March 1, 2007
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Industry News

McDonald's Corp. may add smoothies, iced coffee and other specialty coffees to its U.S. restaurants, according to a company executive. Additionally, the chain will roll out the cinnamon melt - a warm, pull-apart sweet roll with cinnamon glaze - in 11,000 U.S. locations by summer, according to Associated Press. Full Story

Better-for-you food marketing is continuing in 2007, with T.G.I. Friday's unveiling the first national program in the casual dining business that offers a variety of menu items with smaller portions - and lower prices - all day, reported USA Today. Also, Subway will announce plans for Fresh Fit meals that substitute apples or raisins for chips and 1% milk or water for soft drinks with a sub. Full Story

The outlook for the restaurant industry softened somewhat in January, as the National Restaurant Association's index of restaurant activity registered its largest decline in 17 months. The index stood at 100.6 in January 2007, down 1.1% from its December 2006, level. Full Story

In addition to increasing fuel costs, restaurant operators across the U.S. are now facing added margin pressure from wage increases. Many are taking a harder look at raising their menu prices, but with an eye towards three key issues: who else is implementing increases, for which menu items, and which regions should be targeted?, according to Technomic Information Services. Full Story

For the 13th straight year, Publix Super Markets is the highest-ranking grocery store for customer satisfaction, according to the American Customer Satisfaction Index's fourth quarter 2006 report. In second place, was The Kroger Co., followed by Winn-Dixie Stores, Inc. in third. Full Story, Rankings

Wal-Mart Stores Inc. sees no need to split itself into multiple companies, despite its growing global size and suggestions from some financial analysts that it sell units such as Sam's Club warehouses in the U.S., and foreign retail chains, to generate cash, according to remarks made by the company at a Bear Stearns consumer conference, reported Associated Press. Full Story

Costco Wholesale Corp. told its product buyers that it wants to eventually buy only eggs from cage-free hens and those buyers have been spreading the word among its egg suppliers, reported The Oregonian. However, there is not enough cage-free egg production to supply Costco now, and it is impossible to know when that situation will change, said Craig Wilson, assistant vice president of food safety and quality assurance. Full Story

Latest sales & earnings for food related companies (Updated Daily)

Procter & Gamble signed an agreement with Dunkin' Brands Inc. to sell Dunkin' Donuts packaged coffee to grocery and club stores, mass merchandisers and other consumer retail channels in the U.S. Full Story

A number of food companies received Kosher certification for certain products from the Orthodox Union recently, including: J.M. Smucker, Orville, OH and John B. Sanfilippo & Son, Inc., Elk Grove, IL. Full List

Global Beverage Solutions, Inc. completed the acquisition of beverage distributor XStream Beverage Network of Maryland, Inc., a wholly owned subsidiary of XStream Beverage Network, Inc. Full Story

Champps Entertainment, Inc. is continuing to pursue a sale of Kinderhook Industries, LLC and has received indications of interest from a number of potential purchasers. The letter of intent Champps entered into last month with Kinderhook Industries, LLC to sell substantially all of its assets to an investment entity to be sponsored by Kinderhook expired. Full Story

Goldsboro, NC-based Wooten Oil Co. is selling its 12 company-operated Kwik Mart convenience stores, including two sites less than two years old. Wooten Oil is a petroleum marketing, distribution and convenience store company, reported CSP Daily News. Full Story

7-Eleven Inc. closed two White Hen convenience store locations in Forest Park, IL due to low sales volume, just seven months after 7-Eleven purchased the 200-store White Hen Pantry chain, reported Forest Park Review. Full Story

Deli sales now represent as much as a quarter of total sales at many higher-end and specialty stores, such as PCC Natural Markets, reported The Seattle Times. Total deli sales in supermarkets grew from $16.3 billion in 2000 to $21.1 billion in 2005, according to the Food Marketing Institute. Full Story

Philadelphia-based deli meat producer, Dietz & Watson Inc., is opening a distribution center in Delanco, NJ. The company had been renting cold-storage facilities for several years, which made it hard to consolidate orders for supermarket chains and other customers, reported The Philadelphia Inquirer. Full Story (Free Registration Required)

Montvale, NJ-based The Great Atlantic & Pacific Tea Company, Inc. is engaged in negotiations for an acquisition of Pathmark Stores Inc. No final agreement has been reached. Full Story

Greyston Bakery's new line of gourmet brownies is being sold online at www.greystonbakery.com. Profits from the sale of these brownies support the Yonkers, NY-based Greyston Foundation whose social mission is to provide jobs to the chronically unemployed, childcare to an under-served community, housing to the homeless, and healthcare to people in need. Full Story

The Federal government should ease immigration laws to accommodate more low cost workers.


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"We need more specialty outlets, not fewer. We need to champion the cause of good food more widely. And once we have achieved that, we need to club together to demand a same regime of government regulation so we can actually afford to eat it," according to Los Angeles City Beat which opines on the merger of Whole Foods and Wild Oats Markets. Full Story

San Francisco-based lifestyle-centered food company, ahh! Gourmet, unveiled ahh! Express Healthful Gourmet Kits. These at-home cooking kits include specialty Asian-inspired sauces and spices pre-packaged for ease and convenience and includes all natural, preservative-free ingredients. Full Story

Passaic, NJ-based health food store, A-1 Nutrition, boasts a freezer filled for the vegetarian/vegan crowd, including non-dairy mayonnaise and tofu egg salad and a bevy of Gluten-free products. The retailer, profiled by The Record, caters to the healthy and the sick; cancer patients, diabetics, people who want to lose weight, people with digestive problems - even people with parasites. Full Story

International News

PepsiCo, Inc. and The Pepsi Bottling Group, Inc. formed a joint venture called PR Beverages Limited, which consists of PepsiCo's concentrate and PBG's bottling businesses in Russia. Full Story

UK-based Marks & Spencer Group PLC decided not to make a takeover offer for supermarket chain J. Sainsbury PLC at this time. However, the chain did not rule out a future bid, reported Forbes. Full Story

Hershey Co. will acquire a 51% stake in India's Godrej Beverages & Foods Ltd. for $54 million, reported Reuters. Full Story

Health News

Under fire for unhealthy school lunches, well-stocked vending machines and phys ed cuts, the nation's schools may actually do a better job than parents in keeping children fit and trim. A study found that five and six-year-olds gained more weight over the summer than during the school year, according to Tri-City Herald. Full Story (Free Registration Required)

An inspection of more than 138 wrapped loaves of bread in the UK revealed that salt content was above the recommended levels, according to Consensus Action on Salt and Health, reported BBC. Full Story

Washington News

Eleven lawsuits were filed against Yum Brands Inc. and its Taco Bell Corp. subsidiary for the E. coli outbreak in November and December 2006. In its annual report, Yum claims the stores named in at least five of the lawsuits are not company-owned, and therefore, believes it is not liable for any losses at those locations, reported Business First of Louisville. Full Story

In the event of a merger between A&P and Pathmark, the United Food and Commercial Workers Union expects all current labor contracts will be honored, according to a statement by Joseph T. Hansen, International President of the UFCW. The UFCW represents 54,000 A&P employees nationwide and nearly 29,000 Pathmark workers. Full Story

The franchisor and operator of Popeyes Chicken & Biscuits, AFC Enterprises, Inc., filed suit against Church's Chicken and a former Popeyes franchise group in connection with Church's recent purchase of 10 Popeyes' franchised restaurants in the Rio Grande Valley, TX and subsequent conversion of most of the units to the Church's Chicken brand. In the suit, AFC claims Church's induced and colluded with Popeyes' former franchise group, CVI Company, Ltd. and its principals, to breach their binding franchise, development and guaranty agreements with Popeyes and sell their franchised restaurants to Church's for cash with the intent to harm Popeyes. Full Story

The National Farmers Union urged Congress to enact legislation this year that would tell consumers the geographic origin of meat, fruit and other food. Without mandatory country of origin labeling, "consumers continue to be denied the ability to differentiate between U.S. and imported food," the National Farmers Union and a band of over 200 farm and rural groups said in a letter to lawmakers, reported Reuters. Full Story

The Pennsylvania Liquor Control Board appealed a court decision that halted takeout beer sales at a Sheetz Inc. convenience store in Altoona, PA. The store resumed beer sales for takeout at a restaurant that is separated by a partition from the adjoining convenience store, reported The Philadelphia Inquirer. Full Story (Free Registration Required)

Carolina Culinary Foods voluntarily expanded its Feb. 18 recall of fully cooked Oscar Mayer/Louis Rich chicken breast cuts and strips that may be contaminated with Listeria monocytogenes. Full Story

Market News

California border inspectors rejected nine additional loads of Mexican avocados that had "armored scale," an insect not found in California. The shipments came into the U.S. through Arizona and were inspected at the Arizona-California border, reported California Farm Bureau Federation.

A gap in onion supplies could affect consumer prices until California's harvest begins in mid-April. Produce wholesalers blame light production in the Pacific Northwest and a rain reduced crop in Texas. Market watchers say onions may be in relatively short supply for the next six weeks, with available supplies coming mainly from storage in the Northwest, reported California Farm Bureau Federation.

Growers in California are successfully farming abalone, ten years after the ban on commercially harvesting wild abalone went into effect. California now has 15 abalone farms, including Monterey Abalone Co., reported The San Francisco Chronicle. Full Story

NMFS prohibited directed fishing for Pacific cod by catcher vessels less than 60-ft. length overall using jig or hook-and-line gear in the Bogoslof Pacific cod exemption area of the Bering Sea and Aleutian Islands management area. Full Notice

NMFS proposed to establish an inspection program for modified pound net leaders in the Virginia waters of the mainstem Chesapeake Bay. Full Notice


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