FDA SEEKS VIEWS ON FOOD SAFETY HAZARD PROPOSALS

The Food and Drug Administration (FDA) is seeking comments about a range of proposed steps for food companies to evaluate food safety hazards at manufacturing plants. The rules have been created as part of the FDA Food safety Modernization Act. Under the law, preventive control plans must be created with information about evaluating hazards that could affect food safety and specifying preventive step to minimize or prevent the hazards.
Comments may be submitted electronically or in writing until August 22. The proposed rule on preventive controls for food facilities is expected to be published this fall.

NEW PROGRAM TO REPLACE FOOD PYRAMID

The U.S. Department of Agriculture will replace the “My Pyramid” guidelines for healthy eating with a new program featuring a four-colored plate symbol, according to reports over the weekend.
The new program, to be unveiled June 2, will stress eating smaller portions, eating more fruits and vegetables, reducing sodium, and drinking low-fat milk, the reports said.

ADVOCACY GROUPS SUE FDA OVER ANTIBIOTICS IN MEAT

A number of consumer advocacy groups filed a lawsuit against the Food and Drug Administration (FDA) on May 25 alleging the agency has failed in its legal responsibility to address overuse of antibiotics in animal feed. The lawsuit has no bearing on the use of antibiotics for treating sick animals.

The complaint, filed by the National Resources Defense Council (NRDC), the Center for Science in the Public Interest (CSPI), Food Animal Concerns Trust (FACT), and Public Citizen and the Union of Concerned Scientists (UCS), seeks to force FDA to act on its own safety findings, which would involve withdrawing approval for antibiotic use in animal feed for non-therapeutic uses.

WALMART NAMES NEW CFO AND COO FOR CHINA, WHILE IN INDIA...

The retailer has appointed Mario José Medina as Senior Vice President and Chief Financial Officer, while Del Sloneker has been named as new Chief Operating Officer.
Medina was Chief Executive Officer of Walmart Chile at the time of his appointment. Sloneker previously served as Senior Vice President in several functions at Wal-Mart Stores.

In the meantime, Walmart is continuing its push into India, announcing plans to open up to 20 megastore wholesale outlets with joint partner Bharti Enterprises.
The venture between the two companies currently operates four Best Price wholesale stores in Punjab state and one in both Rajasthan and Madhya Pradesh.
According to a report by AFP, Bharti Walmart chief executive Raj Jain said the company planned to open eight to 10 stores in 2011 and the same number the following year.

DOLLAR GENERAL ENTERS CALIFORNIA

US discount retailer Dollar General will enter California, with plans to open its first stores in the state in 2012, after successful western expansion in recent years.

Chairman and CEO of Dollar General, Rick Dreiling, commented: “Our California stores will mark a significant milestone for Dollar General, giving us a coast-to-coast presence for the first time."

Dollar General plans to serve California shoppers in suburban, rural and metropolitan markets.
Dollar General has nearly doubled its size since 2000, growing from 5,000 stores to over 9,500 today.
Source: Planet Retail

TATE & LYLE TO REOPEN US FACTORY

Tate & Lyle plans to reopen a Splenda plant as surging demand for sweeteners helped sales from continuing operations climb 7% to $4.48 billion.

The sugar giant will restart Splenda production at its mothballed plant in Alabama in 2013 in anticipation of continued rising demand from new and existing customers.

ALDI SÜD OPENS FIRST U.S. SHOPPING MALL STORE

German discounter Aldi Süd has opened its first location inside an enclosed shopping centre in the U.S.

The store is located in the Chicago Ridge mall near Chicago, IL.

99¢ ONLY STORES PROFIT RISES IN FY

US discounter 99¢ Only Stores reported retail sales came in at $366.4 million for the fourth quarter ended April 2, up from $328.6 million for the same period in 2010, which was 13 weeks long compared to this year’s 14-week quarter.

Same-store sales on a comparable 13-week basis rose 0.5%.
Net income for the fourth quarter increased to $7.9 million compared to $16.9 million in Q4 2010. Net income as a percentage of sales declined to 4.7% versus 5% in the same quarter last year.

Annual same-store sales on a comparable 52-week basis increased 0.7% in fiscal 2011 compared to fiscal 2010.

In the meantime, 99 Cents Only Stores said this week it will expand its tests of merchandise priced above $1 following "very positive" customer reactions to its tests with gallons of milk. "Experiments with items over a buck is something that we'll be looking at more this year," Eric Schiffer, chief executive officer, told analysts during a conference call.

Schiffer said 110 of the company's 285 stores sell gallons of milk priced over $1, "and we're looking to bring another 25 to 30 stores on line in the next couple of weeks." Most of those stores are in Texas, with the balance in California, he said. Stores in Arizona and Nevada do not carry milk, he added.

USDA RELEASES 2009 PESTICIDE DATA

The U.S. Department of Agriculture’s Agricultural Marketing Service division has posted the 2009 Pesticide Data Program Annual Summary to its website at www.ams.usda.gov/pdp.

USDA RETAIL FOOD-INFLATION FORECASTS FOR 2011

Following is the text detailing forecasts (updated) for percentage changes in annual food prices, according to the U.S. Department of Agriculture.

In 2011, the Consumer Price Index (CPI) for all food is projected to increase 3 to 4%. Food-at-home (grocery store) prices are forecast to rise 3.5 to 4.5%, while food-away-from-home (restaurant) prices are forecast to increase 3 to 4%.
Source: Bloomberg

COSTCO BOOKS SALES, PROFITS GAINS, BUT INFLATION...

US club store operator Costco has booked a jump in earnings for the first nine months of the year as strong sales gains boosted the group's result.

Net sales for the nine months to May 8 rose 13% to $59.46 billion, including sales from the group's Mexican joint venture, which Costco began to consolidate into its financial results in fiscal 2011. Excluding this, comparable sales were up 9% in the period.

Costco also revealed that currency exchange and gas price inflation raised the group's sales totals. Excluding petrol and currency exchange, sales were up 6% during the period.

Net income was $984m, or $2.22 per share, compared to $871m, or $1.95 per share, last year.

For the quarter ended May 8, Costco reported a profit of $324 million up from $306 million a year earlier. Revenue jumped 16% to $20.62 billion. The chain took a pretax inventory charge of $49 million as inflation swelled in the quarter.

Same-store sales, excluding currency changes and gasoline, were up 7%. The sales increased 6% in the U.S. and 11% internationally. Total same-store sales, including Mexico stores, rose 12%.

The company continues to take advantage of manufacturer deals prior to price increases, Richard Galanti, executive vice president and chief financial officer, said. “Then we hold the price for a few weeks and benefit on the tail end to cover our costs.”

Speaking with analysts during a conference call to discuss financial results, Galanti said another round of price increase announcements are due next week, “and we will probably get hit first. But it is what it is, and we're fighting to delay passing the increases on and to sell as much at the old price as we can.”

WINN-DIXIE SUES DOLLAR GENERAL OVER FOOD

Winn-Dixie Stores has filed suit against Dollar General, alleging it is breaking restrictive lease covenants by selling too many food items at stores in more than 100 centers where Winn-Dixie is the anchor tenant.

WALGREENS IN PRODUCE PILOT PROGRAM

Walgreens has started a campaign to offer healthy foods on-the-go by rolling out a pilot program that has seen fresh fruit and vegetables introduced at 30 of its stores.

HOUSE MULLS FDA FUNDING CUTS

Members of the US House of Representatives have debated Republican proposals to reduce the US Food and Drug Administration's budget by 11.5% in fiscal 2012.

The proposals would reduce the FDA's budget by $285m and impose a $35m cut on the US Department of Agriculture's Food Safety Inspection Service.

FOOD INFLATION ACCELERATING IN THE US

Retail-food prices will jump more than the U.S. Department of Agriculture’s estimate of 3% to 4% this year, said Chad E. Hart, an economist at Iowa State University in Ames.

Companies will pass along more of their higher costs through year-end, said Bill Lapp, a former ConAgra Foods Inc. chief economist.

COCA-COLA SETS UP NEW DIVISION TO ADDRESS GLOBAL SUSTAINABILITY GOALS

Beverage giant Coca-Cola is setting up a new division in North America to oversee the company’s global sustainability vision, strategies, and goals for 2020. “Company veteran” Beatriz Perez has been appointed chief sustainability officer (CSO) to head the new team at the company’s global office of sustainability.

The company has 25 sustainability goals across multiple areas of focus including water stewardship, sustainable packaging, climate protection and supporting sustainable communities.

One of the biggest areas of focus for the company is water, a field in which the company is working actively to maintain a water sustainable business on a global scale.

The strategy is to minimize the company’s operational water footprint by meeting or exceeding its water efficiency and wastewater treatment targets.

FRESH & EASY ANNOUNCES SAN FRANCISCO OPENING DATES

Fresh & Easy Neighborhood Market today announced the opening dates for its first two stores in San Francisco, CA. These store openings will create more than 50 good jobs.
Fresh & Easy will open two stores in San Francisco this summer:
- 32nd Ave. & Clement St. June 22
- 3rd St. & Carroll Ave. August 24.

WALMART SETS UP EUROPEAN ACQUISITION TEAM, BUT THE COMPANY .....

According to the UK newspaper The Independent, Walmart is looking for an office in Great Britain to house a continental European acquisitions team.

According to the newspaper, Walmart has hired Cushman & Wakefield to search for office space in West London to house around 35 to 55 people. The team would be independent of Walmart’s UK chain Asda, which is based in Leeds, and the London-based fashion team for its George brand.

In the meantime, a spokesperson for Asda, Walmart's UK subsidiary, described the reports as "speculation dressed up as fact".

SAFEWAY TO ROLL OUT JUST FOR U PERSONALISED PRICING

U.S. grocer Safeway plans to roll out is program “Just for U” to all of its stores by the end of the year, Supermarket News reports. The program offers consumers personalized pricing based on their shopping history.

Participating Safeway customers sign into their account at the grocer’s website and click on the personalized offers and manufacturers’ coupons they want placed electronically onto their Safeway Club Card.

So far, "Just for U" has been available in the chain's Hawaii stores since last summer and in the Chicago and Northern California divisions since autumn. An updated version of the program is already available in a small test market.

GRIMMWAY SWITCHES TO SOLAR POWER

Grimmway Enterprises Inc., the largest carrot grower in the world, is making its carrots green with Conergy USA. The company completed the 230 kilowatt ground-mounted power system, featuring more than 1,000 solar modules, on one of Grimmway’s carrot farms located near Arvin, California.

TARGET CANADA ENTRY COSTS MORE THAN EXPECTED

U.S.-based retailer Target has said it is spending more on its Canada market entry than expected and has managed to secure top retail locations ahead of schedule. The retailer said clarification on the number and the locations of its stores will be made within weeks.
The retailer is now expecting start-up costs for the market entry to $0.16 per share to $0.20 per share, a significant rise from the $0.10 a share previously forecast.

ECONOMY CUTS INTO SHOPPING TRIPS, RETAILER PROFITS

Supermarket profitability slipped to a new low in 2010 as consumers increasingly focused on bargains and made fewer trips to the store, according to data released at Food Marketing Institute’s Future Connect.

Median profits before income taxes and extraordinary items fell to 1.57% last year, FMI’s 2011 Speaks survey of retailers found. It was the lowest margin reported in the last 10 years, falling slightly below 2009 levels of 1.62%.

In addition, FMI’s 2011 Trends survey of consumers found that consumers reduced their frequency of grocery shopping trips to 1.69 per week, the lowest in the 62-year history of the survey. About 34% of shoppers only bought groceries once a week, up from 29% a year ago, and those shopping only once every other week increased to 20%, vs. 12% a year ago.

While the industry grew total sales 3.1% in 2010, adjusted for inflation, median same-store sales fell 0.6% on a weighted basis and were down 0.1% on an unweighted basis, according to Speaks. The weighted median weekly sales - adjusted for company size - totaled $444,390 per week, or $278,760 on an unweighted basis.

Still, customers seem to appreciate their primary supermarket more than ever, overall satisfaction rose to 8.4 on a scale of 1 to 10, and 95% of shoppers said they would recommend their primary store.

The willingness to shop multiple stores dropped significantly in 2010, and consumers indicated they made fewer trips to convenience stores and drug stores to buy groceries in 2010.
In addition, the number of consumers indicating that a traditional supermarket was their primary grocery-shopping destination rose slightly, to 57%, in 2010. The number of shoppers indicating that supercenters are their primary grocery-shopping destination also rose slightly, to 29%.

Shoppers spend an average of $97.30 per week on groceries, more than three-quarters of it at their primary store.
Source: Supermarket News

GMOs UNDER FIRE IN THE U.S.

In the absence of a federal law requiring labels for genetically modified food (GMOs), 14 states are debating whether to mandate labeling for modified foods sold within their borders.

The discussions come as federal regulators weigh approval of the first genetically modified animal, a salmon, for human consumption.

In four states - California, Oregon, Vermont and Alaska - lawmakers are considering legislation that would pertain only to fish. The other states, including New York, are grappling with measures that would require all foods made from genetically modified ingredients to disclose that information on the label.

WALMART ANNOUNCES MEXICO AND CENTRAL AMERICA EXPANSION DRIVE

Walmart has a plan to open 365 new stores in Mexico compared to the 267 opened last year. In Central America, Walmart expects to open 80 new stores, up from 30 last year.

As a result, Walmart believes that annual growth rates in sales will reach 14-15% in 2012 and beyond. Sales growth, excluding the Central American operations, has averaged around 10% in previous years.

DOLLAR TREE SEES COMPARABLE STORE SALES INCREASE

Dollar Tree has reported consolidated net sales increased 14.3% to $1.55 billion in the first quarter ended April 30.

Comparable store sales increased 7.1% following an increase of 6.5% in first quarter 2010.

The company’s net sales increased from USD1.35 billion in Q1 2010 to USD1.55 billion in 2011.

During the first quarter, Dollar Tree opened 83 stores, closed seven stores, and expanded or relocated 41 stores. The retail selling square footage increased 9% compared to first quarter 2010, to 36 million sq ft.

GAO CRITICIZES FDA SEAFOOD IMPORT SAFETY PROGRAM AS “LIMITED”

The Government Accountability Office (GAO) has criticized the Food and Drug Administration’s (FDA) program to oversee the safety of imported fish and seafood as ‘limited’, in a new report issued this week.

In its report, released under the title “Seafood Safety: FDA Needs to Improve Oversight of Imported Seafood and Better Leverage Limited Resources”, the GAO says that the (FDA) needs to strengthen its testing for unapproved drugs that may be used in some overseas fish farms for prevention of bacterial infections.

“FDA's oversight program to ensure the safety of imported seafood from residues of unapproved drugs is limited, especially as compared with the European Union,” the report said. “…The inspectors generally do not visit the farms to evaluate drug use or the capabilities, competence, and quality control of laboratories that analyze the seafood.”

Referring to assessments carried out by the FDA to gather information about five foreign countries’ aquaculture safety programs, the GAO said: “These assessments have been limited by FDA's lack of procedures, criteria, and standards.”

The GAO said that about half of seafood imported into the United States each year comes from fish farms. According to data from the US Department of Agriculture, about $14.7bn worth of fish and seafood was imported into the US last year, up from $13.1bn worth in 2009.

The full GAO report is available here http://www.gao.gov/new.items/d11286.pdf

CALIFORNIA LAW CHANGE A STEP CLOSER FOR FRESH & EASY

The Californian bill that could force Fresh & Easy to add full-service checkout stands in its 126 stores has progressed past the committee stage.

If the bill is passed by the full assembly and California State Senate and signed into law later this year, the sale of alcoholic beverages at self-service checkout stands will be banned.

SUSTAINABILITY: A KEY OPPORTUNITY FOR US FOOD PACKAGING FIRMS

Environmental sustainability offers a key opportunity for the United States food packaging sector, a US executive told delegates at a seminar at the Interpack trade event in Dusseldorf, Germany.

"Green packaging is a huge opportunity for food producers - particularly in the snack and bakery categories," Eva Peters, director of Packaging Development at Pepperidge Farm told the seminar.

Speaking to FoodProductionDaily after the meeting, Peters said: "Sustainability is here to stay. I have been in the industry for 30 years, I've seen pockets of interest in sustainability but never to this level."
As pricing becomes no longer an option to drive profitability and with cost-cutting opportunities exhausted, there is growing interest in sustainability. "Packaging can help to drive sales. While packaging will always be about protecting food - with food safety always paramount - there's growing interest in sustainability; protecting the product in the most sustainable way," she said.

Pepperidge Farm, part of the Campbell's food and beverage group, plans to extend its sustainability program based on the principles of food protection and partnership with research groups, together with the themes of recycle and renew. In particular, the company is considering how it might pilot a new sustainable packaging product and educate consumers about its benefits.
Peters praised the sustainable packaging successes achieved by Danone with its yoghurt cups and Proctor & Gamble with detergents. "So far, there's really nothing in the snacks and bakery sector to compare to their successes ," she said.
The continuing economic recession miring the US economy is bringing new opportunities for the packaging sector, continued Peters. As unemployment reaches nearly 10 per cent, about 78 per cent of consumers are now cooking at home, said Peters. "That brings opportunities for product ranges such as Campbell's simple meals and other products."

Meanwhile, the importance of packaging in driving sales was highlighted at the trade show by German retail consultancy EHI Retail Institute. European consumers are confused by the vast array of choice, said institute researchers. The average German supermarket now stocks more than 15,000 items compared with 6,000 articles in the mid 1990s.
That means most shopper act on instinct, said the researchers. About 70 per cent of shoppers decide what to put in their shopping basket only at the point of sale.
"This is where the importance of the sales package leaps out, because it acts as a decision aid at the shelf," according to the Munich-based research firm. "The influence of packaging on purchasing decisions is twice as high as that of TV advertising, billboards or print media."
Source: FoodProductionDaily

BJ'S PROFIT JUMPS

BJ's Wholesale Club raised its full-year earnings outlook as it booked a 29% jump in first-quarter profits.

Net income rose to $33.7 million in the three months ended April 30, up from a profit of $26.1 million in the same quarter last year.

Revenue climbed 10% to $2.83 billion, boosted by higher gas and food sales. Same-store club sales rose 6.3%, or 2.4% excluding gas. Food sales rose by 4%, driven primarily by an 8% increase in perishable foods. General merchandise revenues were down about 1% on the year.

BJ's said it now expects full-year earnings of between $2.68 and $2.88 per share, up from its forecast in March of $2.62 to $2.82.

TARGET REPORTS STRONG Q1

US mass merchant Target reported net earnings of $689 million for the first quarter ended 30 April, a rise from the $671 million posted in the same period last year.

In the US, sales increased 2.8% to $15.6 billion for $15.2 billion in Q1 2011, attributable to a 2% rise in comparable store sales and the addition of new stores.

EBIT fell 4.2% to $1.1 billion, while EBIT margin declined to 6.8% from 7.3% in the same quarter of the previous year.

FRESH & EASY EXPANDS GLUTEN-FREE OFFERINGS

Building on the success of the gluten-free products it already carries, Fresh & Easy is expanding its range of gluten-free products and creating additional displays to highlight them in stores. Gluten-free items have always been among the most frequently requested products by customers and in January 2010, Fresh & Easy introduced more gluten-free items, created a labeling system for the products and added a list of all gluten-free products on its website: www.freshandeasy.com/glutenfree.

The company has also partnered with the Celiac Disease Foundation to highlight this month as Celiac Disease Awareness month. As more and more people are diagnosed with celiac disease, or choosing a gluten-free lifestyle, Fresh & Easy is offering itself as a neighborhood solution for people who have a very difficult time finding the foods they want and need.

Fresh & Easy already has more than 500 products without naturally-occurring gluten ingredients, and recently added between 15-30 additional products to its selection, depending on the store.

DIGITAL ORDERING SYSTEM FOR MCDONALD'S EUROPE

McDonald’s in Europe is looking to install touch screen technology and swipe cards in some of its 7,000 outlets to improve the customer ordering process. The digital ordering system would replace the need for so many cashiers and partly phase out cash payments.

Ordering food has not changed for 30 or 40 years, but, according to McDonald’s, the new technologies will improve efficiency and make the average transaction 3 to 4 seconds quicker.

The new system would allow the company to gather customer data on ordering habits.

PROFIT RISES AT WALMART

Walmart posted a better-than-expected quarterly profit but continued to struggle with stores in the United States. Sales at stores open at least a year fell by 1.1% in the quarter, the company said.
Earnings over all beat analyst expectations, helped by to sales strength in international stores and at Sam’s Club.

The company said profit was $3.4 billion, or 97 cents a share, up from $3.3 billion, or 87 cents a share, a yearf earlier. Wal-Mart had forecast a profit of 91 to 96 cents a share for the quarter, and analysts expected a 95-cent a share profit on average. Revenue in the period, which ended April 30 and was the first quarter of Walmart’s fiscal year, rose 4.4%, to $104.2 billion from $99.9 billion. In the United States, visits to stores fell, and that pushed the comparable-store sales lower.Walmart blamed high gas prices and worries about inflation for the decline in traffic and said its customers are still on tight budgets.

"Walmart is reporting first quarter earnings from continuing operations of $0.98 per share, which was above guidance," said Mike Duke, Walmart Stores, Inc. president and chief executive officer. "This reflects the stability and strength of our global operations. "Walmart U.S. comp sales for the first quarter were within our guidance range," Duke continued. "We recognize we still have work to do and comp sales growth remains the greatest priority for me and the entire Walmart U.S. team. The good news is that the plan Bill Simon and his team are executing is gaining traction. We're focused on delivering every day low price and a wide assortment."

Walmart said it would continue with its expansion plans in the United States, particularly with smaller stores. Its grocery-only stores, which are called Neighborhood Markets and are just over one-third the size of a typical Walmart, performed well in the quarter. There, same-store sales were up 4% as visits rose.

Walmart said that because of those results, it would open another 30 to 40 Neighborhood Markets this year. The company will also open 15 to 20 Walmart Express stores by the end of the year in urban and rural areas. At about 15,000 sq ft, they will sell groceries along with key general merchandise categories. They will also function as a depot of sorts for Walmart.com’s items: customers can order something from the extended online inventory, and pick it up at the store.
Read more @ WalmartStores

STORE-BASED RETAILERS FACE HURDLES BY 2015

The retail landscape of 2015 and beyond will be less familiar and more challenging to store-based operators, according to Dan O'Connor, president and chief executive officer of RetailNet Group. “By 2015 we'll realize we have too many stores,” he said. “E-commerce will take more share from stores.”

O'Connor estimated that by 2020 on-line shopping options, including those from traditional retailers and pure plays, will represent about 20% of consumption. Moreover, younger, affluent shoppers will increasingly move to on-line shopping, pulling a critical base from store-based retailers, he added. Retailers were urged to “create on-ramps for younger consumers to shop your store before they are 25 so they get into a pattern.”

O'Connor also predicted that traditional retailers trying to compete with digital alternatives will face major hurdles because many consumer-direct models aren't profitable and it's hard to attach a delivery network to physical stores. “You can't out-Amazon Amazon.” However, he said store-based retailers have tools at their disposal, including a history of partnering with suppliers and developing shopper insights to attract consumers.

O'Connor said store-based retailers need to rethink their strategies by asking themselves crucial questions. “How will the market of 2015 be different? What does that mean for where I locate and for the size of my stores? What does it mean for how I departmentalize my stores?”

O'Connor said brands were initially the most powerful force but gave way to retailers taking control. Within the next few years, however, “consumers will be completely in control,” he predicted. Nevertheless, he forecasts the growth of brand-based stores, which will represent another competitive factor facing retailer-sponsored stores.
Source: SupermarketNews

PROFITS UP IN Q3 FOR WINN-DIXIE

US retailer Winn-Dixie Stores said that net income rose in the fiscal third quarter: the company posted net income of $13.4 million for the 12-week quarter, which ended April 6, up about 5.3% over year-ago third-quarter results. Sales were about flat at $1.62 billion. Identical-store sales fell 0.5% in the quarter, reflecting a 1.7% decrease in number of transactions and a 1.3% gain in average basket size.

Through the 40-week, year-to-date period, Winn-Dixie posted a loss of $75.7 million, vs. net income of $14.9 million in the same period 2010. Sales through the first three quarters of the current fiscal year were $5.26 billion, down less than 1% vs. a year ago.

US RETAIL SALES HIT BY FOOD AND PETROL RISES, WHILE FOOD AND BEVERAGES INDEX RISES

US retail sales saw their smallest increase in April since last summer's slowdown, suggesting that the sharp rises in food and petrol prices are denting Americans' spending power.

Sales climbed 0.5% in the month, the weakest gain since July, although that came on the back of a 0.9% increase in March, the Commerce Department said.

The Consumer Price Index for food and beverages again finished higher, rising 0.4% in April to 226.3 after climbing 0.7% in March and 0.5% in both February and January, according to the Bureau of Labor Statistics of the Department of Labor.

The food index rose 0.4% in April after rising 0.8% in March and 0.6% in February.

The sharpest gain was recorded in the dairy and related products index, which increased 1.7%. That gain came on the heels of a 1.3% increase in March.

Also sharply higher was the index for meats, poultry, fish and eggs, which rose 1.1% for the second straight month, finishing at 221.1.

The index for nonalcoholic beverages advanced 1.2% in April to 166.4, while the index for cereals and bakery products rose 0.1% to 255.8.

The index for food at home rose 0.5% to 224.4, while the index for food away from home rose 0.3% for the second consecutive month.

The food at home index, which rose 1.1% in March, advanced 0.5% in April. The fruits and vegetables index fell 1.1% in April to 286.7, making it the only major grocery store food group to decline in April.

WALMART TAKES STAKE IN E-COMMERCE FIRM

Walmart Stores announced its acquisition of a minority stake in Chinese e-commerce operator Yihaodian.
Yihaodian was launched in July 2008 and offers more than 75,500 SKUs. Walmart said the company has achieved a "significant position" in on-line grocery sales as well as mother and baby, consumer electronics and apparel.
The firm offers "next-day delivery of essential everyday items at competitive prices", the US retail giant said.

Eduardo Castro-Wright, Walmart's executive chairman and CEO of Walmart global eCommerce and global sourcing, added: "We are excited about this investment. On-line sales in China are growing rapidly and are projected to match US on-line sales in the next few years. By investing in Yihaodian, we're continuing to establish a presence in this important eCommerce market, and are moving forward on fulfilling our aspiration of being the leading global multichannel retailer."

SUPERVALU ADDS COLOR TO DIETARY GUIDELINES

At its Acme and Farm Fresh chains on the East Coast, Minneapolis-based Supervalu Inc. has rolled out a newly expanded in-store color-coded better-for-you food finder – Nutrition iQ – and an education initiative called “Colors in Your Carriage” to help grocery shoppers navigate the aisles while meeting their nutrition needs.

The nutrition iQ program was developed and implemented in collaboration with Joslin Clinic, part of an academic medical center affiliated with Harvard Medical School in Boston, and features color-coded shelf tags that serve as at-a-glance cues to help shoppers identify and find better-for-you food options.

The Nutrition iQ program has now extended to include signage in the fresh produce, meats, bakery and seafood sections. These colored tags highlight key nutrients and health attributes in foods families enjoy every day. For example, dark orange tags highlight whole grain foods and yellow tags point out products that are good sources of protein. To bring it to life and teach shoppers how to create meals this way, Acme and Farm Fresh’s Facebook pages will offer recipes and weekly tips from Supervalu registered dietitian Jennifer Shea.
Source: Progressive Grocer

NPD: RECESSION HAS CHANGED LONG-TERM DINING-OUT HABITS

According to The NPD Group, the Great Recession officially has been over since June 2009, but the effects of that downturn and the slow economic recovery have altered the dining-out habits of consumer, even affluent, optimistic ones, for years to come.

Following the recession that began in 2007, restaurant customers now are divided into two groups: those who can spend freely and a much greater number of those who cannot.

The NPD Group’s study found that 76% of survey respondents qualify as cautious, controlled spenders who say they still are visiting fewer restaurants, trading down from more expensive operations and foodservice segments, and ordering fewer items at each meal. These consumers told NPD researchers that they would be less restrictive with their restaurant spending when the economy improves, but they don’t think that will happen any time soon.

On the other hand, 24% of participants report being significantly less affected by the recession and have cut back less on their dining out, the study found.

SANTIAGO ROCES NAMED CEO OF SAVE-A-LOT

Walmart’s veteran Santiago Roces was named president and chief executive officer of Supervalu’s Save-A-Lot division, replacing Bill Shaner, who had held that role since 2006 and served Supervalu for 27 years.

WHO'S RESPONSIBLE FOR NUTRITION?

Although most consumers think they are responsible for making sure the food they eat is nutritious, nearly half hold food manufacturers and processors responsible, according to a new survey conducted on-line by independent market researchers on behalf of the Food Marketing Institute (FMI).

It found that despite consumers saying that they are concerned about nutrition, financial worries, compounded with rising fuel and commodity costs, are continuing to impact their behaviors during 2011, and are complicating decisions about healthy eating.

The FMI survey revealed that consumer confusion about nutrition labeling is a possible barrier to healthy eating. Although just 17% said they could use some help in understanding nutrition information labels, 29% said they consider themselves ‘very knowledgeable’ about nutritional information and nearly half said they were not expert in this area.

TARGET FINALIZES CANADA LAUNCH PLANS

US retailer Target is finalizing plans for its Canadian launch by setting up three distribution centers and refining plans to sell fresh food at some locations.
The retailer has decided to set up a network of distribution centers in Canada rather than supply stores from existing US sites, and is planning DCs in Toronto, Calgary and Vancouver.

THE INCREASING ROLE FOR ON-LINE GROCERY DELIVERY

French retailer Auchan has launched an on-line grocery delivery service in Poland, with the program set to initially be offered in seven districts of the capital, Warsaw.

The French retailer has begun taking registrations for the service, with customers to receive information about planned activities and special promotions.

According to Euromonitor research, the on-line retail channel is set to grow in Poland at a Compound Annual Growth Rate of 14% between 2010 and 2015.

Meanwhile, the research group found that Internet sales of food and drink have grown by some 401.4% between 2005-2010.

WHOLE FOODS INTRODUCES ANIMAL WELFARE RATING SYSTEM

US grocer Whole Foods Market has announced all fresh beef, pork and chicken sold in its U.S. stores is now certified under the 5-Step Animal Welfare Rating system. The rating system, which was developed by Global Animal Partnership, rates farms’ animal welfare practices and conditions using a tiered system. Whole Foods Market is the first retailer to adopt the 5-Step Animal Welfare Rating system, which it began rolling out in February 2011.
Source: Planet Retail

GAO URGES USDA ON FOOD SAFETY

The Government Accountability Office (GAO) urged the U.S. Department of Agriculture (USDA) to strengthen its oversight of the safety of food purchased for the federal school meal program. Among the top priorities laid out by GAO: develop a systematic and transparent process in determining food safety policies for purchasing commodities.

The report found that for 7 of approximately 180 commodity foods purchased for federal nutrition programs, USDA has established food safety purchasing requirements that go above and beyond federal regulations for the same foods in the commercial food supply. "For example, the commodity program will not purchase ground beef that tests positive for Salmonella bacteria, while federal regulations for commercially available ground beef tolerate the presence of a certain amount of Salmonella," says GAO in a 32-page report.

WHOLE FOODS MARKET TARGETS 1,000 STORES

U.S.-based chain Whole Foods has confirmed plans to grow its store base to 1,000 outlets. “We consider 1,000 stores to be a reasonable indication of our market opportunity as our brand continues to strengthen, as consumer demand for natural and organic products continues to increase and as our flexibility on new store size opens up additional market opportunities,” said John Mackey, Chief Executive Officer. “We are positioned to internally fund the acceleration in our new store growth,” he added.
Source: Planet Retail

IHOP TO SELL FROZEN BREAKFAST ITEMS AT WALMART

The International House of Pancakes is entering the supermarket frozen aisle with a line of breakfast items, including French Toast Stuffed Pastries, Omelet Crispers and Griddle 'n Sausage Wraps. The items will initially be sold in Walmart stores.

ALBERTSONS STORE DEEMED HIGHLY SUSTAINABLE

Supervalu said two of its Albertsons stores in Santa Barbara, CA, are among the first supermarkets to achieve a "zero waste" classification in their daily operations, with more than 95% of all waste products being recycled, reused or composted.

TESCO IN FOCUS ON CALIFORNIA ALCOHOL SALES CONCERN

A proposed change to liquor laws in California, the hub of Tesco’s Fresh and Easy division, could mark “the beginning of the end” for the loss making chain, MF Global analysts said.
A bill proposed by California Assemblywoman Fiona Ma would ban sales of alcohol at self-service checkouts.

Tesco has 126 stores in California and is the only grocer in the state to use self-service tills.
The extra staff needed to handle liquor sales would put more pressure on profit margins, which were already very weak because of high fixed costs and a reliance on discount coupon.

HY-VEE STORE CUTS REFRIGERANT USE

Hy-Vee opened a 64,000 sq ft store last month that uses secondary loop refrigeration systems to reduce refrigerant usage and cut emissions, earning the store Gold-Level certification from the Environmental Protection Agency's GreenChill program, according to SupermarketNews.

It is also the chain's second Hy-Vee chose the Second Nature Medium-Temperature Secondary System from Hill Phoenix, Conyers, Ga., for its meat, seafood and deli cases. The system circulates propylene glycol fluid throughout the sales floor to refrigerate product displayed in the medium temperature cases and coolers.

Because its R404A refrigerant only chills the glycol, the system uses 1,397 pounds of R404A charge, a 50% reduction over a standard direct expansion system. It also uses 1,600 gallons of glycol.