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Industry News

Food and beverage store sales in the U.S. rose 1.2% in June versus a year earlier, bringing first half 2014 sales to $325 billion, 2.6% more than the same period in 2013, according to Food Institute analysis of government data. Grocery store sales advanced 0.4% to $48.5 billion during June and were up 2% for the first half of 2014. Eating and drinking place sales rose 4% in the first half of 2014 to $279 billion. Full Story (FI Membership Required)

Growth in the number of small cheese makers in the U.S. far outpaced growth in cheese making establishments overall between 2007 and 2012, according to Food Institute analysis of the Census Bureau's 2012 Economic Census. While the total number of cheese making establishments in the U.S. rose by 13%, the growth in small establishments, which employ 19 people or less, rose 28%. Small cheese making facilities accounted for 46% of all establishments in 2012, compared to 41% in 2007. Cheese making firms spent $810 million on capital expenditures in 2012, 37% more than in 2007. Full Report

Wal-Mart's threat to the supermarket industry may be diminishing as the retailer's Neighborhood Market stores are cannibalizing its existing store base in some cases, according to BMO Capital Markets. Wal-Mart lost market share in four of its top 10 markets between 2010 and 2013, including its two largest markets, Dallas-Fort Worth and Phoenix. BMO estimates that the retailer plans to open about 200 Neighborhood Markets in 2014 and has long term plans for about 2,000 units. Full Report

Maplehurst Bakeries will renovate and equip a 180,000-sq. ft. plant in Lebanon, IN, to house its warehouse, distribution and manufacturing operations for cakes and cupcakes in a $78 million expansion. Maplehurst, a division of Weston Foods, will begin operations at the plant in March 2015, reported Bradenton Herald. Full Story

Seventy-five percent of American adults purchased green products or services in 2014, according to a survey by SCA and Harris Poll. In the U.S., 40% of adults are willing to pay more for products if ethical and responsible manufacturing practices are guaranteed. Millennial adults are significantly more likely to pay more than older consumers. The study also found that the overall majority of U.S. consumers who purchase green products do so for environmental reasons, while Millennials specifically are motivated by health benefits. Full Story

Latest sales & earnings for food related companies (Updated Daily - FI Membership Required)

Sales of instant coffee have nearly tripled since 2000, according to data from Euromonitor. Worldwide consumption of instant coffee is expected to be worth $35 billion by 2018, up from $31 billion in 2013, reported The Modesto Bee. Full Story

Square compiled information on customer ordering behavior using an item modifier tool to help businesses customize orders. In five out of eight major U.S. cities, bacon was among the top 20 most commonly used modifiers. Across the country, customers are 145% more likely to choose bacon over sausage and 38% more likely to want bacon instead of tomato. Square's findings also revealed that customers are 132% more likely to add a shot of espresso than to opt for decaf, and are 58% more likely to choose a 16 oz. beverage than a 12 oz. one, reported CNN. Full Story

RaceTrac will debut a new store model early next year in Lauderdale Lakes, FL. The new setup includes a self-serve frozen yogurt station, an expanded coffee bar and a walk-in cooler with a variety of beer, reported South Florida Sun-Sentinel. Full Story

WhiteWave Foods received green certification for its Dallas plant from the U.S. Green Building Council. The 325,000-sq. ft. facility has landscaping that requires no irrigation, fixtures that use 30% less water and used materials that help reduce energy consumption. Full Story

Red Robin completed the acquisition of 32 Red Robin franchised restaurants in the U.S. and Canada for $40 million from Mach Robin LLC and a Canadian affiliate, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

New Product News: True Drinks AquaBall Naturally Flavored Water is now available in Canada. Full Story ... TheBu Kombucha will be sold at Sprouts Farmers Markets and select Whole Foods Markets. Full Story ... Pizza Hut will launch an 8-inch chocolate chip cookie in a partnership with Hershey Co., reported Chicago Tribune. Full Story

New Store News: Wendy's will open a location in Lakeland, FL, reported The Lakeland Ledger. Full Story ... Culver's will open a location in Tucson, AZ, reported Arizona Daily Star. Full Story ... Chicken Salad Chick will open a location in Chattanooga, TN. Full Story ... Gigi's Cupcakes will open locations in five cities this year, reported The Tennessean. Full Story ... Burger 21 will open a location in Scottsdale, AZ. Full Story ... McAlister's Deli will reopen its remodeled Roswell, GA location. Full Story ... Outback Steakhouse will open a location in Henderson, NV. Full Story ... Luby's Inc. will open a Fuddruckers in Legnano, Italy. Full Story ... Red Robin Gourmet Burgers Inc. will open a location in West Babylon, NY. Full Story ... Dunkin' Donuts will open a location in League City, TX, reported Houston Chronicle. Full Story ... Dickey's Barbecue Pit will open locations in Hillsboro, TX, and Sanger, TX.

Executives on the Move: Flowers Foods named Bradley Alexander as Executive Vice President and COO of Flowers Foods, D. Keith Wheeler as President of Flowers Bakeries and Thomas Wilson as Senior Vice President of Flowers Bakeries' West Coast region. Full Story ... Dollar Tree named Randy Guiler as Vice President, Investor Relations. Full Story

Food Institute News

The Food Institute's Demographics of Consumer Food Spending 2014 provides in-depth information and insightful analysis on U.S. consumer food spending patterns. Designed for easy use, this annual study provides an easy-to-read breakdown of spending on food overall, food at-home, and food away-from-home. Topics covered include age, income, career, education, race, gender and region of the U.S. Click here to order your copy today!

Member Profile

Furmano Foods

Nestled in the fertile Susquehanna River Valley of Central Pennsylvania, Furmano Foods is a fourth generation family owned and operated tomato and vegetable canning company in business since 1921. Furmano services retail, foodservice and international markets with its product line of tomato products, canned dry beans, snap beans and bean salads and canned peppers. In 2010 Furmano's launched a complete line of cooked dry beans in shelf stable pouches for the foodservice trade. Supplying healthy, great tasting foods continues to be Furmano's focus now with lower sodium tomato and bean items available. Furmano's: "Great taste is a family tradition."

To learn more about this Food Institute member, please visit: www.furmanos.com.

International News

China is likely to import less sugar this year as higher inventories in the domestic market and weak prices in the international market may make prospects less appealing for importers, according to a forecast issued by the China Sugar Association. Sugar imports this year are expected to be around 2.2 million metric tons, nearly half the quantity imported in 2013, reported China Daily. Full Story

The government of Canada is looking into changing the format of nutrition labels. The change would affect the layout of the nutrition facts table and what nutrients must appear on it, the list of ingredients and daily values. It would also change how ingredients are listed by grouping sugars together and making serving sizes more consistent among similar products. Full Story

Olayan Financing Co. acquired a 51% stake in Gulf Union Foods Co. from a group of investors including Jadwa Investment. Jadwa will divest its 30% stake in the company, which it acquired in December 2009, reported Reuters. Full Story

Health News

Eating cheese before bedtime may affect the quality of sleep and contents of dreams, according to a study by Middlesex University in London. The effects are due to the varying levels of tryptophan, an amino acid that alters mood, in the cheeses, reported Independent Online. Full Story

Washington News

San Diego's minimum wage will increase to $11.50 an hour by January 2017 after a vote of 6-3 by the City Council. California's minimum wage is scheduled to become $10 an hour by January 2016, reported San Diego Union-Tribune. Full Story

Dairy Farmers of America agreed to pay $50 million to Northeast dairy farmers to settle antitrust allegations from a 2009 class-action lawsuit. The lawsuit alleged Dairy Marketing Service, the cooperative's marketing arm, and Dean Foods Co. monopolized the raw milk market in the region to lower prices paid to farmers, reported The Record. Full Story

Pilot Flying J came to a deal with federal prosecutors sparing the company from criminal charges stemming from a scheme to defraud customers of rebates. The truck stop chain agreed to pay a $92 million penalty and will continue to assist criminal investigators. The deal does not end civil litigation filed by customers, but may head off the possibility of an indictment of Pilot, and prosecutors do not expect to bring charges against the company's most senior officers, reported The Tennessean. Full Story

Market News

Eighty-one percent of Illinois' corn crop is rated good or excellent, while three-quarters of the state's soybean crop is in good or excellent condition, according to USDA. Some 90% of the state's wheat harvest is complete, reported St. Louis Post-Dispatch. Full Story; Full Report

Chiquita will use the Port of Wilmington in Delaware as its hub for mid-Atlantic distribution for the next five years. Two five-year renewal options, which were included in the agreement, could extend Chiquita's stay at Wilmington until 2029, reported The Packer. Full Story

Chilean officials signed an agreement to begin shipping its avocados to China once inspection of Chile's avocado crop complete. The agreement states that fruit must come from areas free of fruit flies and meet the phytosanitary regulations of China, reported The Packer. Full Story

July 15, 2014
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