March 9, 2007
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Industry News

Several private equity teams bid for Ahold NV's U.S. Foodservice unit, including a group made up of Bain Capital, Blackstone Group, and Wellspring Capital Management, sources said, reported Reuters. A team of Clayton, Dubilier & Rice and Kohlberg Kravis Roberts & Co. also bid for the unit, sources said. Buyout firm Thomas H. Lee Partners is also in the process, but sources say it is unclear who it is teamed up with. Full Story

Sales of carbonated soft drinks in the U.S. were down for the second year in a row, according to an annual study by Beverage Digest. Sales fell by 0.6% in 2006, three times the 0.2% slide the year before. Coke's total volume fell 1.2%, while Pepsi's volume dropped 1.3% in the U.S., according to the report. Cadbury Schweppes volume increased 1.3%. Together, the three companies, Coke, Pepsi and Cadbury, account for close to 90% of the industry's volume. Full Story

Jones Soda is now being sold at some of the nation's largest retailers, including Wal-Mart, Kmart, Safeway and Kroger, increasing its presence from just 2% of all food and drugstore outlets to 25%. Until recently, Jones Soda sold cans only through Target, which had an exclusive arrangement and will continue to carry the brand. Jones Soda plans to add more retailers over the coming year, reported The Seattle Times. Full Story

Through its Circle K Stores Inc. subsidiary, Alimentation Couche-Tard Inc. signed an agreement to acquire 53 stores in Oklahoma City from Star Fuel Marts, LLC. Full Story

Food retailers have been intensifying their efforts to win back consumers' dining-out dollars through new and appealing meal solutions. These new and expanded meal offerings place a much stronger emphasis on quality and variety, integrating many of the trends shaping restaurant menus, such as ethnic foods, premium ingredients, customization and updated preparation techniques, according to Technomic. As more retailers increase these efforts, manufacturers need to step up their efforts to assist them by providing culinary expertise, new products, and assistance with training and merchandising, noted Ron Paul, president of Technomic. Furthermore, restaurant operators, both chains and independents, need to recognize these developments as a direct competitive threat targeting their customers. Full Story

Papa Gino's is planning to more than double its restaurants to 335 pizzerias over the next five years and expand for the first time outside its hometown New England market. The company is looking to add 135 stores in New England, including about 90 of its first franchised restaurants, and open shops in new regions along the East Coast, reported The Boston Globe. Full Story (Free Registration Required)

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

CVS Corp. increased its $23.9 billion takeover bid for Caremark Rx Inc. with an increased dividend, calling its newest proposal its "best and final" offer for the pharmacy-benefits manager, reported Reuters. Full Story

Rachel Ray agreed to work with Dunkin Donuts in the development of new, "better for you" food and beverage options. Full Story

Wholesome & Hearty Foods Co. is introducing Gardenburger Gourmet, a line of gourmet vegetarian foods. The first offering is a line of 5-oz. veggie steaks. Full Story Meanwhile, Gardenburger is also launching a new Malibu Burger, a USDA-certified organic product, that will hit grocery store shelves in late summer. Full Story

Revolution Tea entered a national sales and distribution partnership with S&D Coffee, Inc. As part of the agreement, S&D will market the Revolution Iced tea and herbal fruit drink line to its customers. Full Story

CSP Daily News takes a look at Famima!!, a Japanese convenience store chain in California, which touts a mix of Japanese- and Asian-tied products, novelty dispensers and signage that sets the format apart from other retail experiences in the U.S. The upscale stores feature open display cases with authentically prepared sushi, maki rolls and cone-shaped sushi, in addition to the typical American brand-name snacks. Full Story

Catalina Marketing Corporation entered into a definitive agreement to be acquired by an affiliate of ValueAct Capital in an all-cash transaction valued at $1.7 billion. Full Story

Several firms received Kosher certification on selected products from the Orthodox Union, including: Vodka from the Ukraine, France's La Baleine Sea Salt Coarse Crystals and certain Richardson Products Gravy Master Products. Full Listing

Lincoln Snacks rolled out Poppycock-branded In*dul*gence, a snack created for women in five flavors, including Nights in White Chocolate, Belgian Love Affair, Simply Diva, Toast of the Town and Chocolate Crush. Full Story

FOOD BUSINESS MERGERS & ACQUISITIONS 2006
Annual Listing of the Mergers & Acquisitions Shaping the Food Industry

In 2006, 348 mergers & acquisitions were completed in the food industry - and an additional 102 were announced, but not yet completed by the end of the year, according to The Food Institute’s Food Business Mergers & Acquisitions 2006. Activity was up 7.7% from 2005, but still remains 13.6% below the total five years ago. Food Business Mergers & Acquisitions 2006 is now available from the Food Institute. This publication gives the specifics of each of the deals that took place in 2006 in over 25 categories, plus an overall comparison of the activity over the past five years, providing valuable insight into one of the most influential aspects of the food industry. For more information or to order the book, click here.

Nestle's Wonka Golden Egg Collection is launching four new products this spring. Full Story

Wendy's introduced the 4-Alarm Spicy Chicken sandwich for a limited time. This is the first time that Wendy's has expanded use of its signature artisan bread to sandwich offerings beyond its Frescata deli sandwich line. Full Story

Though most garlic sold in mainstream grocers is the common so-called softneck variety, most of which comes from China and California, more U.S. consumers are seeking out the more distinct flavor of hardneck garlics. Sporting fewer, but larger, cloves than softneck garlics, hardneck varieties are grown throughout the country and are usually available at farmers markets or online, according to Herald News. Full Story

The USDA and FDA will merge within the next two years.


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In response to a recent Stagnito Daily Brief survey, 20% of respondents agreed with the statement, "The Federal government should ease immigration laws to accommodate more low cost workers," while 80% disagreed.

The quality, low price and marketing of Australian shiraz wine over the past few years has created competition among America's syrah makers. While most European syrahs have been too pricey to compete with American syrahs, wine makers from Australia, who call their syrahs by the name "shiraz," made a dent in the U.S. market, reported azcentral.com. Full Story

Niman Ranch's beef products are now being graded either Choice or Prime in response to its customers' requests for graded programs. Full Story

International News

The European Union blocked a World Trade Organization investigation of its banana tariffs, temporarily delaying the inevitable reopening of a decade-old dispute with Latin American countries and the U.S. over claims of unfair trade discrimination, reported The Associated Press. Full Story

Japanese confectioner Fujiya Co. is considering closing 30 to 40 of its 800 cake shops, mainly in the Tokyo and Osaka areas. Almost all of Fujiya's production was suspended in mid-January following revelations that the company had been using out-of-date ingredients in its products. The company's factories are back in full-scale production, according to The Japan Times. Full Story

Japan's Aeon supermarket chain will take a 15% stake in Daiei for $393.5 million, an alliance that would create Japan's biggest retail grouping. Aeon will also purchase a 20% stake in Daiei group supermarket operator Maruetsu Inc. from Daiei for $140 million. Both purchases will be completed by the end of March. Combined annual sales of Aeon, Daiei and Maruetsu would exceed $51 billion, according to ABC News. Full Story

Washington News

Federal transportation officials are weighing a proposal to require devices on commercial trucks that would limit their top speeds to 68 mph. The idea is supported by many large trucking companies, but opposed by many smaller, independent carriers, reported USA Today. The Department of Transportation is accepting public comments on the proposal until Mar. 27, but the National Highway Traffic Safety Administration will have the final say. Full Story

Market News

The U.S. all orange forecast for the 2006-07 season is 7.43 million tons, down 9% from the previous forecast, and 18% below last season's revised final utilization of 9.0 million tons. View Report

Chinese fruit juice producer Huiyuan Juice Group will provide fruit juice to more than 3,000 Wal-Mart outlets across the U.S. over a year's period. Huiyuan, covering 42% of China's domestic market, entered the U.S. market in 2004 and saw its annual sales up 30% year on year to reach 20 million yuan last year, according to People's Daily Online. Full Story

In an effort to fight for lower railroad shipping rates, soybean industry groups from seven states formed the Soy Transportation Coalition. The new coalition will analyze factors that influence freight rates, educate shippers about rail issues and try to influence policies and regulations, reported Omaha-World Herald. Full Story (Free Registration Required)

C.L. Henderson Produce Co. released Smile Packs: The Happy Snack, a line of ready-to-eat sliced apples. The apples come in resealable family-value 1-lb. packs of sweet red galas, romes, pink ladies and empires, and 1-lb. packs of tart granny smith apples as well as in 2.0 and 2.4-oz. individual packs with a tear notch on the corner, reported ThePacker.com. Full Story (Free Registration Required)

USDA designated Los Angeles, Marin, Solano and Ventura counties in California as primary natural disaster areas due to extremely low temperatures and freezing conditions that occurred during the period Jan. 6 - Jan. 19. Full Story

The Department of Commerce conducted an administrative review of the antidumping duty order on certain frozen warmwater shrimp from Brazil with respect to 11 companies. Full Notice

National Marine Fisheries Service (NMFS) announced that the Pacific Fishery Management Council submitted Amendment One to the Fishery Management Plan for U.S. West Coast Fisheries for Highly Migratory Species for review by the Secretary of Commerce. Full Notice

NMFS solicited applications for American Samoa longline limited entry permit upgrades. Full Notice


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