Have you ever thought that what you see is sometimes different from what you are really seeing?
The famous Arcimboldo's "Vegetables In A Bowl Or The Gardener" painting is a clear example ....

April 29, 2011

SAFEWAY REPORTS RETURN TO POSITIVE ID SALES IN Q1

U.S. grocer Safeway has announced that net income for the first quarter of 2011 amounted to $25.1 million, compared to $96 million reported in the same period last year. Net income included an $80.2 million tax charge resulting from the previously announced decision to repatriate $1.1 billion from Safeway's wholly-owned Canadian subsidiary. Total sales grew 4.8% to $9.8 million, while identical store sales were up 0.4%."
Source: Planet Retail

April 28, 2011

WINN-DIXIE SEES MAJOR SALES UPLIFT FROM NEW CONCEPT

U.S. grocer Winn-Dixie is generating $500 per sq ft in annual sales at its new stores and remodels, up from $300 per sq ft at earlier remodels, reports Supermarket News.

Speaking at an investor conference, CEO Peter Lynch confirmed plans to continue implementing elements of its “transformational” stores at all new and remodelled locations. The “transformational” store concept can be found in stores in Covington, Louisiana; Margate, Florida and Mobile, Alabama. The company plans to use the same concept at new stores in July in Apopka and Jacksonville, Florida.

Of the 250 stores the company has remodelled, "some pieces [of the transformational format] can be easily replicated without spending a lot of money, and we're moving on that very, very rapidly," Lynch said.

DISCOUNTERS CONTINUE THEIR GROWTH

Aldi and Lidl have grabbed their highest-ever share of the U.K. grocery market in the past three months, according to new data from Kantar Worldpanel.

The German-owned discount duo respectively picked up 3.3% of the market and 2.6% in the period to 17 April, each having grown total sales by around 15%.

The growth came from existing shoppers spending more rather than by luring business from the big four multiples, Kantar’s Edward Garner said.

USDA ISSUES PROPOSAL TO CREATE NATIONAL LEAFY GREENS MARKETING AGREEMENT

The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) is requesting comment on the creation of a voluntary National Leafy Green Marketing Agreement that would assist all segments of the leafy green industry in meeting commercial food quality and safety requirements.

To reflect the different climates, production practices and markets handling leafy green produce, USDA is proposing that there be eight regional zones represented on the Board.

April 27, 2011

WALMART CEO SEEING PROGRESS IN THE U.S. BUSINESS

Walmart Stores is making progress bringing items and shoppers back to its U.S. stores, and turning around U.S. sales remains its top priority, President and Chief Executive Mike Duke said.
The Walmart U.S. discount chain's food department has improved and its general merchandise areas are well on the way to having the right assortment, Duke said at a Barclays conference in New York.

Walmart is bringing back thousands of items, advertising its low price guarantee and taking other steps to try to win back shoppers who balked at an earlier plan that cut goods from stores and emphasized promotional prices.

Duke again said that achieving an increase in U.S. same-store sales - a key gauge of retail health that measures sales at stores open at least a year - is his "first priority."

TARGET JOINS EPA’S GREENCHILL PROGRAM

Established in November 2007, the GreenChill Advanced Refrigeration Partnership is a voluntary program in which food retailers set goals for reducing refrigerant leaks and monitor progress toward those goals. It also supports refrigerant charge reduction and the use of alternative refrigeration systems.

With Target, the program includes about 7,000 stores operating in all 50 states.

April 26, 2011

FDA STUDY TO EXAMINE RISK PERCEPTIONS OF FRESH PRODUCE AFTER A RECALL

Last week, the U.S. Food and Drug Administration announced it plans to conduct a study that will evaluate risk perceptions of produce growers, food retailers, and consumers after a food recall resulting from a foodborne illness outbreak. The purpose of this research is to help FDA better understand whether the magnitude and duration of the decline in commodity consumption following food recalls can be partly explained by grower and retailer speculations and projections about consumers’ attitudes toward food recalls resulting from foodborne illness outbreaks.

The study will be conducted under a cooperative agreement between the Joint Institute for Food Safety and Applied Nutrition and the Center for Risk Communication Research (CRCR) at the University of Maryland. Using an online questionnaire, the CRCR will use a convenience sample of 900 participants (180 growers, 180 retailers, 540 consumers) drawn from industry networks (for the growers and retailers), and a web-based panel of U.S. households (for the consumers).

TESCO FRESH & EASY REWARDS SHOPPERS USING LOCATION-BASED APP

Tesco-owned Fresh & Easy in the U.S. is rewarding shoppers who share their whereabouts via a location-based mobile app, spokesman Brendan Wonnacott told Supermarket News. Customers who visit the company’s newest stores and register their arrival are awarded a coupon for a free item. Fresh & Easy is considering expanding the scheme to additional stores. “Currently it's just for new stores, but it's something that we may branch out a bit with,” said Wonnacott.

April 25, 2011

WALMART TO GO

On Saturday, Walmart began testing home grocery service, offering free delivery for the first order.
Subsequent deliveries cost $5 per order, according to the website for the service.

For the teast, Walmart is picking the groceries from a store in San Jose and delivering them itself in its own trucks.

April 22, 2011

U.S. ORGANIC FOOD SALES SURGE 7.7%

U.S. sales of organic food and drink surged 7.7% to $28.6 billion in 2010, significantly ahead of the sluggish (less than 1%) growth in the mainstream food market, with some segments up more than 30%, according to the Organic Trade Association (OTA).

KROGER DIVISION VOWS TO CUT ENERGY BY 50%

In the next five years Kroger Southwest here plans to lower energy usage by 50%, an average decrease of 2% to 4% annually.

Since 2000, the division has reduced energy consumption in its stores by 30%.

April 21, 2011

SENATE APPROVES FOOD SAFETY ACCOUNTABILITY ACT

The U.S. Senate unanimously approved the Food Safety Accountability Act (S 216), which would increase criminal penalties for companies or individuals that knowingly violate food-safety standards and place misbranded or tainted food products in the market.

The bill would increase the offense from a misdemeanor to a felony, establishing fines and giving law enforcement the ability to seek prison sentences of up to 10 years for such offenses. The bill now goes on to the House of Representatives for consideration.

MORE NEW BUYERS USE DIGITAL OFFERS

In a study of digital print-at-home coupons, Knowledge Networks found 46% of U.S. redeemers were prior non-buyers of the product, compared with 34% for traditional print FSI coupons.

Seventy-seven percent of redemption volume for digital coupons is incremental, vs. 68% for print coupons.

CASE-READY PACKAGING

Developed to maintain the fresh red color of raw beef in a vacuum pack and extend shelf life, FreshCase materials are available for different formats including forming and non-forming films, vacuum skin packaging, trays and ground beef chubs. The see-thru, leak-proof packages are easy to open, freezer-ready and can be stored in the refrigerator, ready-to-cook, until the Use-By date.

The hermetic packaging offers a shelf life of more than 30 days for whole muscle beef and extends typical retail display life up to 28 days compared to three to five days for tray overwraps. According to the company, FreshCase vacuum packages use up to 75% less packaging material than modified-atmosphere packaging. By eliminating MAP gases, FreshCase packaging can nearly double the amount of meat transported per truck.

Source:
www.curwood.com

April 20, 2011

FRESH & EASY TO TEST PROPANE AS REFRIGERANT

Fresh & Easy Neighborhood Market is planning a test of self-contained coffin freezer cases each using just 4.5 ounces of propane gas as the refrigerant, in a store expected to open in June. Fresh & Easy has since 2009 deployed self-contained coffin freezer cases (from AHT Cooling Systems, an Austrian company with U.S. offices in Hanahan, S.C.) throughout the chain. Separated from the main refrigeration system, these horizontal plug-in cases function like home refrigerators, each employing only about nine ounces of refrigerant (R404A); they gain energy efficiencies by using sliding doors. Most Fresh & Easy stores have five of them. The propane test will also involve cases from AHT Cooling Systems. Propane is reported to be more energy-efficient than refrigerants such as R-22, and has a global warming potential - the impact on global warming compared to carbon dioxide - of only three, compared with R404A’s GWP of 3,500. And propane is only $2 per pound, vs. $10 per pound for R404A. Though flammable, the total amount of propane used in five coffin cases - 22.5 ounces - represents no real danger in retail stores, said Steve Hagen, national director of procurement and engineering, Fresh & Easy. However, because of its flammability, additional steps must be taken in design, labeling, testing, and training, compared to refrigerants currently used in retail food refrigeration, noted said Margaret Sheppard, environmental scientist in the Significant New Alternatives Policy (SNAP) Program of the US Environmental Protection Agency’s Stratospheric Protection Division, Washington. Last May, EPA proposed a rule to make propane acceptable under the SNAP program and a final rule, expected later this year, could increase the use of hydrocarbon appliances in the U.S., she noted. Given final EPA approval, Fresh & Easy could eventually use self-contained propane coffin cases in all new stores, Hagen said.
Source: Supermarket News

WALMART DE MÉXICO REPORTS STRONG Q1

Walmart de Mexico has reported that net sales for the first quarter rose 18.1% to $6.9 billion. EBITDA grew 17% to MXN8.2 billion (USD661 million), representing 9.7% of total revenues.

Scot Rank, Executive President and Chief Executive Officer for Walmart de México y Centroamérica said: “I am pleased to comment that we began the year with a first quarter in line with our expectations regarding sales and investment. In Mexico we opened 38 units, thus growing our sales floor by 79,000 square metres, which is 121% more than the footage that we added during the same period last year."
Source: Planet Retail

UNESEFUL LOYALTY PROGRAMS

According to a report from loyalty-marketing firm Colloquy, about a third of the $48 billion worth of loyalty rewards points and miles Americans accumulate each year go unused.

The retail industry, which makes up 40% of loyalty memberships, accounts for a fourth of the total reward value, at $12 billion in value.

About 173.7 million Americans belonged to loyalty programs, the report found. That represents about 28% growth in memberships in the last five years, compared with 80% growth in financial services loyalty programs and 109% growth in specialty retail.

April 19, 2011

TESCO LOOKS FOR FRESH & EASY LOSSES TO LESSEN

Fresh & Easy saw a widening in annual losses during the year to $290 million - owing to the acquisition of two dedicated fresh food suppliers, 2 Sisters and Wild Rocket Foods, along with exchange rate movements. Despite the higher losses Tesco still expects to break even towards the end of the 2012-2013 financial year - owing to improved store operating rations. U.S. sales rose 41.8% during the year to $783 million.

"The ones [customers] who use Fresh & Easy now really love it, but we just need more of them, and I can see quite a few things we can do to drive customer traffic," Tesco CEO Philip Clarke said.
The Tesco boss highlighted how Fresh & Easy is opening its stores an hour earlier and offering coffee as well as fresh baked bread and pastries. "It is normal in America, but we were not doing it. There are many more things we can do like that, but I see some promising signs already," said Clarke.

In the meantime, Fresh & Easy has appointed Nicole DeRuiter to the new position of Corporate Social Media Relations Manager.

DeRuiter will be responsible for the management of the chain’s social media outlets - Facebook, Twitter, YouTube, Flickr.com and Fresh & Easy’s corporate blog. She will also co-ordinate the use of social media within various departments.

WALMART ACQUIRES SOCIAL MEDIA COMPANY

Walmart has signed a definitive agreement to acquire social media company Kosmix, which provides technology to filter and organize content on social network sites.

The company’s platform analyses user data, search history and connections between contacts to streamline content so that it delivers more personalized streams of insights. The Kosmix platform is currently being used to power TweatBeat, RightHealth and Kosmix’s own site, which lets users search social content by topic.

The Kosmix team will be integrated with the retailer’s recently formed @WalmartLabs division in Silicon Valley, which is working on mobile commerce and social media strategies to support Walmart’s multi-channel aims.

”We are expanding our capabilities in today's rapidly growing social commerce environment," said Eduardo Castro-Wright, Walmart's Vice Chairman. He continued: "Social networking and mobile applications are increasingly becoming a part of our customers' day to day lives globally, influencing how they think about shopping, both online and in retail stores."

SMART & FINAL HENRY'S COMPLETES SPROUTS MERGER

Smart & Final-owned grocer Henry’s Farmers Market in the U.S. has completed its merger with Sprouts Farmers Market, Supermarket News reports. President and CEO of Sprouts, Doug Sanders said the company was taking some time to work out the best practices of each retailer, because “as similar as our companies always have been, it will take time, patience and great diligence to merge them into one".

New products will arrive on store shelves over the next few weeks, with new schemes and initiatives set to appear in store by early summer, and staff will be wearing new uniforms by September. No timescale for the change of Henry’s and Sun Harvest stores into the Sprouts banner has been given, although Sanders said it would happen eventually.

SUPERVALU RESULTS EXCEED EXPECTATIONS

U.S. retailer Supervalu has posted fourth-quarter fiscal 2011 results that show small year-on-year declines in net sales and net earnings.

Net sales were down from $9.2 billion in 2010 to $8.7 billion and net earnings dropped from $97 million to $95 million, but the company described the figures as "stronger than anticipated".

April 18, 2011

U.S. GROCERY PRICES ROSE 1.1% IN MARCH

The Consumer Price Index for food at home rose 1.1% in March, bringing the total rise for food to 2.7% over the past three months, the U.S. Bureau of Labor Statistics reported.

Overall, the index rose 0.5% in March on a seasonally adjusted basis – but the food index, including food at home and away from home, was up 0.8%. Gasoline and food prices together accounted for nearly three-quarters of the March index rise.

Food eaten away from home rose 0.3% - its largest increase since September - but the CPI report noted that grocery prices are outpacing restaurant price rises. Prices increased at all six major grocery store food groups in March, the report said, with increases ranging from 0.5% for cereals and bakery products to 1.9% for all fruits and vegetables.

The fresh fruits and vegetables sector saw a 4.7% increase, on the heels of a 6.7% increase in February, with tomatoes, potatoes and lettuce rising ahead of other produce. The index for dairy was up 1.3%, while for meats, poultry, fish, and eggs it rose 1.1%.

Over the past year, food at home has risen 3.6% with the index for meats, poultry, fish and eggs up 7.9%.

Although food price rises will undoubtedly affect Americans, particularly in the current economic climate, rising food prices are likely to have less impact on Americans than elsewhere in the world, according to market research organization The Nielsen Company. It says that food represents 6.9% of average household expenditure in the United States, compared to more than 11% for the average Austrian household, 15% in South Korea, and 45% in Pakistan.

PRIVATE-LABEL MAKERS: PRODUCTS SAVE CONSUMERS 33%

Private-label makers are looking to capitalize on consumers' growing concerns about recent increases in the costs of many grocery and other everyday items.

The Private Label Manufacturers Association (PLMA) has released a new study that concludes that consumers on average can save 33% off their grocery bills by buying all private-label products.

Over a six-week period (February 12 to March 19), the association tracked bills for market baskets comprising 40 staple grocery, household and personal care items, comparing the total costs for all-private-label and all-branded-product equivalent market baskets.

Results: Private-label basket bills averaged $84.73 over the period, versus branded-product baskets' average of $127.03, for average savings of $42.30, or 33.3%.

April 15, 2011

U.K. RETAIL SALES HAVE SUFFERED THEIR WORST DECLINE SINCE 1995

U.K. retailers have seen the "worst sales fall for at least 16 years" according to the latest British Retail Consortium (BRC) figures. The consortium said that U.K. retail sales were down 1.9% against March 2010, when sales were up 6.6%, boosted by an earlier Easter. On a like-for-like basis, sales were down 3.5% against a 4.4% increase in March 2010.

The food sector fared better than non-food during the quarter, with food sales down 0.3% on a like-for-like basis, while non-food sales fell 1.1% over the period. On a consolidated basis, food sales were up 2.2%, while non-food sales were flat.

FRESH & EASY GIVES $1.3 MILLION THROUGH SHOP FOR SCHOOLS PROGRAM

Fresh & Easy Neighborhood Market announced the results of its third-annual Shop for Schools program. Nearly 2,000 schools actively participated in Shop for Schools this school year, earning more than $1.3 million that each school can use for whatever they need most.

Shop for Schools was launched as a pilot program in spring 2009, raising more than $130,000 for schools in California, Nevada and Arizona. Fresh & Easy brought the program back in fall 2009, raising another $670,000 for local schools.

April 14, 2011

STOP “SCAREMONGERING” ABOUT RED MEAT

Meeting with Eblex, the organization responsible for the English beef and sheep industry, a spokesman for the European Union Directorate General for Agriculture and Rural Development said the EU should not dictate what consumers eat, notably the current widespread opinion that people should eat less red meat for health reasons.

The EU should provide better information to tackle the issues such as eating red meat.

A recent study carried out by the World Cancer Fund said consumers should limit the amount of red meat they eat to the equivalent to one lamb chop or two slices of roast beef a day, in order to reduce the risk of developing bowel cancer. According to the study, red and processed meat can increase the risk of bowel cancer and people are advised to eat under 90g per day.

However a study released at the end of February this year from the British Nutrition Foundation shows that eating red meat as part of a healthy diet is not linked to any adverse health effects. The research found that eating red meat in moderation as part of a well-balanced diet actually benefited the body, providing essential nutrients required for a healthy diet.

PLA PACKAGING MAY EXTEND FRESH PRODUCE SHELF LIFE

A study conducted in the Food and Biobased Research Department of the University of Wageningen, in The Netherlands, found that packing peppers and tomatoes-on-the-vine in PLA (polylactid acid) extended shelf life by two days, according to a news release from Eosta BV, a Waddinxveen, Holland-based organic produce shipper.
PLA is derived from corn starch, sugar cane and other renewable resources.

PROFITS DECLINE FOR SUPERVALU

U.S. grocer SuperValu has reported a net loss of $1.5 billion for the fiscal year ended February 26. This compares to a net profit of $393 million reported in 2010. Net sales declined by 7.5% to $37.5 billion, with food accounting for 77% of the total. Food retail sales declined by 8.6% to $28.9 billion for the full year.

For the fourth quarter, net sales amounted to $6.7 billion, compared to the $7.2 billion reported in the same period last year. The retailer attributed the decline to a -5% decline in identical store sales, store closures and market exits.

In fiscal 2012, the retailer expects net sales to be approximately $37.5 billion while identical store sales are forecasted to be in the -2.5 to -1.5% range.
Capital spending is projected to be approximately $700-750 million, which will include 55 to 75 store remodels and 210 hard discount stores, including licensed locations. No new traditional retail stores are planned for fiscal 2012.
Source: Planet Retail

April 13, 2011

NPD: DINING-OUT HABITS VARY AMONG HISPANIC CUSTOMERS

The dining-out habits of Hispanic customers who are fluent in English differ from those who primarily speak Spanish, a new study from The NPD Group has found.
Data from the Port Washington, N.Y.-based firm’s most recent survey revealed that Spanish-speaking customers are more likely to visit restaurants for morning meals and snacks than non-Hispanics and English-speaking Hispanics.

Among restaurant visits for Spanish speakers, 31% occur at breakfast and 22% take place during the evening-snack daypart.
By comparison, for both English-speaking Hispanics and all non-Hispanics, only 18% of visits happen during the morning daypart and 15% of visits occur during the evening-snack period.
“According to the Pew Research Center, 44% of Hispanics are most comfortable speaking Spanish, and our study finds that Spanish-speaking Hispanics use restaurants differently than English-speaking Hispanics,” said Bonnie Riggs, the research firm’s restaurant analyst. “These are important considerations when marketing to Hispanics. The messaging and communications need to be relevant to each group.”

The 2010 U.S. Census reported that there are some 50 million Hispanics living in this country, accounting for 16% of the entire population. NPD said Hispanics make 9.8 billion visits to restaurants in the United States each year.

Hispanic customers comfortable with either language are more likely than non-Hispanic consumers to bring children with them to restaurants, NPD found. More than half of restaurant visits involving Spanish speakers and one-third of those from English-speaking Hispanics involve children, while only 29% of restaurant visits from non-Hispanics include parties with children.
Source: Restaurant News

POOR DIET AFFECTS KIDS BEHAVIOUR

Children who lack access to healthy foods, particularly fruit and vegetables, are twice as likely to develop behavioral problems, an Australian study found.
Researcher Rebecca Ramsey found one in four households goes without healthy food because of low income levels."It is not that these households are spending their limited money on junk food. It is more that they are unable to afford a variety of fruit and vegetables and instead may be purchasing larger quantities of staples such as rice and bread," she said.

Food insecure households were between 25% and 40% less likely to consume the recommended servings of fruit and between 15% and 25% less likely to consume adequate servings of vegetables, she said.

"Children are two and half times more like to display behavioral problems if they live in a food insecure household," she said.

She said a unhealthy diet could affect children's behavior and social skills.

Ramsey said nationally food insecurity affected 5% of the population but the National Health Survey which monitors the figure was from 2004.

April 12, 2011

USDA PROPOSES 'TEST AND HOLD' PROCEDURE TO BOOST MEAT SAFETY

The U.S. Department of Agriculture has proposed that companies should hold meat and poultry products until inspectors have received foodborne pathogen test results, in an effort to reduce illness.

The department’s Food Safety and Inspection Service said that it inspects “billions of pounds of meat, poultry and processed egg products annually” and it believes that 44 of the most serious food recalls from 2007 to 2009 could have been prevented it the agency had had a ‘test and hold’ procedure in place during that time.

KROGER AND TESCO TO OPTIMIZE PRICES WITH KSS RETAIL

U.S. retailer Kroger and U.K.-based grocery giant Tesco have both announced they plan to implement the latest version of Dunnhumby-owned KSS Retail’s PriceStrat price optimization software, which now features customer segment-based modeling and optimization.

In addition to simulating the effects of regular and promotional pricing scenarios, the new function allows retailers to integrate customer behavior into their pricing and promotion decisions.

April 11, 2011

WALMART REINFORCES ITS COMMITMENT TO DELIVER LOW PRICES. EVERY DAY

Walmart announces more steps to re-establish its one-stop shopping convenience and deliver low prices every day, on everything. The retailer is reinvigorating its price leadership promise, bringing back products its customers have asked for and simplifying its ad match policy. These efforts are highlighted in new advertising that launches today.

To reinvigorate the fundamental price promise, Walmart is stepping up its efforts to provide low prices, which include:
- Increasing competitive checks: Store managers and product buyers are checking the competition more often to help ensure Walmart stores offer lower prices on the right mix of items.
- Partnering with suppliers: The retailer is working even more closely with suppliers to lower the cost per item and pass those savings on to customers.

The company’s ad match policy is the most competitive in the market, eliminating the need to shop around to save money. To make it easier for customers, Walmart has:

- Simplified guidelines: Customers do not have to bring in a competitor’s advertisement. If customers find a lower advertised price, we’ll match it at the register.*
- Implemented new associate training: Extensive associate training helps to ensure the policy is executed consistently across all stores.

Walmart is broadening product assortment by approximately 8,500 items or 11% in an average store. These assortment changes will bring back customers’ favorite local food and consumables, among other products.

The retailer is adding back products every day. Additions to the dry grocery aisles for products like pasta, beverages and snacks have been in progress and will continue. In the next few months, additions to fresh grocery and consumables, such as paper towels, toilet paper and laundry detergent, as well as health and wellness products, will be made. General merchandise categories like electronics, sporting goods, apparel, fabrics/crafts and outdoor living will expand later this year.

Walmart is launching a national television advertising campaign today to help customers better understand its low price promise and Ad Match Guarantee on the widest assortment of products. In May, new in-store signage will appear in stores nationwide.

April 08, 2011

TARGET TO OPEN 200 STORES IN CANADA

Target CFO Douglas Scovanner has said the retailer will open around 200 stores in Canada - a rise from earlier estimates – and expects to generate at least $6 billion in annual sales in the country in just six years.

STRAWBERRIES COULD PREVENT CANCER

New research carried out by the Ohio State University suggests strawberries may help prevent esophageal cancer.

“We concluded from this study that six months of strawberry treatment is safe and easy to consume. In addition, our preliminary data suggests that strawberries decreased histological grade of precancerous lesions and reduced cancer-related molecular events, said Dr Tong Chen, who is the assistant professor in the division of medical oncology at the university.

“We found that daily consumption of strawberries suppressed various biomarkers involved in esophageal carcinogenesis, including cell proliferation, inflammation and gene transcription,” said Dr Chen.
The California Strawberry Commission helped fund the research.

April 07, 2011

DIGITAL COUPONS ON THE RISE

According to NCH Marketing Services' Coupon Facts Report, 2011, nevertheless digital coupons represent a fraction of total coupon distribution, they are expected to become a major promotional force as infrastructure issues are resolved, i.e. the ability of POS to process coupons digitally.

Freestanding inserts in newspapers account for 87.7% of U.S. Consumer Packaged Goods (CPG) coupon distribution. The rest consists of in-store handouts (5.2%), direct mail (2.4%), magazines (2.2%), in/on pack and cross-ruff, an on-pack coupon redeemable on a different product (1.1%), and finally all other, which includes all digital formats, at less than 2%. Most industry sources peg the percentage of digital coupons at 1%.

Aided by the tough economy and rising food prices, total CPG coupon redemption grew 3.1% last year, and distribution jumped 6.8% to 332 billion, according to NCH. But the number of coupons available at major on-line distribution sites increased by 33.6%, and the number of manufacturers offering them (290) grew by 17%.

WALMART INCREASES GLOBAL GIVING IN LAST FISCAL YEAR

Walmart and the Walmart Foundation announced $319 million in cash and $480 million in in-kind contributions around the globe during the fiscal year ending January 31, 2011.

The company’s U.S. giving grew by 64%, largely due to donations of produce, meats, poultry and other nutritious food to local food banks from Walmart stores, Sam’s Club locations and distribution centers.

COCA-COLA'S GIVE IT BACK RACKS A NOD TO SUSTAINABILITY COMMITMENT

Coca-Cola has developed 100% recyclable display racks for use in U.S. grocery and convenience stores.
The new Give It Back racks are stand-alone units made of easily recyclable corrugated cardboard, Coca-Cola said. The soft drink giant said the merchandise displays expand its commitment to sustainability. The racks currently are being tested in select markets and are expected to become widely available in late 2011.

"Coca-Cola recovered 400 million lbs. of cans and bottles in the U.S. in 2010, yet we want to do more," said Gary Wygant, VP business development of Coca-Cola Recycling. "By creating a 100% recyclable merchandise display rack, Coca-Cola is asking grocery and convenience stores to join our sustainability efforts by returning or recycling our racks, just like we ask consumers to return or recycle our product packaging."
Source: Drug Store News

April 05, 2011

WALMART MAY TEST ON-LINE GROCERY DELIVERY SERVICE IN SAN JOSE

The World’s largest retailer may test its first fresh grocery delivery service in California, looking on-line for new sources of revenue growth, said a person familiar with the project.

According to Bloomberg the web service, internally dubbed Project Titan, “hasn’t yet been approved and may not happen. If it goes forward, Walmart stores in the San Jose area would fill deliveries for shoppers living nearby.”

Walmart recently appointed a new top executive to its on-line operations, in the form of Richard Ramsden, who previously headed up home shopping for Walmart’s U.K. arm, Asda. Ramsden is now working at the retailer’s Walmart.com headquarters in Brisbane, California.
Last year, Walmart.com expanded its dry grocery assortment to include breakfast items, beverages, snacks and candy. At the same time, the site started free same- day pickup of on-line orders in its stores, which will be available at all locations by June.

PRIVATE LABEL MEAT SALES DRIVING MARKET

Despite consumers becoming more price sensitive in recent years, dollar sales for center-plate proteins, including poultry, beef, pork and seafood, rose during the five years from 2006 to 2010, according to market researcher Packaged Facts.

Sales of dinner center-plate proteins exceeded $5 billion in 2010, with sales rising 4%. The increase may be attributed to Americans trying to save money by cooking and eating at home, Packaged Facts said in its new report “What’s for Dinner 2011: Trends in Center of Plate.”

“We expect sales growth to continue at 4% annually for the next three years, benefiting from the strengthening economy but facing increased restaurant competition as that channel also reaps the rewards of U.S. consumers loosening their purse strings,” said Don Montuori, publisher of Packaged Facts. “By 2014, sales will begin to moderate, with 3.5% annual growth in 2014 and 2015, bringing U.S. retail sales to slightly more than $6 billion.”

Private label products topped the poultry, meat and seafood categories, and the appeal of private label offerings means this is a tentative economy and consumers are looking for value. Private label meat had 43% market share, and in comparison Cargill had 12% share as the leading national brand. Private label fresh and frozen chicken had 28% of center-plate poultry market, which was more than double the level the sales of the category’s top marketer, Jennie-O. Private label seafood sales were at $60 million in 2010, up 17% from the previous year.

FDA DELIVERS FOOD RECALL SEARCH SITE, AS REQUIRED BY FOOD SAFETY BILL

The Food and Drug Administration (FDA) has launched an easier-to-use version of its food recall search engine, in direct response to Food Safety Modernization Act requirements.

The new version presents recall information by date in table format going back to 2009, and includes product brand name, product description, reason for the recall and the recalling firm, as well as whether the recall is ongoing or completed.

An illustration comparing the FDA’s old and new food recall search engine sites is available on-line: http://www.fda.gov/Food/FoodSafety/FSMA/ucm249433.htm.

April 04, 2011

FDA PROPOSES CALORIE LABELING ON VENDING MACHINES AND MENUS

The Food and Drug Administration (FDA) has proposed calorie labeling on food sold from vending machines, as well as on restaurant menus, in an effort to fight back against the nation’s obesity problem.

The proposed regulations would mandate calorie labeling for foods sold from vending machines, and on menus in chain restaurants with 20 or more locations.
Establishments for which selling food is a secondary activity, such as movie theaters and airplanes, would be exempt under the proposals.

WALMART RAMPS UP CHINESE EXPANSION

Walmart plans to increase its penetration in smaller Chinese cities, Bloomberg reports. According to Ed Chan, CEO of Walmart China, the proportion of Walmart stores located in tier one cities is expected to fall to 18% in 2014 from 20% last year.

There are also aggressive plans to expand the Sam’s Club operations from the current four provinces to 17 Chinese provinces in five years. Future growth may be pursued through land acquisition as opposed to leasing property due to rising real estate prices.

Last year, Walmart China generated sales of $7.5 billion, or 1.8% of the company’s total, through its 329 stores.
Source: Planet Retail

April 01, 2011

NEARLY HALF OF MOBILE USERS SHOP VIA THEIR DEVICE

The increase in shoppers brandishing mobile devices means retailers can't afford not to have a mobile presence, finds new research by Arc Worldwide, and those that do provide mobile apps and websites must ensure they meet the high expectations of today's on-the-go consumer.

At the end of last year, research from Brand Anywhere and Luth Research found that while over half (51%) of shoppers are more likely to purchase from retailers with mobile websites, only 4.8% of retailers had one.

Of the 1,800 U.S. mobile shoppers surveyed for the research 80% were found to be "light" mobile shoppers, who use their phones less often than the 20% of "heavy" users that many mobile apps are geared toward.
Source: BizReport