Industry News

In the wake of recalls and alerts of Chinese food products, General Mills and Kellogg are looking more closely at potential hazards related to imports from China. General Mills now test for contaminants and Kellogg increased its use of outside services that examine Chinese suppliers and identified alternative suppliers if ingredients become unavailable, reported The New York Times On The Web. Full Story (Free Registration Required)

Coca-Cola Enterprises is counting on a streamlined management structure and a new merchandising strategy to help it recover from a storm of new beverage categories, fickle consumers and increased power among retailers. The new merchandising strategy breaks retail outlets into five categories: rural, mainstream, suburban upscale, urban upscale and urban flavors, with store shelves stocked according to the categories. Test stores in Denver posted increased sales between 2% and 11%, according to The Atlanta Journal-Constitution. Full Story (Free Registration Required)

Grocers including the Kroger Co., Lund Food Holdings Inc. and Hannaford Bros. Co. expanded into the organic market with government certifications. The "certified organic retailers" designation will require retailers to comply with handling standards nearly as strict as those for kosher or vegan foods, reported The Oakland Tribune. Full Story

Wakefern Food Corp. is expanding its wholesale sales to other supermarkets and institutional customers, besides its ShopRite members, both within and beyond its traditional Northeastern market. Wakefern began selling more than 300 ShopRite-brand grocery and non-food items to Ohio-based Heinen's Fine Foods a 17-store chain. Previously, the brand was available only at ShopRites in New York, New Jersey, Delaware, Connecticut and Pennsylvania, and in a few other supermarkets overseas. Full Story

Supervalu plans to increase sales of its private-label products by reducing the number of its private-label brands from more than 100 to between 20 and 30, reported Minneapolis/St. Paul Business Journal. Full Story (Free Registration Required)

The outlook for the restaurant industry remained positive in May, as the National Restaurant Association's comprehensive index of restaurant activity held relatively steady at 100.9, down 0.1% from its April level. Full Story

Alon USA Energy, Inc. closed its acquisition of Skinny's, Inc. Skinny's, Inc. was a privately held company that owned and operated 102 FINA branded stores in Texas, which will be converted to the 7-Eleven brand. Full Story

There are 1,000 different companies providing assemble-yourself meals, according to Leslie Hannah's estimate, the board president of the International Association of Meal Prep Businesses, "There's two or three large franchise organizations, about 200 to 300 stores each," Hannah said. "And then about the same number of smaller companies," reported Bradenton Herald. Full Story

The outlook for the beer industry is improving as consumers increasingly reach for craft beers and imports, according to a Goldman Sachs analyst. However, brewers may not see dramatic improvements to their bottom line, reported Forbes. Full Story

Reddy Ice Holdings, Inc. entered into a definitive merger agreement to be acquired by certain funds managed by GSO Capital Partners LP in a transaction with a total value of approximately $1.1 billion. Full Story

Bojangles' Restaurants Inc. signed deals with franchisees to bring 53 restaurants to Georgia, 27 to Tennessee and 29 to Florida, reported Charlotte Business Journal. Full Story (Free Registration Required)

RGT Management, Inc. plans to open up to 10 Off the Grill locations in the Memphis, TN market over the next three to four years, reported Memphis Business Journal. Full Story (Free Registration Required)

Haddad Restaurant Group Inc. purchased the two Copper Grill Lobster & Steak Houses in Birmingham and Richmond, VA, reported Birmingham Business Journal. Full Story (Free Registration Required)

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As part of its strategic alternative review of nonfood operations, Lancaster Colony Corporation sold substantially all the operating assets of its automotive accessory operations located in Coshocton, OH and LaGrange, GA. Full Story

RoboServer Systems Corp. entered into a manufacturing agreement with Team Research, Inc. RoboServer developed the self-serve system that enables quick-service restaurant customers to process their own orders on a touch-screen kiosk. Full Story

Baja Fresh Mexican Grill released its new Molcajete and Mango Salsas. Full Story

Mrs. May's introduced Fruity Snapz, freeze dried fruit chips. Full Story

International News

The EU is following U.S. regulators' lead in stepping up scrutiny of Chinese farm-raised seafood, as global food security rapidly escalates as a public-health and political issue, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

U.S. beef went back on sale at 20 Ito-Yokado stores, mostly in the Tokyo area. Ito-Yokado has 179 stores across Japan, reported The Japan Times. Full Story

UK-based food distributor Brakes was acquired by Bain Capital for more than €1.3 billion, reported The Financial Times. Full Story

Eimskip Holdings Inc. will be in control of 55% of the frozen and chilled warehousing capacity in Canada, and a 15% share of the U.S. market if its proposed acquisition of Versacold Income Fund comes to fruition. In another transaction last October, Iceland-based Eimskip acquired Canada's largest operator of cold storage facilities, Atlas Cold Storage. With Versacold, Eimskip will further establish itself as a global player with an additional 72 refrigerated and frozen food distribution facilities in five countries, according to The Globe and Mail. Full Story (Free Registration Required)

European Commission gave Nestle permission to buy the medical nutrition business of Novartis AG for $2.5 billion. Nestle received permission after it offered to divest overlapping activities in France and Spain, reported Reuters. Full Story

La Seda de Barcelona SA agreed to buy a rival business from Amcor Ltd. for $575 million to tap demand for plastic bottles and containers for food and beverages, reported Bloomberg.com. Full Story

Wesfarmers Ltd. agreed to buy retailer Coles Group Ltd. for $17.7 billion in cash and stock. The deal, if approved by shareholders, will end a protracted process since Coles put itself up for sale in February, reported Reuters. Full Story

Health News

UK scientists identified a molecule called Interlukin-12 that may protect the body from developing food allergies, reported BBC News. Full Story

Washington News

Sen. Charles E. Schumer (D-NY) called for the creation of a federal import czar, citing recent recalls of Chinese-made goods, reported The Washington Post. Housed under the Commerce Department, an import czar would oversee inspections and all other aspects of import consumer safety, Schumer said. The czar would also issue public reports on problems U.S. agencies encounter in monitoring imports. Full Story (Free Registration Required)

Meanwhile, some of the contaminants in China's food comes from the soil in which it is grown. It has not been determined which tainted crops such as rice, fruits and vegetables were exported to the U.S., reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Five years after the 2002 Farm Bill, which mandated country of origin labeling for meat, produce and seafood, such labeling is in place only for seafood. The New York Times On the Web labels the lack of action on meat and produce labeling is "a lesson in political power in Washington." Full Story (Free Registration Required)

Longline swordfish fishermen are lobbying for a review of the system that limits the number of days they can fish. The industry experienced revenues cut to $5.2 million in the wake of turtle conservation efforts, reported Pacific Business News. Full Story (Free Registration Required)

Supervalu pursued legal action against at least three grocers after they switched wholesalers to Associated Wholesalers Inc., reported Pittsburgh Business Times. Full Story (Free Registration Required)

Quiznos is suing its former director of operations, Michael Grodi, for allegedly stealing and using propriety business information, specifically related to franchising, reported QSR Magazine. Full Story

State of Tennessee Cook Chill recalled about 2,768-lbs. of ready-to-eat chicken products. The products may be contaminated with Listeria monocytogenes. Full Notice

Market News

California's 2007 almond production is forecast at a record 1.33 billion meat pounds, up 2% from May's subjective forecast and 19% above last year's crop, according to USDA's 2007 California Almond Objective Measurement Report. View Report

Demand for organic milk has driven the exponential growth of organic dairies in Washington state, which now has more than 40 organic dairies, compared with two just five years ago. About 26% of consumers purchased some organic milk in 2006, according to a Washington Dairy Products Commission survey. Haggan Corp. now sells 19 organic milk products at its grocery store and its organic selection now makes up 10% to 15% of the overall milk section, compared with 2% four years ago, according to Yakima Herald-Republic. Full Story

Inventories of U.S. processed tomato products were 3.1 million tons as of June 1, stated on a raw product equivalent basis, according to the California League of Food Processors. Full Story, Supply & Movement, Paste for Sale & Inventory

California's Yolo, Sacramento and Placer counties farms received more than $61.5 million in crop subsidies from 2003 to 2005, about 5.5% of total payments for the state. Although California farmers generally approve of the new Farm Bill they would like to see it expanded to include research, marketing and nutrition programs for the fruit, vegetable and nut crops grown in the state, reported Sacramento Business Journal. Full Story (Free Registration Required)

A new research effort involving three University of California campuses and West Biofuels LLC, is looking at a novel way to make biofuels that doesn't involve food crops. The group plans to develop a prototype research reactor that will use steam, sand and catalysts to efficiently convert forest, urban, and agricultural "cellulosic" wastes that would otherwise go to landfills into alcohol that can be used as a gasoline additive, reported Science Daily. Full Story

Many American farmers are working longer than ever before with one in four at least 65 years old. The increase in traditional retirement ages is due to new technologies that can, for example, steer tractors and deliver feed to hogs, reported The Associated Press. Full Story

USDA designated Calaveras and Colusa counties in California primary natural disaster areas, because of losses caused by drought last year through this year. Full Story

ARS scientists recently released a new habanero pepper called TigerPaw-NR. The pepper is highly resistant to many important species of root-knot nematodes and is among the spiciest peppers ever developed. Full Story