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