The Food Institute Report articles from January 2009

The Food Institute Report archives from January 2009

Food price inflation far exceeding sales growth at supermarkets & restaurants.(Brief article)
January 26, 2009... The impact of higher food prices on both food store and eating out sales is painfully apparent when looking at data for 2008's last quarter. Even though there was some easing of food-at-home price inflation in the final months of last year,...

Retailers can drive profitable growth with good pricing strategies.(Report)
January 26, 2009... Consulting firm WILLARD BISHOP defined, in their report Retail Pricing 2009: 12 Trends That Are Driving Success in Willard Bishop Competitive Edge (December), a series of retail pricing guidelines that supermarket operators will likely be using...

New baby food products designed to attract moms longer.(Nestle Infant Nutrition)
January 26, 2009... Food industry insiders estimate that baby foods and formulas generate around $5 billion in annual sales, and that supermarkets account for 50% of baby formula and 60% of baby food sales, according to Groceryheadquarters.com (Jan. 1). "Everyone...

Times & Trends: Baby Boomers 2008.(Report)(Brief article)
January 26, 2009... The Baby Boom generation engenders an estimated $2 trillion in annual spending power, making it the largest and most influential segment the CPG industry has ever served, reported INFORMATION RESOURCES, INC.'s Times and Trends Report: Baby...

Big drop in wholesale food prices not reflected at retail--yet.(Brief article)
January 26, 2009... The decline in wholesale food prices last month was significantly larger than the one seen on store shelves, based on the latest data analyzed by THE FOOD INSTITUTE from the LABOR DEPARTMENT's Consumer Price Index and Producer Price Index...

Salted caramel now mainstream.
January 26, 2009... It is not often that a flavor can make its way from elite culinary schools of thought to the American mass market in under a decade, yet salted caramel has done exactly that, noted The New York Times on the Web (Dec. 31). Beginning in France,...

Food-at-home prices drop in December but 2008 food inflation was highest since 1990.(Statistical table)
January 26, 2009... Food-at-home prices dropped for the second consecutive month in December but were still 6.6% more than a year earlier during the month. This brought the 2008 inflation rate for food-at-home to 6.4%--the highest level since 1990 and 1989's 6.5%,...

Small chains use economic situation as opportunity to grow.
January 26, 2009... While the tough economy is hitting larger food chains hard, smaller, more flexible chains are using the situation as an opportunity to grow, according to QSR Magazine's 10 Under 300, which profiles food chains with under 300 stores and ranked...

Latest financial reports (000 omitted).(briefs)(Statistical table)(Financial report)(Brief article)
January 26, 2009... LATEST FINANCIAL REPORTS (000 OMITTED) Current % Change Year Year Ago AMCON DISTRIBUTING CO. (OMAHA, NE) Qtr. To Dec. 31: Sales ...

CIC Advantage Holdings LLC, an affiliate of Dallas-based private-equity group CIC Partners, purchased a 5.6% stake in JAMBA, INC., parent of the Jamba Juice smoothie chain.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... CIC ADVANTAGE HOLDINGS LLC, an affiliate of Dallas-based private-equity group CIC PARTNERS, purchased a 5.6% stake in JAMBA, INC., parent of the JAMBA JUICE smoothie chain.Jamba, Inc. is a holding company and through its wholly owned...

CKE Restaurants, Inc., Carpinteria, CA, sold 11 Hardee's restaurants in the Jefferson City and Columbia, MO markets to Rising Stars, LLC.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... CKE RESTAURANTS, INC., Carpinteria, CA, sold 11 HARDEE'S restaurants in the Jefferson City and Columbia, MO markets to RISING STARS, LLC. This transaction marks the successful completion of the strategic refranchising program the company...

Edmonds Capital, LLC is teaming up with the management teams of Shane's Rib Shack, a national rib shack and barbecue concept, and Planet Smoothie, a national smoothie concept, to purchase the businesses from Raving Brands, Inc., Atlanta.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... EDMONDS CAPITAL, LLC is teaming up with the management teams of SHANE'S RIB SHACK, a national rib shack and barbecue concept, and PLANET SMOOTHIE, a national smoothie concept, to purchase the businesses from RAVING BRANDS, INC., Atlanta. Both...

George Weston Limited subsidiary, Dunedin Holdings S.A.R.L., completed the sale of its fresh bread and baked goods business in the U.S. to Grupo Bimbo, S.A.B. DE C.V.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... GEORGE WESTON LIMITED subsidiary, DUNEDIN HOLDINGS S.A.R.L., completed the sale of its fresh bread and baked goods business in the U.S. to GRUPO BIMBO, S.A.B. DE C.V.For agreement, see FOOD INSTITUTE REPORT Dec. 15, 2008, page 7.

Houchens Industries Inc., Bowling Green, KY, agreed to purchase Whites Fresh Foods, Inc., a Johnson City, TN-based retailer operating 14 conventional grocery stores in Tennessee and Virginia. Houchens Industries Inc., with sales of $2.5 billion, is a diversified, employee-owned holding company with 170 conventional supermarkets under multiple brand names.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... HOUCHENS INDUSTRIES INC. , Bowling Green, KY, agreed to purchase WHITES FRESH FOODS, INC., a Johnson City, TN-based retailer operating 14 conventional grocery stores in Tennessee and Virginia. Houchens Industries Inc., with sales of $2.5...

Mach One Corporation a biological solutions company based in Belgium, WI, completed its acquisition of Pacific Rim Foods Ltd.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... MACH ONE CORPORATION, a biological solutions company based in Belgium, WI, completed its acquisition of PACIFIC RIM FOODS LTD.For definitive agreement, see FOOD INSTITUTE REPORT Dec. 1, page 7.

NPC International, Inc., Overland Park, KS, closed the transactions contemplated by the previously announced Asset Purchase and Sale Agreement with Pizza Hut, Inc. and Pizza Hut Of America, Inc.(MERGERS & ACQUISITIONS)(Brief article)
January 26, 2009... NPC INTERNATIONAL, INC., Overland Park, KS, closed the transactions contemplated by the previously announced Asset Purchase and Sale Agreement with PIZZA HUT, INC. and PIZZA HUT OF AMERICA, INC. (collectively PHI) pursuant to which PHI...

Japan-based Kirin Holdings won exclusive negotiating rights to purchase up to 43.25% of San Miguel Brewery in a deal that could be worth more than $1 billion Kirin Holdings.(MERGER RELATED NEWS)(Kirin Brewery Company Ltd.)(Brief article)
January 26, 2009... Japan-based KIRIN HOLDINGS won exclusive negotiating rights to purchase up to 43.25% of SAN MIGUEL BREWERY in a deal that could be worth more than $1 billion... The Financial Times (Jan. 19)

McKesson Canada, a provider of logistics as well as information products and services within the Canadian health care marketplace, offered to acquire all outstanding shares of Quebec's No. 2 pharmacy chain, Uniprix Inc., which owns and operates the Uniprix, Unipharm and Uniclinique banners with a network of approximately 400 outlets.(MERGER RELATED NEWS)(Brief article)
January 26, 2009... MCKESSON CANADA, a provider of logistics as well as information products and services within the Canadian health care marketplace, offered to acquire all outstanding shares of Quebec's No. 2 pharmacy chain, UNIPRIX INC., which owns and operates...

Pernod Ricard.(MERGER RELATED NEWS)(Brief article)
January 26, 2009... PERNOD RICARD completed the sale of SERKOVA VODKA to AMVYX SA.

High commodity prices only constant among grain-based foods.
January 26, 2009... Examining the position of grain-based foods in 2009 shows great disparities among the different types of products, as the cookie category saw the closure of a major manufacturer and poor sales while the largest cracker vendors report mostly...

Phil's fresh foods plans expansion.(Brief article)
January 26, 2009... Boulder, CO-based Phil's Fresh Foods plans to expand into warehouse stores and additional supermarkets. Owner Phil Anson is optimistic that the pullback in consumer spending will benefit sales of his burritos, which sell for about $2.50 in...

Total U.S. restaurant unit count flat in '08, couponing up.(Survey)
January 26, 2009... There was no growth in total restaurant units in 2008, revealed THE NPD GROUP's fall 2008 ReCount, which showed the number of restaurants opening was balanced by the number of restaurant closings. Large and midsize chain restaurants, led by the...

New administration reviewing pending regulations.(WASHINGTON)(Brief article)
January 26, 2009... President Barack Obama, via Memorandum for the Heads of Executive Departments and Agencies sent by his Chief of Staff, Rahm Emanuel, communicated his plan for managing the federal regulatory process at the onset of his administration. President...

Revised Lobbying Disclosure Act Guidance released.(WASHINGTON)
January 26, 2009... The Secretary of the Senate and the Clerk of the House released a revised Lobbying Disclosure Act Guidance on Jan. 16 with changes that may affect food industry firms and trade associations, according to a review by FOOD INSTITUTE counsel...

AMS issues final cool rule.(WASHINGTON)(Agricultural MArket Service)
January 26, 2009... USDA's AGRICULTURAL MARKETING SERVICE (AMS) published a final rule, Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Wild and Farm-Raised Fish and Shellfish, Perishable Agricultural Commodities, Peanuts, Pecans,...

Today in food's most read stories, Jan. 12 to Jan. 16.(WASHINGTON)(Survey)(Brief article)
January 26, 2009... TODAY IN FOOD'S MOST READ STORIES, JAN. 12 TO JAN. 16: 1) Some 63% of consumers are trading down to store brands or generic products rather than branded goods, while 43% are buying ingredients from scratch, rather than ready to serve meals,...

Whole Foods re-files cases against FTC in appeals court.(WASHINGTON)(United States. Federal Trade Commission v. Whole Foods Market Inc.)(Brief article)
January 26, 2009... The 270-store Whole Foods Market, Inc. supermarket chain refiled its case against the Federal Trade Commission in the U.S. Court of Appeals for the D.C. Circuit to expeditiously reach a decision on the merits of the case. The petition charges...

FTC to host advertising literacy forum.(WASHINGTON)(United States. Federal Trade Commission)(Brief article)(Conference notes)
January 26, 2009... The FEDERAL TRADE COMMISSION staff will host a workshop on Mar. 12 to gather input for its advertising literacy initiative, which will educate and empower tweens to be better informed consumers of information. This initiative seeks to raise...

FDA issues warning letters.(WASHINGTON)(Katies Seafood Market)(United States. Food and Drug Administration)(Brief article)
January 26, 2009... Port Angeles, WA-based HIGH TIDE SEAFOODS, INC. was issued a warning letter on Dec. 10, 2008 by FDA after an investigation of the company's seafood processing facility on July 24-25, 2008. The investigation found serious violations of the...

Food product recalls reported.(WASHINGTON)(Barber Foods Company)(K-Fat Inc.)(Brief article)
January 26, 2009... FDA is expanding its report on manufacturers who are voluntarily recalling peanut butter items in association with PEANUT BUTTER OF AMERICA's Salmonella outbreak. The list includes NUTRISYSTEM, COUNTRY MAID, NATURE'S PATH, READY PAC FOODS,...

Orthodox Union Kosher alert.(WASHINGTON)(Youngevity)(Statistical table)
January 26, 2009... TRU Nutrition TRU Chocolate, manufactured by YOUNGEVITY, is mislabeled. This product mistakenly bears an unauthorized OU symbol and is not certified Kosher by the Orthodox Union. Future packaging will be revised. Orthodox Union's Recently...

Produce.(MARKETS)
January 26, 2009... FROM USDA--The top five fruits (including citrus and melons) shipped to the U.S. from Mexico in 2008 were, in order, Limes, Avocadoes, Watermelons, Mangoes and Grapes. Limes totaled 19,088 40,000-lb. units, followed by avocadoes with 13,444...

Canned vegetables.(MARKETS)(Statistical data)
January 26, 2009... All prices f.o.b. Midwest unless otherwise noted. ASPARAGUS--Foodservice prices of 6/10 canned asparagus are between $39.70-$39.90. Private label prices of 24/300 cases are between $21.40-$21.60. BEETS--Foodservice 6/10 cases are...

Tomato products. (MARKETS).(Statistical table)
January 26, 2009... FROM USDA--As of mid-January, California's tomato processors indicated they intend to contract 13.3 million tons, 15% more processing tomatoes than the 2008 contracted production reported in August 2008. Processors estimate the contracted...

Frozen vegetables.(MARKETS)(Statistical data)
January 26, 2009... A drop in wholesale price increases shrunk the difference between wholesale and retail frozen vegetable prices, where both are hovering around an almost 9% increase, year on year. Retail price increases have occurred since Sept 2008, and is...

Canned fruits.(MARKETS)(Statistical data)
January 26, 2009... PEACHES--Domestic Foodservice pricing for 6/10 canned peaches is around $24.50, 24/300 is between $17.50--$18.00 and 12/2.5 is $14.00, all prices are f.o.b. California. PINEAPPLE--Prices from Thailand have 6/10 canned pineapples priced at...

Processed fish.(MARKETS)(Statistical data)
January 26, 2009... CATFISH--Farm-raised catfish processed during December 2008 totaled 32.6 million pounds round weight, down 16% from December 2007. The average price paid to producers was 82.1 cents per pound for December 2008, down 0.1 cent from last month but...

Dried vegetables.(MARKETS)(Statistical data)
January 26, 2009... DRIED BEANS--Dry Edible Bean market activity continues to be very slow. Demand from Mexico for Black and Pinto beans caused dealer levels to increase since last reported market. Grower levels are showing increasing interest as time passes. All...

Dried fruits & nuts.(MARKETS)(Statistical data)
January 26, 2009... PEANUTS--Peanut prices received by farmers for all farmer stock peanuts averaged 23.4 cents per pound for the week ending January 10. The price per pound decreased 1.5 cents from the previous week. Marketings of all farmer stock peanuts for the...

Frozen fruits.(MARKETS)(Statistical data)
January 26, 2009... STRAWBERRIES--IQF Large California strawberries in 30-lb pails are 69 cents per pound and Sliced California 4+1 in 30-lb. cartons are priced at 82 cents per pound, f.o.b. California. IQF Northwest Whole strawberries in 30-lb cartons are around...

Juices & concentrates.(MARKETS)(Statistical data)
January 26, 2009... ORANGE JUICE--Prices of frozen concentrated orange-juice futures contracts climbed 3.6% on forecasts that subfreezing temperatures would plunge into the heart of the Florida citrus belt by the morning of Jan. 22. A hard freeze occurs when...

Butter.(MARKETS)(Statistical table)
January 26, 2009... BUTTER MARKET, JANUARY 21 Cents Per Pound: 1/21/2009 1/14/2009 Chge. Grade AA 1.1000 1.1125 -0.0125

Cheese.(MARKETS)(Statistical table)
January 26, 2009... CHEDDAR CHEESE MARKET JANUARY 21 Cents Per Pound: 1/21/2009 Chge. Fr. Last Wk. Barrels 1.1000 0.0325 Blocks (40-lbs.) 1.0725 0.0175

Eggs.(MARKETS)(Statistical table)
January 26, 2009... EGG PRICES TO RETAILERS January 21 (Source: USDA) Wk. Ending Wk. Ending Cents per dozen: 21-Jan 14-Jan Chge. Extra Large-NY 127-131 127-131 0.00 Large-NY ...

Chicken.(MARKETS)(Statistical table)
January 26, 2009... PRELIMINARY BROILER PRICES FOR DELIVERY THE WEEK OF JANUARY 16 Cents Per Pound: This Week Last Week Chicago 72-75 71-74 Cleveland Too Few Too Few Detroit Too Few Too...

Futures Prices.(MARKETS)(Statistical table)(Brief article)
January 26, 2009... (Source: Wall Street Journal) Cash March May As of January 22, 2009: Price Futures Futures Corn, bu. $3.62 3.903 4.248 (Dec...

Commodity prices.(MARKETS)(Statistical table)
January 26, 2009... (Source: Wall Street Journal) Week Week % Chge. Ended Ended Last 1/22/09 15-Jan Year ...