop will explore its findings in depth
as well as give answer questions from attendees.
For years food retailers have tried to encourage customers to
eat more meals at home, but only a few have "cracked the
code." One reason is that up until now, food retailers did
not have access to solid information such as this study provides
on how customers were thinking about and approaching the planning,
preparation, consumption, and even clean-up for meals.
This information gives retailers a solid platform to build a fact-based
strategy. It also is translated into literally dozens of fresh
insights and actions retailers can take as they focus on making
it easier and more beneficial for their customers to eat more
meals at home. Speakers will offer remarks focused on turning
the new information and insights into action, providing a framework
for retailers to use to develop their own strategies. There will
also be opportunity for the audience to pose questions to the
The session is designed for retail executives, but should also
be of interest and value to brokers, suppliers, and others with
an interest in what will certainly be one of the big topics in
food retailing in 2010 and beyond. A copy of the study is available
for download when you sign up for the webinar at http://www.foodinstitute.com/eatingin.cfm
Executive Joins Food Institute Board
Upper Saddle River,
NJ (Sept. 8, 2009) - Paula Correy,
vice president, western region, for Hy-Vee Inc. in West Des Moines, IA,
has joined the Board of Trustees of the Food Institute, based
here. Ms. Correy, a native of Iowa
and long-time retailer, has been with Hy-Vee since 1999. Prior
to that she managed department stores in the Midwest.
Ms. Correy will join twelve other Trustees including
Bill Bishop of Willard Bishop, Frank DiPasquale of the National
Grocers Association, Mark Allen of the International Foodservice
Distributors Association and Michael Sansolo of Sansolo Solutions
LLC. Joseph Crocker of Crocker & Associates is current chairman,
with Donna George of Schar USA Inc. being the incoming chair.
Dean Erstad from Seneca Foods is currently treasurer. Other trustees
include Pat Mulhern of Monarch Foods, Win Taylor, Peter Lavoy,
and Nancy Glick of MS&L Worldwide.
"Paula will bring a wealth of needed grocery
retailing experience to our Board," says Brian Todd, Food
Institute president. "We traditionally have at least one
retail trustee, and now we have several. That's important due
to all the activity now taking place at the retail level in the
food industry. Paula, coming from one of the most progressive
supermarket operators in the country, will provide us the high-quality
retail input we really need to shape our informational and analytical
products and services for the 21st century. I and all
the Trustees warmly welcome her on board."
Ms. Correy began her career with Hy-Vee as a
manager of store operations in unit in Urbandale, IA.
She subsequently became store director for the Hy-Vee supermarket
in Mankato, MN.
In 2002, she was promoted to the position of the chain's director
of operations, followed by the appointment to the position of
assistant vice president of Hy-Vee's Cherokee division. Her next
post was that of vice president of perishables, followed by elevation
to vice president marketing. She assumed her present position
She has been elected into the Hy-Vee Hall of
Fame and was voted the Department Director of the Year. She currently
serves on several committees, including those for information
technology, general merchandise, pharmacy and perishables. She
has also been on the boards of Midwest Heritage Bank and FDI and
is currently a board member of D&D Foods. She lives in the
area with here husband and three children, Hailey, Tanner and
Tye. An avid sports fan, she finds time for running and biking.
About The Food InstituteThe Food Institute is the food industry's premiere
go-to informational resource. Its products and services include
the weekly analytical Food Institute Report, Today In Food daily
electronic newsletter, and its website, which provides a broad
range of information relative to the food industry including mergers
and acquisitions, economic statistics, and a back-article archive.
In addition, the Food Institute publishes statistical reviews,
including the Food Industry Review, as well as regulatory guides
on such issues as food safety, recalls and other subjects. These
are produced in conjunction with a prominent Washington law firm, Olsson
Frank Weeda Terman Bose Matz PC. The Food Institute also produces
webinars and seminars on food issues.
Economic Downturn Presents Opportunities
And Challenges: Food Industry Review, 2008
Upper Saddle River, NJ (Feb. 18, 2009) - The food industry experienced
many changes and upheavals in 2008. Companies have been looking
for ways to stay ahead amidst the recession, which is becoming
increasingly more difficult. Fortunately there is a go-to resource
that caters to the oft overwhelmed professional who needs to stay
abreast of the latest trends and news. Key information including
demographics, CPI & PPI charts, as well as an overview of
the year's mergers and acquisitions are revealed in the just released
Food Industry Review publication, a 717-page compendium
of important facts and figures that occurred in the food industry
The Food Industry Review, 2008 ed., the Food Institute's
flagship publication, has arrived to give all those in the industry
a helping hand. No other publication offers such a comprehensive
look at the food industry--from retail (including grocery stores,
c-stores and warehouse clubs) to foodservice (including restaurants
and vending). The review also examines consumer trends, new product
trends, natural and organic foods, private label and economic
"The Food Industry Review is a comprehensive resource guide
to the food industry. It is a must for professionals looking to
stay that important step ahead in the current unstable economic
climate," noted Megan Myers, Publications Directory, at the
Upper Saddle River, NJ-based trade association. Published annually
by the Food Institute, Food Industry Review contains easy
to read information that encapsulates an entire year and is available
as a whole or by individual chapters.
For more information about Food Industry Review, 2008 or
to order the publication, please visit http://www.foodindustryreview.com/buy.cfm.
About The Food Institute
The Food Institute is a nonprofit organization with a single purpose:
providing information. The Food Institute strives to be the best
"single source" for current, timely and relevant information
about the food industry from "farm to fork." The association
serves as a trusted source of information, providing balanced
coverage of the issues. It delivers information through multiple
media so that industry professionals worldwide can tap in when
and how they choose. For more information, visit, www.foodinstitute.com.
Could Food Inflation Be Reignited This Year?
Overall food prices are projected to rise less than 2008's 5.5%
to a bit over 3%, but production cuts and a stronger U.S. dollar
Upper Saddle River, NJ (PRWEB) March 4, 2009 - While food inflation
is projected to be under last year's 5.5% level it could be impacted
by production cuts and a stronger U.S. dollar, according to Kenneth
Zaslow, a senior analyst for BMO Capital Markets speaking at The
Food Institute's webinar Where Are Food Prices Headed In 2009?
Reductions in production could "reignite inflationary pressures,"
noted Zaslow, pointing out that the recent slowdown in food inflation
has been accelerated by declines in demand, and "trading down"
Overall food prices are projected to rise 3% to 4.0%, noted Ephraim
Leibtag, U.S. Department of Agriculture economist. Food-at-home
prices however are seen rising between 2.5% and 3.5%, while food
away-from-home is projected to rise between 3.5% and 4.5%. Center-of-the-plate
protein items, such as beef pork and poultry are seen rising under
2008 levels, and dairy and egg prices are actually projected to
decline this year after increasing at double-digit rates in 2008.
The Food Institute keeps industry professionals up to date on
the latest economic and industry news. Find out about becoming
a Food Institute member and joining thousands of other food industry
professionals who have been doing so since 1928 at:
About The Food Institute The Food Institute is a nonprofit organization
with a single purpose: providing information. The Food Institute
strives to be the best "single source" for current, timely and
relevant information about the food industry from "farm to fork."
The association serves as a trusted source of information, providing
balanced coverage of the issues. It delivers information through
multiple media so that industry professionals worldwide can tap
in when and how they choose. For more information, visit www.foodinstitute.com.
Consumers Put Brakes On Food Spending Last
Upper Saddle River,
NJ - (February 2009)
- Americans spent an estimated $1.38 trillion on food last year
according to the Bureau of Economic Analysis' most recent quarterly
report- that's 2.47% less than food spending had been trending
in the third quarter of 2008 and the largest quarterly adjustment
since the government began tracking such data in 1947 despite
soaring food price inflation. "It is safe to say the U.S. shopper reacted to the downturn
in the economy more quickly than at any time in recent history
and more vociferously than at anytime since immediately World
War II when the government began tracking this data," commented
Brian Todd, President of The Food Institute.
The behavior of the U.S. consumer changed significantly
in the last half of 2008 as prices for food rose at the highest
level in almost two decades. While no one can predict the future,
The Food Institute will keep its members and the industry overall
abreast of economic developments as it has since 1928. The Food
Institute will hold a webinar on "What's Ahead For
Food Prices," on Feb 24 at 1:00pm EST.
Following two years of accelerated food price inflation, what
is the outlook for retail food prices in 2009? As the U.S. and
global economies have fallen into a recession and commodity and
energy prices have fallen 30% to 60% over the past few months,
the food industry faces lower costs, but greater uncertainty.
Both the depth and
breadth of the current recession will have an impact on the food
sector and ultimately affect the prices charged by retailers and
paid by consumers. This webinar will focus on the factors
that led to the run up in inflation in 2007 and 2008, how these
factors have changed over the past few months, and what that means
for 2009 and beyond.
The event will feature USDA economist Ephraim Leibtag.
For more go to the Food Institute website at www.foodinstitute.com/foodprices.cfm
What Will The Obama Era Mean
For The Food Industry?
Contact: Henry Mollman
201 791-5570, ext. 215
Upper Saddle River,
NJ (Jan. 26, 2009)
- It has only been a week since the inauguration, but changes
are already being made by new appointees of President Obama, including
USDA Secretary Tom Vilsack who listed child nutrition and improving
food safety among his top priorities. Both of the issues and much
more was discussed at the recent webinar The Obama Era: What
Does It Mean For the Food Industry? Jan. 14, 2009. This event
drew scores of attendees who received a look at the current administration
and the challenges it will face in the coming years. A recording
of the event can be download at www.foodinstitute.com/foodregs2009.cfm
The early hours of the Barack Obama administration proved very
eventful, as the President wasted little time in addressing policy
established over the previous eight years under the Bush administration.
The immediate flurry of activity indicates that the what follows
will bring profound and abundant change, and the group assembled
by The Food Institute and Washington insider law firm Olsson
Frank Weeda Terman Bode Matz P.C. represents the most experienced
and insightful professionals yet organized to focus on the ripples
that will be felt by the food industry resulting from a sea change
With a Democratic White House and a substantial Democratic majority
in both houses of Congress, expectations are high for far-reaching
legislation with significant repercussions for those in the industry.
Former U.S. Congressman Charles Stenholm, known as "Mr. Agriculture"
for his well-established experience in Congress on food and agricultural
issues and immense knowledge of the business, provides a Washington
veteran's familiarity with current representatives and the legislative
process. Mr. Stenholm's contributions to the webinar will prove
invaluable to anyone involved at any level in the food and agriculture
Attorney Marshall L. Matz, recent recipient of the Gene White
Lifetime Achievement Award for Child Nutrition, discusses the
importance of the reauthorization of the Child Nutrition and WIC
Reauthorization Act of 2004, set to expire on Sept. 30, 2009.
Mr. Matz describes the many changes likely to be enforced in the
reauthorization, particularly in relation to the obesity epidemic,
an issue notably placed at the forefront of the new administration's
health agenda, as well as the difficulties the reforms will encounter
amid the balance of the Economic Stimulus Package and budgetary
restraints. This issue will undoubtedly affect any food manufacturer
as welfare reform, changes to the school lunch program and an
increased importance on childhood nutrition will spill over into
innumerable market segments.
The growing influence of consumer and health groups on an activist
federal government will assuredly have a considerable impact on
future regulations and legislation, and founder and former Chairman
of the Food Institute Rick Frank discusses the various groups
and representatives that will push for agendas and reforms marginalized
by a pro-industry Bush administration. Food safety reform, which
was not particularly emphasized over the past eight years, is
one of 13 "urgent priorities" as compiled by the U.S.
Government Accountability Office. As legislation concerning food
safety is highly likely before the end of 2009, leading food industry
legislative and regulatory expert Bob Hahn explores the possibilities
for FDA reorganization or the creation of an entirely new entity
to regulate food safety. With expanded federal authority on food
safety issues, food processors and importers will be subject to
greater compliance standards and will receive increased scrutiny
Other issues discussed in the webinar were:
I. Issuance of a report from
FDA's Science Advisory Board classifying CFSAN as in a "state
II. Obesity epidemic continues
to worsen, with increasing evidence that consumers not using or
not understanding the nutrition label
III. States, cities, and counties beginning
to enact their own food laws, including bans on trans fat
in restaurant foods and nutrition labeling of restaurant foods
IV. Rising food prices, with some blaming
diversion of grains to ethanol as a contributing factor
V. Economic downturn has increased
food insecurity and demand for food assistance programs among
VI. Perception that FDA under Bush Administration
has been "toothless"
A recording of the webinar can be found on the Food Institute
website at www.foodinstitute.com/foodregs2009.cfm
with more details and commentary.
The Food Institute is the foremost resource for information
relative to the food industry and produces e-newsletters, printed
analytical reports, guides and statistical reviews of food industry
Olsson Frank Weeda Terman Bode Matz P.C. is a prominent
Washington-based law firm that specializes in food legislation
and regulation, including food safety, labeling and food importation.
Shoppers Buying Less Food
FOOD INSTITUTE PRICE INDICES DOCUMENT "PAINFUL" DECLINING
UNIT MOVMENT IN FOOD SALES
Upper Saddle River, NJ
- (Jan. 26, 2009) - Supermarket and restaurant chains saw
their patrons buy less physical product at the end of 2008, year
over year, according to the Food Institute's exclusive Prices
Indexes. The Food Institute, based here, found that in December
alone "deflated" sales at grocery stores fell 4.7%,
after allowing for inflation, while eating and drinking places
saw their "deflated" sales drop 6.6%. – among the largest
declines the Food Institute has recorded since it began tracking
this information two decades ago.
"The impact of higher food prices on both U.S.
supermarkets and restaurants is painfully apparent when looking
at sales and inflation data from 2008's final quarter," commented
Brian Todd, President & CEO of The Food Institute. "While
people have to eat, they are opting to do so less often at restaurants,
and are carefully traversing supermarket aisles in search of bargains
and more economical meal solutions."
Even though there was some slight easing of food-at-home price
inflation in the final months of last year, consumers cut back
even more sharply on their expenditures at both food stores and
restaurants. Operators saw growth in their business plummet to
only about 3% in the final quarter as the government's Consumer
Price Index for food-at-home hovered above 7%.
Food Inflation last year was at a 19-year high, and, while it
is expected to ease somewhat this year, could still top 4%. "Budget
conscious consumers, however, will likely be the norm for the
foreseeable future, and will continue to look for values,"
Would you like to be able to access this kind of information,
as well as on other food industry topics 24/7? Become a member
of The Food Institute. Go to www.foodinstitute.com
and click on "Become A Member" on the menu bar at the
top of the page. You will be able to receive the information-packed
Food Institute Report, access the FI website with its food industry
data bases, get the daily electronic newsletter, Today In Food,
and benefit from substantial discounts on FI's webinars, seminars
Join the National Grocers Association and Food Institute to Launch
Student Learning Service
Upper Saddle River, NJ (May 27, 2008) - The Food Institute (FI)
and The National Grocers Association (N.G.A.), in cooperation
with Kraft Foods, are pleased to announce the launch of the Student
Learning Service, a program designed to assist students pursuing
a food industry career. The Student Learning Service (SLS) will
make important industry information from the Food Institute accessible
to the students -- and faculty -- of the member schools of the
N.G.A. Food Industry University Coalition (FIUC).
“This is a fantastic program that taps into the Food Institutes
vast knowledge and tools to benefit both students and faculty
members,” says Richard George, Professor of Food Marketing, St.
Joseph’s University, an FIUC member school. Here are some of the
benefits the SLS -- executed in alliance with FIUC -- will provide:
Access to food industry data to support student efforts, particularly
reports and presentations;
Details on job opportunities;
“Real time” information on developments within the food industry;
and Faculty assistance to develop course work
“Kraft understands the strategic imperative represented by this
initiative,” says Denny Belcastro, VP, Customer Development and
Industry Relations, Kraft Foods. “In supporting this program,
we’re helping to ensure students will acquire the skills and talent
essential to be the effective future leaders the food industry
needs,“ The Student Learning Service will have several components
and – by making the most of web technology – will be designed
for ease-of-use. These components include easy access to FI databases/information
resources through the FI website (www.foodinstitute.com) and N.G.A.
website www.nationalgrocers.org; a career center; a subscription
to FI’s “Today in Food Daily Update” e-newsletter and the weekly
“FI Report.” Each university’s website also will provide access.
Just some of the resources available include: the market information
centers, mergers & acquisitions database; archive of back articles,
research resources and the food price outlook.
“We believe the Student Learning Service is one of our most important
initiatives launched in the last several years,” says Brian Todd,
President and CEO of the Food Institute. “The service directly
engages the student body of each school with the food industry
real-time, and will provide students with the information and
background they need to have as future leaders.”
The Student Learning Service also will include a number of new
products currently in development, such as: public reports from
iLumen Benchmarking Service, Competitive Promotions Report promotional
review, a Crisis Management Center and financial reports. In addition,
the LearnSomething training programs currently being developed
for the Food Institute site would be available for sign-up.
The Student Career Center, aimed directly at the students, will
be a tremendous resource. The center will not only provide information
about careers after graduation, but also will include details
on part-time summer employment and internships. In close association
with the N.G.A. Coalition, FI would actively seek participation
among all companies in the food industry (major corporations,
processors, wholesalers, retailers, etc.) to solicit graduates
and students, and would also actively solicit students for posting.
This could be an immensely important service, not only for the
students, but also -- especially -- for the industry at large,
which can certainly benefit from the skills being acquired by
tomorrow’s generation at Coalition schools.
“N.G.A. is excited about this new initiative for a number of
reasons. One of N.G.A.’s key working agenda items is to recruit
the next generation of quality leaders and entrepreneurs, this
new program aids us in reaching that goal.” said Frank DiPasquale,
Senior Vice President of the National Grocers Association.
The program is expected to launch in August to coincide with
the start of the 2008-09 academic year. For more information please
contact Christine Cunnick at 703-516-0700.