Thursday, December 31, 2009

The trust that controls Hershey is willing to borrow as much as $10 billion to finance a solo offer for Cadbury,

AMENDMENT TO OFFER TIMETABLE
Rule 31.9 of the Code requires that the board of the offeree company should not, except with the consent of the Panel, announce any material new information after the 39th day following the publication of the initial offer document. Normally, therefore, the last day for the announcement by Cadbury of material new information in the context of the offer by Kraft Foods would be Tuesday, 12 January 2010.

However, the Panel Executive, having received representations from both Cadbury and Kraft Foods, has ruled that, solely in respect of the release of detailed estimated trading results for 2009, this deadline will be extended to 7.00 a.m. on Friday, 15 January.

“Day 46” (the last date for sending a revised offer) and “Day 60” (the date by which an offer must become or be declared unconditional as to acceptances) are unchanged and will be 19 January and 2 February, respectively. The next expiry date of the offer will not be affected by this extension.
Each of the parties has accepted this ruling.

Wednesday, December 30, 2009

Food safety leads top food stories lists

In a survey conducted by Hunter Public Relations consumers were asked what were the most memorable food stories of 2009 and the past decade and food safety ranked at or near the top of both lists.

For 2009, food safety concerns ranked as the No. 1 issue ahead of the economic recession's impact on food banks and consumer's cutting spending. The public relations firm noted that "From E. coli in ground beef to Salmonella poisoning in nuts, thousands of Americans have been sickened, prompting food recalls of everything from baby food to green onions."

For the decade, the rise in the incidence of childhood obesity captured the No. 1 position, but food safety issues filled the following three slots. The No. 2 story for the decade was the discovery of bovine spongiform encephalopathy in the U.S., according to Hunter Public Relations. Food safety and concerns about foodborne illness was the No. 3 food story of the decade on the list. The survey found that Americans ages 55+ were more likely than other age groups to select food safety as the most significant story of the decade.

Street food will become more popular in 2010

Street food will be in and high prices will be out in 2010, according to Denver-based trade publication Eat In Eat Out.

The publication, a division of the American Forecaster, looks at business and consumer trends in the food, beverage and dining industries.

Supermarkets will continue to push discounts, and restaurants from quick-service establishments to upscale steak houses will expand use of their bargain menus, Eat In Eat Out predicted.

Meanwhile, street food — sold by vendors from food carts — will be the fastest growth area for new cuisine, driven by both the number of chefs leaving conventional restaurants and the number of consumers looking for interesting, low-priced food.

Eat In Eat Out predicted fast 2010 growth for kombucha (a fermented tea), black garlic, lardo, home cooking, upscale burgers and small domestic distilleries, among others.

Tuesday, December 29, 2009

Americans purchased 2.6% more chocolate this year

In China and the Ukraine—two countries not necessarily recognized for their rampant chocoholic populations — chocolate confectionery sales rose 18% and 12%, respectively, this year. Each country has seen steady sales increases since 2005 and Mintel predicts continued growth through 2013.

Other countries have also seen chocolate bars, bags and boxes flying off the shelves, albeit at lower rates. Brits drove their chocolate market up 5.9% this year, while Americans purchased 2.6% more chocolate than in 2008. Argentinean sales rose 1.8% from 2008, while in Belgium, a country that claims to produce some of the world’s best chocolate, sales increased by 3.2%.

“It’s clear that despite economic trouble this year, the world’s chocolate lovers didn’t deviate from their favorite treat. Chocolate is a small, affordable indulgence for shoppers who are cutting back on spending elsewhere. Even in countries not known for chocolate consumption, sales are on the rise,” comments Marcia Mogelonsky, global food and drink analyst at Mintel.

It’s the Swiss who flash the most cash for chocolate, forking over the equivalent of US $206 per person per year. Brits and Belgians follow, spending US $106 and $90, respectively, to satisfy their chocolate cravings. In the US, individuals spend just $55 each, while Argentineans devote an average of US $35 per year on chocolate confectionery.

Manufacturers are determined to keep consumers melting over new chocolate varieties. Despite worldwide economic troubles, Mintel’s Global New Products Database (GNPD) reports that manufacturers launched nearly the same number of chocolate products this year as in 2008. In Latin America, Asia, the Middle East and Africa, companies have already released more new products than last year.

Systemwide sales for the bakery cafe industry grew by 12% to more than $4.5 billion

Bakery cafes have emerged as high-fliers in the restaurant industry, and are well-positioned to leverage new growth opportunities as the economy continues its slow recovery. Systemwide sales for the bakery cafe industry grew by 12 percent to more than $4.5 billion in 2008. Industry leaders Panera Bread, Einstein Bros. Bagels and Au Bon Pain accounted for the lion’s share of sales, with $2.6 billion, $393 million and $307 million respectively.

“The appeal of moderately priced, high-quality menu offerings served in contemporary ambiance, as well as consumer perception of value for this format, has more than likely strengthened over the past year.”

“The consumer trade-down from full-service to limited-service formats that solidified through 2008 and into 2009 allowed fast-casual bakery cafes to truly shine,” says Darren Tristano, EVP at foodservice industry consultant Technomic. “The appeal of moderately priced, high-quality menu offerings served in contemporary ambiance, as well as consumer perception of value for this format, has more than likely strengthened over the past year.”

* Health and nutrition: Einstein Bros. Bagels’ Lighter Fare Menus
* Expansion of breakfast offerings: Atlanta Bread Company, Corner Bakery Cafe and Panera Bread
* Revamped catering programs: Au Bon Pain’s Hot Lunch line
* Value equation: La Madeleine’s Choose Two Menu, Einstein Bros. Bagels’ Snack-Out menu, Au Bon Pain’s small-bite Portions menu
* Nontraditional sites and urban locations: Corner Bakery Cafe into airports, college campuses and military bases, Einstein Bros. Bagels into medical centers and hotels.
* Social media: use of Facebook and Twitter to promote new and limited-time offerings.

Other interesting findings include:

* The Top 25 bakery cafe chains’ sales reached more than $4.5 billion and grew by 11.8 percent in 2008. Units expanded by 6.6 percent to 3,107 locations.
* Panera Bread represented over half of the Top 25 chains’ sales in 2008. The next closest concept was Einstein Bros. Bagels, with less than 10 percent of the Top 25’s sales. Unit count was more widely spread, with Panera Bread making up 42.6 percent and Einstein Bros. Bagels comprising 16 percent of unit share.
* Paradise Bakery & Cafe had the fastest rate of sales growth at 30.7 percent. Le Pain Quotidien was the leader in store count growth rate at 29.6 percent.

The 2009 Technomic Top 25 Bakery Cafe Chains Restaurant Report was designed to help restaurant operators and suppliers identify top performers, analyze their performance in sales and units, and better understand the industry’s dynamics and current trends. Comprehensive appendices list the Top 25 Bakery Cafe chains alphabetically, rank them by sales and units, and profile individual chains.

Monday, December 28, 2009

Salt, CVD and Cancer

Sodium intake as a whole salt equivalent may not increase the risk of cancer but may increase that of cardiovascular disease (CVD); and in contrast, salted food intake may increase the risk of cancer, according to a study published in The American Journal of Clinical Nutrition (2009;DOI:10.3945/ajcn.2009.28587).During 1995 to 1998, a validated food-frequency questionnaire was administered to 77,500 men and women aged 45 to 74 years. During up to 598,763 person-years of follow-up until the end of 2004, 4476 cases of cancer and 2066 cases of CVD were identified.

Higher consumption of sodium was associated with a higher risk of CVD but not with the risk of total cancer: multivariate hazard ratios for the highest compared with lowest quintiles of intake were 1.19 for CVD and 1.04 for total cancer. Higher consumption of salted fish roe was associated with higher risk of total cancer, and higher consumption of cooking and table salt was associated with higher risk of CVD. Similar results were seen for the risk of gastric or colorectal cancer and stroke. Our findings support the notion that sodium and salted foods have differential influences on the development of cancer and CVD.

Thursday, December 24, 2009

Food Safety, Kid Obesity Top Stories

Food safety ranked No. 1 on the list of consumers most memorable food stories in 2009, while childhood obesity took the No. 1 spot for top concern of the decade, according to the seventh annual year-end survey commissioned by Hunter Public Relations.

According to the survey, the issue of food safety was the biggest story of the year—from E. coli in ground beef to Salmonella poisoning in nuts, thousands of Americans have been sickened, prompting food recalls of everything from baby food to green onions. The Centers for Disease Control and Prevention (CDC) estimates 76 million cases of food borne illnesses occur annually in the United States; more than 300,000 persons are hospitalized and 5,000 die.

When Americans were asked to recall the top food stories of the decade, nutritional concerns and food safety garnered the top spots. With more than 9 million children categorized as obese, childhood obesity became a major national concern and garnered the top spot for the decade. The FTC and the Department of Health and Human Services (HHS) continue to urge food companies to develop products that are more nutritious and to review and revise their marketing practices.

Wednesday, December 23, 2009

Green Tea Good for the Gut

Consuming five or more cups of green tea a day may reduce the risk of women developing stomach cancer by 20 percent, according to a report published in the journal Gut.

Researchers at the National Cancer Center in Tokyo analyzed original data from six cohort studies that measured green tea consumption using validated questionnaires at baseline. Hazard ratios (HRs) in the individual studies were calculated, with adjustment for a common set of variables, and combined using a random-effects model.

The researchers concluded that green tea’s antioxidants may protect against gastric cancer and may include compounds that fight bacteria that have been linked to stomach cancer. The studies followed more than 219,000 men and women 40 years and older, who were followed between seven and 11 years. Overall, about four in five of the participants reported drinking green tea daily, with about one-third drinking five or more cups per day.

High-end dining in New York City was hit hard by the recession and needs to adapt

High-end dining in New York City has been hard hit by the recession and needs to adapt to changing tastes to keep its allure, experts said. This week's demise of Gourmet, a 68-year-old food magazine, underscored the precarious future of fancy dining.

More than 500 New York restaurants have closed so far this year, including high-end French eateries Chanterelle and Cafe des Artistes as even the city's elite restaurants fall victim to the worst U.S. economic downturn since the 1930s Great Depression.

Although no one expects fine dining in New York to become extinct, it is in a soft patch with Eric Ripert, co-owner of three-Michelin star Le Bernardin saying after a "soft" 2008, "suddenly everything stopped" in January this year.

He predicted 2009 revenues will be 10 percent down on a year ago, but he has managed to avoid firing staff by doubling his spending on communications and marketing and raising his profile by appearing on television reality show "Top Chef."

Some food writers and restaurateurs, who spoke at the New York City Wine & Food Festival this weekend, rued noodle bars and burger joints may be supplanting the top culinary perch once held by top-end restaurants.

Prior to the recession, fancy eateries attempted to outdo each other by offering the most expensive dinner or cocktail in the city.

But the recession only accelerated the trend of casual eating and a revolt against stuffy, rigid nature of fancy dining, some experts said.

Food writer Anya von Bremzen, said a restaurant should offer original and creative dishes at reasonable prices but at some top-end eateries, the atmosphere is "too fuzzy," she said on a panel. She called for the end of "table bureaucracy."

The concept of fine-dining has evolved from the days of starch linens and formal dress code but experts said top-end restaurant operators must be savvy and change with the times.

For example Daniel Boulud, who owns the Michelin three-star Daniel, recently opened DBGB, a casual bar and cafe.

Chef Andrew Carmellini said the hybrid concept will likely emerge, reflecting the "move to casual, comfort food without the trappings of a fancy restaurant."

In the meantime, don't count out fine dining in New York, said one restaurateur.
"Recession, schmecession, we've beat the odds," said Drew Nieporent, whose top-end contemporary restaurant Corton earned two Michelin stars earlier this week.

Sunday, December 20, 2009

Snack food is for sale at 41% of stores that do not primarily sell food

If you're hungry while shopping for a new sofa, don't despair: 22 percent of U.S. furniture stores now sell sweet or salty snacks, a new report finds.

In fact, the sale of high-calorie snack foods has moved far beyond grocery stores to hit most segments of the retail market, say the authors of the study published online Dec. 17 in the American Journal of Public Health. The easy availability of snack items might be contributing to America's obesity epidemic, the researchers said.

A team from Tulane University School of Public Health in New Orleans examined the availability of candy, salty snacks and sweetened drinks at retail outlets that did not sell food as their primary merchandise.

The researchers found snack food for sale in 41 percent of such stores. Candy was the most frequently sold item (in 33 percent), followed by sugary drinks (20 percent) and salty snacks (17 percent). Most often, high-calories products were found temptingly close to the checkout line, the study added.

Snack foods were found in nearly all pharmacies (96 percent), most gas stations (94 percent), more than a fifth (22 percent) of furniture stores, 16 percent of clothing stores and 29 to 65 percent of other non-food stores.

"The obesity epidemic in the United States is estimated to be responsible for more than 100,000 deaths per year, 20 times the estimated 5,000 deaths from food-borne infectious pathogens," the researchers wrote. "This epidemic should prompt public health experts to evaluate the contribution of the widespread availability of energy-dense snack foods and beverages to weight gain and to consider ways to address this availability."

Monday, December 14, 2009

Menu innovation will play an essential role to entice recession-weary diners in 2010

Challenged with one of the toughest years on record, restaurant operators may be looking ahead to 2010 with an eye towards further cost-cutting measures. Menu innovation, however, also plays an essential role for success over the coming year by enticing recession-weary diners with compelling reasons to eat out.

Technomic sees these five trends as continuing to stand out for restaurant operators in 2010:

1. New Spin on Old Favorites: Comfort Foods

Look for increased menuing of upscale comfort foods, with an explosion of simple foods with a small number of “real-food” ingredients. Expect to see a fresh, premium or high-quality spin on familiar, humble foods, such as artisan cheeses used in macaroni and cheese. Interest in premium burgers and burger concepts will continue, with even greater emphasis on freshness, customization, toppings and condiment bars. Sandwich and other concepts will focus increasingly on hearty melts. Cassoulets, chili and other rustic bean-based dishes may get new respect.

2. Exploring New Corners of Asia (and the world)

Korean foods (including Korean barbecue and Korean-style tacos) will hit the mainstream. Look for new interest in Indonesian and other Southeast Asian fare as well. The fascination with global street foods will also play out in the proliferation of Baja-style fish tacos, now moving beyond Mexican restaurants. Expect to see continued emphasis on regional versions of ethnic cuisines, especially with Mexican and Italian fare.

3. Frontiers of Flavor

It’s time for umami to become a household word, at least among foodies. Expressions of the savory, earthy “fifth taste” will range from burgers and other hearty meat dishes to truffle- or truffle oil-accented pasta, cheese, french fries and pizza. Beverage flavor frontiers of 2010 will include tropical ingredients (hibiscus flower, agave nectar, pure cane sugar). Starring in the American regional flavor pantheon is bourbon, used to sauce or spike everything from burgers to chili to desserts.

4. Back to the Future: Tending Our Gardens and Farms

With the First Lady now tending an official White House garden, look for more chefs to follow suit with proprietary herb or vegetable gardens. The emphasis on local and seasonal ingredients will grow and flower. Fascination with heirloom farm products—from tomatoes to pork—will continue; by the 2010 holiday season, look for a flap of interest in heirloom poultry breeds.

5. Breakfast ’Round the Clock

Look for breakfast to break out of its traditional boundaries, with breakfast-style fare available all day (and night) at both full-service and limited-service eateries. As fast-food restaurants expand and upgrade their menus of budget-priced breakfast sandwiches and wraps, more full-service operators will be offering hearty brunch buffets well into the afternoon on weekends.

Wednesday, December 09, 2009

Snails Rich in Protein, Iron

Snail pie may be a cheap source of protein and iron for school-age children and young mothers and may contribute in the fight against iron deficiency anemia in Nigeria, according to a new study published in the International Journal of Food Safety, Nutrition and Public Health.

The study examined the moisture, protein, ash and iron composition of beef and fresh indigenous land snail and the sensory properties of their pies. The edible parts of the snail (Archachatina marginata) and beef and their pies were analyzed using standard methods. The beef and beef pies served as controls. The snail and its pie had higher (p < 0.5) values for protein and iron than beef and its pie. The snail pie was preferred (p < 0.5) by the judges (school-age children and young mothers) over meat pie in terms of appearance, texture, taste and flavor.
Sources:

* International Journal of Food Safety, Nutrition and Public Health: Snail (Archachatina marginata) pie: a nutrient rich snack for school-age children and young mothers

Senate Panel Approves Food Safety Bill

Reuters reported that a U.S. Senate committee approved an overhaul of FDA’s food-safety system. The full Senate likely won’t vote on the bill until 2010, according to Tom Harkin, chairman of the Senate Health, Education, Labor and Pensions Committee.

The Food Safety Enhancement Act of 2009, passed by the House of Representatives in July, focuses on prevention of foodborne illness outbreaks by giving FDA the power to order food recalls and expanding the agency's access to company records. The bill also requires all facilities to have a food safety plan in place and increases the frequency of food inspections.
Sources:

* Reuters: U.S. food safety likely to get overhaul in 2010

Related Articles:

* House Passes Food Safety Bill

Monday, December 07, 2009

Consumer food purchases are tied to gasoline prices

Shoppers trim their food budgets when gas prices rise, but they don't always give up the name-brand foods they like.

Store brands have gained ground among consumers in recent years, a new study shows, but their popularity among thrifty shoppers may be overstated, says Kusum Ailawadi, a professor of marketing at the Tuck School at Dartmouth College and one of the study's authors. "It's not as big as conventional wisdom has it," says Ailawadi, who conducted the study with business-school professors Yu Ma of the University at Alberta in Edmonton, Dinesh Gauri of Syracuse University, and Dhruv Grewal of Babson College in Wellesley, Massachusetts.

Housing, Transportation, Groceries

The study, An Empirical Investigation of the Impact of Gasoline Prices on Grocery Shopping Behavior, studied the everyday phenomenon of how households adjust their food spending to accommodate rising gas prices. It's a common tradeoff, with food and gas being households' two most common everyday expenses. Groceries take the third-largest chunk out of the average U.S. household's budget, after housing and transportation, the study shows.

Researchers studied data from 1,000 Midwestern households of various sizes and economic circumstances from January 2006 to October 2008. Participants used home scanners to record all the groceries they brought home, their prices, and where they bought them, which the researchers then related back to the price of gas at that time. The period covered by the study saw the average price of gas in the U.S. rise from $2.24 per gallon to $3.48, after peaking at $4.11 in July 2008, according to the U.S. Department of Energy.

Some of the findings are what you would expect. For every $1 increase in the price of a gallon of gas, households reduced their shopping trips by 7.5%, spent 4.4% less, and bought 11% fewer items. Larger households reduced their shopping trips more with each gas price hike, while households with lower incomes made more trips, which the researchers suggest was due to financial pressures that made them shop around for deals.

Brands v. Private Label

More eye-opening was how shoppers made those cutbacks. As gas prices rose, the study showed, consumers cut back on shopping at grocery stores and bought more food at supercenters and club stores. With every doubling of gas prices, groceries lost 7% of their dollar share of the households' food budget, while supercenters gained 41% and clubs gained 24%. The researchers theorize that shoppers turned to supercenters because they could save trips by getting all their shopping done in one place, while the clubs gained because they sold gas at low prices.

It looks like the warehouse clubs can't win. Chains such as Wal-Mart Stores' (WMT) Sam's Club, Costco Wholesale Corp. (COST) and BJ's Wholesale Clubs (BJ) had been complaining that shoppers are spending more on low-margin necessities like food and health items, and less on more profitable discretionary items like clothes and electronics.

And while lower gas prices may have attracted shoppers when the U.S. average was peaking, that didn't last. As the price of oil dropped, so did their sales during most of the last 12 months. Most warehouse clubs had seen their same-store sales dragged down by gasoline sales until they passed the anniversary of summer 2008's peak gas prices.

Searching for Sales

Once in the store, shoppers more often reached for national brands on sale to save money, instead of switching to private labels at full price. For every doubling in the gas price, the researchers found, households' share of food budget spent on regular-price items prices dropped by 10% for national brands and 4% for private label items, but the share spent on national brands on sale rose by 39%, while spending for private labels on sale rose 30%.

As factored into the overall households' spending, marked-down national brands gained 6.5 percentage points in market share, while private labels gained only 1 percentage point -- not insignificant in a grocery segment where profit margins are single-digit rates, but not a massive move of the needle for store brands, Ailawadi says.

"If you look in the context of the private labels in the mass media, it is surprising," she says. "It certainly puts in question this conventional wisdom that everybody is shifting to private labels."

Looking at the Recession

Ailawadi acknowledges that some of this behavior may have changed as the recession took hold, and households had to cut deeper. Most reports of private labels gaining ground have come in the last year, as unemployment rose and household incomes dropped.

Although the study didn't factor in the recession that hit the economy as the data collection was ending in October 2008, Ailawadi says she may continue the research, analyzing another year of scanner data to see if households stick with the changes they made, and how they reacted as gas prices came back to earth and the recession bore down.

The average U.S. gas price was down to $2.63 a gallon at the end of November -- and unemployment was up to 10.2%. These days, gas prices may be the least of those households' worries.

Saturday, November 28, 2009

Capico News of The Week

Some 45% of consumers that earn at least $75,000 a year are purchasing more private label grocery items, according to a HealthFocus International (HFI) study. Almost half cut coupons more for grocery shopping, up from 15% from HFI's April study. Full Story

Mashed potatoes could prove profitable for operators looking to add flair to their starch selections for Thanksgiving and all year long. Examples include Culver City, CA-based Gyenari, which adds kimchee to its buttermilk-mashed potatoes. Le Bec-Fin, Philadelphia, PA, adds toasted-hazelnut puree to riced potatoes and Charles Court at The Broadmoor, Colorado Springs, CO, serves white-truffle mashed potatoes, reported Restaurants & Institutions. Full Story

7-Eleven may expand its worldwide private label products to include non-alcoholic beverages, reported Convenience Store News. Full Story

Various retailers reduced turkey prices more than usual this year due to the weak economy, according to The Dallas Morning News. Full Story (Free Registration Required)

About 47% of parents with children ages 3-12 claim they have a difficult time feeding them nutritious, healthy foods. Older moms (ages 45-54) have the hardest time (57%), according to the Ronzoni Smart Taste Family Table Survey conducted by Harris Interactive. Dads find it slightly more difficult than moms to interest their children in healthy meals (49% vs. 45%). Some 26% of parents reported that it was very easy to feed their kids healthy meals. Full Story

Restaurant Roundup: Baskin-Robbins is offering seasonal ice cream cakes, including Apple Pie a la Mode. Full Story ... Dunkin' Donuts will offer Peppermint Mocha Lattes through late December. Full Story

Cracker Barrel Old Country Store, Inc. expects to open seven new Cracker Barrel units during its Fiscal 2010. Full Story

Tetra Pak agreed to carry out a limited trial to source green plastic from Braskem SA for use in its carton packaging, reported Food Production Daily. Full Story

New Store News: Canada-based Coffee Culture will open its fifth U.S. location on Dec. 4 in Batavia, NY, reported Business First of Buffalo. Full Story (Free Registration Required) ... Caribou Coffee is now being served at Akron-Canton Airport in Ohio, reported QSR Magazine. Full Story

California's super-high-density olive sector is a young but vibrant industry, well positioned to develop olive oil into one of the state's major agricultural commodities in the coming years, according to a survey by the UC Davis Olive Center. The survey found that 12,127 acres of super-high-density olive trees were planted in California as of the end of 2008, with 78% of the acreage planted between 2005 and 2008. Most of the growers reported that they decided to venture into this sector because it offered "favorable income potential." Full Story

The UK convenience sector is set to continue to outperform the UK grocery market and is projected to increase to £41.4bn in value in 2014 from £30.3bn currently, according to IGD's UK Grocery Retail Outlook 2009. The UK's online grocery channel will almost double over the next five years from £3.7bn to £7.2bn in 2014. Full Story

Drinking a cup of Brazilian mint tea has pain relieving qualities to match those of commercially available analgesics, claims a study published in the journal Acta Horticulturae, reported BBC News. Full Story

Sunday, November 22, 2009

Capico News of the Week

Cardamom, sweet potato, hibiscus and rose water are among Mintel's flavor trends for 2010. Hibiscus is expected to become more popular in the tea sector and rose water will be incorporated into various ethnic foods. Full Story

Whole Foods Market Inc. will only consider smaller acquisitions that will not attract antitrust scrutiny, according to CEO John Mackey. "Mom-and-pop-type chains will be the type of acquisitions we do in the future. I don't anticipate any large acquisitions," stated the executive. Meanwhile, the company needs to develop a working store model for the UK before it will look to expand in other European countries, according to the executive, reported Bloomberg.com. Full Story

The world's airlines buy about 4.3 million gallons of wine annually, and some spend at least $15 million on wine each year, according to airlines and wine experts. "Service cutbacks and the recession have not affected airlines' wine-buying policies," stated Lori Lynne Brundick, president of Intervine, an airline wine supplier. The airlines claim the wines they serve uphold their reputations and instill brand loyalty in their highest-paying customers, reported USA Today. Full Story

New Product News: Gilroy Foods and Flavors released a range of ready-to-use vegetables, reported Food Navigator USA. Full Story ... The Travel Retail group of Hershey launched a range of travel retail exclusive products including Hershey's Kisses, Hershey's Nuggets chocolates and Reese's and Hershey's Miniatures, reported Food Navigator USA. Full Story

Tavern in the Park will be the new name of Tavern on the Green if New York City does not win its trademark lawsuit against the restaurant's current operators, reported Crain's New York Business. Full Story (Free Registration Required)

Willamette Valley Vineyards will open a facility in McMinnville, OR that will highlight various premium wines and sustainable agricultural practices, reported OregonLive.com. Full Story (Free Registration Required)

Including whey proteins in the batter for fried chicken may reduce the fat of the finished product by up to 30%, claims a study published in the Journal of Food Science, reported Food Navigator. Full Story

The Future Group-owned Pantaloon Retail is looking at acquiring small food companies in India. The company plans to more than double its private label business in foods, reported The Times of India. Full Story

Food and beverage manufacturers are driving sustainability in the supply chain, claims Dr. Lea Borkenhagen, head of Oxfam's Sustainable Livelihoods Strategy. However, they face more risks in catering to demand for ethically-produced products than retailers, reported Food Navigator. Full Story

Long-term moderate drinking decreased the risk of heart disease by up to one-third in men and to a lesser degree in women, according to a study published in Heart. The type of alcohol consumed did not make a difference, reported HealthDay. Full Story

Adding resistant starch to breakfast and lunch meals may reduce the amount of calories consumed over a 24-hour period by about 10%, claims a study published in the British Journal of Nutrition. Consumption of 48 grams of resistant starch intake may also cut the insulin response after a meal, reported Food Navigator. Full Story

Wednesday, November 18, 2009

Consumer Packaged Goods Trend Predictions for 2010

What will the breakthrough new products of next year be? Most likely something recognizable...with a twist. The trend experts at Mintel release their 2010 global consumer packaged goods (CPG) predictions, saying next year’s new products will recreate the familiar.

“Post-recession, we don’t expect manufacturers to reinvent the wheel. Instead, we predict 2010’s new products will give shoppers something familiar paired with something new to better satisfy their needs,” states Lynn Dornblaser, Mintel’s leading new products expert. “On retail store shelves, we expect today’s familiar megatrends--health and wellness, convenience, sustainability--to get a fresh, new makeover for 2010.”

Next year, Mintel predicts seven core trends will impact global new product development as manufacturers try to pique interest in new launches while keeping shoppers comfortable.

1.

Symbol overload: Consumers are hungry for nutrition facts (pun intended). In the US, nearly half of adults say having caloric information on the front of packages would help them reduce their intake. However, people feel confused and skeptical about different companies’ nutrition symbols. In response, more manufacturers will opt for clean, clear facts on front-of-pack statements in 2010.

2.

Sodium reduction: Poised as the next major health movement, sodium reduction is finally ready to take hold. The key difference, says Lynn Dornblaser, is that “sodium reduction is being pushed by food companies and health organizations, not by consumers.” This could mean slow adoption of the “less salt” mantra by shoppers, even as the food industry moves ahead.

3.

Local gets stretched: Let’s get real...for many shoppers, buying only local goods is a pipe dream. However, people still want products with recognizable origins and those that haven’t been shipped too far. In the UK, for example, nearly half of shoppers buy British-made products when they can. For 2010, the definition of “local” will expand, becoming more practical for major companies to use and for mainstream shoppers to purchase.

4.

Simple made special: Ready to get a kick out of buying “ordinary” products like soap and juice? Well in 2010, chic packaging and premium positioning will make today’s grudge purchases more enjoyable. The recent trend towards boutique-inspired packaging highlights how manufacturers will make the mundane a little more special next year.

5.

Color coding for convenience: Cluttered retail store shelves make it hard to find your favorite cereal flavor or shampoo variety? Not anymore. To help shoppers make faster choices, more manufacturers will color-code their products in 2010. Nearly two-thirds of Americans (64%) say they want color-coded packaging and 45% of Brits claim to compare products by their labels. Color coding also helps brands stand out on the shelf.

6.

Iconic budget brands: Private label “brands” are starting to look a lot more like brands (sans quotes). As consumers cut spending because of the recession, smart marketers ramped up promotions for their private label lines. Many shoppers now equate private labels with national brands and value them as such. In 2010, low cost, high quality private labels will thrive.

7.

Gen Y cleans up: The generation that grew up with Swiffer, Febreze and Tide to Go is calling out for grown-up cleaning products of their own. Gen Y--born between 1977 and 1994--constitutes one-fifth (21%) of the global population. While there aren’t a wealth of Gen Y-focused cleaners on the market now, expect that to change in 2010. New products will highlight simplicity of use and quick, easy results to appeal to Gen Y shoppers.

Mintel forecast 14 additional consumer packaged goods trends for 2010. To receive the complete list, contact press@mintel.com or call Mintel’s press office at 312-628-7946.

Mintel estimates global new product introductions for 2009 will reach 2008 levels. In the US, where many niche players were hurt by the recession, Mintel does not expect 2009 totals to match 2008.

Friday, November 13, 2009

Women ages 20 to 30 represent a $54 billion marketing opportunity for CPG companies

Women ages 20 to 30 represent a $54 billion marketing opportunity for packaged goods companies, but their needs and values are vastly different from the generation before them, a new report from Information Resources found.

“Winning With Millennial Women Shoppers” outlines this growing consumer demographic’s key behaviors. Compared to the preceding generation, women born between 1979 and 1989 tend to shop less, buy more during each trip, and frequent supercenters and Walmart more. The economy has also forced these shoppers to cut back on indulgent food categories like frozen poultry, chewing gum, salty snacks and frozen pizza, the report said.

The findings are inline with marketers’ latest attempts to understand this age group, which, in the next few years, are expected to surpass baby boomers in consumer packaged goods spending. Women in their 20s and 30s are just now buying homes, thinking about marriage, parenthood and career development. All these factors spell plenty more marketing opportunities for food and non-food manufacturers going forward, per IRI.

The study also found that:

• Though Millennial women may mirror Generation X households in their purchase of non-food items (hair care, suntan products, household cleaners, for instance), their acceptance of private label is much higher. Seventy percent of Millennials perceive store brands to be of “excellent quality,” IRI said, challenging the general belief that private label acceptance evolves over time. This suggests that traditional advertising media, such as TV and print, may not be as effective as they once were in reaching younger consumers, and marketers should turn to more nontraditional means, said Sean Seitzinger, IRI’s svp of thought leadership.

• Millennial women are seeking retailers that can provide better-for-you and healthy options, though the health factor becomes less important when purchasing beverages.

• Compared to their elders, Millennials tend to use less coupons and circulars. They are also more likely to shop without a budget and make impulse grocery purchases. Due to their quick purchasing decisions, these women are also less likely to stock up while deals and bargains last. Marketers, Seitzinger said, have better luck reaching these women via the right in-store messaging and packaging size. Such behaviors derive from the fact that these shoppers are both time strapped and aren’t as savvy as older shoppers when it comes to looking for deals.

“They may be time and money compressed, but they live in this 24-hour 'on' lifestyle, and so, for most Millennials, it’s more about getting it done rather than getting the best deal,” Seitzinger said. “They’re asking, ‘Hey, do I have enough to [get] what I need to [get] right now, and if so, I’m just going to do it.'"

Millennials also value characteristics, such as a store’s “value proposition, location, user-friendly layout and variety” when it comes to deciding where they’ll shop, according to Seitzinger. Features such as checkout counters and loyalty shopping cards are less important, as are the location and space devoted to high-traffic departments such as fresh meat and produce. So the connection is twofold, Seitzinger said. On the one hand, they are expecting retailers to help them save money, oftentimes via functional, high quality store brands; on the other hand, there’s also an “emotional attachment to where they shop, [rather than] just the category solutions they’re buying,” he said.

So what is the lesson here for marketers? Packaged goods companies need to think outside of the box when marketing to this group. Seitzinger said: “The same old, same old is probably not going to create a lot of success” with Millennials given that their spending and shopping habits are different.

Saturday, November 07, 2009

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)

Saturday, October 31, 2009

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

Thursday, October 29, 2009

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.

Wednesday, October 28, 2009

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.

Tuesday, October 27, 2009

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

Monday, October 26, 2009

Shoppers are less focused on price than most marketers think,

While much has been made of America's newfound thriftiness, a new study suggests that shoppers are less focused on price than most marketers think.

"Marketers are very focused on the word value, but have very little sense of what that actually means to consumers," says Jarrett Paschel, VP at The Hartman Group, tells Marketing Daily. "Everyone assumes it must be something about the way consumers are trying to save money. But that doesn't mean we've entered a new era of frugality."

As part of its study, "The New Value Paradigm: Theatrics of Thrift," the Bellevue, Wash.-based market research company asked consumers to rank 25 different statements about grocery store products. "It works well/tastes good," came in No. 1, he says, followed by concerns about waste, such as "Will this product actually be consumed in its entirety by my family?" "Price only came in at No. 6," he says.

For example, one of the items that ranked poorly in its research was a Costco multipack of chips. "While everyone said their family ate the BBQ and other flavors, no one ate the blue cheese or ranch. Although the price was very low, consumers saw it as having a poor value."

That means marketers have to take a closer look at consumers who say they are more than willing to trade down, but don't actually do so. "We found they are even willing to pay a little more for a product they believe they will use fully," adds SVP Michelle Barry. "Waste is something they see as costly."

Barry believes that while consumers are managing their economic anxieties with the pretense of saving at supermarkets, by using shopping lists and coupons, the actual amount they are spending on groceries, and the items they purchase, aren't all that different than what they tossed into their baskets before the slump started.

As a result, while marketers all around them are predicting that these sweeping changes will stick, "we think, in terms of food, that consumers will come out of this recession with little in the way of changed habits," she says.

Certainly, families are spending a bit less, but often in ways that are not related to the recession. A big example, says Paschel, is the sharp decline in bottled water purchases. "It's not that shoppers see the product as overpriced. They say they are no longer buying it because they see it as unnecessary, and out of fashion, neither of which are related to the economy."

The company's research also revealed consumer fatigue about all things economic. "They don't want to hear any more that companies understand how worried they are, and that they'll lower prices," he adds. "What they are responding very well to are marketing efforts that surprise and delight them," he says.

One example, he says, is the "Feel Good Ripple" created by Servus, a Canadian credit union. The bank recently gave away $200,000 to customers in $10 increments, with the admonition that the money had to be used to make someone else feel good. At the same time, it launched a contest, in which people could share their "Feel Good" stories and win prize money for their charities.

Another example is the way Burger King introduced its Apple Fries, by delivering samples to bloggers. "So many other companies would have sent a coupon," Barry says. "But smart marketers are looking for unusual promotions to spark excitement, and really evangelize people."

Saturday, October 24, 2009

Capico News of the Week

Consumers claim they are watching what they spend and cutting back on c-store shopping trips due to the economy; however, retailers are growing their business in the recession, and consumers are actually spending more per trip, though they are stopping in less often, according to David Portalatin, director of industry analytics for The NPD Group Inc., who spoke at "Shopper Behavior in Challenging Times" at the NACS Show 2009. Mr. Portalatin noted "there are almost two c-store industries right now": A modern, vibrant and innovative group that is gaining traffic "by leaps and bounds," and the remainder that are not innovating, "where traffic loss is most profound," reported CSP Daily News. Full Story

Pepsi-Cola North America Beverages (NAB) and Ocean Spray expanded their U.S. sales and distribution agreement to include a broader array of single-serve juices and juice drinks. Beginning in February, NAB will produce, distribute and market, under license from Ocean Spray, several more flavors of Ocean Spray beverages. Full Story

Celsius Holdings, Inc.'s Celsius beverage will be carried at more than 200 ShopRite locations. Full Story

OregonLive.com profiled the best pork offerings in the Portland, OR-area. Highlighted items include Belly Timber's Pigstrami. Full Story (Free Registration Required)

San Francisco-based restaurateurs are increasingly offering trout instead of salmon on their menus, reported The San Francisco Chronicle. "It's just very economical," stated Bar Crudo chef/co-owner Mike Selvera. "It's sustainable, it's super easy to get year-round, and it's really versatile." Full Story (Free Registration Required)

Smoking salmon at high temperatures reduces the risk of Listeria monocytogenes, according to a study published in Journal of Food Science. Full Story

Restaurant Roundup: Uno Chicago Grill is offering Barilla Whole Grain Penne as a substitute for any of the traditional pastas on its menu. Full Story ... Baskin-Robbins launched the Double Header ice cream cone, designed to hold a swirl of soft serve and a scoop of ice cream in a single cone. Full Story ... Togo's Sandwiches is introducing sourdough bread bowls filled with soup next month. Togo's also plans to add sourdough and whole grain rolls to the menu in the first quarter of next year, reported Nation's Restaurant News. Full Story (Free Registration Required) ... Shari's Restaurants launched a new website, featuring an online pie store. Full Story

Consumer response to health claims varies by country, according to a study published in Food Quality and Preference. Italians are unswayed by healthy messages and images on foods, whereas the Finnish respond to medical pictures and British consumers are more likely to buy foods with any sort of health claim. Researchers also found that the base product was the most important factor for perceived healthiness, reported Food Navigator. Full Story

The weakened U.S. economy has not slowed demand for organic bananas, according to Simcha Weinstein, director of marketing for Albert's Organics, reported The Packer Online. Full Story (Subscription Required)

Miami-Dade County, FL and Publix Super Markets will introduce a new produce brand, Redland Raised, to promote the consumption of fresh local produce in more than 1,000 Publix locations. The local branding initiative, Redland Raised, was created by Miami-Dade County, in conjunction with the Florida Department of Agriculture and Consumer Services, to promote a "buy local" program throughout the County and the State of Florida. The brand will be in line with the Fresh from Florida brand, of which the majority of local growers and packers are members. Full Story

Vermont-based Rock Art Brewery can keep making and selling its Vermonster beer as long it stays out of the energy-drink business. The agreement settles a dispute initiated by Hansen Beverage Co., reported The Associated Press. Full Story

Those who drank cocoa-flavored milk had lower levels of inflammatory markers associated with heart disease than those drinking the milk alone, according to a study published in American Journal of Clinical Nutrition, reported HealthDay. Full Story

Consuming a diet rich in monounsaturated fats could lower the risk of metabolic syndrome, claims a study published in the American Journal of Clinical Nutrition, reported Food Navigator USA. Full Story

Thursday, October 22, 2009

Some 42% of consumers are more likely to visit restaurants that offer new or unique flavors

Consumers are interested in expanding their palates when dining out and want to patronize restaurants that offer innovative flavors. A new study from foodservice industry consultant Technomic finds that 42 percent of consumers, particularly males aged 25 to 34, are more likely to visit restaurants that offer new or unique flavors.

The 2009 Flavor Consumer Trend Report was designed to identify opportunities for restaurant operators and suppliers and help them differentiate their menus to attract new patrons and increase frequency of current customers. The report covers flavors created during food preparation as well as those added through sauces, dips and condiments. Individual flavor profiles are explored, as is how they relate to major entrée categories (sandwiches, pork, seafood, etc.), appetizers, beverages, snacks and desserts.

Interesting findings include:

* Two-thirds of consumers (66 percent) say that discovering a new flavor at a restaurant can persuade them to return to that venue for the same dish, and more than half (55 percent) say they may try other dishes there.
* A substantial portion of diners (36 percent) say they are more interested in trying new flavors than they were a year ago.
* Over a third of consumers (35 percent) are willing to spend more on a meal that incorporates new or innovative flavors.
* Among less broadly established ethnic cuisines, those of high interest include Spanish (72 percent), Hawaiian (71 percent), Tex-Mex (69 percent), Greek (66 percent), and Caribbean and Mediterranean (66 and 62 percent).
* Roughly one-third of consumers look for sauces and condiments that are low in fat or calories (34 percent) and sodium (29 percent), or prefer to use “organic” or “all-natural” condiments when available (26 percent).
* Garlic, pepper and smoky barbecue flavor profiles dominate entrée menus. Global influences are also prominent, specifically those with a Mexican, Asian and Italian flair.

“Flavor innovation presents a solid competitive advantage for both operators and manufacturers, especially when it comes to dips, sauces, condiments and marinades,” says Darren Tristano, EVP of Technomic. “The punch of heat and spice, and the balance of creaminess or sweetness, underscores the uniqueness in the preparation. An unusual flavor profile could be one that drives repeat visits by consumers.”

The 2009 Flavor Consumer Trend Report’s Consumer Insights section examines flavor preferences and purchasing behavior based on surveys of more than 1,500 consumers. The Menu Insights section utilizes Technomic’s proprietary MenuMonitor database to provide an in-depth look at how leading, independent and emerging chain restaurant operators are incorporating flavor profiles into menu items. Throughout the report, 2009 results are compared to results from Technomic’s 2007 Flavor Trend Category Report. Appendices feature menu listings showcasing the top 10 flavors as measured by menu data, plus detailed demographic profiles of consumers who enjoy these top 10 flavors.

Wednesday, October 21, 2009

Strong Ethnic Food Sales

According to a new report from Mintel, sales of ethnic foods in America have steadily risen since 2004 and are predicted to hit a record-high $2.2 billion in 2009, with 20% more growth forecasted from 2010 to 2014.

The largest share of the ethnic-foods market is taken by Mexican and Hispanic foods, with 62% of sales; about 6 in 10 people report that they have cooked Mexican food in the past month. But Asian food is the largest growth sector, with 11% growth from 2006 to 2008. During that time frame, Indian-food sales have grown by 35%.

Income and age are two demographic aspects strongly related to ethnic foods: 92% of those who responded to Mintel’s survey with annual household incomes above $150,000 have cooked ethnic food in the past month, and the same is true for 91% of those aged 18 to 24.

The economy has also likely played a part in this activity. More people are cooking at home and an increasing number of Americans are calling themselves “cooking enthusiasts.” This creates a market primed for ethnic-inspired speed-scratch food products, like seasoning blends and sauces.

Sources:

* Mintel: Americans Dish on Ethnic Fare

Tuesday, October 20, 2009

Persistent high unemployment will continue to affect the restaurant industry,

Current economic indicators point to recovery, but persistent high unemployment will continue to plague the restaurant industry several months after the recovery is underway, according to The NPD Group, a leading market research company. A recent NPD report provides insights and analysis on what the restaurant industry can expect once the recovery begins, including what enticements consumers say will get them to visit restaurants more often.

According to NPD’s CREST® service, which continuously tracks consumer usage of foodservice, all segments of the U.S. restaurant industry including quick service restaurants/fast food, casual dining, midscale, and fine dining, experienced traffic declines in the first half of 2009. For the seasonal quarter ending May 2009, total industry traffic experienced its steepest decline in 28 years when it declined by -3 percent. The quick service segment, which makes up the largest portion of total industry traffic, declined -2 percent, casual dining declined -4 percent, and midscale was down -6 percent. Fine dining/upscale hotel dining experienced double digit declines. Onsite foodservice traffic, which includes foodservice operations at business and industry, lodging, hospitals, colleges and universities, senior care, and military segments, declined by -9 percent for the quarter ending June.

“The majority of the industry’s challenges are related to unemployment, which isn’t expected to improve quickly,” says Bonnie Riggs, NPD restaurant industry analyst and author of the What to Expect When Economic Recovery Begins report. “If you’re unemployed, you’re not going to be picking up a quick breakfast on the way to work or eating out at lunch. Dining out, overall, is a luxury you can’t afford.”

Affordability is top-of-mind with most consumers, employed or unemployed. When NPD asked consumers, who claimed that they have cut back on restaurant visits, what would entice them to visit restaurants more often, they listed discounts, something free, more dollar menu items, choice of price offerings, and other cost management options were there top responses.

What Would Entice Consumers to Visit Restaurants More Often
Among Consumers Claiming Cut Back Restaurant Visits

Respondents

Source: The NPD Group/Online Custom Study, conducted June 8-11, 2009
Restaurants have heeded the call of these cost-conscious consumers by being aggressive in offering discounts, giveaways, and other incentives. Restaurant visits that came as a result of deal represent a quarter of industry traffic.
“It’s going to be awhile before the industry can move away from deals and other customer incentives,” says Riggs. “But the industry has been in this place before, and always finds innovative and creative ways to bring itself out of it.”

Monday, October 19, 2009

Eating a Mediterranean diet rich in fish, olive oil, legumes, fruit and vegetables is heart healthy, but expensive

Sticking to a Mediterranean diet rich in fish, olive oil, legumes, fruit and vegetables is heart healthy, but expensive, maybe even prohibitively so, new research from Spain hints.

Consequently, "upstream" measures -- such as taxes on unhealthy foods and/or subsidies on healthy foods -- may be needed to "increase the probability of adopting a healthy dietary pattern leading to better health and disease prevention among the population," Dr. Maira Bes-Rastrollo told Reuters Health.

The researcher, from the Department of Preventive Medicine and Public Health, School of Medicine, University of Navarra, and colleagues studied the costs of Mediterranean and Western dietary patterns in more than 11,000 Spanish university graduates with a similar level of income. All of them were participating in a long term study launched in 1999 to assess ties between diet and obesity and long term health problems.

Their analysis revealed that the more closely these young adults adhered to the healthy Mediterranean diet, the more money they spent each day on food.

In contrast, the more closely they followed a "Western" diet - high in saturated fat, sugar, and red meat - the less money they shelled out each day on food.

This Spanish study, Bes-Rastrollo noted, shows that "a healthy Mediterranean dietary pattern is more expensive to follow than a Western dietary pattern and I am sure that the same study conducted in the United States would find the same results or even higher differences in costs between dietary patterns."

This "economic barrier" should be considered when counseling populations about following a healthy diet "because cost may be a prohibitive factor," she added.

The researchers also report that 31 percent of study subjects gained weight during the study - just over half a kilo, or 1.1 pounds, every year - and, after adjusting for factors likely to influence the results, people who spent the most on food were 20 percent more likely to gain weight, regardless of which dietary pattern they favored.

Those who had higher food bills tended to be older, were more likely to have quit smoking, tended to drink more calorie-laden fruit juice, soft drinks and alcohol and generally weighed more to begin with - suggesting that they were more prone to weight gain due to lifestyle or genetic factors, the researchers note.

SOURCE: Journal of Epidemiology and Community Health, September 2009.

Friday, October 16, 2009

Capico News of the Wek



Ginger & Molasses, Warm Spices & Pumpkin, Peppermint & Chocolate, Vanilla & Red Food Color and Nutmeg & Rum were the top flavors named to McCormick's Flavor Forecast 2009: Holiday Edition. Full Story

Teens indicated an increase in restaurant spending for the first time since fall 2007, according to the Fall 2009 "Taking Stock With Teens" survey published by Piper Jaffray. Taste is the leading influence dictating where teens dine, but value continues to be a critical factor in a challenging consumer environment. Teens named Starbucks the No. 1 restaurant. Full Story

Stater Bros. Holdings, Inc.'s wholly owned subsidiary, Stater Bros. Markets, completed the sale of Santee Dairies to Dean Foods. Full Story

Jelly Belly Candy Company launched MyBeanBoozled.com, a website that allows consumers to customize Jelly Belly products. Full Story

David Sax, author of "Save the Deli," highlighted various New York City delis, including Katz's, 2nd Ave. Deli and Gottlieb's, in an interview with The New York Post. Full Story

Cameron Mitchell, head of Cameron Mitchell Restaurants, is planning to open a 10,000-sq. ft. fine dining restaurant in Dallas next month. Mr. Mitchell claims the recession is allowing for better deals on locations, and that restaurants that build up clientele now will prosper when the economy recovers, reported The Dallas Morning News. Full Story (Free Registration Required)

Restaurant Roundup: Salsarita's Fresh Cantina is offering breakfast catering at all of its locations across the U.S. Full Story ... Carvel introduced cheesecake ice cream, featured in the following products: Hand-dipped Cheesecake Ice Cream; Vanilla & Black Cherry Cheesecake Ice Cream Cake; Chocolate Cheesecake Ice Cream Cake; and Strawberry Cheesecake Sundae Dasher, reported QSR Magazine. Full Story

Amazon.com, Inc. launched "Local Express Delivery," a new shipping option giving customers same-day delivery in seven cities including New York, Philadelphia, Boston, Baltimore, Las Vegas, Seattle and Washington, DC. The service will be extended to Chicago, Indianapolis and Phoenix in the coming months. Full Story

Rita's Italian Ice began selling franchises in San Antonio, TX. A total of three locations will be open in Texas by the end of 2009, with 20 additional franchise agreements currently in development. All of Rita's new locations offer walk-in service, and all stores will be open year-round, reported QSR Magazine. Full Story

Garbanzo Mediterranean Grill will begin franchising its fast-casual restaurant concept. The chain currently has five stores in the Denver area and plans to open 10 more in the next 14 months, reported Denver Business Journal. Full Story (Free Registration Required)

Flavors and ingredients company Frutarom Industries Ltd. launched new packaging and branding for its activities in 46 locations worldwide. Full Story


Ginger & Molasses, Warm Spices & Pumpkin, Peppermint & Chocolate, Vanilla & Red Food Color and Nutmeg & Rum were the top flavors named to McCormick's Flavor Forecast 2009: Holiday Edition. Full Story

Teens indicated an increase in restaurant spending for the first time since fall 2007, according to the Fall 2009 "Taking Stock With Teens" survey published by Piper Jaffray. Taste is the leading influence dictating where teens dine, but value continues to be a critical factor in a challenging consumer environment. Teens named Starbucks the No. 1 restaurant. Full Story

Stater Bros. Holdings, Inc.'s wholly owned subsidiary, Stater Bros. Markets, completed the sale of Santee Dairies to Dean Foods. Full Story


For Immediate Release: News from the Specialty Food Trade


As it celebrates its 25th anniversary, the Vermont Butter & Cheese Company introduces a new name, Vermont Butter & Cheese Creamery, and new packaging. Full Release



Jelly Belly Candy Company launched MyBeanBoozled.com, a website that allows consumers to customize Jelly Belly products. Full Story

David Sax, author of "Save the Deli," highlighted various New York City delis, including Katz's, 2nd Ave. Deli and Gottlieb's, in an interview with The New York Post. Full Story

Cameron Mitchell, head of Cameron Mitchell Restaurants, is planning to open a 10,000-sq. ft. fine dining restaurant in Dallas next month. Mr. Mitchell claims the recession is allowing for better deals on locations, and that restaurants that build up clientele now will prosper when the economy recovers, reported The Dallas Morning News. Full Story (Free Registration Required)


For Immediate Release: News from the Specialty Food Trade


Fischer & Wieser Specialty Foods, Inc., Fredericksburg, Texas, took top honors for its Smokey Chipotle Chile Ketchup at this year's Fiery Food Challenge, a competition sponsored by Chile Pepper magazine. Full Release



Restaurant Roundup: Salsarita's Fresh Cantina is offering breakfast catering at all of its locations across the U.S. Full Story ... Carvel introduced cheesecake ice cream, featured in the following products: Hand-dipped Cheesecake Ice Cream; Vanilla & Black Cherry Cheesecake Ice Cream Cake; Chocolate Cheesecake Ice Cream Cake; and Strawberry Cheesecake Sundae Dasher, reported QSR Magazine. Full Story

Amazon.com, Inc. launched "Local Express Delivery," a new shipping option giving customers same-day delivery in seven cities including New York, Philadelphia, Boston, Baltimore, Las Vegas, Seattle and Washington, DC. The service will be extended to Chicago, Indianapolis and Phoenix in the coming months. Full Story

Rita's Italian Ice began selling franchises in San Antonio, TX. A total of three locations will be open in Texas by the end of 2009, with 20 additional franchise agreements currently in development. All of Rita's new locations offer walk-in service, and all stores will be open year-round, reported QSR Magazine. Full Story


For Immediate Release: News from the Specialty Food Trade


New Leaf Brands, Orangeburg, N.Y., will sponsor a participating team in the Multiple Sclerosis/Tappan Zee Bike Ride taking place this Sunday, October 18, in Tarrytown, N.Y. Full Release



Garbanzo Mediterranean Grill will begin franchising its fast-casual restaurant concept. The chain currently has five stores in the Denver area and plans to open 10 more in the next 14 months, reported Denver Business Journal. Full Story (Free Registration Required)

Flavors and ingredients company Frutarom Industries Ltd. launched new packaging and branding for its activities in 46 locations worldwide. Full Story



Anheuser-Busch InBev and CVC Capital Partners signed a definitive agreement under which Anheuser-Busch InBev will sell its Central European operations to CVC for approximately $2.2 billion and additional rights to a future payment estimated at $800 million. Full Story

Florida Department of Environmental Protection is proposing a five-year phaseout of disposable plastic and paper bags during which escalating fees, starting at a nickel a bag, would be imposed whenever such bags were used. Items exempt from the proposed ban would include food wrappers, such as bags for produce and sub sandwiches, carryout containers, tissue, bubble wrap used to cushion delicate items, and newspaper bags. Florida Legislature's could consider the proposal as early as next year's spring session, reported South Florida Sun-Sentinel. Full Story

Thursday, October 15, 2009

The supermarket industry has a ways to go in terms of improving its image

The supermarket industry has a ways to go in terms of improving its image to attract new workers, according to panelists Tuesday at Food Marketing Institute's Future Connect leadership development conference here.

"People think our industry is simple [because it appears that way to consumers], but we need to get people to understand how broad this industry really is," said Don McGeorge, the recently retired president of Kroger Co., Cincinnati, citing the broad range of functions performed at supermarket companies, from purchasing to logistics and technology.

Janel Haugarth, executive vice president at Supervalu, Minneapolis, said the supermarket industry "is probably the worst at self-promotion."

"We are an undiscovered great secret," she said. She said Supervalu has been trying to improve advancement opportunities at the company using a web portal to help guide workers through career paths.

"We also need to go back to colleges and universities and tell our story," she added.

Wednesday, October 14, 2009

Leafy Greens, Eggs, & Tuna Top List of Riskiest FDA-Regulated Foods

Leafy greens, eggs, and tuna are on the top of a list of the 10 riskiest foods regulated by the Food and Drug Administration. Those and seven other foods account for nearly 40 percent of all foodborne outbreaks linked to FDA-regulated food. That's no reason to forgo the occasional salad Niçoise, says the Center for Science in the Public Interest, which authored the report, nor need one pass up tomatoes, sprouts, and berries, even though those foods are also on the list. But the nonprofit watchdog group says the presence of so many healthy foods on such a list is exactly why the United States Senate should follow the House and pass legislation that reforms our fossilized food safety laws.

The FDA is responsible for regulating produce, seafood, egg and dairy products, as well as typical packaged foods such as cookie dough and peanut butter—nearly 80 percent of the food supply. More than 1,500 separate, definable outbreaks were associated with the top 10 riskiest FDA-regulated foods, causing nearly 50,000 reported illnesses. Since most foodborne illnesses are never reported, these outbreaks are only the tip of a large, hulking iceberg.

"Outbreaks give the best evidence of where and when the food safety system is failing to protect the public," said CSPI staff attorney Sarah Klein, the lead author of the report. "It is clearly time for FDA's reliance on industry self-regulation to come to an end. The absence of safety plans or frequent inspections unfortunately means that some of our favorite and most healthful foods also top the list of the most risky."

CSPI identified 363 outbreaks linked to iceberg lettuce, romaine, spinach, and other leafy greens, variously contaminated with E. coli, Norovirus, or Salmonella, and causing 13,568 cases of illness. Manure, contaminated irrigation water, or poor handling practices are all possible culprits in those outbreaks. The FDA does not currently require farms and processors to have written food safety plans, nor does it provide specific safety standards for even the largest growers to meet.

Eggs were linked 352 outbreaks and 11,163 illnesses; tuna to 268 outbreaks and 2,341 cases of illness, and oysters—despite their limited consumption—to 132 outbreaks causing 3,409 illnesses. Outbreaks involving potatoes don’t seem to make headlines, but nevertheless they are linked to 108 outbreaks and 3,659 cases of illness. Cheese, ice cream, tomatoes, sprouts, and berries round out the top 10 list. The data come from CSPI's Outbreak Alert! Database, which includes outbreaks from 1990 to 2006, using data collected from the Centers for Disease Control and Prevention and other sources.

In July, the House of Representatives passed the Food Safety Enhancement Act with broad, bipartisan support. That measure would give FDA authority to require food processors to design and implement food safety plans, provide specific safety standards that growers would have to meet, and require FDA to visit high-risk facilities every 12 months or less, and most other facilities every 3-4 years. In the Senate, similar legislation, sponsored by Sen. Richard Durbin (D-IL), is pending.

"As consumers, we don't have the power to check on these products," said Kathleen Chrismer, whose 9-year-old daughter Rylee Gustafson was hospitalized for a month after becoming seriously ill from eating spinach salad contaminated with E. coli O157:H7. "Without a better system to protect us, we are totally at the mercy of the next outbreak."