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Retail News
As higher commodity prices become the "new normal"
rather than a temporary peak, consumer behavior as well as
retailer and supplier strategies may be impacted, according to
Deloitte's Food and Beverage 2012 - A Taste of Things to
Come report. While current food commodity prices may come
down from their current peaks, the increases already seen in
the real cost of food represent a permanent change. Full Release, Full Report
 For the five-week period ending July 4,
Wal-Mart experienced the strongest comparable store sales
increases in the grocery, entertainment and health and
wellness categories. Overall, the company's comparable store
sales increased 6.1%, while net sales increased 10.1% during
that time. The company noted that in addition to favorable
weather and improved assortment, the economic stimulus checks
contributed to increases in overall comparable store traffic
results. Full Story
Three major U.S. grocery chains, as yet unnamed, are
gearing up for the launch of the NuVal Nutritional Scoring
System - until now known as the Overall Nutritional
Quality Index, or ONQI - in their stores in September,
according to Topco Associates, LLC, the system's
co-originator. The first-wave debut of the newly named
on-shelf consumer education program will be the precursor to a
coast-to-coast presence by this time next year, Topco told
Progressive Grocer. NuVal, LLC, the independent company
formed to bring the system to market, is a joint venture of
Topco and Yale-affiliated Griffin Hospital. Full Story
Sheetz Inc. opened a 140,000-sq. ft. kitchen facility
that will produce a new variety of bakery and ready to eat
products to be shipped fresh daily to all 350 Sheetz
convenience store locations. Full Story
Ahold made several changes to its corporate and
operating company leadership. The company made these
changes as part of its Value Improvement Program, which has
expanded beyond price repositioning, noted John Rishton, CEO
of Ahold. Full Story
Kmart will close four stores, including three Super
Kmart supercenters this fall in Defiance, OH, Reno, NV,
and Greeley, CO, reported Supermarket News. Full Story
Manufacturer News
In 2007, ice cream accounted for nearly 60% of total
sales from ice cream, frozen novelties, sherbet and frozen
yogurt combined. Frozen novelties made up over a third of
sales (36%), while sherbet and frozen yogurt accounted for
just 5%, according to Mintel. Notably, it seems that
old-fashioned ice cream is becoming less popular with
consumers. Although ice cream sales dominated the market in
2007, they were also 3.9% behind sales levels from 2002, as
sales of frozen novelties grew 7.2% from 2002 to 2007,
reported MarketWatch.com. Full Story
The Gluten Free Certification Organization certified
many of Stonyfield Farm products gluten-free. Full Story
Advertising Age talks with Dave Linne, senior
VP-advertising at ConAgra, about his plans for the
company's brands. Mr. Linne is aiming to make ConAgra's
established group of iconic brands more top of mind, with
advertising that reinvigorates the likes of Pam cooking spray,
Reddi-Wip, Egg Beaters, Chef Boyardee, Hunt's tomato products
and Orville Redenbacher. Full Story (Free Registration Required)
Kellogg's expanded its breakfast line with the
launch of its Frosted Mini-Wheats Blueberry Muffin cereal. Full Story
Cargill opened a new Snacks and Cereal Product
Innovation Center in Minneapolis, MN. Full Story
Cargill Meat Solutions introduced a line of newly
branded, value-priced beef cuts. The lesser-known cuts of
beef have been repositioned, with their standard cut names
replaced with names derived from the Romance languages. Full Story
Foodservice News
Organic To Go developed a "three-pronged
strategy" to market a concept that includes the building
of retail cafes, catering and delivery services, and selling
salads and sandwiches wholesale at universities, airports and
hospitals, reported QSR Magazine. Full Story
G&R Acquisition, Inc. completed its acquisition of
Max & Erma's Restaurants, Inc. for approximately $11.3
million in cash. Full Story
Good Times Burgers & Frozen Custard modified a
development agreement with its Midwest franchisee, Zen
Partners, to transfer rights for up to three restaurants from
Omaha, NE to Colorado. The chain also plans to open two
company-owned restaurants in Colorado and one dual-branded
Good Times-Taco John's franchised location in Sheridan, WY,
reported Rocky Mountain News. Full Story
Palm Palace LLC will reopen as many as eight former La
Shish restaurants in Southeast Michigan, under the Palm
Palace banner. The first Palm Palace is scheduled to open July
30, reported Crain's Detroit Business. Full Story (Free Registration Required)
Health News
Less than 20% of adults now smoke, according to
Centers for Disease Control and Prevention data, reported
The Associated Press. Full Story
A
combination of omega-3 fatty acids with uridine and choline
improved memory and learning in a study with gerbils, and
may have benefits for Alzheimer patients, according to
research published in the Federation of American Societies
of Experimental Biology, reported Food Production
Daily. Full
Story
Washington News
Florida tomato growers are lining up congressional
support to seek restitution for millions of dollars in losses
linked to the nation's salmonella outbreak. "We believe it
is maybe $100 million or more in Florida," said J. Luis
Rodriguez, trade adviser for Florida Farmers Inc. Florida
growers, many with multistate operations, plan to work with
members of Congress such as Rep. Allen Boyd, D-Panama City, to
seek an appropriation. Rodriguez expects it will take about
six weeks to document and tally the losses, according to
Palm Beach Post. Full Story
 Total U.S. exports were $157.5
billion and imports were $217.3 billion in May, resulting
in a goods and services deficit of $59.8 billion, down from
$60.5 billion in April. May exports were $1.4 billion more
than April exports, while imports were $0.7 billion more than
April. Full Report
A federal judge refused to stop some Canadian beef
imports, but agreed with lawyers for cattle, consumer and
health interests that USDA should revisit rules that
protect against the threat of mad cow disease. "Because the
USDA failed to initiate new rulemaking before allowing
importation of beef from Canadian cattle of any age, the court
must remand to the USDA to provide notice and comment on the
OTM (over 30 months of age) beef provisions," U.S. District
Judge Lawrence Piersol wrote, reported Jackson Hole
Star-Tribune. Full Story
Federal officials approved changes Nebraska Beef Ltd.
proposed after it recalled 5.3 million pounds of beef last
week. Although the changes were not revealed, the company's
plan satisfies concerns raised after the meat was linked to an
E. coli outbreak, said USDA spokeswoman Amanda Eamich,
reported The Associated Press. Full Story
USDA is expected to finalize plans on July 11 to make
retailers' names public during some meat recalls, reported
The Associated Press. The department is expected to
impose the requirement only in the case of so-called "Class I"
recalls - those which are considered to pose the greatest
health hazard. Full Story
USDA is weighing a policy change that could lead to the
plowing of millions of acres of land that had been set
aside for conservation. At issue is the Conservation Reserve
Program, under which the government has paid farmers to stop
growing row crops, such as corn and soybeans, on 34 million
acres across the country, reported The Washington Post.
Full Story (Free Registration Required)
Governor Arnold Schwarzenegger and U.S. Senator Dianne
Feinstein proposed a compromise plan to the Legislature to
update California's water system by increasing storage,
improving conveyance, protecting the Delta's ecosystem and
promoting greater water conservation. Full Story
Global News
The
UK's Food Standards Agency revised its guidance on the use of
words such as "fresh," "natural" and "pure" to provide
clearer advice to manufacturers. The Agency last issued
labeling guidelines on these marketing terms in 2002, after
the Food Advisory Committee found that a lot of them were
being misused and, in some cases, conveying messages that were
far-removed from their generally accepted meanings, reported
Food Production Daily. Full
Story
The European Parliament published its draft report on
amendments to the novel foods regulation, having made
revisions to ensure better clarity. The regulation was
introduced in 1997 and requires any food not commonly consumed
in the EU prior to the rule's inception to undergo rigorous
safety assessment before it can be brought to market, reported
Food Production Daily. Full Story
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ECONOMIC DOWNTURN PRESENTS
OPPORTUNITIES & CHALLENGES FOR
RETAILERS
The
future of food retailing for the next three to
five years will be dramatically affected by two
major trends: food inflation and the emergence of
small format stores, according to the annual
Future of Food Retailing webinar presented
by The Food Institute and Willard Bishop, which
examined the state of the food and consumables
retail industry in 2007 and beyond. Food price
inflation will exceed current "conventional
wisdom," and be a factor for three or more years,
predicted Willard Bishop during the webinar. In
fact, predictions about the rate of inflation have
generally been underestimated. However, this food
price inflation can benefit food retailers with
winning shopper value equations and solid plans to
take advantage. If you missed The
Future of Food Retailing webinar and would
like to purchase a recording, click
here. | |
Dover Industries Limited reached a conditional
agreement to purchase Cereal Foods Canada, Inc.'s flour
milling assets in Montreal, Quebec. Full Story
Delhaize sees opportunities to expand in eastern
Europe through the acquisition of medium-sized companies,
noted CEO Pierre-Olivier Beckers in an interview with Het
Financieele Dagblad, reported Reuters. Full Story
German retail group Rewe was cleared to purchase
Austrian supermarket chain Adeg by the European
Commission, with conditions. Following the transaction, Rewe
would increase its share of Adeg from 24.9% to 75%, reported
Wiener Zeitung. Full Story
Market News
Dave Yanda, the new CEO of Lakeside Foods, discusses
the changes in the vegetable processing industry and the
challenges it is facing. For example, the company, which has
15 plants and eight distribution centers, paid 45% more for
its raw produce, while steel can costs rose 11%, reported the
Herald Times Reporter. Full Story
The prospective area for harvest of fresh market
vegetables during the summer quarter is forecast to be 282,400
acres, down 6% from last year. Area forecast for melon
harvest is 109,900 acres, down 8% from last year. Meanwhile,
vegetable processors contracted 1.20 million acres to be
planted to the five major vegetable crops (snap beans, sweet
corn, cucumbers for pickles, green peas, and tomatoes). USDA Vegetable Report
Florida's all orange forecast, at 170 million boxes,
increased 1% from the previous forecast and is 32% higher
than last season's final utilization of 129 million boxes.
Meanwhile, California's all grape production is forecast at
6.05 million tons, down 3% from a year ago. Also, the final
forecast for the 2008 apricot crop is 86,840 tons, down 2%
from the 2007 crop. USDA Crop Production Report
Duda Products Inc. inked a three-year deal to be
Cargill's exclusive supplier of Florida orange and
grapefruit concentrate in Japan, according to The
News-Press. Full Story
USDA lifted its price projections for feed corn, oats,
barley, and soybeans for the 2008/09 marketing year,
leaving wheat price projections unchanged, and lowering its
price forecast for rice, according to just released data. Full Report
USDA increased the 2007 crop year sugar Overall
Allotment Quantity by 500,000 short tons, raw value. USDA
expects the action to effectively eliminate marketing
allotment program restrictions on domestic sugar beet and
sugarcane processors and increase the 2007 crop year
marketable sugar supply by 100,000 to 200,000 tons. Full Story
The Northwest cherry growing region shipped more than
three million 20-lb. boxes, compared to the seven million
normally shipped at this point in the harvest, according to
the Northwest Cherry Growers. The region is expected to ship
only about eight million 20-lb. boxes this season, just over
half of the amount shipped a year ago, reported The Yakima
Herald. Full Story (Free Registration Required)
Bartlett pear harvest started in
California's Sacramento River district. Consumers can now
find the first California-grown pears in retail stores, with
larger quantities arriving next week, reported California
Farm
Bureau.
Health officials are uneasy about a variety of toxins
found in paddlefish caviar, including mercury, chlordane
and polychlorinated biphenyls. But advocates say the level of
contaminants is below federal safety standards and that most
consumers do not eat enough of it to suffer any ill effects.
Kentucky, Indiana and Tennessee issued advisories warning
consumers to limit their consumption of paddlefish caviar from
portions of the Mississippi, Ohio and Tennessee rivers.
Commercial fishermen collect five to 10 tons of Ohio River
paddlefish caviar each year, according to The Associated
Press. Full Story
Maple Lake, MN-based Goelz dairy farm is in the final
year of a multi-year process to become an organic milk
producer, reported the Cornucopia Institute. Full Story
Scientists are researching why pears rot faster than
apples, which will help reduce waste in the fruit
industry. The theory revolves around how oxygen is able to
find its way to the center of the fruit after it was picked,
reported BBC News. Full
Story
International
Trade Administration amended the final results of the
Administrative Review pursuant to the final court decision
with regards to freshwater crawfish tail meat from China. Full Notice
International Trade Administration issued final results
and a partial rescission of the Antidumping Duty
Administrative Review of certain frozen warmwater shrimp from
Brazil. Full Notice
International Trade Administration issued final results
and a partial rescission of the Antidumping Duty
Administrative Review of certain frozen warmwater shrimp from
Ecuador. Full
Notice
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IGA Coca-Cola Institute Perspective
