Capico News of the Week

Whole Foods Market expects to open 16 new stores in their fiscal 2010, 10 of which are expected to open in the first half of the year. Full Story

Tea sales are staying positive as the beverage is seen as a healthy product and an affordable luxury, according to Packaged Facts' Tea and Ready-to-Drink (RTD) Tea in the U.S. report. Tea market trends examined include superfruit flavors, hybrid products designed to compete with other beverage categories including bottled waters, energy drinks and sodas and new RTD spins on green tea and emerging segments including yerba mate and Kombucha. Full Story

The resurgence of the environmental movement caused an upswing in the demand for environmentally friendly packaging, according to the Trends Report from the Foodservice Packaging Institute, reported QSR Magazine. Full Story

Despite the economic downturn, Southern Nevada-based Pies Unlimited increased its business by 40% to 50% since it opened in 2006. Much of the specialty bakery's revenue, which offers a selection of made-from-scratch pies, cheesecakes and cakes, comes from retail walk-in business, reported Las Vegas Sun. Full Story

Portland, OR-based Townshend's Tea Co. secured a $48,000 loan from Whole Foods Market, which will allow Townshend's to open a Southeast Portland factory for making kombucha, a type of fermented tea. The company's kombucha is available at about 15 Oregon locations, including Whole Foods, reported OregonLive.com. Full Story

DNA Beverage Corporation's wholly owned distribution company Grass Roots Beverage Corporation added VPX/Redline to its growing portfolio of food, beverage and supplement companies. The company will initially distribute the RTD, Extreme, Princess and Meltdown lines. Full Story

Starbucks is targeting approximately 100 net new stores in the U.S. and approximately 200 net new stores in international markets for fiscal 2010. Both the U.S. and international additions are expected to be primarily licensed stores. Full Story

Seattle's Best Coffee signed an agreement to serve freshly brewed Seattle's Best Coffee as part of Subway restaurants breakfast offerings. By the end of 2009, more than 9,000 Subway restaurants in the U.S. will feature Seattle's Best Coffee, with plans to expand into more restaurants during 2010. Another agreement will also bring Seattle's Best Coffee to more than 800 Subway restaurants in Canada before 2010. Full Story

Children's television networks show 76% more food commercials per hour than other networks, and most are for high-fat, high-sugar foods, according to a study published in the Journal of Nutrition Education and Behavior. Nearly a third of commercials on children's networks were for food, compared to a fifth during programming for a general audience. Some 70% were for foods that were high in sugar or fat, reported Food Navigator USA. Full Story

Jamba, Inc. will develop a line of Jamba-branded trail mixes after signing a licensing agreement with Johnvince Foods. The Jamba-branded trail mixes will be available in select Jamba Juice stores and other retail outlets in early 2010. Full Story

technique that reduces 25% of the salt in food products, does not lose taste or need additives was developed by Dutch scientists. The "smart salt distribution" technology works by blending a high salt fraction with a low salt fraction, creating different layers with different salt content, reported Food Navigator. Full Story

Innovative Beverage Group Holdings, Inc. entered into an agreement with Pure Beverage Co. to distribute drank throughout Indiana. Full Story

Cadbury is switching to square, recyclable cardboard boxes instead of metal tins for its holiday packaging. The change will lead to a 45% reduction in packaging weight and savings of more than 200 tons of steel, reported Food Production Daily. Full Story

New Store News: Trader Joe's opened a location in Minnetonka, MN, reported Minneapolis / St. Paul Business Journal. Full Story (Free Registration Required) ...Freddy's Frozen Custard & Steakburgers is opening a location in Derby, KS, reported QSR Magazine. Full Story ... Rochester, NY-based DiBella's Old Fashioned Submarines is building a location in Latham, NY that will open in late spring or early summer 2010. All of the bread is baked on the premises, and the chain has 15 locations, reported The Business Review (Albany). Full Story (Free Registration Required)

Capico News of The Week

The National Association for the Specialty Food Trade's (NASFT) Winter Fancy Food Show exhibitors will donate more than 100,000-lbs. of specialty foods and beverages to San Francisco's needy. For the second year, NASFT will work with Feed the Hungry to collect and distribute specialty products to a network of community programs, reported Supermarket News. Full Story

Half of small-business retailers who compete against major retailers claim customer service differentiates their business from their larger competitors, according to a survey from RatePoint. Full Story

Taste preference varies on both age and gender, according to a study from Kent State University. The study found that girls tend to prefer sweet foods and fruit and vegetables, whereas boys like meat, fish and poultry. Tastes were also seen to change with children's ages, reported Food Navigator USA. Full Story

Fort Myers, FL-based Irresistible Confections, which creates hand-made chocolates, is in a growth mode despite the faltering economy. Gross earnings were roughly $60,000 in 2007 and jumped to about $95,000 last year, with 2009 gross revenues projected to be approximately $165,000. The business will open its first retail location on Dec. 1 in south Fort Myers. Irresistible Confections expects sales in the retail shop and the additional production capacity to enable revenues to range between $250,000 and $350,000 next year, reported News-Press. Full Story

Some 70% of consumers claim they purchased the wrong product in a supermarket in the past year, and about 60% stated they had trouble differentiating products on a store shelf due to the packaging, according to a study by strategy and design agency The Brand Union. Canned goods were among the most confusing categories; of the 23% of consumers who stated they were confused, 42% stated they ended up purchasing the wrong product. According to the study, half of consumers stated they accidentally purchased the wrong product because they were misled by the color or name of the imitator, reported MediaPost's Marketing Daily. Full Story (Free Registration Required)

Kellogg will discontinue its on-the-go single-serving cereal packages due to lack of demand from more value-conscious consumers. The company is also focusing on its eight best-performing cereals, including the Kashi organic brand, which CEO David MacKay claims is integral to Kellogg's continued success, reported Advertising Age. Full Story (Free Registration Required)

Jamba, Inc. sold eight restaurants in California to Four Life Foods, LLC, a company owned primarily by one of the four original co-founders of Jamba Juice, Linda Olds. Full Story

The National Association for the Specialty Food Trade's (NASFT) Winter Fancy Food Show exhibitors will donate more than 100,000-lbs. of specialty foods and beverages to San Francisco's needy. For the second year, NASFT will work with Feed the Hungry to collect and distribute specialty products to a network of community programs, reported Supermarket News. Full Story

Half of small-business retailers who compete against major retailers claim customer service differentiates their business from their larger competitors, according to a survey from RatePoint. Full Story

Taste preference varies on both age and gender, according to a study from Kent State University. The study found that girls tend to prefer sweet foods and fruit and vegetables, whereas boys like meat, fish and poultry. Tastes were also seen to change with children's ages, reported Food Navigator USA. Full Story



For Immediate Release: News from the Specialty Food Trade

Pacific Natural Foods, Tualatin, Ore., has given its premium ready-to-eat organic canned soups a new look and improved flavors. Full Release





Fort Myers, FL-based Irresistible Confections, which creates hand-made chocolates, is in a growth mode despite the faltering economy. Gross earnings were roughly $60,000 in 2007 and jumped to about $95,000 last year, with 2009 gross revenues projected to be approximately $165,000. The business will open its first retail location on Dec. 1 in south Fort Myers. Irresistible Confections expects sales in the retail shop and the additional production capacity to enable revenues to range between $250,000 and $350,000 next year, reported News-Press. Full Story

Some 70% of consumers claim they purchased the wrong product in a supermarket in the past year, and about 60% stated they had trouble differentiating products on a store shelf due to the packaging, according to a study by strategy and design agency The Brand Union. Canned goods were among the most confusing categories; of the 23% of consumers who stated they were confused, 42% stated they ended up purchasing the wrong product. According to the study, half of consumers stated they accidentally purchased the wrong product because they were misled by the color or name of the imitator, reported MediaPost's Marketing Daily. Full Story (Free Registration Required)



For Immediate Release: News from the Specialty Food Trade

Simple tea Inc., an Oakland, Calif-based company that was formed to serve the specialty advertising industry, has entered the specialty tea retail market with two new tea collections: Simple Jade and Simple Travel Pack. Full Release





Kellogg will discontinue its on-the-go single-serving cereal packages due to lack of demand from more value-conscious consumers. The company is also focusing on its eight best-performing cereals, including the Kashi organic brand, which CEO David MacKay claims is integral to Kellogg's continued success, reported Advertising Age. Full Story (Free Registration Required)

Jamba, Inc. sold eight restaurants in California to Four Life Foods, LLC, a company owned primarily by one of the four original co-founders of Jamba Juice, Linda Olds. Full Story





New Store News: The Urban Grocery and Wine Bar opened in Phoenix, AZ. The full-service grocery store is part of the biweekly outdoor Phoenix Public Market and stocks mostly locally sourced, organic foods. It also carries meat, cheeses and a rotating selection of beer and wines, reported Phoenix Business Journal. Full Story (Free Registration Required) ... Philly Dawgz is opening in the Washington, DC area. The chain, which serves a mix of Chicago-style, Latino and BBQ dishes, currently has three stores across the U.S., two in Minnesota and one in West Virginia, with two in the works in Nebraska and New Jersey, reported Washington Business Journal. Full Story (Free Registration Required) ... A Twilight-themed restaurant, Volterra, will open in Forks, WA next year, reported Peninsula Daily News. Full Story

Global Icons formed an agreement with Diageo North America, Inc. for exclusive licensing representation of the Captain Morgan Original Spiced Rum brand for sauces, glazes and marinades. Full Story


PepsiAmericas' carbonated soft drink volume decreased 8% in third quarter 2009 compared to third quarter 2008. Non-carbonated soft drinks decreased 11% in the period. Full Story

Krispy Kreme Doughnut Corporation entered into an agreement with KDN Company Limited for the development of 20 franchise Krispy Kreme retail shops in Thailand over the next five years. Full Story

Some 50% of restaurateurs expect better profitability in 2009 compared to 2008

U.S. restaurateurs are simultaneously optimistic about the future and concerned about inflationary trends in commodity and labor costs for the remainder of 2009 according the 2nd Annual ArrowStream Foodservice Industry Survey.

Conducted in August by ArrowStream, a leading provider of supply chain solutions for the foodservice industry, the survey was completed by more than 50 restaurant chain executives including members of the ArrowStream Network of restaurant chains, distributors and manufacturers that moves almost 10 percent ($15 billion) of the products in the foodservice industry.

Profitability & Budgets Up

“Restaurant executives are indicating some light ahead in this long, dark tunnel of industry and economic challenges,” said ArrowStream CEO and Chairman Steven LaVoie pointing to plans to increase budgets, improve supply chain processes and generate logistics efficiencies as examples of key competitive strategies of the industry leaders surveyed.

“Despite lower sales expectations, a full 50 percent of all restaurateurs expect better profitability in 2009 compared to 2008 due to cost cutting and lower commodity prices, which boosted profits. The fear of a resurging commodity pricing bubble makes cost cutting/operational efficiencies even more critical to ensure improved profits in the coming year.” continued LaVoie.

An additional 34 percent of restaurateurs expect almost the same profit levels as 2008, and only seven percent predict a gloomier outlook for 2009. Likewise nine percent of restaurant executives expect their supply chain budgets to fall in 2010 while almost 60 percent report a planned increase

Supply Chain Process Improvements Needed

While operators are warily optimistic, they are brutally frank about the need for improvement in supply chain operations and very open about the areas of most need including visibility and forecasting. When asked what areas they see as most important for reducing supply chain operations costs, respondents reported:

Areas of for reducing costs


Responding
-- Freight cost visibility & accuracy
-- Forecast accuracy
-- Supply chain visibility

Squeezing for Logistics Efficiencies

Generating logistic efficiencies is a common strategic goal currently done largely via outsourcing according to respondents with more than 82 percent already outsourcing logistics and transportation. More than three quarters of all restaurateurs said that additional visibility into freight costs would improve the supply chain process. And 61 percent reported that logistic efficiency strategies will support the coming year’s business objectives.

Limited Time Offers: Love ‘em and Hate ‘em

Forecasting, according to all respondents, is the bane of the industry’s Limited Time Offers (LTO) practice. Topping the list of problems (77 percent) most often associated with LTOs, demand planning seems to be difficult at best. Whether having product in the store at the right time (reported by 62 percent of executives) or needing to transfer product efficiently between distribution centers (reported by 56 percent), the ability to correctly anticipate supply and demand appears to be constant battle related to LTOs.

“Only 36 percent of chains use a software solution to help with promotion planning and forecasting. Increased predictability in this segment of the revenue equation would equate to both increased sales as well as stronger bottom line results. Because this is a critical pain point for restaurateurs, we anticipate an increase in the demand for this type of software solution in the next 18 – 24 months,” concluded LaVoie.

For more information on the survey or to request a complete copy, please e-mail ckelly@arrowstream.com.

SDA Omega-3 Soybean Oil Now GRAS

Monsanto Company and Solae, LLC, announced that FDA issued a Generally Recognized as Safe (GRAS) notice confirming that stearidonic acid (SDA), omega-3 soybean oil from a Monsanto-bioengineered soybean can be used in foods and beverages under the intended conditions of use.

The GRAS notice, GRN No. 283, allows the long-chain omega-3 oil to be used in baked goods and baking mixes, breakfast cereals and grains, cheeses, dairy product analogs, fats and oils, fish products, frozen dairy desserts and mixes, grain products and pastas, gravies and sauces, meat products, milk products, nuts and nut products, poultry products, processed fruit juices, processed vegetable products, puddings and fillings, snack foods, soft candy, and soups and soup mixes, at levels that provide 375 milligrams of stearidonic acid soybean oil per serving. According to Monsanto, SDA soybean oil contains 15% to 30% SDA and 5% to 8% gamma-linolenic acid (GLA), vs. 0% SDA and GLA in conventional soybean oil. The SDA soybean oil is expected to be either added to foods or used as a replacement for unhydrogenated vegetable oils.

The SDA soybeans will supply a land-based source of long-chain fatty acids. SDA, 18:4 (n-3), can be efficiently converted by the human body to eicosapentaenoic acid (EPA), 20:5 (n-3).

Monsanto and Solae have a 2007 agreement to develop and market omega-3 products.
Sources:

* Monsanto: World's First SDA Omega-3 Soybean Oil Achieves Major Milestone that Advances the Development of Foods with the Enhanced Nutritional Benefits

6.3 Mil Kids Low in Vitamin D

As many as one in five U.S. children have low levels of vitamin D, according to a new study from Harvard Medical School

Data from the 2001–2004 National Health and Nutrition Examination Survey were analyzed to determine the serum levels of 25-hydroxyvitamin D (25[OH]D) in a nationally representative sample of U.S. children aged 1 to 11 years. During the 2001 to 2004 time period, the mean serum 25(OH)D level for US children aged 1 to 11 years was 70 nmol/L. Children aged 6 to 11 years had lower mean levels of 25(OH)D (68 nmol/L) compared with children aged 1 to 5 years (74 nmol/L). Children with levels less than 25 nmol/L was 0.7 percent, those with less than 50 nmol/L was 15 percent and those with less than 75 nmol/L was 65 percent. The prevalence of serum 25(OH)D levels of less than 75 nmol/L was higher among children aged 6 to 11 years (71 percent) compared with children aged 1 to 5 years (56 percent). Girls were more likely to have less than 75 nmol/L (67 percent) compared with boys (62 percent); and non-Hispanic black (89 percent) and Mexican American (77 percent) children were more likely to have less than 75 nmol/L than non-Hispanic white children (54 percent).

The American Academy of Pediatrics recommends children attain blood levels of vitamin D of at least 50 nanomoles per liter (nmol/L). If these data are used to make a national representation, 6.3 million U.S. children – almost one in 5 – are at less than the recommended 50 nmol/L level of vitamin D.

Store Brand or National Brand?

American Shoppers Find it Increasingly Difficult to Tell Them Apart—and Don’t Much Care

Private label, as a brand, certainly has come a long way. Evidence that many stores brands can now rival iconic national brands is on display in the latest Hartman Group report “Private Label 2010: Redefining Meaning of Brand.”

“In many instances, shoppers no longer can distinguish between national and private label brands,” says Hartman Group Senior Vice President Michelle Barry, Ph.D. “What’s most interesting is not so much the fact that it’s happening, but that people don’t really care that they don’t know the difference. The importance of branding and, to some extent, the badge value of brands in the past, is quickly giving way to a greater emphasis on the product and the overall experience controlled by the retailer.”

While the vast majority of shoppers are able to correctly identify many legacy national brands such as Tropicana and Kashi, only one-fourth of shoppers can correctly identify newer or specialty brands as national brands such as Seventh Generation, Method or Muir Glen.

“A lot of retailers want ‘credit’ for their private label brands which many aren’t receiving,” says Barry. “This clearly points to new opportunities for private label brands to dominate newer categories such as the natural/organic marketplace, sustainability or functional foods. The ultimate success here will be in retailers’ ability to manage store brands as ‘brands’ rather than merely a product with a store name on the label.”

The report presents the consumer perspective on private label that includes:

* Impact of the economy of private label
* New consumer definition of “value”
* Key drivers of private label and national brand usage
* Private label adoption pathway
* Brand switching
* 31 category-level examples and brand scorecards

About the Report

Private Label 2010: Redefining Meaning of Brand is available from The Hartman Group, the leading provider of insights into consumer behavior, culture and trends. The report delivers a consumer-up, rather than industry-down, approach to building private label brands. It offers a glimpse into what the future holds for national brands competing with the next realities of private label products, brands and marketing. For more information contact: Blaine Becker at: blaine@hartman-group.com