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Industry
News
The Great Atlantic & Pacific Tea
Company, Inc. and Pathmark Stores, Inc. reached a definitive
merger agreement in which A&P will acquire Pathmark
Stores, Inc., for $1.3 billion in cash, stock and
debt assumption or retirement. The acquisition will
create a 550-store, $11 billion supermarket chain operating
in the New York, New Jersey and Philadelphia metro areas,
as well as in Baltimore/Washington D.C., Michigan and
Louisiana. Full
Story
In 2006, supermarkets contributed to the overall
7.7% increase in food business mergers & acquisitions,
completing 21 purchases, up from just nine completed
deals in 2005, according to the Food Institute's Food
Business Mergers & Acquisitions 2006. An additional
15 transactions by supermarkets were announced, but
not yet closed at the end of 2006. "The magnitude of
consolidation among food retailers could continue in
2007, with three key transactions already announced:
A&P agreed to acquire Pathmark Stores, Inc.; Whole Foods
Market Inc. agreed to acquire natural and organic foods
retailer Wild Oats Markets; and warehouse store operator
and foodservice supplier Smart & Final Inc. entered
into a definitive merger agreement to be acquired by
an affiliate of private equity firm Apollo Management,
L.P.," noted Danielle Breuel, Research & Education
Director at the Food Institute. Full
Story To pre-order the book, contact Danielle Breuel
at 201-791-5570 or email dbreuel@foodinstitute.com.
Chicago-based Alpha Baking Company acquired
Natural Ovens Bakery in Manitowoc, WI. The Natural
Ovens brand offering includes breads, bagels, cookies,
rolls, granola bars, cereals & mixes. Natural Oven's
products are distributed to retailers throughout the
Mid-West. Full
Story
In an attempt to stem the loss of customers, casual
dining restaurants are adding food more common in ethnic
or high-end restaurants. O'Charley's has been coming
up with new menu items such as grilled swordfish, lobster
and shrimp ravioli, and steak with crab cakes. Outback
Steakhouse added the appetizer yellow fin tuna, calling
it sashimi style. Ruby Tuesday added jumbo lump crab
cakes that are made in the kitchen, not shipped to the
store, according to The Tennessean. Full
Story
 Under
mounting pressure, restaurant chains are offering
new ways to protect customers from credit card fraud.
Ruby Tuesday is offering a credit card processing system
that leaves no credit card information with the restaurant.
The system that will be in all of its 900 locations
by mid-April sends the data to the bank in an encrypted
form. Meanwhile, some smaller chains, including Legal
Sea Foods, are testing devices that let patrons pay
at the table so the credit card never leaves their sight,
reported USA Today. Full
Story
Wi-fi (wireless internet access) is becoming more
commonplace at coffee houses such as Starbucks, and
restaurants including some McDonald's, reported
The New York Times on the Web. While McD's charges
customers for the service, Panera sees a benefit in
offering it for free, hoping their clientele will partake
of its aromatic muffins and other offerings. Full
Story (Free Registration Required)
The Orlando Sentinel takes a look
at some of McDonald's reimaged restaurants in Central
Florida, which include Key West decor, flat-screen
TVs, dark wood furniture and muted, decorative lights
and artwork. In Central Florida, 22 of the area's more
than 130 locations have been revamped with five more
expected to get a face-lift this year. Full
Story
In a conflict with Starbucks, Ethiopia is seeking
to trademark the names of its most famous coffee regions
- Sidamo, Harar and Yirgacheffe - which appear on the
packaging of Starbucks and other coffee roasters. The
country is aiming to gain more control over the distribution
and promotion of its most valuable export and, ultimately,
secure a better price for farmers, reported The Wall
Street Journal. Full
Story (WSJ Subscription Required)
For the first time since 1990, the percentage of
U.S. adults who drink a daily cup of coffee exceeds
those who drink a soft drink every day, reported
the National Coffee Association of USA, noting that
57% said they drank coffee every day, up from 56% in
2006. Some 51% said they drank a soft drink daily, down
from 57% a year ago, reported Reuters. Full
Story
Warren Buffett's Berkshire Hathaway Inc. increased
its stake in Tesco Plc, reported Bloomberg.
Berkshire Hathaway owns 2.9% the UK-based retailer,
making it Tesco's fifth-largest shareholder, according
to Bloomberg data. Buffett first bought shares in Tesco
last year after the retailer said it would open convenience
stores on the U.S. West Coast. Full
Story
Wendy's International Inc. expects to open 80 to
110 new company operated and franchised restaurants
in 2007, compared with a total of 122 restaurants
in the previous year, reported The Wall Street Journal.
Full
Story (WSJ Subscription Required)
 The
Cooperative Extension Service at the University of Alaska
Fairbanks recently hosted a small workshop in which
small business owners and government representatives
explained the intricacies of taking a family recipe
to the marketplace. One firm, Moosetard One, has
already found success for its specialty mustards within
Alaska, selling 4,000 jars of mustard in three flavors
in the state in 2005, and 12,000 just a year later.
Now the firm is looking to expand to the lower 48
states, reported Fairbanks Daily News-Miner.
Full
Story
A wholly owned subsidiary of MGM MIRAGE Corporation,
Bellagio LLC, accused Bellejais Chocolates of trademark
infringement. Bellagio insists that the Woodstock,
GA chocolatier alter the look displayed on packaging
and in marketing, according to The Atlanta Journal-Constitution.
Full
Story (Free Registration Required)
"Single-origin" chocolates have become
mainstream, with offerings from companies such as
Guittard Chocolate Company and the Hershey Co., reported
The Associated Press. Full
Story
Eddy's launched five limited-edition
Slow Churned "American Idol" ice cream flavors,
Choc 'N' Roll Caramel, Hollywood Cheesecake, Soulful
Sundae Cone, Triple Talent and Take the Cake. Full
Story
Heineken expects to sell one million barrels of
Premium Light Beer in 2007, as affluent young professionals
want an upscale light beer and will pay a premium for
it. Heineken launched its Heineken Premium Light brand
in the U.S. last March, and the company's 2006 profit
soared 59% to $1.6 billion, reported Palm Beach Post.
Full
Story
 Sales
of winemaking equipment are growing about 20% per year,
over the past several years, says Ron Hartman, president
of LD Carlson, a brewing and winemaking wholesaler.
He estimates the wine kit retail business alone is worth
about $30 million to $50 million a year, thanks to the
growing number of home winemakers in the U.S. WineMaker
magazine, estimates there are about one million active
hobbyists who make their own wine at least once a year,
reported Inside Bay Area. Full
Story
International News
Sales at McDonald's Corp.'s
European franchises are growing faster than in other
regions. Besides tailoring menus to local tastes,
the chain is making coffee from beans grown ethically
and sustainably, and is introducing a "McPassport,"
which allows young staff members to work at any restaurant
in Europe, reported The Los Angeles Times. Full
Story (Free Registration Required)
The central government of China will spend
391.7 billion yuan on agriculture, rural areas and farmers
this year, an increase of 52 billion yuan over last
year and 94.2 billion yuan over 2005, as it vows to
develop modern agriculture and promote the building
of a new countryside, according to China Daily.
Full
Story
Wal-Mart is becoming a dominant force
in Latin America. Wal-Mart de México SAB,
a publicly traded subsidiary, is not only the biggest
private employer in Mexico - it is the biggest single
retailer in Latin America. Sales at Wal-Mex, as the
Mexican unit is called, are forecast to rise 16%, to
$21 billion this year, representing a quarter of Wal-Mart's
foreign revenue, reported The Wall Street Journal.
Full
Story (WSJ Subscription Required)
Malaysian authorities may ban fast food advertisements
on children's television shows to help curb obesity
and diet-linked diseases, according to The Associated
Press. The proposed ban would likely exclude newspapers,
magazines and theaters in this Southeast Asian country,
as well as television shows whose viewers are mostly
over 12 years old. Full
Story
Washington News
USDA announced
an increase in the forecast for U.S. agricultural
exports to a record $78 billion for fiscal year 2007.
Full
Story
FDA is poised to approve a new antibiotic to treat
a pneumonia-like disease in cattle, despite warnings
from health groups and a majority of the agency's own
expert advisers that the decision will be dangerous
for people, reported The News Journal . Full
Story
 FDA
is investigating an outbreak of norovirus-associated
illness linked to eating raw oysters harvested from
San Antonio Bay, TX. FDA advises consumers to avoid
eating raw oysters harvested from this area after Feb.
1, as a result of reports of illnesses in people who
attended a Maryland event where these oysters were served.
Full
Story
Food Safety and Inspection
Service established Jan. 1, 2010, as the uniform
compliance date for new food labeling regulations
that are issued between Jan. 1, 2007, and Dec. 31, 2008.
Full
Notice
Pennsylvania's State
Health Secretary advised consumers who purchased
raw milk from Stump Acres Dairy of New Salem, PA, to
immediately discard it due to the risk of contamination
with salmonella. Full
Story
Tyson Fresh Meats
voluntarily recalled approximately 16,743-lbs. of ground
beef that may be contaminated with E. coli O157:H7.
Full
Story
Market News
Maui Land & Pineapple Co. is looking at the viability
of remaining in the processed-pineapple business and
has put plans for a new micro cannery on hold after
an operating loss of nearly $9 million in its agriculture
segment in the fourth quarter. The Kahului, HI-based
company, which reported an overall net loss of $1.5
million in the quarter, began operating its new $17.5
million fresh-fruit packing facility in July and had
expected to build a smaller version of its existing
cannery sometime this year, according to Star Bulletin.
Full
Story
Bulk orange juice prices have risen to their highest
levels in three years, as factors such as California's
freeze and hurricanes in Florida have combined to reduce
worldwide inventories. As a result, consumers may see
higher prices for orange juice, reported California
Farm Bureau Federation.
Some dairy business operators are looking at two
routes for improving the environment. Modesto, CA-based
Western United Dairymen is launching a yearlong study
in which four milk tankers will run on methane derived
from cow manure, which could reduce air pollution from
diesel fuel, while helping dispose of manure in a way
that protects air and water. The second effort involves
a marketplace for credits that businesses could earn
by reducing emissions believed to contribute to global
warm, reported The Modesto Bee. Full
Story (Free Registration Required)
National Marine Fisheries
Service (NMFS) announced 2007 and 2008 final harvest
specifications, reserves and apportionments thereof,
Pacific halibut prohibited species catch limits and
associated management measures for the groundfish
fishery of the Gulf of Alaska. Full
Notice
NMFS reopened directed
fishing for pollock in Statistical Area 630 of the Gulf
of Alaska for 24 hours. Full
Notice
NMFS, Southeast Region, in
collaboration with the Gulf of Mexico Fishery Management
Council, prepared a draft environmental impact statement
to describe and analyze management alternatives
to be included in an amendment to the Fishery Management
Plan. Full
Notice
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