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Food Industry M&A's Up 30% In First
Half
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
here
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
ELMWOOD PARK, 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 presenters.
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
Hy-Vee
Executive Joins Food Institute Board
ELMWOOD PARK, 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 in 2008.
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 Des Moines
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 Institute
The 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
ELMWOOD PARK, 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 during 2008.
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 trends.
"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 Corinne Casella, IRC Manager, at the Elmwood
Park, 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
for purchase
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
could impact.
Elmwood Park, 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? (www.foodinstitute.com/foodprices.cfm)
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" by consumers.
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:
www.foodinstitute.com.
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 Year
ELMWOOD PARK,
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
ELMWOOD PARK,
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 in Washington.
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
business.
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 from regulators.
Other issues discussed in the webinar were:
I. Issuance of a report
from FDA's Science Advisory Board classifying CFSAN as in a
"state of crisis"
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
low-income Americans
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
developments.
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.
Budget-Conscious
Shoppers Buying Less Food
FOOD INSTITUTE PRICE INDICES DOCUMENT "PAINFUL"
DECLINING UNIT MOVMENT IN FOOD SALES
ELMWOOD PARK, 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," added Todd.
-----------------------------------------------
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
and publications.
Kraft Foods Join the National Grocers Association and Food Institute to Launch
Student Learning Service
ELMWOOD PARK, 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.