July 18, 2007
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Industry News

Food-at-home prices during the first half of 2007 were up 3.5% from a year ago, increasing 0.3% during June, according to the Food Institute's analysis of unadjusted data from the Bureau of Labor Statistics. While this is considerably above the 1.7% food-at-home inflation rate of 2006 and the 2.2% rate of 2005, it is below the 4.1% rate reported in the same period of 2004. The most significant gains during the month were for pork and poultry, while egg and fresh produce posted the largest declines. Full Story

Eleven of the nation's largest food and drink companies will adopt new rules to limit advertising to children under the age of 12, a move that will restrict advertisements for certain products as well as the use of popular cartoon characters. The companies, including Campbell Soup Co., General Mills Inc. and PepsiCo Inc., announced their new rules ahead of a Federal Trade Commission hearing, which is scheduled for July 18, reported Detroit Free Press. Full Story

Meanwhile, Kellogg Company will follow the Council of Better Business Bureaus' Children's Food and Beverage Advertising Initiative. As previously reported, Kellogg pledged to change what and how it markets to children under 12 using nutrition criteria. Full Story

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Whole Foods Market Inc.'s board of directors launched an internal investigation into chairman and CEO John Mackey's online messages. The company stated it will refrain from commenting until the investigation is completed, reported Nashville Business Journal. Full Story (Free Registration Required)

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

About two-thirds of U.S. adults (67%) agree full-fat ice cream is worth the guilt, according to a survey commissioned by Denali Flavors Moose Tracks ice cream and conducted by Harris Interactive. The survey, designed to gauge consumer interest in different varieties of ice cream, also indicated that nearly three-quarters of men (73%) and two- thirds of women (66%) would rather eat full-fat ice cream than full-fat varieties of other snacks, which might include cookies, chips and candy. Full Story

Anheuser-Busch will become the master distributor for Icelandic Glacial super-premium natural spring water in the U.S. Anheuser-Busch purchased a 20% interest in Icelandic Water Holdings as part of the agreement. Full Story

IJ Company acquired 4 Seasons Distribution Inc., a wholly owned subsidiary of Atlanta Bread International, Inc. The company will assume the operation of the 4 Seasons Distribution Center in Atlanta, GA and will continue to serve its customers. Full Story

United Natural Foods Inc. is planning to open a 352,000-sq. ft. distribution center in Sarasota, FL, reported the Tampa Bay Business Journal. Full Story

BusinessWeek Online examines the competition Starbucks is suddenly facing from McDonald's, Dunkin' Donuts and Tim Hortons. Full Story

The U.S. should sharply restrict all food imports from China until it can prove it has adequate food safety enforcement.


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Environmental activists are encouraging people to find alternatives to bottled water. Cities such as San Francisco have banned city agencies from purchasing bottled water altogether, reported CBSNEWS.com. Full Story

International News

Canadian consumers spent 2.3% more for restaurant meals and 3.4% more for food bought in grocery stores in June compared with June 2006. The increase in prices for food purchased in stores was largely attributable to meat (a 4.6% increase) and dairy products (up 3.7%), according to Statistics Canada. Full Story

Gulf Arab state Qatar made a bid for J Sainsbury Plc, which is valued at about $24.5 billion, including debt. Sainsbury confirmed the approach, but gave no indication on the price of the proposal, reported CNN Money. Full Story

The Retailers Association of India wants a single window clearance system that would allow a retailer with an existing store in the state be able to obtain a license for a new one by applying to the correct authorities. Although global surveys put India at the top spot for its international retail expansion attractiveness, retailers continue to struggle with numerous licensing formalities, reported Indian Express Finance. Full Story

Mexico is close to finalizing rules governing experimental planting of genetically modified corn strains, according to a senior biosecurity official. The Mexican government is determined to boost output in the next few years to offset rising prices driven by U.S. demand for corn-based ethanol fuel, reported Reuters. Full Story

Increased global demand for palm oil has led to record-high prices and is impacting the culinary fare of many Indonesians, reported Reuters. Full Story

Health News

A diet low in fat and full of fruits and vegetables does not help to prevent the return of breast cancer, according to a seven-year experiment in more than 3,000 women in the Journal of the American Medical Association. The government study found no benefit from an increased consumption of vegetables and fruit diet over the U.S. recommended servings of five fruits and vegetables a day, reported Detroit Free Press. Full Story

Eating grapefruit may increase the risk of breast cancer by a third in post-menopausal women, according to a study by the universities of Southern California and Hawaii. The fruit increases blood levels of oestrogen, a hormone associated with a higher risk of the disease, reported cbs4.com. Full Story

Washington News

Exporters were able to bring tainted products into the U.S. because FDA has neither enough resources nor inspectors to stop them, according to testimony from a Congressional investigator before the House Subcommittee on Oversight and Investigations of the House Energy and Commerce Committee, reported The New York Times On The Web. FDA Commissioner Andrew C. von Eschenbach testified that "the recent incidents of contaminated food and animal feed demonstrate the challenges we face and the need to move toward a food safety and security system that is even more proactive and strategic, with a field force that is trained and equipped to focus on the challenges of today and tomorrow." Full Story, FDA Commissioner Testimony

USDA unveiled a new risk-based process for approving the importation of certain fruits and vegetables that will continue stringent protections for U.S. agriculture yet streamline the rulemaking process. Full Story, Federal Register Notice

China and the U.S. will hold a meeting in Beijing to discuss the detention of four kinds of China's seafood exports by the U.S. and the setting up of a collaboration mechanism on food safety, a senior Chinese quality control official said. The five-day consultation between Chinese food safety authorities and FDA is scheduled to start on July 31, according to China Daily. Full Story

Grocery workers in Southern California and three major supermarket chains reached a tentative agreement on a new contract that covers nearly 65,000 supermarket workers at Kroger Co.'s Ralphs, Supervalu Inc.'s Albertsons and Safeway Inc.'s Vons and Pavilions, reported CNN Money. Full Story

An agreement was reached in the House Agriculture Committee to provide more than $1.5 billion over five years for the California's specialty crops, including research for organic growers, more access to fresh fruits and vegetables in school lunch programs, promotion of farmers' markets and support for farm conservation and environmental improvement, reported The San Francisco Chronicle. Full Story

Kosher Certification 101
A 60-Minute Webinar from The Food Institute & The Orthodox Union
Wednesday, Aug. 1, 2007 at 2pm (EST)

Join The Food Institute and The Orthodox Union for an informative webinar that will explain what Kosher is, how Kosher certification works, and the benefits of Kosher certified products. This one-hour webinar will clearly define Kosher, spell out the difference between Kosher and non-Kosher food products, identify the ingredients or products that are rarely or never Kosher and make clear why so many foods require Kosher supervision. It will also explain the difference between the OU and other Kosher certifications. Click here for details.

A federal appeals court ruled that farms cannot be sued over the pollution or odors they emit as long as they have entered into an agreement with the Environmental Protection Agency (EPA). The ruling was a rebuke to environmental groups, which sued to change an EPA policy that they felt allowed animal feeding operations to bypass environmental laws and only pay nominal fines, reported The Associated Press. Full Story

Market News

USDA issued a 59-page report on sugar. This report on the U.S. sugar sector places into context the challenges facing sugar producers, users, and policymakers in the U.S., including description and analysis of farm-level production of U.S. sugar crops, cane and beet sugar processing and refining industries, imports and exports of sugar, sugar consumption, and U.S. sugar policy issues likely to be important in the 2007 Farm Bill. Full Story

Membership Warehouse Club Sales Reach $116.6 Billion in 2006

The membership warehouse club industry reached $116.6 billion in sales in 2006 - an 8.5% increase over 2005 - and is headed toward sales of over $170 billion by 2011, according to the latest edition of the Membership Warehouse Clubs Industry Overview, part of the Supermerchants series published by alternative format expert James M. Degen & Co. This report covers company specific market size and growth, membership, physical characteristics, consumer demographics, buying practices, competitive response and an outlook for future developments. Click here to order.

Agricultural Research Service scientists created two new varieties of southernpeas called WhipperSnapper and GreenPack-DG. Both southernpeas were offered to seed producers and researchers for the first time in 2006, after years of laboratory, greenhouse and field tests. Full Story


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