Tuesday, June 30, 2009

Soy in the Diet May Protect Lung Function Chronic lung disease rates lower in those who consume soy, researchers say

Consuming lots of soy foods such as tofu and soy milk may improve lung function and lower the chances of developing chronic obstructive pulmonary disease (COPD), new research suggests.

Researchers asked 300 COPD patients in Japan and 340 age-matched healthy people about their soy intake. The results, published online in the journal Respiratory Research, indicate that consumption of soy products is associated with better lung function and reduced risk of COPD.

Long-term smoking causes 90 percent of cases of COPD, which is characterized by a progressive decline in lung function and includes chronic bronchitis and emphysema, according to background information provided in a news release from the journal's publisher.

Previous research has suggested that soy can reduce cholesterol and ease menopause symptoms. This new study is the first to link soy intake and reduced COPD risk.
"It has been suggested that flavonoids from soy foods act as an anti-inflammatory agent in the lung, and can protect against tobacco carcinogens for smokers. However, further research is needed to understand the underlying biological mechanism," study author Fumi Hirayama said in a news release.

Monday, June 29, 2009

Crop 'guesstimate' hints at higher apple, blueberry production

Members of the U.S. fruit industry placed their bets with an early guesstimate of the 2009 crop.

The 54th annual Fruit Crop Guesstimate was June 17 in Grand Rapids, Mich. Industry members may not have been actually betting, but they were putting in their best guesses.

"The actual 2008 North American crop was within 1% of our estimate last year, with some regions doing more and some doing less than estimated," said Frank Bragg, chief executive officer of Grand Junction-based MBG Marketing and the presenter of the 2009 blueberry crop estimate.

Bragg said fresh U.S. blueberry production should be 234 million pounds, 14% more than 2008 production. The Great Lakes region, however, may be down 20% from the year before, mostly in processed volume, he said.

The apple crop was presented in total volume, fresh and processed.

• Washington estimates 138 million bushels;
• New York estimates 29.5 million bushels;
• Michigan estimates 23 million bushels;
• Pennsylvania estimates 10.3 million bushels
• California estimates 8 million bushels; and
• Virginia estimates 5.5 million bushels.

The total Guesstimate for the U.S. was 247.5 million bushels of fresh and processed apples.

"That's about 8% or 9% over 2008," said Denise Donohue, executive director of the DeWitt-based Michigan Apple Committee. Donohue prepared the Michigan estimate for the event.

The grape estimate was given for Michigan only. The state is predicted to produce 59,000 tons of concord grapes and 25,000 tons of Niagara.

Peach and cherry guesstimates were for processed production only. The event is sponsored by the Michigan Frozen Food Packers Association.

Saturday, June 27, 2009

About 63% of consumers are still confused by probiotics

Well it certainly isn't Jamie Lee Curtis' fault, but the fact remains many consumers do not actually know what probiotics are. Curtis has served as a very visible spokesperson for Dannon Activia, a leading yogurt that contains probiotics-which are healthy bacteria said to help digestion.


Still despite Dannon and competitors like LiveActive from Kraft Foods' efforts, 63 percent of consumers reported that they are still confused by probiotics. Only 13 percent of those claiming familiarity could accurately provide a definition. These were the findings from a Datamonitor study released today which was commissioned by Kraft.

Still, the results show an improvement, said Datamonitor's consumer markets analyst Mark Whalley. A survey conducted by Opinion Research Corporation for Ganeden Biotech in 2008 found that 85 percent of respondents were unfamiliar with probiotics. In 2007, 78 percent of respondents to an NPD Group had no knowledge the term probiotics at all.

"This emphasizes how there is still a need for brands to educate U.S. consumers about the benefits of probiotic consumption. The good news is that Americans appear to be responding to marketing messages," said Whalley.

Whalley said that Datamonitor predicts the US probiotic market will continue to grow as more consumers shift to healthier eating habits and increase their working knowledge of the associated health benefits of probiotics. Datamonitor forecasts that the industry could be worth up to $2 billion or more by 2013.

"What is clear is that during the economic crisis manufacturers need to continue to create probiotic products, which consumers find an integral part of their daily routine, otherwise much of the early good work will have to be repeated to get these consumers to resume consumption if they sacrifice it now to save money," Whalley said.

Dannon, has kept its foot on the gas, earlier this year launched Activia drinks and Activia Fiber.

Still, no matter who is producing the products containing probiotics, they need to be mindful of their claims. In April, is was reported that The Dannon Co. was working on a settlement of complaints filed by customers questioning the health claims made on behalf of its Activia as well as DanActive yogurts.



The International Scientific Association for Probiotics and Prebiotics released a clarified definition of the term "probiotic."


he International Scientific Association for Probiotics and Prebiotics (ISAPP) released a clarified definition of the term "probiotic" to assist consumers, manufacturers, researchers and regulators (see www.isapp.net). ISAPP promotes correct use of the term "probiotics" to enhance precision for basic and clinical research efforts on probiotics as well as facilitate the work of regulatory bodies concerned with issues of probiotic safety and consumer protection.


Davis, Calif. (PRWEB) June 24, 2009 -- The International Scientific Association for Probiotics and Prebiotics (ISAPP) today released a clarified definition of the term "probiotic" to assist consumers, manufacturers, researchers and regulators (see www.isapp.net).


Probiotics were defined by the FAO/WHO in 2001 as live microorganisms, which when administered in adequate amounts confer a health benefit on the host. This definition is widely acknowledged by the scientific community, but the term "probiotic" remains undefined by most regulatory bodies worldwide. Over the years the FAO/WHO definition of probiotics remains applicable to scientific, industrial and regulatory communities, as long as it is interpreted correctly.


The term "probiotic" is commonly misused both commercially, when the term is featured on products with no substantiation of human health benefits, and scientifically, where the term has been used to describe bacterial components, dead bacteria or bacteria with uncharacterized health effects in humans.


ISAPP promotes correct use of the term "probiotics" to enhance precision for basic and clinical research efforts on probiotics as well as facilitate the work of regulatory bodies concerned with issues of probiotic safety and consumer protection.


FOOD USE


When combined with the specifications outlined by the FAO/WHO Working Group for the Evaluation of Probiotics in Food (2002), the key aspects of this definition include:

§ A probiotic must be alive when administered

§ A probiotic must have undergone controlled evaluation to document health benefits in the target host

§ A probiotic must be a taxonomically defined microbe or combination of microbes (genus, species and strain level)

§ A probiotic must be safe for its intended use


Although regulations differ internationally, in general, foods and nutritional (dietary) supplements are targeted for the generally healthy population and can carry substantiated claims for both disease risk reduction (if proper approval is obtained) and claims which relate them to general health or the normal structure and function of the human body. Substantiation is required for all claims.


NON FOOD USE


The FAO/WHO effort was specifically focused on food uses of probiotics; however, the definition advanced by this group is sufficiently broad to encompass a range of probiotic preparations and intentions of use. In addition to being a food or a dietary supplement, a probiotic microorganism(s), including genetically modified strains, may be used in drug applications (referred in some instances as a live biotherapeutic), microbial feed (animal uses), and live vaccines if administered orally.


Requirements for establishing efficacy and safety for probiotics are different for these categories of probiotics. For example, a probiotic used as a drug must not only fulfill the general FAO conditions stipulated above, but also conform to existing national regulations (e.g., US Food, Drug, and Cosmetic Act and EU Directive 2004/27/EC on substances used for treating or preventing disease) and guidelines on good clinical practices.


IN SUMMARY


- Since its genesis in 2001, the FAO definition on probiotics has proven its scientific value as shown through acceptance worldwide by key players in the field of probiotics and health.

- The strength of this definition is that it encompasses the many different applications of probiotic science and does not restrict probiotics to specific mechanistic activities.
- This definition has its place in today's debates that revolve around the substantiation of health benefits for probiotics, and it offers a valuable reference for regulatory authorities.
- Adherence to this definition by those involved in the field will assure that the term "probiotic" is meaningful commercially, clinically and scientifically.


References:


Food and Agriculture Organization of the United Nations (FAO). 2001. Health and Nutritional Properties of Probiotics in Food including Powder Milk with Live Lactic Acid Bacteria, http://www.who.int/foodsafety/publications/fs_management/en/probiotics.pdf

Food and Agriculture Organization of the United Nations (FAO). 2002. Guidelines for the Evaluation of Probiotics in Food. ftp://ftp.fao.org/es/esn/food/wgreport2.pdf

Friday, June 26, 2009

Vanilla Cashew Ice Cream


New York's healthiest ice creams: fruity, dairy free and totally refreshing


The scoop on this summer's hottest ice creams? They contain nutritious ingredients like whole grains, blueberries and nut milk, and while not exactly low in calories, they're light, refreshing and guilt-free.

Some 40 percent of American eat ice cream on a regular basis, and 30 percent of ice cream eaters name vanilla as their favorite flavor, according to the International Dairy Food Association. But the concept of ice cream as health food is making consumers rethink what they want in their ice cream, experts say.

"People want their ice cream, but they don't want to subtract anything from it," says Harry Balzer, vice president of the NPD Group, a consumer marketing research company that tracks how Americans eat. "The issue is no longer avoidance, but adding stuff to ice cream. It’s addition, not subtraction."

Adding green tea and tofu to ice cream is a successful formula at the new restaurant Golosi, where you'll taste flavors like grano (made with 17 whole grains), black sesame seed and green tea.

"People in New York like healthy food," says Franceso Barros, an owner of Golosi. "And this extends to ice cream."

The grano is among his most popular flavors, with a pleasingly sweet, wheaty taste that will remind you of red bean ice cream. Aloe vera is also in high demand.

Among the restaurants making nutrient-rich sorbets and ice creams this summer is Harbour, where Joe Isidori is chef. His cantaloupe sorbet, which offers a good dose of beta carotene, is a winner, as is the vanilla cashew ice cream, sweetened with agave syrup and prepared with either cashew or almond milk.

Adding fruit to ice cream may not be a new idea, but the quality of the frosty, fruity confections this summer is particularly high. At Stogo, where ice cream has either a soy milk, coconut milk or hemp milk base, fruit flavors range from coconut-banana-mango to vanilla goji berry crunch to pomegranate chocolate chip.

Ice cream consultant Malcolm Stogo helped create the flavors for this six-month-old East Village shop, which is owned by actor Rob Sedgwick and restaurateur Steven Horn. The gelato-style ice cream is dairy-free, sweetened with agave, and noteworthy for its freshness.

"It has really caught on and there is a huge demand for it," Horn says. "A huge part of the population can't do dairy anymore. Also, people want their ice cream but they don't want to feel guilty about it."

Another Stogo will open next year on the Upper West Side, and there are plans to expand into other states, Horn says. He says despite its reputation as a guilty pleasure, people are still screaming for ice cream. "But they want a guiltless ice cream."

Instructions

Blend all ingredients , except coconut oil, in blender. While running, slowly pour coconut oil into mixture.

Process in an ice cream machine for 30 to 45 minutes. Freeze until firm.
Ingredients
Makes 1 ½ quarts
1 quart cashew or almond milk (such as Mimic Crème)
3/4 cup agave syrup
2 teaspoons vanilla extract
1 vanilla bean, scraped
1/2 teaspoon xanthan gum
Pinch of sea salt
6 tablespoons coconut oil, liquefied in blender

Thursday, June 25, 2009

About 44% of manufacturers plan to begin hiring workers again as soon as next year

A new report based on a survey of small- to mid-sized U.S. manufacturers has found that 44 percent of the companies plan to begin hiring workers again as soon as next year if the economy rebounds as they expect.

But first, according to the report from RSM McGladrey, the manufacturing sector, which has lost 1.6 million jobs since the recession began, needs to put 2009 behind it.

The report, which was based on a survey of 923 manufacturers and will be released later on Monday, found that 40 percent of manufacturers said their businesses were still declining, 18 months after the current recession began, up from just 12 percent last year.

Only 9 percent characterized their current business as "thriving and growing," down from 38 percent last year when the recession took hold, and nearly 50 percent back in 2007.

Sixty-two percent of the companies responding said they were girding for sales declines domestically. As a result, 52 percent said they planned to cut jobs in 2009, up from 26 percent last year.

The downturn is not affecting all manufacturers the same way, RSM McGladrey found.
Executives at companies that make medical devices and food and beverages were far more upbeat than those in the transportation equipment, building materials and metal fabrication sectors. Companies with international footprints and sales are doing better, on average, than those confined to the domestic market.

"Not all of manufacturing is in terrible shape," said Tom Murphy, the lead author of the RSM McGladrey report.

"There are segments that are doing well."

Forty-four percent of the manufacturers surveyed said they expect the economy to rebound next year.

"That's significant," said Murphy. "The light at the end of the tunnel is actually good news. It's not the train rolling down the track any more."

Wednesday, June 24, 2009

Retailers need to respond to the recession by changing with consumers

Retailers are grappling with the toughest trading conditions of their lives and while consumer confidence is improving there are risks to a recovery, the head of Britain's biggest retailer said on Thursday.

"The situation in the high street is very fluid at the moment," Tesco's (TSCO.L) chief executive, Terry Leahy, said in a speech to the British Retail Consortium on Thursday.

"Confidence is slowly seeping back, helped by lower interest rates, energy and fuel deflation, and of course falling food prices. But clouds remain -- the darkest being unemployment."

Leahy said retailers needed to respond to the recession by changing with consumers, who are focusing more on value than other recent shopping trends such as convenience.
"It may demand short term pain -- such as investing in lower prices -- but it delivers medium and long term gain," he said, pointing to the market share gains that Tesco made after the recession of the early 1990s when it developed its "Value" range.

In the current downturn Tesco has introduced a new range of discount brands and invested more money in its Clubcard customer loyalty scheme.

Leahy said consumers had remained concerned about the environment in the recession and that trend towards "green" shopping would become stronger in a recovery.
"When the recovery comes long term challenges and trends will come back into focus," he said, highlighting climate change, a rising population, the pressure on natural resources and an ageing population.

"Technologies that once were unfashionable and politically unacceptable -- be they nuclear power or GM (genetically-modified) crops -- may come back into vogue," he forecast. (Reporting by Mark Potter; Editing by Greg Mahlich)

Tuesday, June 23, 2009

A chemical found in green tea appears to slow the progression of prostate cancer

A chemical found in green tea appears to slow the progression of prostate cancer, a study has suggested.

Green tea has been linked to a positive effect on a wide range of conditions, including heart disease, cancer and Alzheimer's disease.

The research, in the US journal Cancer Prevention Research, found a significant fall in certain markers which indicate cancer development.

A UK charity said the tea might help men manage low-risk tumours.

Although previous studies have shown benefits from drinking green tea - including some positive findings in relation to prostate cancer, there have been mixed results.

In this study, Philadelphia-based researchers tested a compound called Polyphenon E.

They were looking for a number of biomarkers - molecules - including vascular endothelial growth factor (VEGF) and hepatocyte growth factor (HGF) which are indicators of developing cancer.

They also looked for prostate specific antigen (PSA) - a protein only found in the prostate. Levels can rise if cancer is present.

'12 cups'

The study included 26 men, aged 41 to 72 years, who had been diagnosed with prostate cancer and who were scheduled for radical prostate surgery.

Patients took four capsules containing Polyphenon E for an average of 34 days, up until the day before surgery - the equivalent of around 12 cups of normally brewed concentrated green tea.

The study found a significant reduction in levels of HGF, VEGF and PSA, with some patients demonstrating reductions of more than 30%.

Dr James Cardelli, from the Feist-Weiller Cancer Center, who led the study, said the compound, which was provided by the company Polyphenon Pharma, "may have the potential to lower the incidence and slow the progression of prostate cancer."

There were only a few reported side effects associated with this study, and liver function remained normal.

Dr Cardelli said: "We think that the use of tea polyphenols alone or in combination with other compounds currently used for cancer therapy should be explored as an approach to prevent cancer progression and recurrence."

"There is reasonably good evidence that many cancers are preventable, and our studies using plant-derived substances support the idea that plant compounds found in a healthy diet can play a role in preventing cancer development and progression."

'Keep progression at bay'

John Neate, chief executive of the Prostate Cancer Charity, said: "There have been several studies into green tea and its potential benefits, but there is, as yet, no conclusive evidence.

"The results of this study do suggest that there is merit in further research into the effects of extracts of green tea, both in relation to its impact on the prevention of prostate cancer and in controlling progression in men already diagnosed with the disease, as was investigated in this instance."

"These initial positive findings could indicate that green tea could have a place in 'active surveillance', where a slow-growing, low risk tumour is monitored for changes and men want to take something which could help keep progression at bay.

"Potentially, this could mean completely avoiding, in some cases, any of the more usual medical interventions and their associated side effects."

Monday, June 22, 2009

Continuous improvement "seems to be the recipe for success in 2009" for foodservice establishments

During a recession, making macaroni and cheese for dinner instead of heading to the Macaroni Grill is a no-brainer. And so the vast casual-dining sector, which grew fat during the late free-spending consumer boom, has been hammered. Restaurants are the top category in which U.S. consumers said they are most likely to cut back, according to a recent Boston Consulting Group (BCG) survey. "Casual dining is getting hit hard," says BCG partner Catherine Roche. The higher up on the food chain you are, the worse it is. Sales at the upscale Morton's steakhouse fell 24 percent in the first quarter of 2009.

But at least one comparatively pricey restaurant chain is turning in the equivalent of a Michelin-starred performance. P.F. Chang's China Bistro, whose two restaurant chains—P.F. Chang's and Pei Wei Asian Diner—are staples of upscale malls and mixed-use developments, said that same-store sales fell a bit, but profits produced by its 350 outlets rose 38 percent from the first quarter of 2008. Operating margins—the holy grail of any business—at P.F. Chang's 190 stores rose from 12.8 percent to 14 percent, largely due to "incremental operational improvement opportunities." The stock has doubled since November.

What accounts for the sizzle in P.F. Chang's wok? Probably not the food. Just as saxophonist Kenny G provides jazz for people who don't really like authentic jazz, P.F. Chang's peddles Chinese food to diners who might not cotton to authentic Sichuan fare. Waiters don't wheel around carts laden with steamed chicken feet, as they do at dim sum parlors in New York and San Francisco. In the comfy confines of Boston's Prudential Center, I was presented with a raft of desserts as American as, well, apple pie, including the Great Wall of Chocolate. "It's like The Cheesecake Factory, only ethnic," says Jennifer 8. Lee, author of The Fortune Cookie Chronicles: Adventures in the World of Chinese Food. "It's very consciously designed to cultivate an appeal to mainstream America." The "P.F." stands for company founder Paul Fleming, and the kitchen features ingredients that wouldn't be found in Chinese restaurants, like chocolate, cheese and melon balls (try picking up fruity spheroids with chopsticks).

P.F. Chang's rode the trading-up boom of this past decade, opening stores in tony malls and economic hot zones and becoming the first Chinese-food chain to reach $1 billion in revenue. But the days when you could simply open the doors and welcome consumers armed with credit cards and cash from mortgage refinancings are over.

In this downturn, the company has avoided wholesale restructuring and panicked discounting. For many restaurants, Chinese and otherwise, 2009 is the Year of the Closing. But no P.F. Chang's bistros have shuttered. Rather, it simply has worked hard at doing a better job running things. Co-CEO Rick Federico says that in early 2008, when traffic first softened, management went through "all elements of our business that don't touch our guests or our product" in a search for efficiencies. P.F. Chang's cross-trained prep cooks and line cooks, so the folks who dice chicken and vegetables can fry them up in woks, too. It also hired an expert to develop a new scheduling tool to better manage staffing. In a period when growth is muted, this unglamorous focus on operations and seemingly minor efficiencies will allow all types of businesses—not just restaurants—to distinguish themselves from their competition.

While loath to discount aggressively, P.F Chang's introduced $7.95 lunch specials for the first time in mid-2008. As the recession deepened, the company noticed more people cutting back on the discretionary parts of dinner, like appetizers and desserts. So in December, it rolled out a three-course fixed-price menu for two for $39.95, which was plenty for me and a less ravenous colleague at a recent lunch.

P.F. Chang's has dialed back the number of new restaurants it is opening this year, from about 20 to eight, in part because so many ambitious real-estate developments have been scrubbed. But it turns out there are plenty of solvent communities starved for unthreatening, satisfying portions of beef with broccoli. At the new restaurant in Westfarms Mall, outside Hartford, Conn., 45-minute waits on the weekend are common. Other openings are planned in 2009 in Rust Belt cities regarded by coastal food snobs as culinary wastelands: Akron, Ohio; Pittsburgh; Buffalo, N.Y.

Federico, who started a previous restaurant company amid the downturn of the late 1970s, believes restaurants must adjust to a slower pace of growth. "I think what we've been through will leave behind a fundamental shift in how consumers purchase," he says.

P.F. Chang's made it to $1 billion in sales by taking cues from successful Asian businesses. Now, by focusing on process improvement rather than helter-skelter growth, it seems to be doing so again. Continuous improvement, the philosophy pioneered by Japanese companies like Toyota in which managers and workers relentlessly seek out small modifications that add up to big profits, seems to be the recipe for success in 2009.

Sunday, June 21, 2009

Speculators jack up price of coffee beans

Get ready to spend more for your morning pick-me-up.

Coffee prices are on the march, and the costs of the milk, sugar and even paper cups are climbing. But whereas other commodities like copper or oil have been pushed up by demand from developing countries, coffee is a different case. Demand has only edged up, and much of the recent surge can be attributed to speculators hopping into the commodity.

Oren's Daily Roast, a boutique coffee store in New York City, has charged $2.95 for a medium latte for the past two years. Now, owner Oren Bloostein is considering a price increase of perhaps 3 percent for a cup of coffee and up to 10 percent for coffee beans.

"It is very disconcerting," Bloostein said. But after an 11 percent increase in ingredients since the beginning of this year, he said, "I need to raise my prices so that I can remain in business."

The price pressures on a cup of joe began building in 2007. The price of the coffee itself rose 7.7 percent last year, while milk climbed 24 percent.

Now, spurred by tight supplies of coffee beans and investors looking for the next commodity run-up, prices are boiling over. The price of green coffee beans has risen 22 percent since the beginning of the year.

Faced with higher costs for acquiring coffee beans, major U.S roasters Procter & Gamble Co. and Kraft Foods Inc. last month increased prices on ground and instant brands, including Maxwell House and Folgers. It was the second price increase in four months.

Saturday, June 20, 2009

Seven in 10 men prefer plain ice cream flavors

Just in time for summer, Mintel releases new findings about three of the hottest food and drink markets: ice cream, coffeehouses and alcoholic beverages. For a media copy of any of these just-published Mintel Oxygen reports, contact press@mintel.com.

Flavor wars: Men and women want different things from (ice cream) relationship

It’s a battle of the sexes in the ice cream aisle as Mintel finds seven in 10 men prefer plain ice cream flavors, like chocolate or vanilla, while 74% of women seek out those containing chocolate or candy bits. Still, each gender seems to enjoy the other’s taste preferences: 66% of women say they also look for plain ice cream, and 63% of men go for jazzed up flavors too.

Fruit flavors don’t bode well for either male or female ice cream-eaters. Less than one in three respondents told Mintel they look for fruit-flavored ice cream.

Coffee dilemma: Americans’ torn between Starbucks and independents, plain and fancy drinks

The 21st century question — Starbucks or independent? — remains unanswered. Mintel’s latest survey shows people firmly split between the coffee conglomerate and the shop next door. One in five respondents say Starbucks is their favorite, but another one in five choose an independent.

America remains equally undecided on its preferred coffeehouse drink. Coffee with milk or cream leads in popularity—30% of respondents say they drink it most often—but black coffee, lattes, cappuccino and iced coffees all enjoy near identical favor among respondents.

Toasting basics: Beer the favored alcoholic beverage at restaurants, bars, home

An ice-cold brew beats out swanky cocktails and sophisticated wine in all domains, according to Mintel’s latest survey. More adults report drinking beer at home (46%), in bars (26%) and even in restaurants (27%) than any other alcoholic beverage. Wine is a close second at home and restaurants, while cocktails are the second most common choice at bars.

Mintel found people are loyal to one or just a few different alcoholic beverage brands, and 70% agreed, “when it comes to alcoholic beverages, I like to stick with what I know.”

About Mintel

Mintel is a leading global supplier of consumer, product and media intelligence. For more than 35 years, Mintel has provided insight into key worldwide trends, offering unique data that directly impacts client success. With offices in Chicago, London, Belfast, Sydney, Shanghai and Tokyo, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit www.mintel.com.

Friday, June 19, 2009

The anti-cancer properties of carrots are more potent if the vegetable is not cut up


The anti-cancer properties of carrots are more potent if the vegetable is not cut up before cooking, research shows.
Scientists found "boiled before cut" carrots contained 25% more of the anti-cancer compound falcarinol than those chopped up first.
Experiments on rats fed falcarinol have shown they develop fewer tumours.

The Newcastle University study will be presented at NutrEvent, a conference on nutrition and health, to be held in France.

Lead researcher Dr Kirsten Brandt, from Newcastle University's School of Agriculture, Food and Rural Development, said: "Chopping up your carrots increases the surface area so more of the nutrients leach out into the water while they are cooked.

"By keeping them whole and chopping them up afterwards you are locking in nutrients and the taste, so the carrot is better for you all round."

The Newcastle scientist, along with colleagues at the University of Denmark, discovered the health benefits of falcarinol in carrots four years ago.

Heat effect

Rats fed on a diet containing carrots or falcarinol were found to be one-third less likely to develop full-scale tumours than those in the control group.

Since then the scientists in Newcastle have been studying what happens when carrots are chopped and cooked.

The latest findings show that when carrots are heated, the heat kills the cells, so they lose the ability to hold on to the water inside them, increasing the concentration of falcarinol as the carrots lose water.

However, the heat also softens the cell walls, allowing water-soluble compounds such as sugar and vitamin C to be lost via the surface of the tissue, leading to the leaching out of other compounds such as falcarinol.

If the carrot is cut before being boiled, the surface area becomes much greater - and so the loss of nutrients is increased.

More tasty

Dr Brandt added that in blind taste studies the whole carrots also tasted much better.
Eight of ten people favoured the whole vegetables over those that were pre-chopped.
This is because the naturally occurring sugars which are responsible for giving the carrot its distinctively sweet flavour were also found in higher concentrations in the carrot that had been cooked whole.

Dr Brandt said: "The great thing about this is it's a simple way for people to increase their uptake of a compound we know is good for you.

"All you need is a bigger saucepan."

Dr Kat Arney, of the charity Cancer Research UK, remained unconvinced that keeping carrots whole would have any impact on cancer risk.

She said: "When it comes to eating, we know that a healthy balanced diet - rich in a range of fruit and vegetables - plays an important part in reducing the risk of many types of cancer, rather than any one specific food."

Thursday, June 18, 2009

Multinational beverage companies are working to address environmental concerns over their water usage

At New York's Del Posto, diners can share a $130 entree of wild branzino fish with roasted fennel and peperonata concentrato and a $3,600 bottle of Dom Perignon. They cannot share a bottle of Perrier or San Pellegrino water.

The Italian restaurant backed by celebrities Mario Batali and Joseph Bastianich is one of several shunning bottled water, along with the city of San Francisco and New York state.

"The argument for local water is compelling and obvious," said Bastianich, who is phasing out bottled water across his restaurant empire, which stretches to Los Angeles.

"It's about transportation, packaging, the absurdity of moving water all over the world," he said.

As environmental worries cut into sales from traditionally lucrative bottled water, beverage companies such as Coca-Cola (KO - News), PepsiCo (PEP - News), Nestle (VTX:NESN.VX - News) and SABMiller (LSE:SAB.L - News) are becoming more attuned to the risks of negative consumer environmental perceptions.

Water is becoming scarcer, raising a fear that so-far manageable price increases could spike and leading drink companies to take action to maintain access to water and fight their image as water hogs.

"Water is the new oil," said Steve Dixon, who manages the Global Beverage Fund at Arnhold & S. Bleichroeder, repeating what has become a mantra as climate change and population growth tax water supplies.

"As an investor, I'm not concerned about the reality," Dixon said, guessing there will always be enough water overall. "But I'm aware of the perceptions ... and you can't totally shrug it off because perceptions are important."

About a third of the world's people now live in areas of water stress, said Brooke Barton, manager of corporate accountability for Ceres, a network of environmental groups and investors seeking to address sustainability challenges. By 2025, she said it will be more like two-thirds.

COST

Water is still cheap, but that is changing.

"(Water) is currently not a very big cost. The issue is where it will it go in the future," said Andy Wales, head of sustainable development for brewer SABMiller, which used 94.5 billion liters of water in its latest fiscal year. That works out to 4.5 liters for every liter of beer it made.

Water and energy combined only made up 5 percent of its costs, overshadowed by brewing ingredients, bottling materials and labor. Still the brewer said water costs at a Bogota, Colombia plant are rising some 12 percent a year from increased soil being washed into the river as cattle grazing upstream causes deforestation.

New water pricing schemes are emerging, such as the European Union's Water Framework Directive that will tax water from 2010 to encourage more sustainable use.

Some 70 percent of the water the world uses is for agriculture, while industry uses 20 percent. But any industry reliant on agriculture -- from meat to jeans -- has more to wade through than its own use.

SABMiller is one of a few companies, including Coke and Pepsi, calculating "water footprints." It found that water used throughout its supply chain, such as to grow barley and hops, can be 34 times more than its use alone.

With 139 breweries on six continents, the brewer's total water use can range from about 40 liters for a liter of beer in Central Europe to 155 liters in South Africa. Using the smaller ratio as a proxy, SABMiller's entire "water footprint" was roughly 8.4 trillion liters of water last year, more than double what the small nation of Iceland used in 2004.

"In the long term we do see it as a risk," Wales said.

REPUTATION

As they face criticism, multinational drink companies are setting water conservation targets, building community wells and more efficient factories, working with locals on sustainable farming, water harvesting and reforestation and looking for new technologies to reduce their water consumption even as they make more drinks.
"For our type of business, or any that have a very direct link to water ... We've got to play that role," said Greg Koch, Coke's managing director of global water stewardship.

Within their own walls, nonalcoholic drink makers use one out of every 3,300 gallons, or 0.03 percent, of the groundwater used in the United States, according to the American Beverage Association. But its symbolism as a visible user puts the sector at the forefront of the fight over water resources, said Kim Jeffery, chief executive of Nestle Waters North America.

"Picking on our industry is like a gnat on the elephant," said Jeffery, whose 2003 contract to build a bottling plant in McCloud, California has been derailed by opposition from residents and groups concerned about the environmental impact and the threat of water privatization.

Wednesday, June 17, 2009

Higher ingredient and energy costs in 2010 will force restaurants to pull back on promotions

Restaurants could see their margins squeezed as inflationary pressures return to the commodity markets, especially as the chains find it harder to wean customers off a steady diet of meal deals.

Analysts expect higher ingredient and energy costs for restaurants in 2010, with inflation returning to normal levels after a year when costs increases moderated and, for some items, fell from year-ago levels. That could make it harder for chains to continue with the aggressive stream of coupons, buy-one- get-one-free offers and other promotions to bring customers into their doors.

"There's no sign of a pullback yet on discounting," Barclays Capital analyst Jeffrey Bernstein said in an interview. But, "if you see a return to inflation in 2010, it'll prove more challenging to offer these deals."

Consumers are responding to those deals, said Morgan Keegan & Co. restaurant analyst Robert Derrington, who believes that Brinker International Inc.'s (EAT) Chili's Grill & Bar deal offering 10 items for $7 or less is putting more customers in its seats.

But as ingredient costs rise, restaurants may find it harder to raise menu prices to protect their profit margins, especially since consumers have grown accustomed to deals. Derrington termed the casual-dining environment as a competitive "flea-market" for consumers, who are going out to eat when they get coupons or see a good deal advertised on television.

"Consumers are being extremely frugal," Derrington said.

With aggressive menu price increases no longer in their arsenal, restaurants may face margin pressures in 2010, when most chains will see their current purchasing contracts expire and they encounter a pricier market for their basket of goods.
The challenge could damp the rally that casual-dining stocks have had so far this year, with some chains bouncing off multiyear lows to post big gains.

Ruby Tuesday Inc. (RT) shares have increased more than seven-fold to $6.26 in recent trading since hitting a 52-week low of 85 cents in early March. Other chains with dramatic gains include Applebee's and IHOP owner DineEquity Inc. ( DIN), whose shares were recently at $29.86, up roughly six times from their low in February, and O'Charley's Inc. (CHUX), whose shares traded recently at $8.19, up more than 300% this year.

Casual dining giants Brinker and Darden Restaurants Inc. (DRI), owner of Olive Garden and Red Lobster, are also up 53% and 19% so far in 2009.

Higher costs should hit casual dining chains that operate most of their locations themselves rather than those that sell franchises, since they bear all the costs. Bernstein cited Cheesecake Factory Inc. (CAKE) and P.F. Chang's China Bistro Inc. (PFCB) as two facing such exposure.

Some think that those restaurants that have offered big time discounts have shot themselves in the foot, as their customers will come to expect lower-priced food.
"When the economy turns, those that were in the promotional business will suffer more than most," Larry H. Lattig, senior managing director at Mesirow Financial Consulting LLC, said at last week's Nasdaq OMX conference on the food and restaurant industry.

Tuesday, June 16, 2009

Recipes prepared in food company test kitchens and printed on labels might be on the verge of a comeback

The staple of church potlucks, parties and even the dinner table, back of the box recipes prepared in major food company test kitchens and printed on product jars, cartons and boxes just might be on the verge of a comeback.

"In some respect, they've never gone away because they've always been there on the back of the box, but in the '80s and '90s, people stopped cooking at home as much," says Eleanor Hanson, who spent 17 years creating recipes in Kraft's test kitchens in Chicago and Glenview.

But whether it's the economy, nostalgia or a little bit of both, people seem interested in re-creating dishes from their childhood.

One new resource for home cooks is Back of the Box Cooking (Black Dog & Leventhal Publishers, $19.95), a collection of author Barbara Greenman's favorite recipes.

Hanson is currently at work on a book with Roosevelt University professor emeritus and culinary historian Bruce Kraig that will trace the evolution of recipes from their humble beginnings before the turn of the 20th century through their heyday in the '50s and '60s to their current re-emergence.

"Some of the most coveted family recipes came from the back of packages and boxes," Kraig says. "Flip through a couple of community and church cookbooks and you'll see that many of the recipes are from the back of the box."

Kraig says one of the earliest companies to use this marketing technique did so out of necessity.

"When Quaker Oats first came on the market, people didn't know how to use oats," he says. "Most people thought oats were just for horses and the earliest recipes printing on their oatmeal boxes were designed to show consumers how to use the product."

A 1908 recipe for oat cakes -- 3 eggs, ½ pound of butter and 3 cups of oats -- was an early precursor to that company's more famous creation, the Oatmeal Raisin Cookie.

Even that recipe has been tinkered with since it was first introduced in 1955. Quaker's official recipe now calls for butter or margarine in place of shortening. The original recipe has a cult following on the Web, though.

Hanson says the oatmeal cookie recipe is one of the few iconic recipes that test kitchen veterans refer to as "holy grail recipes" that cannot be improved upon.

Kellogg's Rice Krispie Treats, Chex Party Mix and Ritz Cracker's Mock Apple Pie, now celebrating its 75th year, are among those considered holy grail recipes.

Recipes such as Libby Pumpkin's Pumpkin Pie and Campbell Soup's Green Bean Casserole have become staples of the holiday table.

"I'm not even certain they'd still be making the French's fried onions if not for that recipe," Hanson says.

"Libby's pumpkin pie recipe has become the standard recipe that everyone uses," Kraig adds. "You don't get much more iconic than that."

Hanson notes that companies hardly ever alter such timeless entries.

"Test kitchens will rarely tinker with iconic recipes like these and when they do, they usually hear back from consumers negatively," she says. "You just don't mess with them, let alone take them off the box."

The recipe for Borden's Eagle Brand Sweetened Condensed Milk's Magic Cookie Bars has remained unchanged since its introduction in the '60s, but the name has been updated. The dessert was originally called Hello, Dolly Bars in reference to the Broadway musical that was popular at the time.

"I talked with a gal who had been in the Borden test kitchens for years and she told me the seven-layer bar was just one of several 'magic line' of recipes her team had to come up with that used the sweetened, condensed milk," Hanson says.

When your job is to continually come up with new recipes, you don't have much time to look back on the successes and failures. Hanson she can recall only a few misfires.

"The worst thing we could hear from a brand manager was that they had partnered with some other product and we had to figure out a recipe that used both," she says. "I once had to come up with a recipe using Kraft Macaroni and Cheese and Spam. Sometimes we knew going in we were just trying to avoid a train wreck."

The trouble with both those products? Neither photographs very well.

"Recipes have to look attractive," Hanson says. "One of my proudest moments was the one year we came up with a recipe for a bed of Macaroni and Cheese with vegetables and skewers of Spam and vegetables. We did the best we could with the cards we were dealt."

Another flop was Kraft's answer to Betty Crocker's Hamburger Helper.

"Ours was called 'Chef's Surprise,' but it didn't last too long," she says.

Many still consider the Edsel of food products to be Jell-O's decision in the early 1960s to produce unusual flavors of gelatin including Italian salad, celery and tomato. At the time, savory aspic recipes were popular in French cuisine.

Hanson says despite the Kraft test kitchen's best efforts, the flavors never really caught on with American consumers.

"When the average U.S. consumer was thinking Jell-O, they were thinking of something sweet, she says. "A homemaker is no fool. No recipe is going to get someone to buy something they don't want."

Kitchen mistakes often yield magical results, though. In the early '30s, a Massachusetts inn owner named Ruth Graves Wakefield substituted a chopped up bar of Nestle semisweet chocolate for baking chocolate when making cookies. The chocolate bar never fully melted as baking chocolate would have.

"We wouldn't have the Toll House chocolate chip cookie without that mistake," Hanson says.

Monday, June 15, 2009

Foodservice operators should take advantage of the growing number of available qualified staff

There's no question that the struggling economy has wreaked havoc on the restaurant industry. It has also, however, created an invaluable silver lining: nearly unprecedented abundance in the labor pool.

According to Joni Thomas Doolin, Founder and CEO of the HR tracking firm People Report, operators shouldn't expect this boon to last long. But it will give restaurant operators the chance to "get that service-profit chain right"—and build a sustainable competitive advantage in the months and years to come, she told QSR Symposium attendees during her session entitled "Shifting Gears in a Downturn–Best Practices for Today and Tomorrow", held yesterday in Las Colinas, Texas.

"We cannot afford to miss this market," Doolin says. "Unless you were opening restaurants in the '70s and '80s, you've never seen this much talent available." And in the service industry, she says, human talent is an extremely reliable predictor of overall success.

The expanded labor pool has already driven positive trends for many People Report client companies. "For the first time in more than a decade, we've seen an increase in termination for the reason of performance, rather than voluntary separation," Doolin says "Managers are taking the time to evaluate performance and drop those employees who simply aren't getting the job done." The results speak for themselves: Companies in which 20 percent of terminations were based on poor performance saw negative comp sales in 2008, while companies with performance-based terminations of 32 percent were able to increase comp sales.

Termination for poor performance is just part of the equation, however. These employees have to be replaced with the best of the best, and this unique window of opportunity is closing fast.

"Sixty percent of the restaurant industry's labor force under 25," Doolin says. "But the percentage of 16 to 24-year-olds entering the workforce continues to decline." At the same time, competition for these employees has increased dramatically—and it's not just other restaurants who want them. "Retailers, healthcare providers and even car manufacturers like Hyundai are all vying for those entry-level workers we've trained so well." According to Doolin, there are three imperatives for making the most of today's market: technology, talent and trust. "Quick service restaurants are already ahead of the curve when it comes to technology in operations," she says. "Now we need to use it to reach out to current and future employees, in a language they understand."

In terms of talent, Doolin urges operators to "work really hard to find the absolute best of what's available. In this market, it's easier than ever to be lazy about this—don't fall into that trap."

Finally, trust. "The idea of trusting a business has really been eviscerated over the past ten years," Doolin says. "But it's the single most important lever we have in this business." When employees trust their organizations—to do the right thing, to keep their promises, both large and small—they stay with their organizations.

"Young people in America have really sent us a message: 'I want to trust. I want to be lead. And I want to be part of something that's bigger than me.' When we give them that, they will drive our businesses, long after the tide turns in the economy."

Sunday, June 14, 2009

Recipes prepared in food company test kitchens and printed on labels might be on the verge of a comeback

The staple of church potlucks, parties and even the dinner table, back of the box recipes prepared in major food company test kitchens and printed on product jars, cartons and boxes just might be on the verge of a comeback.

"In some respect, they've never gone away because they've always been there on the back of the box, but in the '80s and '90s, people stopped cooking at home as much," says Eleanor Hanson, who spent 17 years creating recipes in Kraft's test kitchens in Chicago and Glenview.

But whether it's the economy, nostalgia or a little bit of both, people seem interested in re-creating dishes from their childhood.

One new resource for home cooks is Back of the Box Cooking (Black Dog & Leventhal Publishers, $19.95), a collection of author Barbara Greenman's favorite recipes.

Hanson is currently at work on a book with Roosevelt University professor emeritus and culinary historian Bruce Kraig that will trace the evolution of recipes from their humble beginnings before the turn of the 20th century through their heyday in the '50s and '60s to their current re-emergence.

"Some of the most coveted family recipes came from the back of packages and boxes," Kraig says. "Flip through a couple of community and church cookbooks and you'll see that many of the recipes are from the back of the box."

Kraig says one of the earliest companies to use this marketing technique did so out of necessity.

"When Quaker Oats first came on the market, people didn't know how to use oats," he says. "Most people thought oats were just for horses and the earliest recipes printing on their oatmeal boxes were designed to show consumers how to use the product."

A 1908 recipe for oat cakes -- 3 eggs, ½ pound of butter and 3 cups of oats -- was an early precursor to that company's more famous creation, the Oatmeal Raisin Cookie.

Even that recipe has been tinkered with since it was first introduced in 1955. Quaker's official recipe now calls for butter or margarine in place of shortening. The original recipe has a cult following on the Web, though.

Hanson says the oatmeal cookie recipe is one of the few iconic recipes that test kitchen veterans refer to as "holy grail recipes" that cannot be improved upon.

Kellogg's Rice Krispie Treats, Chex Party Mix and Ritz Cracker's Mock Apple Pie, now celebrating its 75th year, are among those considered holy grail recipes.

Recipes such as Libby Pumpkin's Pumpkin Pie and Campbell Soup's Green Bean Casserole have become staples of the holiday table.

"I'm not even certain they'd still be making the French's fried onions if not for that recipe," Hanson says.

"Libby's pumpkin pie recipe has become the standard recipe that everyone uses," Kraig adds. "You don't get much more iconic than that."

Hanson notes that companies hardly ever alter such timeless entries.

"Test kitchens will rarely tinker with iconic recipes like these and when they do, they usually hear back from consumers negatively," she says. "You just don't mess with them, let alone take them off the box."

The recipe for Borden's Eagle Brand Sweetened Condensed Milk's Magic Cookie Bars has remained unchanged since its introduction in the '60s, but the name has been updated. The dessert was originally called Hello, Dolly Bars in reference to the Broadway musical that was popular at the time.

"I talked with a gal who had been in the Borden test kitchens for years and she told me the seven-layer bar was just one of several 'magic line' of recipes her team had to come up with that used the sweetened, condensed milk," Hanson says.

When your job is to continually come up with new recipes, you don't have much time to look back on the successes and failures. Hanson she can recall only a few misfires.

"The worst thing we could hear from a brand manager was that they had partnered with some other product and we had to figure out a recipe that used both," she says. "I once had to come up with a recipe using Kraft Macaroni and Cheese and Spam. Sometimes we knew going in we were just trying to avoid a train wreck."

The trouble with both those products? Neither photographs very well.

"Recipes have to look attractive," Hanson says. "One of my proudest moments was the one year we came up with a recipe for a bed of Macaroni and Cheese with vegetables and skewers of Spam and vegetables. We did the best we could with the cards we were dealt."

Another flop was Kraft's answer to Betty Crocker's Hamburger Helper.

"Ours was called 'Chef's Surprise,' but it didn't last too long," she says.

Many still consider the Edsel of food products to be Jell-O's decision in the early 1960s to produce unusual flavors of gelatin including Italian salad, celery and tomato. At the time, savory aspic recipes were popular in French cuisine.

Hanson says despite the Kraft test kitchen's best efforts, the flavors never really caught on with American consumers.

"When the average U.S. consumer was thinking Jell-O, they were thinking of something sweet, she says. "A homemaker is no fool. No recipe is going to get someone to buy something they don't want."

Kitchen mistakes often yield magical results, though. In the early '30s, a Massachusetts inn owner named Ruth Graves Wakefield substituted a chopped up bar of Nestle semisweet chocolate for baking chocolate when making cookies. The chocolate bar never fully melted as baking chocolate would have.

"We wouldn't have the Toll House chocolate chip cookie without that mistake," Hanson says.

Wednesday, June 10, 2009

Even in recession, we all scream for ice cream

As the economy clobbers some stores, ice cream parlors are scooping out a successful niche as recession-weary Americans indulge in what remains one of life's affordable pleasures.

"We're busy as ever on the retail side," said Linda Mitchell of Mitchell's Ice Cream, a family-owned business in San Francisco that makes its product fresh every day.

"Ice cream, while not as inexpensive as it used to be, is still low enough that families feel like they can treat themselves," she said.

Lynda Utterback, publisher of the National Dipper, a trade magazine delivered to 15,000 U.S. frozen dessert parlors, said many operators tell her their sales are up 20 percent.

"A bad economy is always good for ice cream stores; it's a comfort food," said Utterback, who reckons that two-thirds of her readers are independents and the rest franchises.

The recession has actually emboldened Häagen-Dazs to look for half a dozen new franchise locations in Northern California over the next 18 months, said Dawn Uremovich, president of the company's store division, which is based in Minneapolis.

"There's a lot of great real estate out there, a lot of empty storefronts in high-traffic locations," said Uremovich, who thinks nostalgia explains why ice cream parlors succeed even in bad times.

"It goes back to memories of being a kid and licking on a cone," she said.

But for all its nostalgia, ice cream has become a global industry dominated by a handful of giant firms that sell most of their products through supermarkets, while parlors, whether independents or franchises, represent just a tiny fraction of total sales.

Häagen-Dazs, for instance, is a division of Oakland-based Dreyer's Grand Ice Cream, one of the leaders in an industry worth more than $9 billion annually. Dreyer's is itself part of the Swiss multinational Nestle.

Big changes for Dreyer's

This year Dreyer's is celebrating the 80th anniversary of Rocky Road, a flavor that founder William Dreyer introduced in 1929 to put a smile on people's faces during the Great Depression, said company spokeswoman Dori Sera Bailey.

Then Dreyer's was just an ice cream parlor in Oakland. Today it employs about 7,000 people nationwide, including 519 in the Bay Area. Parlor sales are less than 2 percent of its total volume of roughly $2.3 billion. Marketing Vice President Rhonda Ramlo said supermarket sales also have remained strong during the recession.

"If you're staying at home and you're going to have fun once you've had dinner, what better than to scoop a bowl of ice cream," Ramlo said.

Scott Whidden, master blender of Fentons Creamery and Restaurant in Oakland, summarized the consolidation that has created an industry dominated by giants like Dreyer's, but in which some local parlors still thrive.

Whidden said ice cream first took off during the Depression because it was relatively easy to make and offered small dairies a new source of revenue.

A second big expansion occurred after World War II, when many returning veterans opened up parlors. He said they found it relatively easy to install ice-cream-making equipment in the back, serve scoops out front and create a family business.

Through the 1960s and 1970s, these small parlors continued to have a quality edge over supermarket ice cream, but by the 1980s the landscape had started to change. Whidden said innovative brands like Dreyer's started delivering premium ice creams to supermarkets, eroding some of the advantages of parlor-made ice cream.

At the same time, many postwar ice cream manufacturers started to retire. "It's hard work," Whidden said.

Expansion can be tough

He said Fentons tried to expand during the late 1980s and early 1990s by opening other parlors and selling its factory-made ice cream to supermarkets. But the brand could not compete for freezer space, and its parlors lost some of their appeal. "When we stopped making the ice cream on premises, we immediately saw a negative reaction," Whidden said.

So he shrank Fentons back to its Oakland location, where knowing that the ice cream is made on the spot is as important as the flavor. "It's a lot sexier to see it made on premises," Whidden said.

Fentons, which can seat 200 people at a time and dish out a ton of ice cream on a good day, recently got a publicity boost by virtue of its prominent inclusion in the new Pixar movie, "Up." Two years ago, Whidden opened a second Fentons Creamery at the Nut Tree on Interstate 80 in Vacaville.

But even smaller parlors like San Francisco's Mitchell's Ice Cream have prospered by using their on-site production to tailor their treats to local tastes.

Co-founder Larry Mitchell said when he started in 1953, the parlor sold lots of vanilla, chocolate and strawberry scoops to the Irish, German and Italian families who lived nearby.

In time, as Filipino, Mexican and Central American families came to predominate, the shop started making flavors like mango, macapuno and buko - both variants of coconut - and ube, based on a purple yam.

Today the shop employs 30 people, including seven ice cream-makers, and while sales to local restaurants and groceries are a little soft owing to the recession, customers still visit the parlor for scoops, especially on hot, sunny days.

"The neighborhood changed, the flavors changed, we're still here," Mitchell said.

Tuesday, June 09, 2009

Cities with the highest proportion of likely spenders include San Francisco, Washington DC, Seattle, San Diego, Denver, Austin, Salt Lake City, Cincin

Americans are spending less; no surprise there. Figures out this week from the Commerce Department's Bureau of Economic Analysis show that in April overall consumer spending was down 0.1% from the month before. People are now saving 5.7% of their disposable income, the most since 1995 and a cosmic increase from the zero-savings days of just a few years ago.

Yet those numbers are far from the whole story. People aren't cutting back equally in all corners of the country; there are many undercurrents to our newfound national thriftiness. (Read about the best way to save even more.)

For instance, which city do you think has a greater percentage of people who are more likely to be shopping right now: Detroit or Birmingham, Ala.? Detroit, home of the bankrupt auto industry, or Birmingham, the decently moneyed Sunbelt metropolis? The answer: Detroit.

That's according to a new study by the data and analytics firm Acxiom. By collecting data on consumer characteristics and spending habits, Acxiom devised a system for categorizing people into groups that are more likely to spend their disposable income and those that aren't.

The cities with the highest proportion of likely spenders include San Francisco, Washington, Seattle, San Diego, Denver, Austin, Salt Lake City, Cincinnati, Norfolk and Jacksonville. The spots with the lowest proportion include Pittsburgh, Nashville, Tampa, St. Louis, Indianapolis, Little Rock, Knoxville, Tulsa, Fresno and Mobile.

How does Acxiom figure who is a "likely spender"? First, it asks. Monthly surveys by BIG Research, a separate company, inquire about how people's shopping habits have shifted and how changes — like gas-price increases — might alter habits. Then Acxiom digs into it own database, one of the most formidable collections of consumer data in the world. (A Fortune magazine headline once read, "Never Heard of Acxiom? Chances Are It's Heard of You.") Acxiom tracks some 128 million households, compiling data on everything from credit-card transactions to newspaper subscriptions. Some 1,500 data fields go into the computer model, and out comes an opinion about who you are and what you're likely to do with your money. (See 10 things to buy during the recession.)

If you live in Austin or Los Angeles, that opinion is you're likely to go spend. If you live in New York City or Memphis, not so much. "There's no such thing as a homogeneous consumer," says Acxiom retail executive Jim Harold.

Nor is there such a thing as a homogeneous city — which helps to account for the Detroit metro area's (relatively) spend-happy ways. Acxiom figures that some 64% of people in Oakland County, Michigan, home to Chrysler headquarters, fall into demographic groups that are more likely to spend. In neighboring Lapeer County, that percentage is 41%. The national picture reflects the same lumpiness. In other words, there are plenty of people in the Rust Belt with tightened purse strings, just as you would expect — but in the aggregate, other pockets of the country have pulled back more. And while there are some links between potential spending and local unemployment rates and median income, the relationships aren't bulletproof. One group of people more likely to spend: middle-income urban families who care more about protecting the quality of their lifestyle.

There are spenders out there. Though for the time being, still more savers.

Some 66% of Americans cut back on restaurant dining

While majorities are still inclined to decrease spending on eating out and entertainment, the numbers are better than they had been two months ago. In March, three-quarters of Americans said they were decreasing spending on eating out (74%) and entertainment (74%). Now, two-thirds say they are reducing eating out at restaurants (66%) and 64% say they have reduced spending on entertainment.


These are some of the results from The Harris Poll®, a new study of 2,681 U.S. adults surveyed online between May 11 and 18, 2009 by Harris Interactive®.

Americans are cutting back on their spending over the next six months. Specifically:

  • Similar to last month, two-thirds of Americans (64%) say it is not likely they will take a vacation away from home lasting longer than a week while 36% say it is likely they will vacation away from home. In March, 35% of Americans said they would be likely to take a trip;
  • Large purchases continue to suffer as more than three-quarters of Americans say it is not likely they will buy a new computer (79%), move to a different residence (81%), buy or lease a new car, truck or van (88%), purchase a house or condo (91%), start a new business (92%) or buy a boat or recreational vehicle (95%). These numbers are all very similar to March so people are still not ready to spend on the big-ticket items;
  • One quarter of Americans (26%) say it is likely they will have more money to spend the way they want in the next six months which is up from 21% in March; and,
  • People are slightly more likely to say that they are going to be saving or investing more money. Just over half of Americans (53%) say they are likely to save or invest more money while 47% are not likely to do so. In March, Americans were split on this as 50% said they were likely to save or invest and 50% said they were not likely to do so.

So What?


As people get ready for summer vacations, it seems as if the trips may be getting shorter and closer to home – more “daycations” and “staycations”. But, even if summer vacations may be changing this year, there are small signs that things may be getting better, at least in terms of spending. More people are eating out and spending money on entertainment, something that the studios for the big summer blockbusters will be happy to hear, but the big ticket items are still not seeing any type of rebound. Those may take a little longer to see the slight recovery that the smaller expenses are seeing.


The Harris Poll® #57, June 4, 2009
By Regina A. Corso, Director, The Harris Poll, Harris Interactive


Methodology


This Harris Poll® was conducted online within the United States May 11 and 18, 2009, among 2,681 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Full data tables and methodology are available at www.harrisinteractive.com.

These statements conform to the principles of disclosure of the National Council on Public Polls.