Capico News of The Week

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

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

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

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

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

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

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

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

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

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



For Immediate Release: News from the Specialty Food Trade

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





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

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



For Immediate Release: News from the Specialty Food Trade

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





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

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





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

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


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

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

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

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

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

Profitability & Budgets Up

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

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

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

Supply Chain Process Improvements Needed

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

Areas of for reducing costs


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

Squeezing for Logistics Efficiencies

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

Limited Time Offers: Love ‘em and Hate ‘em

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

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

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

SDA Omega-3 Soybean Oil Now GRAS

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

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

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

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

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

6.3 Mil Kids Low in Vitamin D

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

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

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

Store Brand or National Brand?

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

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

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

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

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

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

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

About the Report

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

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."

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

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.

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

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.”

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.

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

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.

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."

One-fourth of U.S. adult shoppers frequently purchase certified organic food or beverage products

The market for products positioned and marketed on the basis of ethical standards (eco-friendly/green, natural/organic, humane, and fair trade) is thriving despite the recession, reveals a new report by leading market research publisher Packaged Facts.

Based on data from a proprietary survey, the recently released "Ethical Food and Beverage, Personal Care and Household Products in the U.S.; Conscientious Consumerism and Corporate Responsibility in the New Economy, 2nd Edition," indicates that one-fourth of U.S. adult shoppers frequently purchase certified organic food or beverage products and one-third are usually willing to pay more for organic foods.

"With the economy foremost in consumers' minds, heightened price sensitivity in the midst of the current recession is inevitably having an effect on the market for ethical products," says Don Montuori, publisher of Packaged Facts. "However, our survey indicates that more shoppers understand the environmental, social, and economic implications of their choices. The result is a sizeable number of consumers who will purchase typically more expensive ethical products even in economically challenging times."

The U.S. market for ethical products has annually grown in the high single- to low double-digits over the past five years, according to the report. Packaged Facts forecasts the growth rate will persist despite the recession and the market will approach $62 billion in 2014, up from a projected $38 billion in 2009.

Foods and beverages dominate retail sales of ethical consumer products in the U.S., accounting for nearly 75% of retail dollars through all channels in 2009. Non-food products -- mainly personal care and household products -- represent the remaining quarter. However, through 2014, Packaged Facts projects that non-foods will grow at a considerably faster pace than food, with an 80% versus 57% growth rate.

Nevertheless, non-foods will still represent a smaller portion of the overall market.

Tapping into the trend are major marketers and retailers who are offering more ethical products, upping their corporate responsibility efforts through energy-efficient "green" facilities and sustainable business practices, and increasing their cause-related marketing efforts. Meanwhile, supermarket chains are entering the fray by developing private-label lines of organic foods and natural household products.

"Ethical Food and Beverage, Personal Care and Household Products in the U.S., 2nd Edition" analyzes the attitudes and demographic characteristics of ethical product purchasers through the examination of key issues and trends affecting the marketplace across two classifications -- foods & beverages and non-food products -- with the latter defined as encompassing personal care products (cosmetics, skin care, hair care, etc.) and household products (paper goods, diapers, detergents, cleaning products, light bulbs, etc.). Coverage includes historical and projected retail sales estimates from 2005-2014, case studies of key marketers and retailers, and trends in new product development and competitive positioning.

For further information, please visit: http://www.packagedfacts.com/redirect.asp?progid=76126&productid=1939948

Majority of Consumers Unaware of Salt Content

More than three quarters of people—77 percent—are not aware that bread and breakfast cereals are among the daily foods that contribute most salt to daily diets, according to results of a new Food Standards Agency (FSA) survey.

FSA’s new advertising campaign kicked off Oct 5 and is urging people to pay closer attention to the salt levels in the foods they purchase. The campaign features foods that make significant contributions to the salt intakes of U.K. adults and children. The salt levels of these foods vary across brands, so the campaign encourages people to reduce the amount of salt we eat by checking labels on foods and choosing those that are lower in salt.

“Salt intakes are coming down, but if we are to get closer to meeting our target of reducing intakes to a maximum of 6g a day for adults, and lower levels for children, people need to become more aware of the foods which contribute the most, as it isn’t just the obvious things we need to watch out for as far as salt is concerned,” said Rosemary Hignett, Head of Nutrition at FSA. “We‘ve been working closely with food manufacturers and retailers to encourage them to use less salt in their foods, and are pleased with the progress that is being made. But there is still a wide variation of salt levels in different brands, which is why it is so important that people check the labels.”

Sources:
• Food Standards Agency: Survey reveals lack of salt source knowledge

Vitamin D Reduces Risk of Falling

Seniors who take between 700 and 1,000 international units (IU) of supplemental vitamin D per day (vitamin D2 or D3) reduce their risk of falling by 19 percent and by up to 26 percent with vitamin D3, according to a new study published in the Oct. 2 edition of BMJ.

Researchers reviewed the findings of eight fall prevention studies involving participants aged 65 and older and found the beneficial effect was significant within two to five months of starting treatment, extended beyond 12 months, and was independent of age, type of dwelling or additional calcium supplementation, the researchers noted.

Supplemental vitamin D doses of less than 700 IU per day didn't reduce falls, wrote Dr. Heike A. Bischoff-Ferrari, director of the Center on Aging and Mobility at University Hospital Zurich. Additionally, active forms of vitamin D didn't appear to be more effective than the 700 to 1,000 IU supplemental vitamin D.

Sources:

HealthDay News: Daily Dose of Vitamin D Helps Prevent Falls in Seniors

Capico News of The Week

The online grocery market is growing due to convenience, Generation Y consumers coming of age and increased broadband penetration and customization, according to Nielsen. With approximately $3.75 billion in online sales in 2008, online is a small but expanding channel for the food and beverage industry. Even though the majority of grocery shopping occurs offline, on average, shoppers tend to spend twice as much online as offline when making food and beverage purchases. Full Story

About 42.8% of grocery purchases are sold on promotion, up from 40.8% a year ago, according to a Nielsen study. Drug stores also sell a significant portion of products on promotion, with 40.4% of sales linked to displays and/or features. Chicagoans buy the most on promotion, with 55.9% of products sold on promotion, while impulse purchases such as ice cream, crackers and carbonated beverages sell the most on promotion. Full Story

"French comfort classics" will be the next important ethnic food trend, according to Nancy Kruse, president of The Kruse Co., who spoke at Nation's Restaurant News' Menu Trends & Directions conference. Ms. Kruse noted that the most active and innovative menu categories have been appetizers and desserts, reported Nation's Restaurant News. Full Story (Free Registration Required)

Store brands have grown by approximately 10% in dollar sales in the past year, compared to only 2% for branded items, according to Nielsen. Full Story

Papa Bello Enterprises, Inc. signed a letter of intent to acquire the Kebab Cafe, a Southern California-based restaurant concept specializing in Middle Eastern style cuisine with a European twist. The Kebab Cafe currently operates a flagship location in La Jolla, CA and anticipates opening up to 10 new corporately owned locations in 2010 as well as building out the concept for franchising. Full Story

Tortilla-makers ranked near the top of Sageworks Inc.'s top-10 list of best-performing privately held companies. "Tortillas are now at the point where they are regarded as a staple product," claimed Helen Chavez-Hansen, owner and president of La Tapatia Tortilleria Inc. Other food-related industries also landed at the top of the list, including grain farming and farm products, reported The Fresno Bee. Full Story (Free Registration Required)

Qualsec acquired Vitamin Spice, LLC for approximately 100 million shares of common stock. Full Story

Some 43% of New York City diners are more attentive to prices, 41% are eating at less expensive places, 21% are skipping appetizers and/or dessert and 19% are cutting back on alcohol, according to the 2010 Zagat New York City Restaurants survey. The surveyors are eating out an average of 3.0 times per week, down from 3.3 to 3.4 times per week during the four prior years. The economy notwithstanding, this year's survey shows 157 notable openings vs. 102 closings, compared to 119 vs. 88 last year. Full Story

Southern-style cooking is becoming more pervasive throughout New York City, according to The New York Post. Grits, for instance, are featured at locations including Joseph Leonard, Char No. 4 and Dirt Candy. Full Story

Meanwhile, fried chicken is also garnering increased attention in New York City, noted The New York Times on the Web. Restaurants Redhead, Locanda Verde and Buttermilk Channel are highlighted for their offerings. Full Story (Free Registration Required)

New Product News: Hershey's is introducing a three-pack Snack Size Hershey's Kisses Brand Milk Chocolates and Snack Size Reese's Peanut Butter Pumpkins for Halloween, as well as candy assortments including Frightfully Fun Snack Size Assortment and Hershey's Monster Mix Snack Size Assortment. Full Story ... Just Born Inc. launched PEEPS Chocolate Mousse Flavored Cats and MIKE AND IKE Autumn Medley. Full Story ... The Campbell Soup Company's Pepperidge Farm brand launched Deli Flats, 100-calorie thin rolls in three varieties: Soft 100% Whole Wheat, Soft Oatmeal and 7 Grain. Full Story

Delfi Cocoa Europe completed a major expansion project at its Hamburg cocoa plant, which increased processing capacity to 100,000 metric tons of beans annually from 35,000 metric tons. The plant, a joint venture between Singapore's Petra Foods and the London-based Armajaro group, has been extensively modernized with investment of around €80 million since being purchased in 2007, stated Petra Foods CEO John Chuang, reported Reuters. Full Story

Restaurant Roundup: Panera Bread added the Napa Almond Chicken Salad Sandwich with fresh grapes to its "Signature" sandwich menu, reported QSR Magazine. Full Story ... Dunkin' Donuts launched fall menu items through Nov. 26, including the Low Fat Apple Caramel Muffin, Pumpkin Coffee and Latte, Pumpkin Coffee Coolatta and Pumpkin Muffin. Full Story ... Maui Wowi Hawaiian Coffees and Smoothies introduced a line of branded Hawaiian-flavored coffees, reported QSR Magazine. Full Story

The Hain Celestial Group, Inc. entered into a joint venture agreement with Hutchison China Meditech Ltd. (Chi-Med). Chi-Med will market and distribute infant and toddler feeding products co-branded under the Earth's Best and Zhi Ling Tong brand names and market and distribute selected Hain Celestial brands in China and other markets. Full Story

The world will have to produce 70% more food by 2050 to feed an additional 2.3 billion people

Producing 70 percent more food for an additional 2.3 billion people by 2050 while at the same time combating poverty and hunger, using scarce natural resources more efficiently and adapting to climate change are the main challenges world agriculture will face in the coming decades, according to an FAO discussion paper published today.

The UN agency will organize a High-Level Expert Forum in Rome on 12-13 October 2009 to discuss strategies on "How to Feed the World in 2050". The Forum will bring together around 300 leading experts from academic, nongovernmental and private sector institutions from developing and developed countries.

The Forum will prepare the ground for the World Summit on Food Security, to take place in Rome 16-18 November 2009.

Cautious Optimism

"FAO is cautiously optimistic about the world's potential to feed itself by 2050," said FAO Assistant Director-General Hafez Ghanem. However, he pointed out that feeding everyone in the world by then will not be automatic and several significant challenges have to be met.

Ghanem said there was a need for a proper socioeconomic framework to address imbalances and inequalities and ensure that everyone in the world has access to the food they need and that food production is carried out in a way that reduces poverty and take account of natural resource constraints.

Global projections show that in addition to projected investments in agriculture, further significant investment will be needed to enhance access to food, otherwise some 370 million people could still be hungry in 2050, almost 5 percent of the developing countries' population.

According to the latest UN projections, world population will rise from 6.8 billion today to 9.1 billion in 2050 - a third more mouths to feed than there are today. Nearly all of the population growth will occur in developing countries. Sub-Saharan Africa's population is expected to grow the fastest (up 108 percent, 910 million people), and East and South East Asia's the slowest (up 11 percent, 228 million).

Around 70 percent of the world population will live in cities or urban areas by 2050, up from 49 percent today.

Food demand

The demand for food is expected to continue to grow as a result both of population growth and rising incomes. Demand for cereals (for food and animal feed) is projected to reach some 3 billion tonnes by 2050. Annual cereal production will have to grow by almost a billion tonnes (2.1 billion tonnes today), and meat production by over 200 million tonnes to reach a total of 470 million tonnes in 2050, 72 percent of which will be consumed in developing countries, up from the 58 percent today.

The production of biofuels could also increase the demand for agricultural commodities, depending on energy prices and government policies.

Land

Despite the fact that 90 percent of the growth in crop production is projected to come from higher yields and increased cropping intensity, arable land will have to expand by around 120 million hectares in developing countries, mainly in sub-Saharan Africa and Latin America. Arable land in use in developed countries is expected to decline by some 50 million hectares, although this could be changed by the demand for biofuels.

Globally, there are still sufficient land resources available to feed the future world population. FAO cautioned, however, that much of the potential land is suitable for growing only a few crops, not necessarily the crops with highest demand and it is concentrated in a few countries.

Much of the land not yet in use also suffers from chemical and physical constraints, endemic diseases and lack of infrastructure which cannot be easily overcome. Therefore significant investments would need to be undertaken in order to bring it into production. Part of the land is also covered by forests, or subject to expanding urban settlements. A number of countries, particularly in the Near East/North Africa and South Asia have already reached or are about to reach the limits of land available.

Water

Water withdrawals for irrigated agriculture are projected to grow at a slower pace due to reduced demand and improved water use efficiency, but will still increase by almost 11 percent by 2050.

Globally, fresh water resources are sufficient, but they are very unevenly distributed and water scarcity will reach alarming levels in an increasing number of countries or regions within countries, particularly in the Near East/North Africa and South Asia. Using less water and at the same time producing more food will be the key to addressing water scarcity problems. Water scarcity could be made more acute by changing rainfall patters resulting from climate change.

Yield potential

All in all, the potential to raise crop yields to feed a growing world population seems to be considerable, FAO said. "If the appropriate socio-economic incentives are in place, there are still ample ‘bridgeable' gaps in yield (i.e. differences between agro-ecologically attainable and actual yields) that could be exploited. Fears that yields are reaching a plateau do not seem warranted, except in a very few special instances."

Stronger interventions

FAO called for stronger interventions to make faster progress towards reducing and finally eliminating the number of hungry and poor people. Investment in primary agriculture should become a top priority and needs to increase by some 60 percent since agriculture not only produces food but also generates income and supports rural livelihoods.

Poverty reduction also requires investments in rural infrastructure (roads, ports, power, storage and irrigation systems); investments in institutions, research and extension services, land titles and rights, risk management, veterinary and food safety control systems; and non-agricultural investment including food safety nets and cash transfers to the most needy.

Without developing and investing in rural areas in poor countries, deprivation and inequalities will remain widespread, though significantly less than today, FAO said.

Probiotics: Beyond Yogurt

Consumers are getting antsy. Now that nearly half the U.S. population knows what probiotics are and how they can benefit health, consumers are ready for new ways to get their daily dose. But, as food product developers know, probiotics are a delicate lot, so most probiotic-containing products developed thus far have required refrigeration. Natural Products INSIDER says that’s all changing; new ingredients are being developed that overcome formulation challenges, opening the door for a range of new functional foods and beverages

More than half of consumers are buying less in the deli and prepared food area

The changing economy has spurred many consumers to change their spending habits with more than half of consumers saying they are buying less in the deli and prepared food areas, according to What's in Store 2010, the trends report from the International Dairy-Deli-Bakery Association™ (IDDBA). Those who continue to shop these areas are looking for better deals and more bang for their buck. In-store delis are feeling the impact, with nearly one in five experiencing a drop in gross income over the past year—but that means that four in five are still holding strong. Trends in thriving delis include meal deals, cross-merchandising, a return to traditional comfort foods, and ethnic food offerings that match local demographics.
Inside the Mind of the Deli Shopper

Taste, price/value, freshness, cleanliness, and quality of deli items are the qualities consumers value most in the deli and prepared foods departments. Fewer consumers put a high value on organic, local, and imported designations than they did during the economic boom, and brand loyalty has weakened. Instead, they are looking for value – in the words of one shopper, "The price per pound of deli items has increased too much, so I look for sales." However, well-to-do shoppers continue to be attracted by healthful prepared foods programs, and many of them have actually increased their purchases of supermarket ready-to-eat and heat-and-serve meals.

Most folks are reducing restaurant spending without increasing their deli meal purchases. Roughly one-half of Americans bought meals at the in-store deli less often over the last year, with one-third of those doing so "much less often," according to the latest IDDBA research. Many shoppers say they are "more concerned about price than time right now." In the future, retailers will turn to more pricing tactics, promotion, menu composition, and in-store aesthetics.

Return to Comfort Foods

Financial instability is leading many consumers to seek consistency in other areas of their lives, and that has manifested itself in a demand for iconic deli foods—although an increasingly sophisticated consumer palate means that shoppers like a little twist on tradition. Few things say "deli" more than old-fashioned potato salad, and manufacturers report that sales of their traditional potato salads are strong. They're also experimenting with trendier versions of the classic that feature specialty potatoes or spicy sauces. Fried chicken meal deals, macaroni salad, chowder, and chicken noodle soup are strong players in the comfort category.
Of course, comfort foods vary from culture to culture, and an area's demographics largely determine customer cravings. Large Hispanic populations in the Southwest and West Coast have created a demand for authentic foods from Latin American cuisines, while foods like Paneer (a fresh cheese) and naan (a flatbread) are popular in areas with large Indian populations.

Equipment

Hot trends in deli equipment include multipurpose pieces that use space efficiently, save energy, and allow delis to more easily merchandise their products. Several manufacturers offer multi-temperature cases for cross-merchandising frozen, refrigerated, and nonperishable items. And, to save energy, they are developing LED (light-emitting diode) systems for service cases. LEDs use much less energy than fluorescent bulbs, have a longer lifespan, and produce less heat, resulting in long-term savings all around.

Packaging

Convenience, looks, durability, food safety, and the environment all come into play when consumers weigh the pros and cons of different packaging. Deli operators and suppliers must also factor in a patchwork of local packaging laws when choosing containers. Several American cities have outlawed polystyrene trays for use in the deli, and have banned or taxed some types of take-out containers. Plastic tub packaging continues to win over consumers because it is easier to handle than zip bags and vacuum bags.

Consumers Scale Down on Deli Meat Purchases

Before the financial bust, premium and imported deli meats were the next big thing. Now, consumers are scaling back, looking to get more protein per penny. They are opting for prepackaged meats over sliced-to-order meats from the service deli. According to one consumer, "Although the deli items are fresh and much healthier, it is not as cost effective as purchasing the pre-packaged items."

While consumers keep their eyes on the price, manufacturers are trying to get them to think about the overall value proposition of different deli meats. Consumers may be willing to pay a little more for meats they believe are better for them—perhaps because of reduced sodium, added ingredients like olive oil, or natural processing methods.

Cross-Merchandising Complete Meals

Cross-merchandising—either by bringing non-deli foods into the deli or bringing deli foods to other areas of the store—is a hot trend. For example, Supervalu recently launched "Simply Good Meals," which displays meal components in cases that are positioned in several spots throughout the store, including the deli, meat, and produce sections.

What's in Store 2010 details consumer and industry trends affecting the dairy case, cheese case, bakery, deli, and foodservice departments. Its 165 tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, and random-weight, UPC, and private label sales data. The full report is available from IDDBA. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. Purchasers of the report also gain on-line access to quarterly random weight sales data throughout the year. For more information, or to order, call the IDDBA Education Department at 608-310-5000 or visit the organization's Web site, www.iddba.org.

The potato chip market grew 22% during the economic downturn,

It's confirmed: the recession really did make us chow down on potato chips and other salty snacks. A new report from market research firm Mintel shows that after years of mediocre sales increases, the potato chip market grew 22% during the economic downturn*.

In addition, other salty snacks experienced recession-fueled sales jumps. The tortilla chip market increased by 18% since 2007, while smaller segments like popcorn and cheese snacks saw similar gains (17% and 20%, respectively). Now that economic recovery is starting to take hold, however, Mintel expects sales increases to taper. Over the next five years, potato chip sales are expected to rise just above 3% annually, while tortilla chip sales should increase just above 4%

“People bought more chips during the recession because they’re a good value,” explains Chris Haack, senior analyst at Mintel. “As the economy gets stronger, we expect annual sales increases to slow, but we don’t expect markets to contract. New product innovations and the changed eating habits of many Americans will keep shoppers headed towards the snack aisle.”

Mintel’s Global New Product Database (GNPD) has already tracked over 350 new salty snack launches in the US this year.

A daily dose of chips?

It’s not the most healthy habit, but according to Mintel, 50% of kids, teens and 18-24s say they eat salty snacks five times a week or more. Even adults say they eat salty snacks 4.8 times per week on average, nearly once a day!

“Salty snacks are clearly embedded in American’s style of eating and they’re used by all ages as a way to curb off hunger between meals or after dinner,” explains Chris Haack. “But at the same time, there is growing interest in healthier snack options.”

Mintel’s survey shows that two in three (65%) adults say that they’re interested in healthier snacks, such as grain or baked varieties, while another 57% say they're interested in healthier alternatives to salty snacks, like pita chips or crackers. Admittedly however, half of survey respondents confess they think lower fat/sodium snacks don’t taste as good as the originals.

*Sales increases compare 2007 market data against Mintel’s market estimate for full-year 2009

Households will continue to focus on "essential gift giving" such as staple consumables, candy and beverages/alcohol over the holidays

42 percent of U.S. consumers expected to spend less this holiday season

With the nation seemingly emerging from recession, American consumers remain skittish about spending their money during this upcoming holiday season according to new research from The Nielsen Company. Households continue to focus on “essential gift giving” such as staple consumables, candy, beverage/alcohol and entertaining at home, and 86 percent said that they expect to spend the same or less this year than last — with a 7 percent increase in those indicating they would spend less.

Overall, Nielsen is projecting that holiday sales will rise 0.03 percent this year, accounting for $90 billion in dollar sales.

“Given everything the consumer has absorbed over the past 12 to 18 months, the fact that we expect this coming holiday season to be flat in dollars can be viewed as a modest positive,” said James Russo, Vice President, Global Consumer Insights at The Nielsen Company. “Americans have undergone a fundamental change in how they spend their money, and the days of stretching finances to make purchases not deemed as necessary are over, at least for the time being. That said, our research has shown that consumers are looking forward to loosening their purse strings a bit, but only once they feel more confident about the state of the economy and their personal financial situation.”

Capico News of The Week

Friday, October 2, 2009

Nearly half (46.1%) of workers report eating home cooked meals more often, suggesting that saving money through eating habits remains a priority, according to a review of BIGresearch's CIA-Trends from 2007 to 2009 by WorkPlace Media. Data shows that increased consumer confidence does not mean a quick return to a greater focus on wants or to previous rates of discretionary spending on things such as dining out. Full Story

Food and beverage weight management claims will shift from the omission of certain "bad" ingredients to the addition of other "good" ones, claims Euromonitor. Other trends highlighted include the search for cheaper products, an expansion of probiotics into other health categories and applications and a focus on beauty from within, reported Food Navigator USA. Full Story

Huntington, WV-based Chili Willi's Mexican Cantina is now marketing its salsas through grocery stores and retail outlets. The initial outlet for the salsa is Forth Foods, owners of the FoodFair Grocery Stores, with 14 locations selling the salsas throughout the tri-state area of WV, OH and KY. Additional sales outlets are currently under negotiation, reported The Ironton Tribune. Full Story

Pepperoni rolls are representative of Italian-American identity in West Virginia, according to The New York Times on the Web. They are sold in various outlets, including alongside Hot Pockets in BFS convenience stores, at Clarksburg, WV-based diner Ritzy Lunch and at area country clubs. Clarksburg, WV-based Home Industry Bakery bakes pepperoni rolls with pepper cheese. Full Story (Free Registration Required)

Ingredient-packed rice bowls offer customers a convenient meal with deep flavor profiles and value, according to Restaurants & Institutions. Various chains offer the meal, including Au Bon Pain and Tokyo Joe's. Full Story

Texas-based Florine Bowman Pastries, which claims to make American pastries the French way, built its following through farmers markets, according to The Dallas Morning News. Owner Florine Bowman makes sweet rolls, scones, an almond Bundt cake with a spice-nut swirl, quick breads and cookies. Her best-seller is pumpkin bread with chocolate and walnuts, and the Bundt cake is a close second. Full Story (Free Registration Required)

Phoenix Bakery's signature strawberry cake, a popular cake in Los Angeles, is featured in The Los Angeles Times. The strawberry cake was created over 60 years ago by Chinese American baker Lun Chan. It is produced in Chinatown in a bakery now run by the second and third generations of the Chan family and is available in 16 cake sizes, from a 4-in. round to a full sheet. The cake can also be made with banana, pineapple, custard, lemon curd or chocolate mousse filling. Full Story (Free Registration Required)

Pick-your-own orchards are expected to have a strong fall season, thanks to consumers staying closer to home for leisure activities and an increased interest in local food and lower prices, according to The Chicago Sun-Times. Full Story

NSF International acquired Surefish, Inc., a seafood quality specialist and provider of independent seafood inspections and consultations. NSF International is a not-for-profit, public health and safety organization that provides inspection and certification services. Full Story

The Bar at the St. Regis in Washington, DC, the King Cole Bar in New York and the Commander's Palace in New Orleans are some of the top 10 places named to have the best Bloody Mary nationwide, according to Dale DeGroff, author of The Essential Cocktail. The drink is celebrating its 75th anniversary this month, reported USA Today. Full Story

Foccacia fusion grilled sandwiches are replacing wraps and panini sandwiches at Saladworks, which recently unveiled a new prototype for its 100th store that features environmentally-friendly materials. New concept stores also will offer more ingredients, including grilled asparagus, edamame, red beets, pine nuts and egg whites. Darren Tristano, Technomic EVP, expects the new format will be especially attractive to women ages 18-35, who are partial to both salads and environmentally-friendly products, reported Courier Post Online. Full Story

Kum & Go entered into an agreement with energy drink company ZUN to sell its 12-oz. Brain Boosting Energy drink in its Rocky Mountain and Midwest stores. Full Story

Swiss Farms will open its first franchise in Somerdale, NJ in 2010, with two more expected in the coming years. Swiss Farms operates 12 corporate stores in Delaware and Chester County, PA. The company, which calls itself "America's Drive-Thru Grocer," allows consumers to drive up to a lane, order groceries and have them delivered to their car without exiting their vehicle. Full Story

Worldwide confectionery sales this year are forecast at $160 billion, up 4% from $156.2 billion last year, according to Euromonitor International. In the United Arab Emirates (UAE), confectionery sales are expected to hit $104.9 million this year, up 9.7% from $95.6 million last year. By 2014, confectionery sales are forecast to reach $125.6 million in the UAE. Confectionery was the fastest growing category for packaged food in the UAE last year, reported The National. Full Story

Phytoestrogens like soy and red clover isoflavones pose no safety issues with regards to heart health and breast cancer risk, according to a study published in the American Journal of Medicine, reported Food Navigator. Full Story

Americans prefer chocolate chip cookies more than three-to-one

America often seems like a nation divided, whether it's Republicans versus Democrats, Yankees versus Red Sox fans, or rap versus country music. But there is one thing we agree on: our favorite cookie.

A recent survey showed that Americans prefer chocolate chip cookies more than three-to-one over other cookie types. Fifty-three percent of adults polled named chocolate chip cookies as their favorite. Peanut butter came in a distant second, with 16 percent naming it their favorite. Oatmeal cookies came in third at 15 percent, and sugar or shortbread cookies were fourth at 11 percent. Five percent of respondents named "other" as their favorite.

The survey, commissioned by Downtown Cookie Co., was conducted in August by Impulse Research and released today in recognition of National Cookie Month, which begins October 1.

Of the 1,033 men and women polled, chocolate chip cookies were the clear winner regardless of gender (men and women both named it their favorite), politics (Republicans, Democrats and Independents named it their favorite), age, and regional differences.

"There are lots of fancy cookies out there, but across the board, across the country, people still prefer authentic chocolate chip cookies," said Dan Guerrera, founder of Downtown Cookie Co. "They want the real, homemade taste they grew up with."

Guerrera should know. Downtown Cookie Co.'s chocolate chip walnut cookie was named "Best Chocolate Chip Cookie" by New York magazine in its 2009 "Best of New York" issue. "It's because we keep it simple and use real ingredients like butter, brown sugar and chocolate chips," he said. "Also, Downtown cookies are made to order without preservatives so they always taste fresh."

Downtown Cookie Co., located in New York City, was founded in August 2008 by Dan Guerrera, fulfilling his desire to replicate the dense, delicious cookies his mother made in his youth. In little more than a year, the company has grown from a one-man operation - Guerrera in a tiny kitchen in his West Village apartment baking for family and friends - to a team of people fulfilling orders in a large commercial kitchen. Downtown Cookie Co. cookies are made to order and available in six varieties, including chocolate chip, chocolate chocolate-chip, ginger, jam shortbread, oatmeal raisin and peanut butter. Downtown Cookie Co. also ships its cookies anywhere in the United States. For more information or to place your order, visit downtowncookieco.com, and look for Downtown Cookie Co. on Facebook.

The quick-service industry has one of the lowest participation rates in rewards programs

A recent study from First Data, an information commerce provider that processes point-of-sale transactions, reported that the quick-service industry has one of the lowest participation rates in rewards programs when compared to other retail industries.

The Consumer Loyalty Study, conducted in April, found that only 6 percent of the more than 2,400 respondents participated in a rewards program at a quick-service restaurant. The quick-service industry was the second-lowest in participation rates, ahead of only professional sports teams.

The highest participation rate in rewards programs belonged to the grocery store industry, in which 65 percent of respondents were members.

According to the study, the low participation rate in rewards programs at quick-service restaurants is "primarily due to the limited availability and newness of such programs."

Of those participating in a rewards program at a quick-service restaurant, the study found that 11 percent considered the fact "very" influential when choosing a dining option. Also, 60 percent of reward-program members reported using their membership "every time" or "most times" when dining out.

The top three most-preferred rewards from quick serves as reported by participants were "free merchandise or upgrades," "discounts at the point of sale," and "coupons for discounts on your total purchase." Of those, 49 percent of program participants reported receiving "free merchandise or upgrades," 25 percent reported receiving "discounts at the point of sale," and 33 percent reported receiving "coupons for discounts on your total purchase."

Finally, of the study respondents who said they were a member of a rewards program at a quick-service restaurant, only 17 percent reported having a high satisfaction level with the program—ahead of only the pet store, discount store, and clothing store industries.