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 ....

June 30, 2011

AMERICANS WANT TO SEE NATURAL, ORGANIC CLAIMS ON FOOD PRODUCT LABELS

According to the annual Eco Pulse survey conducted by the Shelton Group, an advertising and research firm that focuses on marketing green products to US shoppers, among 1,013 Americans that were asked what the best description to read on a food label:

- 25% of consumers said they preferred to see "100 percent natural" or "all natural;"

- 24% said they sought out "USDA certified organic" or "100% organic;"

- 17% preferred "Grown in the USA."

While most desire greener products, however, many mainstream consumers are frustrated if manufacturers charge more for them 71% of those surveyed said green products usually or always cost more.

"Most Americans will try a greener product if it is comparably priced and offered by a known brand," Shelton Group president Suzanne Shelton said. "But if helping the planet is the only benefit, most consumers aren't willing to pay the extra cost. In this economy, consumers prefer a greener wallet over a greener planet."

FAMILY DOLLAR PROFIT RISES, BUT MISSES EXPECTATIONS

US discount retailer Family Dollar Stores booked "record" third-quarter sales and profits.

The company reported a 6.5% increase in net income to $111.1 million for the three months to May 28. Operating profit was up 8.4% at $170.1 million.
The rise in profits came as Family Dollar reported a 7.8% rise in net sales for the quarter to $2.15 billion. Comparable-store sales were up 4.7% on increased customer traffic and a rise in the average value of a transaction.

However, the retailer's gross margin as a percentage of sales dipped from 36.6% in last year's third quarter to 36.2% this year. Family Dollar pointed to "stronger" sales of lower-margin consumables, increased promotions and higher freight costs.

EGGS AND AMERICANS...

Ninty-two percent of Americans agree eggs are an important part of a healthy diet, and 94% of all households eat eggs, according to Mintel. But 30% of respondents said they eat fewer eggs than they would like due to concerns about cholesterol, and there is a challenge for organic producers as 57% of consumers does not believe organic eggs are any healthier than regular ones.

COST CONCERNS FOR GENERAL MILLS

General Mills Inc. said consumers will continue to see high prices in the grocery aisle as commodity costs soar.

The packaged-food company said it expects costs for ingredients, energy and other inputs to grow by 10% to 11% in fiscal 2012, the highest level it's seen in recent years. Those headwinds will be particularly strong in the current quarter, helping to push earnings down on a year-over-year basis, Chief Financial Officer Don Mulligan said in an analyst conference call.

In the latest quarter, earnings rose 51% amid fewer charges, higher pricing and a more favorable product mix.

For the quarter ended May 29, General Mills reported a profit of $320.2 millionup from $211.9 million a year earlier. Excluding mark-to-market impacts and prior-year tax charges related to debt refinancing and the U.S. health-care overhaul, per-share earnings rose to 52 cents from 41 cents.

Revenue increased 3% to $3.63 billion.

Gross margin rose to 37.5% from 36%, thanks to higher prices.

June 29, 2011

WALMART SETS UP SHANGHAI E-COMMERCE HUB, WHILE IN THE US ....

The US retailer is setting up an e-commerce centre in Shanghai to manage its on-line business in the country. Vice President of Walmart China, Barry Friedman, said the move signaled e-commerce will be a key part of the retailer’s future in the market, and that the scale of its China e-commerce should rival that of the US over the next few years.

Walmart has signed a Memorandum of Understanding with the Shanghai Municipal Commission of Commerce for the construction of the e-commerce unit in the city. Under the terms of the deal, it has committed to bringing superior technology and talent to Shanghai, alongside assisting the authorities concerning training and infrastructure development.


In the meantime, in the US, Walmart plans to launch a new minority supplier program in Chicago that will subsequently be expanded nationally, according to published reports reported by Supermarket News.

Sources said Thomas Mars, executive vice president and chief administrative officer for Walmart, told a Metropolitan Planning Council luncheon Monday in Chicago that Walmart will focus its efforts on using minority-owned supplier companies for food, general merchandise and professional services.
Walmart has disclosed plans for at least eight stores in Chicago, including two supercenters, three Walmart Markets and three Walmart Express locations.

TARGET PREPARES TO “WIN” THE HOLIDAY SEASON

Target is preparing for an “aggressive” promotional Christmas season this year, and believes it can “win the holiday season”, CEO Gregg Steinhafel said in an interview with USA Today.

The retailer is cutting back on inventories and taking a “conservative approach” to reduce the need for a “liability” of unsold stock which will have to be marked down to sell. Product mix is also changing, as Target hopes to offer ‘better’ and ‘best’ in many categories. Steinhafel said: “We are making slight adjustments to our mix and where we place our emphasis... Since 2008, we've seen some seasonal categories decline. We're not expecting a decline, but they may just not grow at the rate some of our other businesses might grow this holiday.”

Regarding future priorities, multi-channel remains key, as does the Pfresh remodeling program, which Steinhafel described as “a comprehensive remodel within our stores. It adds a much larger assortment of dry, dairy and frozen, then we add fresh perishables to the grocery mix, which is something we haven't had in the past.”

He added: “While we are in and remodeling, we update the entire store and add new visual elements throughout, update apparel racks, add a new shoe area, add new beauty and skincare areas and update our electronics area. Essentially, when we're through with the remodel, we have a brand new Target store. We didn't have a broad enough assortment of groceries. Our prices are ultra-competitive, and in most cases, they are below the local grocer retail prices.”

KROGER PLANS FIRST DALLAS FRESH FARE

Kroger Co. is set to break ground on its first Fresh Fare store in the city this week. The 60,786 sq ft location, featuring Kroger's more upscale presentation and offerings, is scheduled for a summer 2012 opening.

“The Dallas market has witnessed a surge in population growth over the past few years,” said Bill Breetz, president of the Kroger Southwest Division, in a statement. “The growth coupled with the redevelopment of the Uptown area has presented Kroger with the opportunity to better serve residents and introduce a new, energy-efficient store concept that caters to shoppers who are seeking freshness, variety and quick meal solutions at affordable prices in an intimate store setting.”

The store will stand alone in a mixed-use residential and retail development that will feature luxury apartment units, a fitness facility and financial institution.
In addition to a selection of organic and local offerings, prepared foods, baked goods and sushi, the store will also include a Starbucks Coffee outlet and a mezzanine dining lounge.
Source: SupermarketNews

June 28, 2011

SAM'S CLUB GAINS MOMENTUM

Sam's Club was the only Walmart division to grow both comparable-store sales and operating earnings during the first quarter, with comps rising 4.2% - the banner's fifth consecutive quarter of positive comps - led by food and consumables.

“What we're most pleased about is the quality of the results,” Brian C. Cornell, president and chief executive officer of Sam's, told analysts earlier this month at the parent company's investor conference.

“The top line was fueled by increased traffic, with current members shopping more frequently, buying more items and shopping more categories despite the inflationary environment, and we're also attracting new members to the club.
Source: SupermarketNews

WIDE RANGE OF FOOD SAFETY GRANTS ANNOUNCED

Food safety research grants totaling almost $42 million were announced June 23 by the National Institute of Food and Agriculture of the US Department of Agriculture. The grants, focused principally on proteins and produce projects rather than grains, were made to 24 different institutions.

“While the US food supply is generally considered to be one of the safest in the world, approximately 48 million Americans become sick each year due to food-borne illnesses,” said Catherine Wotecki, chief scientist at the USDA and Under Secretary for Research, Education and Economics. “These grants support the development of a more complete understanding of the sources and implications of microbial contamination and will promote the adoption of new food safety strategies and technologies. The goal is to greatly improve the safety of our food supply and ultimately save lives.” Grants were made to institutions spread across the United States, from Connecticut and Florida to Washington state and California. The largest grants, around $5 million apiece, were made to the University of Delaware (for processing technologies to destroy human noroviruses in high risk foods, including shellfish and produce), the University of Georgia (to explore the feasibility of integrating various food safety technologies into slaughterhouses), the University of Iowa (to explore factors leading to the appearance of staph bacteria on raw meat) and Washington State University (to expand the commercial possibilities of microwave technologies to control harmful bacterial and viral pathogens in packaged foods, especially ready-to-eat foods, deli meats, and seafood).

PACKAGE-FREE GROCERY STORE

A group is planning to open what it calls the first “package-free” grocery store in the U.S. this fall. The store would encourage customers to bring in their own reusable containers or use compostable carriers provided by the store.

Plans call for the store to offer natural and organic groceries, bulk food items, and wine and beer, according to Brothers Lane LLC, owned by brothers Christian, Patrick and Joseph Lane.
Source: SupermarketNews

WALMART CANADA TO ASSUME LEASEHOLD OF ZELLERS STORES

Target Corp. has signed an agreement to transfer the leasing rights for up to 39 Zellers stores in Canada to rival Walmart.

Specific locations will be revealed in autumn.

Zellers is Canada's second-largest chain of mass merchandise discount stores. Target entered into an agreement earlier this year to purchase the lease agreements of up to 220 Zellers stores for C$1.83 billion (US$1.85 billion) from Hudson's Bay Co.

EUROPEAN TASKFORCE MOBILIZED AS E.COLI 104:H4 HITS FRANCE

A European taskforce has been assembled to pinpoint the source of any contaminated bean sprouts after the same potentially deadly strain of German E.coli that killed scores has surfaced in an outbreak in France.

The announcements from the European Food Safety Authority (EFSA) came as French authorities said bean sprouts were suspected as the source of an outbreak of E.coli 104:H4 in the Bordeaux region from earlier this month.

June 27, 2011

FRANCE: G20 MINISTERS BACK TOUGHER COMMODITIES REGULATION

Agriculture ministers from the G20 nations have backed tougher regulation of food commodities markets, as part of an action plan to tackle price volatility for food and crops.
"We strongly encourage G20 Finance Ministers and Central Bank Governors to take the appropriate decisions for a better regulation and supervision of agricultural financial markets," said ministers following two-day talks in Paris.

But, their statement added: "We recognize that appropriately regulated and transparent agriculture financial markets are indeed key for well-functioning physical markets. These markets facilitate price discovery and allow for market participants to hedge their exposure to price risks."

Record prices for food commodities mean that food and drink firms are facing higher costs. Growing demand from emerging markets, together with a series of poor harvests, have contributed to the price rises. However, some have also blamed the increase on futures market traders, or what French president Nicolas Sarkozy referred to last week as "financial speculators" who are able to trade up to "46 times the world production of wheat."

Proposals on greater regulation of commodities markets are set to be put forward by G20 finance ministers later this year.

The G20 agriculture ministers' agreement, while backing greater regulation, also seeks to improve transparency in markets. It provides for the creation of a global 'agricultural markets information system (AMIS)', in order keep track of stocks and provide supply forecasts. Initially, AMIS will only cover wheat, maize, rice and soybeans, although other commodities "will also be added to AMIS' work in the future", the G20 said.

AMIS officials will hold their first meeting in September 2011, but will not publish their first outlook until June 2012.

Alongside AMIS and better regulation, the G20 action plan calls for an increase in crop production, better international coordination and new risk management tools for governments, companies and farmers.

On production, the ministers said: "To feed a world population expected to reach more than 9bn in 2050, it is estimated that agricultural production will have to increase by 70% over the same period, and more specifically by almost 100 percent in developing countries."

For the full G20 agreement, click here.

KROGER TO FOCUS ON EXISTING STORES

The CEO of US grocer Kroger has said the retailer will concentrate its efforts of pushing sales at existing stores, rather than seek to enter new markets or make acquisitions. Speaking at the company’s AGM, David Dillon said even though several small chains had been snapped up in recent years, acquisitions are definitely not part of the company’s growth plan for the time being. Instead, the loyalty card will become a key focus, particularly through encouraging cardholders to shop more often.

"So we say, 'Yeah, we're going to grow in other markets over time,' but we don't depend on that for our business plan," Dillon said. "Our strategy is really to grow our relevancy to our customers. That becomes our bigger mission; to the extent that leads to new markets, great."
Source: Planet Retail

FLORIDA: SCHOOL LUNCH BILL TRANSFERED TO THE DEPT OF AGRICULTURE

Gov. Rick Scott granted Agriculture Commissioner Adam Putnam his biggest wish of the legislative session Thursday when he approved a transfer of school food and nutrition programs from the Department of Education to Putnam's agency.

"Obviously we're thrilled that the governor has … embraced our vision for improving the quality of what our kids eat in the school system," Putnam said.

Putnam had insisted since his campaign that the Department of Agriculture and Consumer Services could provide more nutritious meals for students thanks to its connections with farmers and partnerships with the U.S. Department of Agriculture.

"It's bold, and the governor, I think, correctly put us through our paces to answer the questions," Putnam said. "A guy with a hospital background certainly understands how healthier lifestyles save society over the long haul in managing chronic illnesses that are frequently obesity related."

The transfer is effective Jan. 1, pending approval from the Agriculture Department, which gave $810 million to Florida's school food and nutrition programs this year.

June 24, 2011

MADE IN THE U.S.A. MATTERS TO SHOPPERS

Consumers are increasingly looking for products made in America, according to a new research study from Fort Lee, N.J.-based Perception Research Services International (PRS).

The PRS shopper research survey found that most shoppers (80%) have seen a “Made in the U.S.A” claim when shopping and many (60%) say the claim influences their purchase decisions, even for food products.

FDA UNVEILS NEW GLOBAL STRATEGY TO HELP ENSURE SAFETY AND QUALITY OF IMPORTED PRODUCTS

The U.S. Food and Drug Administration unveiled a new strategy to meet the challenges posed by rapidly rising imports of FDA-regulated products and a complex global supply chain in a report called the "Pathway to Global Product Safety and Quality."

“Global production of FDA-regulated goods has exploded over the past ten years. In addition to an increase in imported finished products, manufacturers increasingly use imported materials and ingredients in their U.S. production facilities, making the distinction between domestic and imported products obsolete,” said Commissioner of Food and Drugs Margaret A. Hamburg, M.D. "There has been a perfect storm - more products, more manufacturers, more countries and more access. A dramatic change in strategy must be implemented."

The FDA report calls for the agency to transform the way it conducts business and to act globally in order to promote and protect the health of U.S. consumers. Highlights of the report include four key elements needed to make the change:
1. The FDA will partner with its counterparts worldwide to create global coalitions of regulators focused on ensuring and improving global product safety and quality.
2. The coalitions of regulators will develop international data information systems and networks and increase the regular and proactive sharing of data and regulatory resources across world markets.
3. The FDA will build in additional information gathering and analysis capabilities with an increased focus on risk analytics and information technology.
4. The FDA increasingly will leverage the efforts of public and private third parties and industry and allocate FDA resources based on risk.
"FDA regulated imports have quadrupled since 2000,” Hamburg said. "The FDA and our global regulatory partners recognize this new reality and realize we must work proactively and collaboratively to address the challenges we face. The FDA must further collaborate and leverage in order to close the gap between our import levels and our regulatory resources. This report is an important step in ensuring we are able to fulfill our critical public health mission."

The change in strategy will address trends expected to be seen worldwide in upcoming years:
- Western economies will increase their productivity to compete with emerging markets and economies, leading to more imports and increased pressure to reinvent manufacturing processes.
- Money, goods, data and people will increasingly and more quickly cross borders. Today, a typical U.S. manufacturing company relies on more than 35 different contract manufacturers around the world.
- Growing demand, constrained supply, and increased regulatory and social scrutiny will determine what resources are used, how they are used, and the cost. Manufacturers will adopt new manufacturing processes and emerging technologies in response.
- Governments worldwide will increasingly be called upon to mitigate the sometimes negative impacts of globalization on their citizens, making the operating environment for companies more complex.

The new strategy also builds on changes already set in motion by the FDA. The FDA increased the number of foreign drug manufacturing inspections by 27 percent between 2007 and 2009 and has opened a series of international offices in key locations. FDA has also collaborated with its counterparts in the European Union and Australia on drug inspections, worked to harmonize certain aspects of drug regulation via the International Conference on Harmonization, and joined the Pharmaceutical Inspection Cooperation/Scheme (PIC/S) which is an organization of the drug manufacturing inspectorates from 39 countries. The FDA and other global leaders are also creating an expanded global regulators forum for medical devices.

The FDA is also broadening its food safety efforts under the FDA Food Safety Modernization Act (FSMA). This new law creates a new foods safety system, in which FDA has a legislative mandate to require comprehensive preventive controls across the food supply chain and has new tools to hold players in the supply chain responsible. There are also new inspection mandates, including a mandate leading to the inspection of more than 19,000 foreign food facilities in the year 2016.

The FSMA recognizes the importance of partnerships in the success of this new food safety system, particularly in the area of imports. For example, importers now have an affirmative obligation to verify the safety of the food they bring into the United States. In addition, the FDA will establish a program for qualified third parties to certify that foreign food facilities are in compliance with U.S. requirements and can require certification as a condition of entry into the United States. And, FSMA explicitly encourages arrangements with foreign governments to leverage resources.

“In order to cope with the fundamental global shifts on the horizon, the FDA will have to substantially and fundamentally revise our approach to global product safety. We can no longer rely on historical tools, activities and approaches,” said Acting Principal Deputy Commissioner of Food and Drugs John M. Taylor, J.D. “Implementing this strategy is vital to the public health.”

DOLLAR GENERAL CHOOSES DEMANDTEC FOR PRICING SOLUTION

US discount retailer Dollar General has chosen DemandTec’s Lifecycle Price Optimization services to enhance its pricing and management solutions. The specific software being bought includes Everyday Price Management, Everyday Price Optimization, and Markdown Optimization.

June 23, 2011

FDA JEOPARDIZES FOOD SAFETY

Putting the U.S. food supply at risk, the Food and Drug Administration has generally failed to promptly initiate recalls, allowed some food companies to continue shipping despite failed inspections and often ignored its own procedures.

That’s the conclusion of the FDA’s Office of Inspector General in a new report, based on a year-long evaluation of study of 17 food recalls from 2007 to 2008. The study included a variety of food recalls, including those involving cheese, mussel meat, fish and four separate recalls of fresh cantaloupes from Honduras.

The inspector general’s office directed the FDA to review the report as it implements the Food Safety Modernization Act.

The FDA, the produce industry and other food companies need to improve recall practices, said Dave Gombas, senior vice president for food safety and technology at the Washington, D.C.-based United Fresh Produce Association.

“Because food recalls are such a rare event, most companies aren’t prepared to do an effective recall,” Gombas said. “It is a weakness for both FDA and food facilities.”
Source: The Packer

PRIVATE-LABEL SALES UP 2% IN 2010

Private-label sales in supermarkets, drugstores and mass merchandisers in the US rose nearly 2% in 2010 to reach a record $88.5 billion, according to the Private Label Manufacturers Association.

The association said sales grew 2% in supermarkets and 5% in drugstores, but noted the report does not include sales in warehouse clubs, convenience stores, dollar stores and limited-assortment stores.

WHOLE FOODS MARKET SEES POTENTIAL FOR 1,000 US STORES

Whole Foods Market sees the potential to more than triple the number of US stores, co-Chief Executive Walter Robb said at the Jefferies 2011 Global Consumer Conference. Robb feels Whole Foods can grow its domestic store base from around 300 currently to 1,000 in the longer term.
In Canada, the retailer is also looking to ramp up expansion with the longer term goal of growing from the current six stores to 35.

Robb said that Whole Foods is gaining market share, is now debt free and generating good free cash flow which the retailer plans to put towards store openings. He added that the company also plans to open five wellness clubs in different cities around the US. Members will pay a $50 monthly fee and be entitled to store discounts and access to supper clubs.

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ASDA TO GROW SALES OF LOCAL AND ETHNIC GOODS

In the UK, Walmart-owned Asda has announced a new target of $808 million) in sales of local and ethnic products by 2013. The retailer has achieved $1.6 billion in sales since it began working with local and ethnic suppliers in 2001. Its latest commitment will see Asda source even more regional meat, produce and specialty local food products, including dozens of cheeses, yoghurts, pickles, ice creams as well as books and football shirts, representing a 15% increase in Asda’s annual sales of specialist local food.

June 22, 2011

KROGER NAMES NEW SVP OF MERCHANDISING

US grocer Kroger has announced the promotion of Michael J Donnelly to the role of Senior Vice President of Merchandising.

In his new role, Donnelly will lead all merchandising and procurement for Kroger.

He previously served as President of the retailer's Ralphs Grocery Company division, based in Los Angeles, CA, since August 2007.

ONE IN 12 CHILDREN IN U.S. HAS A FOOD ALLERGY AND A THIRD OF THOSE CAN BE LIFE THREATENING

One in 12 children in America has a food allergy, according to an alarming new study. And of those children a third had severe allergies that sometimes presented with life-threatening reactions. These included a child's airways being blocked and their blood pressure plummeting.
Previous estimates have put the number of children with allergies far lower at between two and eight in 100 children.

The study, published by Pediatrics, also showed that black and Asian children had higher chances of having a food allergy than white children.

The children surveyed were most commonly allergic to peanuts, milk, and shellfish.
Allergies are a particularly difficult chronic condition because children can't escape food in any part of their daily lives, said lead author Dr Ruchi Gupta, from the Northwestern University Feinberg School of Medicine in Chicago.

“What I hope this paper will do is open this awareness to how common (food allergy) is and how severe it can be, and develop policies for schools and sporting events and any activities that kids participate in to make it clear that everybody is looking out for these kids,” she said.
“One of our big findings was that two in five kids who had allergies had a severe reaction or a life-threatening reaction,' Dr Gupta said.

'There are a lot of misconceptions of what allergies are,' she added. 'When you think of allergies, you don't think of life-threatening.”

SLOW RECOVERY HOLDS DOWN HIRING

A report released by the Grocery Manufacturers Association and consulting firm PricewaterhouseCoopers sheds light on why consumer products companies are holding back on hiring, despite sales growth. Chief among them: more productive workers and continued uncertainty about the direction of the economy.

In the food sector, median sales per employee grew nearly 10% last year. It was the first time any sector in PricewaterhouseCoopers' analysis jumped above $400,000 of net sales per employee.

The deepest recession since World War II officially ended in June 2009. But personal consumption didn't recover to pre-recession levels until the third quarter of 2010.

SUPERMARKET ON-LINE SALES TO BE MEASURED BY NIELSEN

Nielsen, the leading global provider of information and analytics around what consumers watch and buy, has entered into a strategic alliance with MyWebGrocer, the leading provider of digital grocery tools and the largest grocery media network, to measure US on-line supermarket sales.

The agreement enables Nielsen to provide consumer packaged goods (CPG) companies with the industry’s first comprehensive view into consumers’ on-line supermarket purchases and cements Nielsen’s footprint in digital shopping analytics.

KROGER REDUCES ENERGY CONSUMPTION

The Kroger Co. has reduced in-store energy consumption by 30% since 2000, according to the company’s fifth annual Sustainability Report.

Some highlights of Kroger's sustainability progress in 2010:

Saving Energy
Kroger stores reduced overall energy consumption by 30% since 2000. That's enough electricity to power every single-family home in Fort Worth, Texas for one year.
Company-wide, including all facilities, Kroger has saved more than 2.2 billion kilowatt hours, which equals 1.41 million metric tons of greenhouse gas emissions. That equates to taking more than 275,000 cars off roads for one year.
Kroger completed its first wind energy project. Two wind turbines installed at Turkey Hill Dairy in Lancaster, Pa. will supply 25% of the dairy's annual electricity needs. That will be enough power to produce six million gallons of ice cream for one year.

Reducing Waste
Kroger's manufacturing plants reduced the amount of waste sent to landfills by 30% since 2009 - a 22 million pound reduction.
Improved bagging techniques and increased use of reusable bags saved an additional 159 million plastic bags. Kroger sold and provided customers with more than five million reusable bags, an average of 14,000 per day.
Kroger stores, plants and distribution centers recycled more than 1.2 billion pounds of corrugated cardboard and paper.
In partnership with customers, Kroger recycled 26 million pounds of plastic, a 180% increase in plastic recycling since 2007.

Fighting Hunger
Kroger's ongoing hunger relief efforts provided the equivalent of 125 million meals to local families in 2010.

Sourcing Sustainable Seafood
Kroger is well on the way to meet its goal of sourcing 100% of the top 20 wild-caught species from fisheries that are Marine Stewardship Council (MSC) certified, in MSC full assessment, or engaged in a World Wildlife Fund fishery improvement project by the year 2015. Today, 56% of Kroger's top 20 wild-caught fresh and frozen species are sourced from fisheries meeting these standards.

June 21, 2011

RETAIL PRICES DECLINE AFTER FREEZE-DRIVEN SPIKE

Supermarket prices for fresh fruits and vegetables fell for the second consecutive month, led by a plunge in tomatoes, reflecting further moderation of fresh produce inflation after harsh winter weather led to shortages of some items.

Average nationwide retail fruit and vegetable prices during May fell 1.9% from April, according to the U.S. Bureau of Labor Statistics’ monthly Consumer Price Index June 15. April prices fell 1.3% from March.

Among six food categories tracked by the bureau, fruits and vegetables were the only one to post a month-over-month price decline in May.

Fruit and vegetable prices are still up over last year’s levels, joining a food inflation upswing led by increasingly expensive beef, pork and milk that’s forcing Americans to spend more at the grocery store. Fresh produce inflation is on pace for the largest increase since 2008, according to a recent government forecast.

During May, fresh vegetable prices were up 3.9% from the same month in 2010, according to the CPI report. That marked a slowdown from year-over-year increases averaging 6.7% over the first four months of the year. But vegetable prices have still risen from year-earlier levels for 15 consecutive months.

Fresh fruit prices were up 0.9% in May, the fifth year-over-year increase in the past six months.

A broader price index for food consumed at home rose 0.5% during May from April and was up 4.4% from May 2010, with all major grocery categories posting increases, according to the Bureau of Labor Statistics.

RECOVERY IN LIMBO: KROGER CEO

The economic recovery that had been expected for this year may have stagnated, David B. Dillon, chairman and chief executive officer of Kroger Co. here, told analysts last week.

With Kroger predicting last week that inflation could rise 3% to 4% for the year, rather than the 1% to 2% the company had previously predicted, “we are looking for people to trade down or buy fewer discretionary items if things get a little tight,” Dillon said. “As inflation gets stronger, we think at some point people are going to stop having enough money to spend on food. But at this point it's still early. What we've seen recently is things have stagnated a little bit in the overall economy and behavior has plateaued at that point, so the overall recovery we had hoped for may not be quite what we had hoped it would be. But our tonnage is still solid, and what we are seeing are only modest changes in shopping trends.”
Source: SupermarketNews

WALMART CLOSES INVESTMENT IN 51% STAKE IN MASSMART

Walmart announced yesterday that the company has completed its investment for a 51% stake in South African-based Massmart Holdings Limited for ZAR148.00 per Massmart ordinary share.

Doug McMillon, president and CEO of Walmart International, said, "With the closing of our investment in Massmart, we are very excited about our entry into South Africa as well as the broader African continent. As we do in all of our other markets, we will work to serve underserved customers, to help people save money to live better. Just as important, we will grow in this part of the world, and as we do, we expect to create many jobs and support local suppliers. We have a global track record of working directly with small farmers, boosting their income and helping them become more sustainable, and we look forward to bringing those practices to South Africa."

June 20, 2011

STUDY FINDS PRODUCE SALES EXPECTED TO GAIN IN 2011, WHILE CONSUMERS....

According to Progressive Grocer’s Annual Report of the Grocery Industry, retail executives expect to see more customers in the fresh produce department this year in comparison with 2010.

Sixty-eight percent believed shopper traffic while increase, while 29% said it would stay the same. Almost 3% said they thought it would decrease.

Respondents were also asked to rank influential in-store departments in terms of driving the most traffic with targeted promotions; the top five were:
- Meat/seafood: 43.2%
- Produce: 22.2%
- Grocery: 11.4%
- Center store: 6.8%
- Beverages: 5.7%

In the meantime, a Gallup poll found that 55.9% of Americans reported eating five or more servings of fruits or vegetables at least four days in a week in May of this year. That number was 57.8% one year ago. It also found that the percentage of people who said they “ate healthy all day yesterday” fell from 68.2% to 66.2%, a drop that translates to 4.5 million fewer American adults eating healthfully this May than last May.

The poll also found that produce consumption is down the most among Hispanics, young adults, seniors, and women this year compared with 2010.
Source: PMA

THE POWER OF GLOBALIZATION

German company Treffpack and US firm TricorBraun have formed a partnership to allow both to extend their global reach.

Under the tie up, the rigid packaging companies will have access to each other supply chains to offer “logistics and management assistance into making them the ultimate, worldwide ‘one-stop-packaging-shop’.”

Treffpack will gain immediate access to TricorBraun’s global sourcing capabilities through its supply chain and its Design & Engineering Group.

TricorBraun has over 40 locations in the United States, Canada, Mexico and Asia. Treffpack designs, develops and the delivers complete packaging solutions to customers and throughout Europe.

June 17, 2011

KROGER: EARNINGS RISE ALMOST 16%

For the quarter ended May 21, Kroger had net earnings of $432.3 million. Net earnings in the same period last year were $373.7 million.

Total sales in the first quarter, including fuel, increased 11%, to $27.5 billion from a year ago, the company said.

Identical-store sales, excluding fuel, rose 4.6% for the fiscal first quarter.

Kroger raised its full-year earnings forecast to a range of $1.85 to $1.95 a share from the previous $1.80 to $1.92. The company said it expected full-year results to come in near the top end of the new range.

PEPSICO ANNOUNCES MID-CALORIE COLA TRIAL FOR US MARKET


PepsiCo is planning to trial a new mid-calorie cola drink with 60 per cent less sugar in the US this summer.


Called ‘Pepsi Next’ the new product is aimed at consumers who are looking to reduce their sugar intake but still want the taste of a full-calorie product.

Pepsi Next is to be trialed in Iowa and Wisconsin from July.

EHEC BACTERIA CANNOT SURVIVE IN CORRUGATED PACKAGING

Corrugated packaging is clean and hygienic, because of very high temperatures applied during the manufacturing process and because each package is used for only one delivery.

These are important factors in the light of recent tragic incidents involving EHEC (Enterohaemorrhagic Escherichia coli) bacterial contamination of food whose source is yet to be identified.


Corrugated packaging has for many decades been, and still is, the preferred transport packaging for food products. It is storage, transport and display-friendly and able to carry important handling and branding messages.

EHEC is a strain of E. coli (Escherichia coli) which belongs to the bacteria group called Enterobacteriaceae. The optimum environment for these bacteria is a temperature between 77°F (25°C) and 104°F (40°C), combined with sufficient moisture. However, they are not able to survive temperatures above 158°F (70°C).

Corrugated board is manufactured by combining layers of paper in a unique structure that gives the packaging its lightness and strength. The manufacturing process uses heating elements with temperatures between 356°F (180°C) and 392°F (200°C). The material itself reaches temperatures of at least 212°F (100°C) three times, once during the manufacture of the paper itself, and twice during the process of conversion to corrugated board.

Contamination of one product with another is impossible because each packaging is used only once. After use the packaging is sent for recycling back into new paper during which the material is again heated to temperatures exceeding 212°F (100°C).

With temperatures far above levels than those at which EHEC bacteria can survive occurring three times during the manufacturing process, the corrugated board industry offers an efficient solution for a safe food logistics chain and can give reassurance that the current serious outbreak will not be spread by the use of corrugated packaging.

KIDS HOSPITALIZED IN FRANCE BY E. COLI

Almost ten children were hospitalized in France with E. coli infections after eating meat that manufacturers said could come from Germany, where an outbreak of the bacteria has killed 37 people.

The children, the youngest of whom is 20 months old, had eaten frozen hamburgers made by the French company SEB which said the meat was taken from animals slaughtered in three European countries and processed in France.

Officials said the infection was a rare strain of the E. coli bacteria and was not linked to the similar outbreak in Germany.

June 16, 2011

WALMART TO SPEED WALMART MARKETS OPENINGS

Walmart plans to accelerate the opening of its mid-sized Walmart Market stores, said US stores chief Bill Simon.

Walmart will open 90 to 100 of the stores in the year ending in January, and have 300 by fiscal 2013, Simon said yesterday at the William Blair & Co. Growth Stock Conference in Chicago. The stores are roughly the size of typical supermarkets at about 42,000 sq ft.

Walmart is expanding the format because its return on investment in those stores, which now number 185, is comparable to that of its larger supercenters, he said. Chief Executive Officer Mike Duke is looking for ways to spur growth as surging gasoline prices curb some customers’ shopping trips.

Simon reiterated that Walmart expects to post positive comparable-store sales in the US by the end of the year.

MANDATORY E-VERIFY BILL INTRODUCED

Agricultural employers would have 36 months before they would be required to use the E-Verify system under a House bill introduced in mid-June.

E-Verify is an Internet-based, free program run by the United States government that compares information from an employee's Employment Eligibility Verification Form I-9 to data from US government records. If the information matches, that employee is eligible to work in the United States. If there's a mismatch, E-Verify alerts the employer and the employee is allowed to work while he or she resolves the problem; they must contact the appropriate agency to resolve the mismatch within eight federal government work days from the referral date. The program is operated by the Department of Homeland Security (DHS) in partnership with Social Security Administration.

GMA LAUNCHES GLOBAL FOOD ADDITIVE DATABASE

The Grocery Manufacturers Association (GMA) has established an International Food Additive Database to provide easy access to current regulatory requirements on food additives in importing countries around the World.

“The database will help US exporters ensure the products they are shipping comply with the food additive standards and regulatory requirements in the export market and, by establishing a single global source of food additive standards, it will also help US federal trade officials prevent and eliminate trade barriers to US food products,” said Pamela Bailey, president and chief executive officer of GMA, in a statement.

SAINSBURY'S SUPERMARKET STAFF ARE BEING TRAINED AS GOVERNMENT "HEALTH SPIES"

The government-backed program to be rolled out at Sainsbury’s stores in the UK aims to identify “hidden carers,” people who look after elderly, sick or disabled relatives do not realize they could be entitled to support.

Under the program, cashiers will be asked to watch out for unusual shopping habits and taught to discretely ask customers about their personal circumstances while serving them.
The customers will then be put in touch with charities that can provide information on financial and practical help and respite care.

Critics said the scheme amounted to state-sponsored spies prying into people’s private lives.

June 15, 2011

FOOD SALES DROPPED IN THE US

The U.S. Census Bureau announced that advance estimates of US retail and food services sales for May, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $387.1 billion, a decrease of 0.2% from the previous month, but 7.7% above May 2010.
Link
Food and drink store sales dropped -0.5% (+1.2% in April vs. March), with groceries declining -0.4% in May.

Foodservice and drinking place sales increased 0.6% (-0.8% in April vs. March).
Read more here

FRESH & EASY HELPS TESCO’S RESULTS

In the first quarter 2011, Tesco’s US operation Fresh & Easy saw sales rise 21.9% (31.7% at constant exchange rates), with double-digit like-for-like sales growth of 11.1%. This was driven by increased customer numbers and higher average spends. The stores which have recently opened in Northern California saw weekly sales per store of $150,000 during quarter.

UK-based retailer Tesco reported a rise in total Q1 group sales of 7.8% including petrol (8.4% at constant exchange rates) in the 13 weeks ended 28 May 2011. Growth excluding petrol was 6.7% (7.3% at constant exchange rates).

UK like-for-likes stood at 1% excluding petrol and 3.4% including petrol, a stronger rate of growth than in the fourth quarter of 2010-2011.

NESTLE EXECUTIVE SEES SLOWER GROWTH IN EMERGING MARKETS

Rising commodity costs and disasters such as the tsunami in Japan are expected to hinder sales in Nestle's Asia-Oceania-Africa zone, said Executive Vice President Frits van Dijk.

The region, which comprises about two-thirds of Nestle's emerging market exposure, saw a 12% sales increase in the first three months of 2011, but lower incomes mean consumers are more sensitive to price increases.

Source: GMA

WALGREENS LAUNCHES “THE BIGGEST LOSER” DIET FOOD RANGE

Walgreens has partnered with NBCUniversal Television Consumer Products Group to offer an exclusive line of meal bars and shakes based on reality TV show 'The Biggest Loser'.

The range has been designed by nutrition experts with the show, and Walgreens said they are an excellent source of protein and dietary fiber, containing no preservatives, artificial flavors or added colors.
Source: Planet Retail

June 14, 2011

AMERICANS SPENDING LESS ON GROCERIES

According to the latest iteration of Acosta Sales & Marketing's “The Why Behind the Buy” consumer survey, despite rising prices, the average American is spending 7% less each month on groceries and $94.60 on a routine trip, compared to $98.70 in 2010.

Households earning less than $75,000 are reducing budgets 10% or more, while higher income shoppers are spending up to 34% more.

More than half of Americans (53%) are paying more attention to what they buy at the grocery store, 43% are buying less food, 41% are taking advantage of sales/coupons and 22% are shopping at less expensive stores.

UNILEVER PLANS FIVEFOLD BOOST TO CHINA BUSINESS

Unilever, the world’s second-biggest consumer-goods company, plans to increase its business in China to as much as five times the current level, according to Harish Manwani president of Unilever’s Asia, Africa, and Eastern and Central Europe.

“Our business has been growing steadily about 18-19% per annum,” Manwani told Bloomberg TV in Jakarta at the World Economic Forum on East Asia. “Our commitment in China is to build a business four- or fivefold” what it is now, he said, without giving a timescale.

More than 55% of Unilever’s business now comes from emerging markets, Manwani said.


Unilever’s Chinese expansion goal is realistic, according to Shaun Rein, managing director of China Market Research Group, a Shanghai-based consumer consulting company. Premium brands in the fast-moving consumer-goods industry are growing about 20% annually in the country. “The government is trying to shift the economy from manufacturing-oriented to consumption-led,” Rein said. “Unilever are well poised because they have a strong branding and they created trust with the consumer.”

KROGER TESTS INSTORE MOBILE SCANNING TECHNOLOGY

Kroger is testing personal shopping technology instore at six locations, allowing shoppers to use handheld scanners, smart produce scales and other systems, Supermarket News reports.

The move is in preparation for allowing customers to shop instore with their smartphones.

The centrepiece of the technology platform is an internally-developed handheld shopping device called PAL (personal assistant and liaison) that is similar to the Scan It! handheld scanners that Ahold USA offers shoppers in more than 280 Stop & Shop and Giant stores.

Kroger's touchscreen PAL unit lets customers scan and bag products as they move about the store, showing the total cost of goods so far. The retailer hopes that in future the device will suggest cheaper alternative products and comparable private labels.

Kroger is also currently developing an ‘intelligent shopping cart’ which weighs each product to ensure it was scanned before being placed into the cart.

At the moment the PAL costs around $50, and this relatively low cost has meant Kroger is allowing customers at one store to take the devices home, where they could scan coupons and the barcodes on items they need to replenish.

June 13, 2011

WALMART TESTS DOUBLE COUPONING

Walmart is testing a double coupon program at seven of its stores in Utah. The face value of coupons worth $0.50 and less is doubled to $1. Coupons worth more than $0.50 are rounded up to $1.

“It is a pretty unique situation,” Walmart Spokeswoman Tara Raddohl told The Salt Lake Tribune, although she declined to say why the retailer was testing the offer.

FRESH PRODUCE: INCREASE IN DOLLAR SALES

Weekly dollar sales in the US rose and per store volume of fresh produce stayed fairly consistent in the first quarter of 2011 compared with the same period last year, according to the latest edition of FreshFacts® on Retail, the quarterly retail research report of the United Fresh Produce Association.

While a number of fresh produce categories experienced significant price increases in the first quarter of 2011, adding to much of the 4.8% dollar growth for produce, other categories such as premium items fared much better. Value-added produce and organic produce, for example, both experienced increases in dollar and volume sales.

Highlights of this quarter’s report include:
- Increases for value-added fruits dollar and volume sales by 6.9% and 9% respectively
- Gains of 8.4% in dollar sales and 7.5% in volume for value-added vegetables
- Volume increases of 15%, 16% and 16.6% for berries, grapes and specialty fruits, respectively
- For organic fruits, an increase of more than 23% in dollar sales, and more than 16% in weekly volume.