May 24, 2007
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Industry News

Driven by higher forecasts for beef, dairy and fresh produce, food-at-home price inflation in 2007 is now projected at 3% to 4% - the high end of which would mark the highest such rate since 1990. Full Story

Some oil industry executives warn that current fuel shortages could become a long-term problem, leading to higher gas prices and blame the growing expansion of the biofuel industry, particularly ethanol. The concerns were echoed in a recent report by Barclays Capital, which said the uncertainty about the ethanol growth "will do little to accelerate desperately needed investment in complex United States refining units," reported The New York Times On the Web. Full Story (Free Registration Required)

Herr Foods Inc. is undertaking a $15 million expansion of its existing manufacturing operation in Nottingham, PA. It is increasing its production capacity by building a 70,000-sq. ft. manufacturing facility at its existing location to produce cheese curls and other new snack products. Full Story

The Rose Group plans to open as many as 25 Corner Bakery Café locations in the Philadelphia region for CBC Restaurant Corp., owner of the cafés. The Rose Group is best known as owner and operator of 54 Applebee's Neighborhood Grill and Bars in eastern Pennsylvania and Maryland, reported Philadelphia Business Journal. Full Story (Free Registration Required)

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Noble Roman's, Inc. signed another area development agreement for 60 units for its dual-branded concepts, Noble Roman's Pizza and Tuscano's Italian Style Subs. This development territory is for all of Los Angeles County, CA, except for the following cities: Los Angeles, Beverly Hills, West Hollywood, Santa Clarita, Lancaster and Palmdale. Full Story

Vodka is now the most popular hard liquor in America, comprising 27% of total volume in 2006, outselling rum, gin, whiskey and tequila. Furthermore, sales of super-premium brands, which include bottles designed by architect Frank Gehry and priced from $30 to $60, are up 38% in the past year, reported ABC News. Full Story

Kid directed online marketing by food companies should be more tightly regulated.


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Walgreen Co. completed its acquisition of Take Care Health Systems, the operator of 51 health care clinics in Chicago, Kansas City, Milwaukee, St. Louis and Pittsburgh. The clinics, combined with Walgreen's nearly 5,700 pharmacies across the country, will form the core for the future rollout of a variety of patient-focused health care services. Full Story

Alcoa's effort to takeover Alcan Inc. could lead to rival bids for either company from large global mining companies, particularly BHP Billiton Ltd. and Rio Tinto PLC, according to analysts and investors. But they also said bidding in what one observer called "the aluminum wars" could be a complicated affair, with regulatory or other hurdles awaiting potential buyers, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

International News

Japan's supermarket sales dipped 1.0% year on year in April on a same-store-basis, extending its decline to 16 consecutive months. On a same-store basis, sales of food, which make up 59.9% of all supermarket sales, dipped four tenths of a percent due in part to poor shipments of vegetables, beef and noodles, according to The Japan Times. Full Story

BioFach China 2007, an international fair for organic food, will be held from May 31 to June 2 in Shanghai. Some 195 enterprises from Italy, Germany, France, Switzerland, Malaysia, Turkey, the Netherlands, Brazil, Hong Kong Special Administrative Region and Taiwan Province, and 1,500 Chinese and foreign purchasers are expected at the 6,000 square meter fair, according to China Daily. Full Story

Authorities are investigating a suspected bird disease outbreak at a farm in north Wales. No further details have been released and authorities declined to describe the symptoms of the sick birds or say whether they resembled bird flu, reported Reuters. Full Story

Washington News

U.S. health officials are beginning to check all shipments of toothpaste coming from China, following reports of tainted products in other countries, a government spokesman said. FDA has no evidence that contaminated toothpaste has made its way into the U.S., but is taking the step as a precaution. China is the second-largest exporter of toothpaste to the U.S. behind Canada, according to the FDA. The FDA's action comes after the lethal chemical diethylene glycol was found in toothpaste sold in the Dominican Republic and Panama, reported CNN.com. Full Story

The Securities and Exchange Commission approved new guidelines that try to balance the need for tighter financial controls with the cost of complying with them. The new standards call for public companies to focus on the areas most prone to potential fraud, streamlining an auditing process that many have called excessive and burdensome, according to The New York Times On The Web. Full Story, SEC Release (Free Registration Required)

FDA formally listed Sterilox Solution as an approved food contact substance, according to Sterilox Food Safety, a division of PuriCore. This FDA Food Contact Substance Notification (FCN) is specific to the Sterilox System and formally recognizes the Sterilox hypochlorous solution for use as a food safe sanitizer to be used when re-hydrating or rinsing fresh produce including leafy green vegetables. Full Story

A federal judge sentenced a former Coca-Cola secretary to eight years in prison for conspiring to steal trade secrets from the beverage maker. A co-defendant was also sentenced to five years in prison, reported The Associated Press. Full Story

Diamond Pet Foods recalled a limited quantity of Nutra Nuggets 40-lb. Lamb Meal and Rice Formula because of confirmatory testing that indicates the product may include traces of melamine. Full Story

Market News

A group of 125 international marine scientists urged the head of the World Trade Organization to push for a global agreement to slash subsidies paid by many countries to their fishing industries. The group warned that unless support was reduced soon, overfishing would damage the ecosystem of the world's oceans beyond recovery, reported Reuters. Full Story

A deadly, fast-spreading aquatic virus is reaching epidemic proportions in New York's two Great Lakes and has already spread into the Finger Lakes region in upstate New York, according to a Cornell University fisheries expert. The viral hemorrhagic septicemia virus or VHS has now been identified in 19 species in Lake Erie and Lake Ontario, reported The Associated Press. Full Story


Conditions were perfect at bloom time in California and pear trees in all growing districts hold ample supplies of fruit, according to the California Pear Advisory Board. Pears seem to be ripening evenly, unlike last year when pears on the same tree ripened at different times. The advisory board predicts the pear harvest will start a week earlier than average, around July 12th, reported California Farm Bureau Federation.

Wisconsin's response to the potentially fatal swine disease, pseudorabies virus, was hindered by farms that failed to register where their animals were kept as required by law, according to authorities. A year and a half ago, Wisconsin became the first state to pass legislation requiring livestock premise registration to help prevent the spread of disease by enabling officials to track down animals within 48 hours, reported The Associated Press. Full Story

Agriculture growers will use workers from across the nation to get their crops harvested in Washington state this year, according to officials. Plans include using the federal H2-A program that allows employers to hire out-of-country workers, and another program that allows employers to hire out-of-state workers, reported Puget Sound Business Journal. Full Story (Free Registration Required)

Agricultural Marketing Service added outgoing quality control requirements under the administrative rules and regulations of the California almond marketing order. Full Notice

National Marine Fisheries Service adopted an endangered species act recovery plan for the Hood Canal and Eastern Strait of Juan de Fuca Summer Chum Salmon Evolutionarily Significant Unit. Full Notice


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