Industry News

While food-at-home prices are seen rising 1.5% to 2.5% this year, USDA's latest price forecast for 2007 shows egg prices climbing 11% to 12%, well above the 7% to 8% gain anticipated previously. Food away-from-home price inflation projections, meanwhile, were unchanged at 2.5% to 3.5% for 2007. Full Story

Private equity firm Texas Pacific Group Ventures Inc. sold its remaining stake in airline catering company Gate Gourmet to Merrill Lynch and Co. Inc., sources familiar with the situation told Reuters. Gate Gourmet, which is based in the U.S. and Switzerland, has been hit by a series of financial troubles and industrial action since Texas Pacific bought it from Swissair Group in 2002 for $902 million. Full Story

Yum Brands temporarily closed several New York City restaurants owned by the franchisee that operated a Manhattan Taco Bell overrun last week by rats. The company said the restaurants would remain closed until they underwent new inspections by the city's health department, reported Associated Press. Full Story, Press Release

Publix Super Markets Inc. capped off 2006 by passing the $1 billion mark in annual earnings for the first time, a 10.9% increase from 2005. Same-store sales for 2006 were up 5.2%, according to The Lakeland Ledger. Full Story (Free Registration Required)

Consumer spending at restaurants in Dec. 2006 rose 4% versus the year earlier, according to The NPD Group's first report on overall monthly sales and traffic information for the restaurant industry. Customer visits to restaurants for the same month year over year also increased, with only minimal check inflation. The increases in traffic for the month of December trace to Quick Service restaurants and Chains; while traffic at Full Service and Independent restaurants only matched the year ago levels in Dec. 2006. Full Story

Swiss dairy group Emmi plans to expand in the U.S. over the next year as it looks to continue growth in its international division. The company had bought a minority stake in the U.S. start-up, Contract Aseptic and Specialty Packaging, which specializes in aseptic production of dairy products, according to Dairyreporter.com. Full Story

Absolut vodka is about to be offered for sale with its parent company V&S Vin & Sprit, along with five other companies in which Sweden holds significant stakes. The Swedish government will seek parliamentary approval for the V&S sale. With an estimated sale price of $5.7 billion, potential buyers for V&S include Diageo, Pernod Ricard and Fortune Brands, which already has a distribution deal with V&S, reported USA Today. Full Story

Longs Drug Stores Corp. will close 31 stores in four Western states this year, while opening or relocating up to 30 other outlets and remodeling 40 more, reported The Fresno Bee. Full Story (Free Registration Required)

Nascent Wine Company, Inc., dba Nascent Food Service, signed an exclusive distribution agreement with Reed's, Inc. for the exclusive distribution rights for all of Reed's products, including the award-winning Virgil's Root Beer and Reed's Ginger Brews, throughout Mexico. Full Story

In response to a recent Stagnito Daily Brief survey, 86% of respondents agreed with the statement, "Breakfast foods represent one of the hottest new growth segments for new product development," while 14% disagreed.

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International News

The French government ordered food ads to carry warnings telling consumers to stop snacking, exercise, and eat more fruits and vegetables. France, where slightly more than 9% of the 63.4 million citizens are obese, is worried about an obesity epidemic striking the young, reported The Associated Press. Full Story

Kraft Canada is warning the public not to consume products from certain packages of Christie Chewy Chunks Ahoy! cookies that may have been tampered with. Stores in Quebec and Ontario that distribute the 325-gm. packages of Chunks Ahoy! cookies are recalling them from shelves, reported CBC News. Full Story

Papa John's International opened its first restaurant in Cairo, Egypt. The opening represents the first of five planned for this year in the country, and 40 over the next four years. Full Story

Washington News

Fast food restaurant chains, Wendy's International Inc. and White Castle, pulled posters listing calorie counts for menu items from the walls of their New York City restaurants, and thus will avoid having to comply with a new mandate approved by the Board of Health that will affect thousands of New York restaurants. The rule, which goes into effect July 1, will require about 10% of city restaurants to post calorie counts beside food items listed on their menus. The measure affects mostly chain and fast food restaurants, but only those providing calorie information to customers on or after Mar. 1, reported The New York Sun. Full Story

A bill introduced in Philadelphia would require chain restaurants and eateries to print nutritional information, including calorie counts and fat content, in a spot where diners cannot help but see it: on the menu itself. The bill applies only to eateries with 10 or more sites nationwide, as well as high-end chain establishments and some regional restaurants, reported Philadelphia Inquirer. Full Story (Free Registration Required)

The U.S. House of Representatives passed the Employee Free Choice Act 2007. Under the Employee Free Choice Act, if a majority of workers in a workplace sign cards authorizing a union, then the workers would get a union. This majority sign-up process is permitted under current law, but only if the employer allows it. Full Story, View Bill

California's Governor favors a voluntary, industry-run program to impose controls on growers of spinach and lettuce, putting a damper on proposed legislation to protect consumers from lethal bacterial contamination of California-grown lettuce and spinach, reported The Modesto Bee. Full Story (Free Registration Required)

The U.S. kicked off its free trade agreement with the Dominican Republic, which already ranks as the No. 3 trade partner for South Florida. Analysts expect the deal will boost South Florida sales to the Dominican Republic, including food for residents and tourists. The Dominican Republic is the fifth Latin American nation to implement the U.S.-Dominican Republic-Central American Free Trade Agreement. Costa Rica could join later this year, once its legislature approves the deal, according to South Florida Sun-Sentinel. Full Story

Federal inspectors found the strain of salmonella behind a recent food-poisoning outbreak at the ConAgra Foods plant that made the tainted peanut butter. Beyond the Sylvester, GA, plant, the strain also has been isolated from open jars of the company's peanut butter. The company had sent bulk Peter Pan peanut butter to its plant in Humboldt, TN. There, it was incorporated into various ice cream, sundae and shake toppings. The products have been recalled. FDA Update

Numerous suits were filed in courts across the country since ConAgra Foods issued a nationwide recall of all Peter Pan and Great Value peanut butter made at its Georgia plan. Lawsuits have been filed in nine states, according to news reports, reported Tampa Bay Online. Full Story

USDA gave preliminary approval for the first commercial production of a food crop engineered to contain human genes. The plan, confirmed by Ventria Bioscience, the biotechnology company leading the effort, calls for large-scale cultivation in Kansas of rice that produces human immune system proteins in its seeds. The proteins are to be extracted for medicinal use and might be added to health foods such as yogurt and granola bars. USDA published its draft environmental assessment, which concluded that the project posed no undue risks. The public can comment until Mar. 30, reported The Washington Post. Full Story (Free Registration Required), Federal Register Notice

Cub Foods is refunding money to customers who return packages of beef that are the subject of a mislabeling lawsuit. A company spokesman said the beef labeled as Black Angus beef is indeed Black Angus, but that company policy is to refund the money of customers who are not satisfied. The lawsuit accuses the chain of falsely labeling ordinary beef as more-expensive Black Angus at its Cub Foods stores in Minnesota, reported TwinCities.com. Full Story (Free Registration Required)

The labor union that represents thousands of grocery store workers in Arizona's Valley wants to stop Tesco from selling alcohol at the Fresh & Easy Neighborhood Market stores it plans to open in the area late this year. The union is mailing and distributing anonymous fliers to Valley homes that ask residents to protest Tesco's applications for liquor licenses, reported The Arizona Republic. Full Story

FDA and the Centers for Disease Control and Prevention are reminding consumers of the dangers of drinking milk that has not been pasteurized, known as raw milk. Full Story

FDA initiated a broad review of children's cough and cold remedies in response to a petition filed by a group of pediatricians demanding FDA stop drug makers from marketing these products to children under the age of 6, reported The New York Times on the Web. Full Story (Free Registration required)

Simply Fresh Fruit Inc. is recalling Simply Fresh Fruit Fresh Cut Fruit trays due to possible salmonella contamination. Full Story

Market News

Mandatory country of origin labeling (COOL) for seafood is failing to deliver the benefits promised by the law, according to the Food Marketing Institute. It has not increased sales of U.S. seafood. At the same time, the supermarket industry's cost to comply with the law is up to 10 times higher than USDA estimated when it issued the interim final rule for labeling seafood. Specifically, the retailer cost per store was estimated by USDA to be $1,530, but the actual cost is $9,000-$16,000. Meanwhile, the supplier cost per company was estimated by USDA to be $1,890, but the actual cost is $200,000-$250,000. Full Story

Honey production in 2006 from producers with five or more colonies totaled 155 million pounds, down 11% from 2005. There were 2.39 million colonies producing honey in 2006, down 1% from 2005, according to USDA's Honey report. View Report

National Marine Fisheries Service (NMFS) announced 2007 and 2008 final harvest specifications and prohibited species catch allowances for the groundfish fishery of the Bering Sea and Aleutian Islands management area. Full Story

NMFS prohibited directed fishing for Pacific cod by vessels catching Pacific cod for processing by the inshore component in the Central Regulatory Area of the Gulf of Alaska. Full Notice

National Oceanic and Atmospheric Administration (NMFS) announced temporary restrictions consistent with the requirements of the Atlantic Large Whale Take Reduction Plan's implementing regulations. Full Notice