March 15, 2007
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Industry News

Wholesale finished food product prices posted their largest monthly increase in 34 months, according to Food Institute analysis of just-released government data. Sharply higher prices for produce, and center-of-the-plate items, contributed to the large gain. Full Story

Chewing gum maker The Wm. Wrigley Jr. Co. plans to raise prices in the U.S. by about 10%, its first significant price increase since 2001, reported Reuters. Full Story

Additionally, The Wm. Wrigley Jr. Co. will introduce to U.S. consumers this summer, 5, a new sugar-free stick gum touting taste sensations. Available in Rain, Cobalt, and Flare, 5 debuts in a 15- stick envelope package, a first for the gum category. Full Story

BusinessWeek Online examines the recent foods and beverages hitting store shelves that claim to provide nutrition, energy, and medicinal benefits, often in small bite-size packs and containers. These new nutritionally enhanced products, referred to as "phoods" and "bepherages," are experiencing a 20% growth rate because of their pharmaceutical benefits, compared to the 3% to 4% growth of the food industry overall. Full Story

Tully's Coffee intends to file a plan next month to go public at some later date and wants to raise about $50 million through the initial public offering, reported The Seattle Times. Full Story

Noble Roman's, Inc. signed a development agreement to open 25 new franchise locations for its dual-branded concepts, Noble Roman's Pizza and Tuscano's Italian Style Subs, over the next four years in Springfield, MO and surrounding counties. Full Story

Casual dining restaurants are offering bargain deal platters to customers as spring nears, but the trend could be problematic for the operators because of the risk to margins, according to analyst Joseph Buckley of Bear Stearns. A margin decline would erase the progress these operators made recently to keep them steady in the face of rising ingredient costs where meat and poultry prices increased because of spiking feed costs, reported Forbes. Full Story

Price Chopper added more than 1,000 new natural and organic items to its 115 stores in six Northeastern states. The grocery chain is integrating its better-for-you alternatives in almost every category throughout the store and will highlight the expanded offerings with new yellow and green signage. Full Story

NPC International, Inc. completed the acquisition of 59 Pizza Hut units located in Idaho, Oregon and Washington. The 51 restaurants, six delivery/carryout units and two express units generated $46.9 million in net product sales during the 52 weeks ended Dec. 2006. Full Story

Distribution Holdings, Inc. parent of Millbrook Distribution Services Inc. and a subsidiary of R.A.B. Holdings, Inc. was spun-off as a separate company effective Feb. 22, 2007. R.A.B. manufactures and markets, among others, Manischewitz, Rokeach, Horowitz Margareten, and Goodman's brand products. Distribution Holdings, Inc. is the nation's largest full service independent distributor of specialty foods, health and beauty care products and general merchandise to supermarkets and mass market retailers in 48 states. Full Story

Newport Beach, CA-based zpizza recently signed a multi-unit franchise agreement with an entrepreneur and plans to open seven units in Denver, CO, with the first location scheduled to open by the end of 2007. zpizza has 60 locations nationwide and another 200 in ongoing development in 15 states. Full Story

More than 300 restaurants nationally have been certified as green - bakeries, pizzerias, and luxurious dining rooms. To qualify for green certification, a restaurant must recycle waste, be styrofoam-free, complete four environmental steps, and commit to four additional steps each year. A few of Boston's eight green eateries are profiled by The Boston Globe. Full Story (Free Registration Required)

Food retailers are doing a good job competing against restaurant take-out offerings with new prepared food courts and offerings.


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Growing demand for gluten-free foods has prompted an Ohio pizzeria to introduce gluten-free pizza and other offerings, reported The Repository. The restaurant is not far from Kathy's Kreations, a bakery that offers bread and other baked items free of wheat, rye, and barley. Full Story

Bartenders around the world have been showing new interest in ice. They are increasingly using extra-dense ice, ultra-pure ice, custom-chipped ice, ice frozen in oversized cubes or novel shapes and "double-frozen" ice, reported Inside Bay Area. Full Story

International News

CoolBrands International Inc. is currently evaluating whether to sell its remaining assets or rebuild the business. After divesting itself of all of its assets outside the frozen dessert business, CoolBrands has enough cash to continue operating, but "may not be able to reduce expenses to a level sufficient to make the remaining operations profitable." CoolBrands is also being sued in New York by Godiva Chocolatier Inc. and Godiva Brands Inc., which allege breach of contract in the termination of license agreements connected with asset sales, reported CBC News. Full Story

Cadbury Schweppes PLC will separate its confectionery and Americas Beverages businesses. The company believes further value will be delivered from Americas Beverages from innovation in both carbonated soft drinks and non-carbonated soft drinks, such as 7 UP Natural, super-premium Snapple teas, and entry into the high-growth sports drink market through the forthcoming launch of Accelerade. Full Story

Wal-Mart Canada Corp.'s aggressive expansion into groceries has plunged Ontario supermarkets into an "irrational" price war, said the CEO of Sobeys Inc., who predicts the pricing frenzy will continue "for the foreseeable future." Sobeys, Loblaw and other Canadian retailers are pouring money into upgrading their backroom distribution systems in order to run a tighter ship and keep prices down at stores. It leaves the companies with razor-thin profit margins, according to The Globe and Mail. Full Story (Free Registration Required)

Immigration and economic growth are altering alcohol preferences in Ireland, resulting in an increase in the consumption of wine, spirits and cider. Local sales for the country's national drink, Guinness, are down about 7% from a year before, while wine now accounts for more than a fifth of alcohol drunk in the country, reported The Los Angeles Times. Full Story (Free Registration Required)

Health News

Purple grape juice could help combat major illnesses such as heart disease and cancer, according to a study at Glasgow University, which measured levels of antioxidants. Purple concord grape juice had by far the highest levels and range of phenolic antioxidants, which are found in plants. The juice contained the same level of these compounds as are found in Beaujolais red wine, reported TheLondonNews.net. Full Story

Washington News

Chiquita Brands International Inc. will pay a $25 million fine and plead guilty to federal charges that it paid a rebel Colombian group that the U.S. government had designated a terrorist group. Chiquita says it paid the groups to protect employees. The company acknowledged that at least one of its Colombian employees had been killed but would not say when, reported Cincinnati Enquirer. Full Story

USDA provided an update on its efforts to prepare for and protect the U.S. from H5N1 avian influenza noting that it has focused its efforts on four key areas: international efforts, wild bird monitoring, domestic poultry monitoring and avian influenza research. Full Story, Briefing Transcript

Market News

Mexico is conducting tests on U.S. rice imports to ensure it is free of genetic material not approved for human consumption, according to a Mexican government official, reported Reuters. Full Story

USDA's Potato Stocks report released 3:00 p.m. (ET), Mar. 15. View Report

NutraCea is opening a new rice bran stabilization facility at the Louisiana Rice Mill in Louisiana. The first shipments of stabilized rice bran from this plant to customers will commence in April 2007 and the facility is anticipated to be running at full capacity by the end of April. Full Story

USDA adopted an interim final rule temporarily suspending order provisions for the nectarine and peach marketing orders during winter 2006-07. Full Notice

National Marine Fisheries Service proposed recreational management measures for the 2007 summer flounder, scup and black sea bass fisheries. Full Notice


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