TRADER JOE'S TO ENTER NEW HAMPSHIRE

Aldi Nord-owned Trader Joe’s in the US is to open its first store in New Hampshire sometime next year, the Union Leader reports. The outlet will be located in Nashua, replacing an existing nearby store, just across the state border in Tyngsborough, Massachusetts. The new store will offer a range of alcoholic beverages while the existing outlet is not licensed to do so. Trader Joe’s currently operates 366 stores across the US. Sister company Aldi Süd is expected to open its first New Hampshire outlet in the coming months. The Aldi-bannered discount store is planned for Salem, on the border of Massachusetts.

Source: Planet Retail

BUDGET CUTS CONTINUE TO ERODE PUBLIC HEALTH READINESS

by Helena Bottemiller - Food Safety News

Federal and state budget cuts are taking a measurable toll on the food safety system, according to a new analysis by the Trust for America's Health and Robert Wood Johnson Foundation. Economic slowdown and widening deficits have led to scaling back programs that respond to foodborne illness outbreaks, bioterrorism, and other incidents, and, unfortunately, disasters tend to not discriminate between good times and bad. The authors of the ninth annual report, Ready or Not? Protecting the Public from Diseases, Disasters, and Bioterrorism, are concerned the trend towards fiscal austerity is having a negative impact on public health.

"We're seeing a decade's worth of progress eroding in front of our eyes," said Jeff Levi, PhD, executive director of Trust for America's Health (TFAH). "Preparedness had been on an upward trajectory, but now some of the most elementary capabilities - including the ability to identify and contain outbreaks, provide vaccines and medications during emergencies, and treat people during mass traumas - are experiencing cuts in every state across the country."

Since 2008, just under 50,000 state and local public health department jobs have been lost to layoff and attrition, according to the most recent data released by the National Association of County and City Health Officials (NACCHO) and the Association of State and Territorial Health Officials (ASTHO). NACCHO's July 2011 survey data also showed that between July 2010 and June 2011, more than half -- 55 percent -- of all local health departments reduced or eliminated at least one program. Emergency preparedness ranked second on the list of programs experiencing significant reductions.

According to NACCHO, the Bay County Health Department in Bay City, Michigan illustrates the tough position many health departments are in. The Bay County HD workforce is 20 percent smaller than it was when H1N1 broke out and 40 percent smaller than it was six years ago. Between 2010 and 2011 the HD's budget shrank 10 percent, and there are more cuts on the horizon.

Bay County Health Director Barbara MacGregor worries the county won't be prepared if a disaster or emergency situation strikes.

"We're prepared as best we can be, but you have to have human beings," said MacGregor. "You can have all the equipment you want in the world, but if you don't have the people on the ground doing the work, you're not going to be successful. With continued federal cuts to emergency preparedness and local health department funding in general, we are being set up to fail."
When it comes to food safety, the report warns that 24 states are at risk of losing Career Epidemiology Field Officers -- from Arizona to Maine to Florida. The report also lists weaknesses in biosurveillance as an ongoing gap in preparedness, an issue that has been raised by food safety experts for many years.

"There is no standardized, interoperable system using up-to-date technology," notes the report. "Currently, there are major differences in states' ability to collect and report data, which hampers bioterrorism and disease outbreak identification and control efforts."

The Food Safety Modernization Act was a positive step towards greater coordination and oversight, according to the report, but some state and local public health officials will be forced to balance fewer resources with the new responsibilities required under the law. Rebuilding a system based on prevention and better detection will take investments, and the report expresses concerns about properly funding the U.S. Food and Drug Administration to implement the measure.

Though the agency received a boost in the final appropriations bill for the next fiscal year --when most other agencies faced caps or cuts -- the report notes that future funding is uncertain and suggests creating a more stable source of funding for food safety, such as a registration fee for food facilities.

The report is meant to be a wakeup call to policymakers.

"During the anthrax attacks and Hurricane Katrina, we witnessed what happens when public health doesn't have the technology, resources, workforce or training needed to respond to emergencies," said James S. Marks, senior vice president and director of the Health Group of the Robert Wood Johnson Foundation. "The old adage is that it's better to be safe than sorry. Unfortunately if we ignore preparedness now, we'll be sorry later when the next emergency strikes."

Source: Food Safety News

DISCOUNTERS TOP UK RETAIL SURVEY

Discounters Aldi and Lidl have beaten many of their larger rivals to come close to topping an annual UK supermarket satisfaction survey, carried out by consumer association ‘Which?’ In its ‘Best and Worst Supermarkets’ report, Which? found that Aldi had overtaken mainstream retailer Marks & Spencer to take second place in its survey with a 72% positive rating, following only Waitrose.

The 11,000 members of the Which? Connect online panel, who were surveyed in October 2011, judged that Aldi was one of the few retailers to improve on its 2010 performance, rating it strongly for its “value and special offers”.

However, the German-owned discounter was also given a four star rating for the quality of its own-brand goods and fresh produce.

Third-placed Lidl also improved on its rating from 2010, scoring 68%, although panelists judged that the gap had widened between the company and rival discounter Aldi.

Despite this, Lidl was given four stars for its discounts and multibuys, while the quality of its fresh and own-brand produce also scored highly.

Topping the chart was Waitrose, which achieved a satisfaction rating of 83%, scoring five stars for its fresh produce, own-brand food and its perceived support for local food producers. UK grocery retail market leader Tesco came joint bottom of the survey with the Co-operative, with a satisfaction rating of 46% and only two stars for its value and special offers. Tesco was also judged by panelists as being the retailer they were “least likely to associate with trustworthiness”.

Source: Fruitnet

KRAFT PREPARES TO LAUNCH 70 PRODUCTS IN 2012 FIRST QUARTER

Kraft Foods plans to introduce 70 products, including a Fresh Take line with six varieties of seasoned bread crumbs and cheese. Also new will be Kraft Sizzling Salads and refrigerated MilkBite Milk and Granola Bars. European products debuting in the U.S. include belVita Breakfast biscuits.

FAMILY DOLLAR APPOINTS NEW CHIEF MERCHANDISING OFFICER

US discount retailer Family Dollar has announced the appointment of Paul White as Executive Vice President and Chief Merchandising Officer. White will report to Chief Operating Officer Michael Bloom. He previously held the role of Senior Vice President of Apparel, Home and Seasonal for the company, to which he was appointed in 2011.

Bloom said: "Through Paul's leadership and strategic vision, Family Dollar has created a compelling mix of discretionary merchandise which has led to a more fun place to shop for our customers. Paul's promotion will help us continue to broaden our appeal and deliver greater value to our customers."

Source: Planet Retail

MORRISONS TARGETS AFFLUENT CONSUMERS WITH M LOCAL

UK grocery retailer Morrisons plans to open hundreds of convenience M Local stores in upmarket areas over the next few years. The company is looking to attract wealthier consumers than those that typically visit its city centre or out of town stores. “They [convenient stores] are a format that we are looking to build on over the next couple of years and we will continue to keep you updated as we have further news,” said a spokesperson.

Richard Hodgson, Morrisons Commercial Director, is understood to have told a Sunday newspaper: “We’re pursuing an aggressive space strategy and convenience stores is at the heart of this. We want to open several hundred in the next few years and continue growing our market share.”

Source: Planet Retail

BI-LO TO BUY WINN-DIXIE

US regional retailer Bi-Lo is to acquire local peer Winn-Dixie Stores, in a deal that will create a company operating 690 stores across eight states.

Bi-Lo has tabled a bid worth $9.50 a share for Winn-Dixie, which has recommended the offer to its shareholders. Winn-Dixie said the bid was a 75% premium on the price at which its shares closed on Friday.

Bi-Lo chairman Randall Onstead said the retailer was "very excited" about the deal. It operates 207 supermarkets across four US states; Winn-Dixie has around 480 outlets in five states but Onstead said there was "no overlap" between the two retailers' operations.

"The combined company will have a perfect geographic fit that will create a stronger platform from which to provide our customers great products at a great value, while continuing to offer exceptional service," Onstead said.

In August, Winn-Dixie reported annual losses of over $70m and a fall in sales. Chairman, CEO and president Peter Lynch said the deal was "in the best interest of our shareholders". He added the combination of Bi-Lo and Winn-Dixie would build a company "that is stronger than our individual businesses". Both banners will remain in place after the deal goes through.

The acquisition is subject to the approval of Winn-Dixe shareholders but is expected to close within the next four months.

WALMART DISPUTES NYC REPORT

Walmart Stores in a strongly worded statement rebuked a report from the Manhattan Borough president’s office concluding that a Wal-Mart store in New York City would put dozens of other food stores out of business.

“A new report from Manhattan Borough President Scott Stringer that predicts that a Walmart in Harlem would hurt small businesses is nothing but a repackaging of a flawed Loyola University Chicago survey that tried unsuccessfully to make the same point,” the statement said. “In fact, one of the Chicago study’s authors was forced to conclude that his study contained no evidence of a net job loss in the Chicago neighborhood after Walmart moved in and admitted the company actually created jobs in Chicago.”

Stringer’s report estimated that between 41 and 66 businesses selling food in a one-mile radius of a Wal-Mart store in New York’s Harlem neighborhood would go out of business within two years of the retailer’s opening, reducing access to fresh food and running counter to initiatives to bring more such stores to the city. With Walmart reportedly looking at sites for a new stores in the city, Stringer advocated that city officials “take measures to protect small-scale, fresh-food retailers and the residents who rely on these stores to help maintain their health.”

Walmart defended its record in providing additional access to food in places like Chicago, and pointed out Stringer had previously supported the arrival of big-box rivals Target and Costco to New York. It said city residents were on pace to increase their spending at Wal-Mart stores outside of the city by 26% this year.

Source: Supermarket News

MAJOR US FOOD SAFETY STUDY PLANNED

A new study, described as the largest of its kind in the US fresh produce industry, has been unveiled by the US Department of Agriculture (USDA), bringing together a number of organizations to back food safety standards in the leafy greens and tomato industries.

The $9.4 million study, to last over three years, brings together the USDA, the Food and Drug Administration (FDA), seven universities – led by the University of Maryland – and the fresh produce industry, The Packer reported.

A $5.4 million grant has been released by the USDA for the study, which is being supplemented by $4 million from tomato and lettuce-grower-shippers in the country.

The goal of the project is to use science to provide practical food safety solutions across the leafy green and tomato supply chains, with University of Maryland's Robert Buchanan hoping that the study's findings will be used in the implementation of the National Leafy Greens Marketing Agreement.

Source: Fruitnet

RESTAURANT OPERATORS OPTIMISTIC ON 2012 SALES

Restaurant industry same-store sales remained flat in November, mainly because guest traffic tapered off from prior months, but operators remained bullish on sales outlooks for the next six months, according to the latest NRN-MillerPulse survey.

The December survey found that industrywide same-store sales rose 2.5% in November, in line with the 2.5-percent increase in October. However, sales did slow slightly on a two-year basis, rising 5.3% in November versus a 6.3-percent increase in October.

MillerPulse, an operator survey exclusive to Nation’s Restaurant News, polled around 70 restaurant operators in December regarding November sales, profit trends, performance and outlooks. Respondents cover all regions of the country and represent the quick-service, casual-dining, fine-dining and fast-casual segments. Those surveyed in December represented restaurants that booked about 17 percent of industry sales.

Same-store sales for quick-service restaurants, which include both fast-food and fast-casual brands, increased 3.4% in November, compared with 3.6% in October, and sales for full-service restaurants, which include both fine-dining and casual-dining brands, remained consistent with a 1.6-percent increase in November, compared with a 1.4-percent uptick in the prior month.

The modest same-store sales numbers are a reflection of a dip in guest traffic, which increased just 0.1 percent during the Thanksgiving month, compared with a 1.4-percent increase in October. The biggest concern was a traffic decline in the full-service category, said Larry Miller, restaurant securities analyst at RBC Capital Markets in Atlanta and creator of the monthly MillerPulse surveys and research.

Source: Nation's Restaurant News

REPORT DAMNS ‘SIGNIFICANT WEAKNESSES’ IN FDA FOOD SAFETY OVERSIGHT

According to a report from the U.S. Department of Health and Human Services, Office of Inspector General, “VULNERABILITIES IN FDA’S OVER SIGHT OF STATE FOOD FACILITY INSPECTIONS,” although FDA has increasingly relied on States to inspect food facilities, our report identified significant weaknesses in FDA’s oversight of these inspections. Notably, in eight States, FDA failed to ensure that the required number of inspections was completed. Moreover, FDA paid for many inspections that were incomplete.

In addition, FDA did not ensure that all inspections were properly classified or that all inspection violations were remedied. Based on the violations found during an inspection, FDA assigns each inspection a classification; an official action indicated (OAI) classification is generally assigned when the most serious violations are identified. We found that FDA officials were often unclear about how to properly classify contract inspections. Specifically, officials responsible for 11 States reported that they would not assign OAI classifications to State inspections under any circumstances, contrary to FDA guidance. Additionally, FDA officials reported that when States are responsible for correcting violations, FDA was not always informed about actions taken by the States. As a result, FDA was unable to ensure that all inspection violations were remedied.
Finally, FDA failed to complete the required number of audits in one-third of the States with inspection contracts. FDA guidance requires that a minimum of 7 percent of a State’s contract inspections be audited each year. However, FDA failed to complete the required number of audits in 14 of 41 States. Additionally, the audits in 10 States revealed systemic problems that needed to be corrected; however, FDA initiated corrective action in only 4 of these 10 States.

"We recommend that FDA:
(1) Ensure that all contract inspections are completed, properly documented, and appropriately paid for;
(2) Ensure that contract inspections are properly classified in accordance with FDA guidance;
(3) Ensure that all inspection violations are remedied by routinely tracking all actions taken to correct violations;
(4) Ensure that the minimum audit rate is met in all States; and
(5) Address any systemic problems identified by audits."

FDA concurred with four of our recommendations and agreed in part with the fifth.

Read more here

ALDI TO EXPAND IN SOUTH FLORIDA

German discounter Aldi has revealed plans to build a 500,000 sq ft regional distribution centre in Royal Palm Beach to support its expansion into South Florida.
According to Planet Retail, the company expects to invest about $50 million in the facility, which will take around 15 months to build, and spend $182 million in growing its store presence in the region.

AMERICANS NOT MEETING MYPLATE RECOMMENDATIONS

The nutritionally balanced quadrants of the U.S. Department of Agriculture’s (USDA) MyPlate - the new federal dietary guidelines that depict a healthful daily diet - look quite different from what’s actually on the plates of most Americans, according to new research from The NPD Group. Using its National Eating Trends (NET) research, which has continually tracked the eating and drinking habits of U.S. consumers for more than 30 years, Port Washington, N.Y.-based NPD calculated MyPlate days based on consumers who, on the same day, achieved at least 70 percent of the daily recommended intake for dairy, fruit, grains, proteins and vegetables.

For the average consumer, only 2% of their days (about seven days a year) come close to resembling the USDA’s MyPlate dietary guidelines, the research showed.

When a MyPlate day is achieved, consumers are highly likely to consume more than three meals a day.

“We know through our ongoing research that consumers are more aware of what constitutes a healthy diet, but we also know what they say and what they do when it comes to eating are often different,” said Darren Seifer, NPD’s food and beverage industry analyst who analyzed the NET information in comparison to the MyPlate guidelines. “Since the MyPlate program was just released last year, time will tell if it will have an effect on the way consumers eat, but it’s likely to be an uphill battle.”

Source: Progressive Grocer

THE CANCER DANGER IN CANNED FOOD

Independent research undertaken by the Breast Cancer Fund in Australia has uncovered harmful levels of Bisphenol A - or BPA - in a range of popular canned goods. Conducting the study using tinned foods commonly consumed throughout the festive season, including cranberry sauce, corn, green beans and evaporated milk, scientists found significant doses of the potentially dangerous chemical, which has been linked to an increased risk of breast cancer. A common component of polycarbonate plastic used to make food containers, microwave ovenware, kitchen utensils and some baby bottles, BPA is also used in the epoxy-resin linings of tin cans to form a barrier between the metal and the food and prevent bacterial contamination.

However, the toxic chemical can leach from the resin and make its way into food. Conditions connected to regular consumption are varied and range from breast and prostate cancer, infertility and early puberty in girls to type-2 diabetes, obesity and attention deficit hyperactivity disorder. "The tests showed that single servings of almost half of the products had levels of BPA comparable to levels that laboratory studies have linked to adverse health effects," reported Shannon Coughlin of the Breast Cancer Fund. "When combined in a meal with other canned foods - even those with lower BPA content - the result could be a holiday meal that delivers a very concerning amount of BPA.”Just one plate of your holiday favorites could deliver a potentially harmful dose of BPA. Then you get seconds. Then there's the leftovers. And then there's the rest of the year – most of us eat canned foods daily or weekly. Even if we don't use them much at home, canned foods are used in a lot of restaurant and cafeteria food. When you think of this daily exposure, you start to see the urgency of getting this chemical out of food cans."

Though this particular study was conducted in the US, Australian watchdogs have long been lobbying for change. Last year, a similar study by consumer group Choice found that 33 out of the 38 products they tested contained BPA. And just one serving of 29 of them delivered a dose that exceeded a safe daily level of exposure for a 70kg adult. Caving to international pressure to ban the use of BPA, the Australian Government has implemented voluntary deal with major retailers. From last July, a gradual phase out of baby bottles and tinned baby food containing the chemical has been in effect. But the program was not extended to other products, citing the fact that Food Standards Australia New Zealand said existing levels were low and of no public threat. This view is disputed by researchers, with both the Choice and Breast Cancer Fund studies finding varying levels of BPA in the same brand of food after multiple tests.

"We tested four cans each of seven different products. We found a tremendous variability in BPA levels in the canned foods we tested, even among cans of the same product made by the same company, which means that consumers have no way of knowing how much BPA is in the canned food they're buying and consuming," said Coughlin. "These findings point to a troubling fact: consumers are being exposed to BPA through eating canned foods, and have absolutely no way of knowing what their levels of exposure might be." Though some in the scientific community discount the links between BPA and an increased risk of breast cancer and other illnesses as junk science, clinical studies have proven the chemical's detrimental effects in both mice and human cell cultures. The European Union, Canada and China have banned the use of BPA in the production of baby bottles and France is on the verge of banning it in all food applications. The Endocrine Society, the world's oldest, largest and most active organization devoted to research on hormones, issued its first-ever scientific statement on BPA in 2009, saying that it can interfere with human hormone systems even at acutely low doses.

"In regard to breast cancer, lab studies have shown that BPA alters mammary gland development in rats and mice. Prenatal exposures of rats and mice to BPA have also been shown to result in precancerous and mammary tumors," said Coughlin. "Furthermore, when scientists have exposed human cell cultures to BPA, they have seen increased breast cancer cell proliferation and damage to DNA.” Recent research found that when pregnant mice drank water laced with BPA at environmentally relevant doses, it altered the long-term hormone response of their offspring in ways that could increase the offspring's risk for developing breast cancer. Even more worrying, recent evidence demonstrates that BPA exposure may reduce the efficacy of chemotherapeutic and hormonal treatments for breast cancer."

Recommending that the chemical be removed from all food packaging and ensuring that any replacement is proved to be safe, experts suggest that until that happens shoppers should opt for fresh or frozen foods and buy products in glass or Tetra Pak packaging wherever possible in order to avoid exposure and possible related health problems. "Consumers have no way of assessing BPA levels just by looking at cans on supermarket shelves," added Coughlin. "The findings of this report highlight the urgent need to remove BPA from food packaging so that shoppers can be confident that the food they are purchasing is safe for their families, not only at Christmas, but every day." The chemical is also found in soft drink and beer cans, with The Coca-Cola Company rejecting a move to ban it from their products in April this year. This comes after a 2009 Washington Post investigation that uncovered internal company memos which discussed plans to “devise a public relations and lobbying strategy to block government bans” of BPA in can linings.
Source: smh.com.au

PRODUCE SALES VALUE UP 6% IN US, BUT VOLUME …

Supermarket produce dollar sales rose nearly 6% since this time last year, driven by higher average retail prices. The increase in dollar sales was fueled by higher average retail prices this period, according to the latest edition of FreshFacts® on Retail, the quarterly retail research report of the United Fresh Foundation.

While overall volume experienced a slight decline due to higher prices, the decrease was only 3%, continuing the trend established in previous quarters, which saw consumers willing to pay a premium for their fresh produce preferences.

Highlights of this quarter’s report include:
- Eight of the top 10 fruits and nine of the top 10 vegetables posted sales that exceeded Q3 2010;
- Cherries saw true growth in sales and volume, both up more than 20%, as did mushrooms with more than 6% increase in volume and dollar sales;
- Dollars and volume for value-added fruits grew during Q3 2011, up 8.3% and 5.3%, and value-added vegetables saw dollar sales rise 6.8% and volume 7.1%;
- Organic fruits and vegetables both saw growth in weekly volume, despite increases in retail price;
- Produce based deli-salads and sides posted dollar growth.

Each FreshFacts® report also features a Quarterly Spotlight on one industry segment in particular.

This quarter, the report looks at the primary factors driving consumer purchasing in the fresh produce department. This spotlight focuses on the consumer’s desire for convenience and unique flavors, as well as consumer willingness to trade up to value-added and gourmet varieties when prices rise for basic staple commodities.

NEW COLDSTORE UNVEILED IN LA

The facility near Los Angeles airport could support the influx of perishable imports and boost the region's share of the business

Apollo Freight has opened a 16,000 sq ft refrigerated warehouse just east of Los Angeles international airport in California, the US, according to a report by the Los Angeles Times.
The facility, which can handle 100 tons a day and bring in US$90m annually in revenue, was apparently unveiled on November 28 by Apollo's parent company Mercury Air Group.

Apollo has seen its capacity more than double, providing more space to handle California produce headed to Asia and the Middle East, as well as for processing imported goods and those on the way from Central and South America to Europe and Asia.

While southern California dominates maritime imports, currently most airfreighted perishable items enter the US through Miami’s international airport and then trucked onto destination markets.
This new coldstore however could help southern California expand its perishable import trade.

“There is ample room for Los Angeles to grow in moving perishables," said David A. Herbst, executive vice-president of Mercury Air Group.

Miami International handled 73% of the more than 181,000 tons of fruit and vegetables imported to the US by air last year, according to Los Angeles World Airports, the city department that operates LAX.

LAX, meanwhile, came in third position for fruit and vegetable imports, behind Miami and New York’s John F. Kennedy international airport, with a 5% share.

The opening of the new coldstore has increased the area’s refrigerated warehouse space for airfreighted goods by 35.5%, according Victor J. Adducie, general manager for Apollo Freight.

Source: www.fruitnet.com

OVER $10M AWARDED TO MEET US FOOD SAFETY CONCERNS

US authorities have awarded over $10m in food safety grants to universities across the country with the aim of boosting research and education and reducing concern.

The US Department of Agriculture (USDA) has issued 17 grants, ranging from $100,000 to nearly $2 million, to universities across 13 states.

WHOLE FOODS TEAMS WITH ENERGYSMART JOBS AND PECI TO MEASURE ENERGY SAVINGS

Showcasing its strong commitment to energy efficiency, Whole Foods is partnering with EnergySmart Jobs and PECI to achieve measurable savings through high-efficiency refrigeration retrofits. Unique to this project is Whole Food’s openness to participate in a comprehensive technical evaluation of the upgrades the grocer has made with the help of the EnergySmart Jobs Program.

EnergySmart Jobs works with grocers, supermarkets and other commercial retail businesses throughout California to lower their operating costs by reducing the amount of energy they use. Whole Foods was drawn to the program not only for the potential energy savings, but also for the opportunity to improve the environmental impact of their stores. On top of that, EnergySmart Jobs is giving California a boost by creating hundreds of new sustainable jobs in the fast-growing energy efficiency industry.

EnergySmart Jobs and PECI are partnering with Whole Foods – Franklin and Whole Foods – Palo Alto, two Northern California stores, to quantify the actual amount of energy that each individual store is saving.

“Whole Foods Market has been fortunate to work with PECI for several years in our Northern California region, and significant energy efficiency improvements have been made, resulting in substantial cost savings as well,” said Kathy Loftus, Global Leader of Sustainable Engineering at Whole Foods. “When the opportunity to participate in the EnergySmart Jobs program came up, we enthusiastically agreed, as it not only helps grow the local economy, but also helps us prove the benefits of these improvements across our company and the industry.”

These two stores are part of six Whole Foods stores participating in the EnergySmart Jobs Program and each of them will be installing new energy management systems (EMS), programmed to float head and suction pressure to improve the refrigeration system efficiency. Rebates from EnergySmart Jobs cover a portion of the upfront investment costs. Together with applicable utility incentives, these rebates make it easy and affordable for grocers like Whole Foods to adopt new energy-efficient technologies.

Data loggers installed at several of these Whole Foods locations will monitor the amount of energy used by the refrigeration system condenser and compressor fans, offering a clear before-and-after picture. This is a rare and exciting opportunity, as the information collected from this study will enable PECI and EnergySmart Jobs to provide more accurate and detailed energy-use estimates for future projects.

The measurement and verification effort represents a strong commitment by Whole Foods to energy conservation. It also demonstrates the high level of expertise and thoroughness provided by EnergySmart Jobs and PECI in helping participating businesses reach their energy efficiency goals.

INDIA SUSPENDS FDI UNTIL CONSENSUS REACHED

The Indian government has suspended its decision to allow 51% foreign direct investment (FDI) in multi-brand retail until a consensus is reached through consultations with various stakeholders, finance minister Pranab Mukherjee announced last week.

Ruling Congress party allies and opposition parties have disrupted parliament for two weeks in protest against the government's retail policy, which would have allowed foreign supermarket chains like Wal-Mart and Tesco to set up shop in India.

The government hoped these supermarkets' arrival would ease high inflation, improve supply-chain infrastructure and create jobs. Opponents to the reform feared job losses for millions of small local shopkeepers.

A senior industry source told news agency Reuters the suspension also applied to foreign investment in the single-brand retail sector, which was to be raised to 100 per cent from 51 per cent.

According to Reuters, the Indian government gave no timeframe for reviving the retail reform. And analysts claim deep political divisions over the issue could keep it on the back-burner for some time.

"The decision has certainly delayed creating new economic activity," Kishore Biyani, CEO and managing director of Future Group, the parent company of local retailer Pantaloon, told Reuters. "We are convinced that good sense will prevail at some point and a consensus will emerge in some form, maybe not in the initially proposed form."

One senior government source told Reuters it was "premature" to say the retail plan would be watered down in future.

Source: www.fruitnet.com

HIRZ NAMED CEO AT SMART & FINAL

Smart & Final Holdings Corp. on Friday said that David G. Hirz, president and chief operating officer, will be named chief executive officer effective Jan. 1, 2012 and will also become a member of the company’s board of directors.

Smart & Final’s current chairman and chief executive officer, George Golleher, will remain executive chairman of the board and continue to work closely with Hirz and the senior management team on strategic issues, the company said.
Golleher joined Smart & Final in May 2007 in conjunction with the company’s acquisition by Apollo Management L.P.

Hirz joined Smart & Final as president in April 2010. He is a former president of Food 4 Less and Ralphs Grocery Co., which are both divisions of Cincinnati-based Kroger Co. He had joined Food 4 Less in 1991 and previously held posts with The Boys Markets.

Source: Supermarket News

FRESH & EASY LAUNCHES SECOND CUSTOMER-DESIGNED REUSABLE BAG

Fresh & Easy Neighborhood Market today introduced a new reusable bag featuring the winning design from its second annual Design-A-Bag contest. This new limited-edition reusable bag retails for only 99 cents and joins several other reusable bags introduced by Fresh & Easy in recent weeks. The bag's colorful design of fresh produce was hand-painted by Las Vegas resident Tonya Jacobsen, who received a year's worth of free groceries for winning the contest.*

"I am so excited that my bag is coming out this week!" said Design-A-Bag contest winner Tonya Jacobsen. "My friends and family are excited to see it too, so I decided I'm going to 'wrap' all of the gifts I give this year in the new bag. It's great that it is coming out during the holiday season and I hope people enjoy it."

The Design-A-Bag contest generated more than 800 submissions from customers and 30,000 votes by "Friends of fresh&easy" -- customers who have signed up for the company's rewards program. Fresh & Easy's Design-A-Bag contest and expansion of its reusable bag range are part of a continued effort to encourage customers to use reusable bags. Over the past several weeks, Fresh & Easy has introduced a striped pocket tote for $1.79, a bag that keeps fresh food cool for $2.49, and a bag with colorful sunbursts for 99 cents.

"Our last customer-designed bag was a huge hit with customers and we're sure this new design will prove to be just as popular," said Fresh & Easy Chief Customer Officer John Burry. "By offering more attractive and useful reusable bags, we hope customers will be encouraged to use them more and in turn, join us in helping the environment."

*Valued at $5,000

COSTCO PROFIT FALLS SHORT OF ANALYSTS’ ESTIMATES

Costco Wholesale Corp. posted a 2.6% increase in first-quarter profit that trailed analysts’ estimates amid risings costs that reduced margins.

Net income advanced to $320 million in the quarter ended November 20, from $312 million a year earlier.

Net sales gained 13% to $21.18 billion with membership fees advancing 7.5% to $447 million.

Total revenue rose to $21.6 billion.

The retailer’s in-store gross margin, or the percentage of sales left after subtracting the cost of goods sold, narrowed to 10.62% from 10.97% a year earlier.

FRESH & EASY SAW DOUBLE-DIGIT LIKE-FOR-LIKE SALES GROWTH

Tesco's Fresh & Easy stores in the United States posted a 12% sales gain on a comparable stores basis, which excludes sales from stores opened since last year. Total U.S. sales rose by 29%, driven by larger customer numbers and higher average spend, the company said.

New store performance is understood to be improving, reflecting changes made to the offer in recent months.

SUPERMARKET WARS HIT FOOD PRICES IN UK

The first evidence emerged this week of how supermarket price wars were helping to force food prices down. Food prices were 0.5% lower in the first two weeks of this month compared with the previous month, according to the British Retail Consortium (BRC).

The shift takes annual food price inflation from 5% to 4.2% driven by the fresh food sector. BRC attributed the fall partly to the supermarket price war, which began with Tesco’s ‘Big Price Drop’ campaign, and partly to the easing of soft commodity prices.

City analysts described the impact on food prices as “real” and “noticeable”. Darren Shirley, an analyst at Shore Capital, said: “While we balk somewhat at the overstatement that the industry pricing activity has had a ‘dramatic’ effect on food pricing, it is none the less real and noticeable.”

“Whilst [food prices are] lower and falling, something that embattled consumers will no doubt welcome, let us be clear that food inflation is still very much 'in the system', these remain fulsome rates of price growth year-on-year.”

Meanwhile, as the all-important festive season approaches, many retailers are growing increasingly nervous about whether a busy Christmas will help to ensure a profitable New Year.Retail sales values were 0.6% lower on a like-for-like basis in October 2011 compared with the same month of last year, according to a report from the British Retail consortium and accounting firm KPMG. But total sales were up 1.5%, compared with a 2.4% increase in October 2010.

Stephen Robertson, director general, British Retail Consortium, said: "Which part of the wave we're riding varies from month to month - but the water is consistently chilly. For a fifth month, total sales growth continues its strangely regular flip-flopping between 2.5 and 1.5%. But, the year-to-date figure, which smoothes out these minor moves, is unchanged from the previous month. This is evidence of the basic weakness of consumer confidence and demand and it is worrying, this close to Christmas.”

WALMART INTERNATIONAL STATEMENT REGARDING FOREIGN DIRECT INVESTMENT IN INDIA

“Allowing 51% FDI (foreign direct investment) in multi-brand retail is an important first step,” said Raj Jain, Walmart India president and managing director and CEO Bharti Walmart.

“We are grateful that the Government has realized and appreciated the value that we will bring to strengthen the Indian economy. This change will positively impact the Indian market and our people. It will also contribute toward India’s image as a one of the world’s fastest growing economies and a welcoming destination for international businesses. However, we will need to study the conditions and the finer details of the new policy and the impact that it will have on our ability to do business in India.”

Bharti Walmart currently operates 9 Best Price Modern Wholesale units in India. Best Price Modern Wholesale cash-and-carry stores have been opened in Amritsar, Zirakpur (Near Chandigarh), Jalandhar, Kota, Bhopal, Ludhiana, Raipur and Indore. The JV in India expects to open 10 to 12 new Best Price Modern Wholesale stores and employ approximately 3,000 – 4,000 people by end of 2011.

“We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation, thus saving people money so they can live better,” Jain added. “We also believe that extending the scope of this policy beyond cities with 1 million in population will bring immense benefits in the form of jobs and access to quality merchandise at great prices. It will also supplement our efforts to build an efficient and sustainable supply chain with regional geographical synergies.

Bharti Walmart Private Limited is a joint venture between Bharti Enterprises, one of India's leading business groups with interests in telecom, agri-business and retail, and Walmart. The joint venture is establishing wholesale cash-and-carry and back-end supply chain management operations in line with India Government guidelines.

SOUTH KOREA RATIFIES FTA WITH US

US fresh produce exporters stand to benefit from the ratification of FTA with Korea - once the smoke has settled South Korea’s ruling Grand National Party (GNP) ratified an FTA with the US on Tuesday amid violent protests from opposing factions.

The accord, which was first agreed upon in 2007, stands to benefit exporters from both countries, but has been vehemently opposed by farmers and small merchants in Korea.

In order to push the controversial agreement through parliament the GNP called a snap plenary session, according to a report in the New York Times. Many opposition legislators rushed to the session, but were too late to prevent the bill being put through. In a desperate bid to stall proceedings a legislator opposed to the accord detonated a tear gas canister within the National Assembly chamber. Adding to the mayhem a scuffle then broke out.Despite the disruptions the vote was cast and the GNP managed to pass the deal in a vote of 151 to 7. The FTA could take effect as soon as January 1.

“The legislators were passing a bill which will make ordinary people shed bitter tears, so I detonated tear gas so that they too shed tears, even if theirs were fake tears.” Kim Sung-dong of the Korea Democratic Labour Party, was quoted as saying by the newspaper.The US approved the accord on 12 October after intense lobbying, not least from US farm and agricultural export groups keen to see a reduction in tariffs on their goods that would put them on a more even playing field with other export nations.

Source: www.fruitnet.com

INDIA SET FOR FOREIGN RETAIL INVASION AFTER KEY RULE CHANGE

India has signaled plans to open up to foreign retailers, paving the way for the likes of Tesco and Walmart to muscle in on the world’s third-largest grocery market.

The Indian government has overturned a key rule limiting foreign supermarkets to operating in the country as minority partners of Indian firms. They can now take stakes of up to 51%, handing them control of the ventures.T

he new ruling was designed to inject capital into the fast-growing industry, which could grow from $394bn in 2011 to $430bn next year, according to IGD figures.

“International retailers will bring technology, expertise and funds to invest in building robust supply chains across the country,” said Nick Everitt, IGD’s director of retailer insight.

Global retailers including Walmart, Tesco and Carrefour, which already have stakes in the Indian market, could use the new law as springboard for expansion.

“It will allow those retailers currently only present via cash & carry to build a retail presence and move deeper into the country than ever before,” Everitt added.

Source: The Grocer

US CONSUMERS SEEK GREATER VARIETY

The fresh food industry in the US is responding to changing consumer demographics as shoppers increasingly look for a diverse array of products in supermarkets, according to a new study from The Perishables Group.

“The fresh food industry is no longer managing a small number of products that are seasonally driven,” the report said.

“Shoppers are showing dynamic and sometimes contradictory purchase patterns in an incredibly complex retail environment. Successful management of these complexities is rooted in knowing the consumer: who they are, how they shop and what they value. Ultimately, this knowledge leads to more informed decisions about what items to carry, when to carry them and in what stores.”

As a result, the report said that fresh food suppliers are selling in a very different environment than just five years ago, since there are more decisions to make and more items for retailers to balance.One of the most noticeable expansions in unique item count and sales is in the value-added categories, which now include a wide offer ranging from pre-cut produce to microwavable items, sauces or seasonings.

Across the fresh departments, the report indicated that sales of many value-added items are rising despite higher prices compared with the traditional offer.Consumer response to products with added value is also benefiting organic and natural items, with sales of fresh organic products (excluding seafood) outpacing the growth of conventional products in the latest 52 weeks.

A similar trend occurred for natural products, outpacing conventional growth in the deli, meat and produce departments.

Source: www.fruitnet.com

FRESHFEL WELCOMES ABROGATION OF BANANA IMPORT LICENSES

Freshfel Europe highly welcomes this week’s decision of the EU Management Committee for the Common Organization of Agricultural Markets to abolish the banana import license system. For several months, Freshfel already advocated for a repeal of the banana import licenses as this monitoring tool became redundant after the move of the import regime to a tariff only system. The monitoring licenses have been unnecessarily burdensome for operators and provided no added value for the administration.

The decision to abolish the banana import license system is expected to enter into force January 1, 2012, awaiting publication in the EU Official Journal in the coming weeks. Yearly, around 4,8 million Tons of bananas originating from third countries are imported into the EU. As bananas originating from ACP-countries (around 900.000 Tons) no longer needed import licenses since the total market liberalisation in 2008, other supplying countries (mostly Central and South America) have been until now still requested to lodge import licenses when bringing bananas in free circulation in the EU.

Philippe Binard, General Delegate of Freshfel, explains: “The banana import licenses have currently only a purely monitoring role, are administratively burdensome and costly for operators (e.g. capital requirements of 10 million € at EU-level and associated collateral costs). Moreover they have no added value as previous preferential quota no longer exist and reliable information on volumes of banana imports can be gathered today through existing EU databases like Eurostat. Therefore, Freshfel highly welcomes this step which will bring benefits to EU banana importers as well as national administrations.”

US AGRICULTURAL EXPORTS HIT NEW RECORD

In the US, agriculture secretary Tom Vilsack has released a statement after the United States Department of Agriculture (USDA) released its final tally for agricultural exports in fiscal year 2011.

The figures showed that it had been a strong year for the sector, with exports climbing to record levels, and showed no sign of letting up, Vilsack noted.

"Thanks to the productivity of America’s farmers, ranchers and producers, the American brand of agriculture is surging in popularity worldwide," he explained. "Farm exports in fiscal year 2011 reached a record high of $137.4bn – exceeding past highs by $22.5bn – and supported 1.15m jobs here at home.

"Furthermore, agriculture continues to bolster our nation’s economy by contributing a trade surplus year after year," Vilsack continued. "This year, that surplus hit $42.7bn, a record. And next year looks equally strong for the U.S. agricultural economy, thanks in part to President Obama signing new trade agreements with South Korea, Colombia and Panama, which will add an additional $2.3bn to our export total and support nearly 20,000 American jobs."

Vilsack noted that agriculture continued to be a "bright spot" in the country's economy and a driving force behind export growth, job creation, and competitiveness, underscored by an increasing demand for US food and agriculture around the world.

For the first full fiscal year, China was the lead export market for farm products, with Vilsack pointing out that the Asia-Pacific region recognized the US as a reliable supplier of the highest-quality food and agricultural products – a message he wanted to take to Vietnam and China in his upcoming trade visit.
"Strong export performance means higher incomes for farmers and ranchers, more opportunities for small businesses owners, and jobs for folks who package, ship, and market agricultural products," Vilsack added. "So, thank you to all of America’s farmers, ranchers and producers who continue to make US agriculture a bright spot in our nation’s economy."
Source: Fruitnet

KROGER TESTS ‘SCAN-BAG-GO’ CHECKOUT SYSTEM IN KENTUCKY

US retailer Kroger is testing a new type of checkout system called ‘Scan-Bag-Go’ at a store in Kentucky. The innovation is a handheld wand that shoppers wave at product barcodes as they shop, tallying the total amount at the same time. A smartphone version is also being trialled in which customers use their phones to scan the items, show the device at the checkout and pay.
Source: Planet Retail

THIRD QUARTER 2011: WALMART ANNOUNCES COMPS UP

Walmart reported third quarter diluted earnings per share from continuing operations (EPS) of $0.97, compared to last year's $0.95 per share, which included a tax benefit of approximately $0.05 per share.

The company's EPS was within its third quarter guidance of $0.95 to $1.00. Net sales for the third quarter were $109.5 billion, an increase of 8.2% from last year.

Both Walmart U.S. and Sam's Club exceeded comparable ("comp") sales guidance for the quarter.

Walmart U.S. comp sales increased 1.3 percent and Sam's Club comp sales, without fuel, increased 5.7%.

Walmart International increased net sales approximately 20% to $32.4 billion for the quarter, including the benefit from acquisitions and currency exchange translation.

The company, as well as the three operating segments, leveraged operating expenses for the quarter.

During the third quarter, the company returned $2.7 billion to shareholders through dividends and share repurchases.

"Every business segment is stronger today than it was a year ago, and we delivered solid earnings growth for our shareholders in the third quarter," said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. "Both Walmart U.S. and Sam's Club exceeded comp sales guidance, and I'm pleased that the sales momentum positions us exceedingly well for the holidays. We also are pleased with the growth in both sales and operating income for Walmart International. "The company leveraged operating expenses this quarter, with all three operating segments achieving that goal as well," Duke continued. "We are committed to leveraging expenses again this year. Our overall performance reflects Walmart's strategy of driving the productivity loop, reducing expenses and investing in price."

The economy continues to weigh on Walmart U.S. customers, and Duke said the stores are continuing a strategy of investing in low prices for the holidays.

"Beyond everyday low price, Walmart U.S. has a number of additional programs in place for the fourth quarter, including the Christmas price guarantee, holiday layaway services and free online shipping options," said Duke.

"Like the U.S., our international markets are ready for the upcoming holidays. We continue to see strong consumer demand in emerging markets, and our mission is relevant across all our formats around the world. EDLP is becoming an even stronger competitive advantage for us," Duke added.

78% OF AMERICANS EAT SNACK FOODS FOR LUNCH

Forty percent of Americans would prefer to reach for snack foods throughout the day instead of eating the traditional three square meals, according to a recent survey. What’s more, 78% of those surveyed say they indulge in snack foods for lunch, and 55% say they reach for a snack in lieu of dinner.

The Rethink Your Snack Survey, commissioned by Snack Factory's Pretzel Crisps, revealed that the younger generations tend to skip the full-course meal and go right to the snack aisle when they are hungry. In fact, 46% of 18- to 49-year olds make snacking a major part of their day, compared to only 31% of their 50-and-older counterparts.
Source: ConvenienceStoreNews

99 CENTS ONLY STORES INCOMES UP IN THIRD QUARTER

US retailer 99 Cents Only Stores has reported that net income for its third quarter ended October 1 was $15.1 million, up from $12.9 million in the prior year period.

TESCO FRESH & EASY MARKETING CHIEF TO LEAVE

Fresh & Easy has revealed that Chief Marketing Officer Simon Uwins is to leave the group to pursue other interests. In an internal announcement, Chief Executive Tim Mason said he was incorporating all customer-related activities in the grocery retailer's commercial and marketing divisions into one team. Fresh & Easy has appointed John Burry as Chief Customer Officer who will now oversee the retailer's marketing campaigns in addition to his existing responsibilities for commercial and manufacturing. This move is part an effort to reduce losses by the end of the 2012-2013 financial year.
Source: Planet Retail

USDA EXPECTS SLOWING FOOD INFLATION IN THE US

US Department of Agriculture economists believe food inflation will slow in 2012, according to the agency’s latest price forecasts.

Looking at the big picture for food prices, the USDA expects food consumed at home to increase 4% to 5% this year and climb 3% to 4% in 2012.

Meanwhile, food consumed away from home is expected to show more modest increases, with inflation projected at 3% to 4% in 2011 and 2% to 3% in 2012.
Source: The Packer

BASHAS’ TO IMPLEMENT PRICE OPTIMIZATION

Arizona-based retailer Bashas’ will employ a price optimization system from KSS Retail to model, measure and implement pricing strategies for its Bashas’ and Food City banners.

“Our goal is to provide our customers with a superior shopping experience,” said Robert Ortiz, Bashas’ vice president of sales and marketing, in a statement. “Working with KSS Retail will give us the ability to better understand our customers and what’s most important to them.”

Source: Supermarket News

COOKED FOOD MAY PROVIDE MORE ENERGY THAN RAW

According to new research published in the Proceedings of the National Academy of Sciences (PNAS), cooking may increase the energetic availability of food, meaning that energy assessment for food labeling could depend on how a product is prepared.

The new research, conducted by Rachel Carmody, a student in the Department of Human Evolutionary Biology at Harvard's Graduate School of Arts and Sciences, found that cooked food delivered more energy than raw.

Carmody said that given all the effort people put into processing food in different ways – grinding, slicing and pounding, for example – we don’t understand what effect these efforts have on the energy we extract from food. “It is astonishing, since energy gain is the primary reason we eat,” she said.

Source: The Daily Mail

NEW KIWIFRUIT INGREDIENT EXTENDS SHELF LIFE

Stratum Nutrition has introduced ApuraGreen, a kiwifruit pectin paste ingredient that allows for extended shelf life in baked foods along with a clean or simple label, according to the company, a Novus International Business based in St. Charles, Mo. The gluten-free ingredient has no artificial preservatives or additives. It has vitamin C, vitamin K and dietary fiber.

ApuraGreen may be used to replace eggs, dairy products, butter, cooking oils and casein-derived products in baking. It may replace up to 90% of fats in applications. Other potential applications include nutrition bars, juice products, dairy products, beverages, fruit fillings and leathers, frozen foods, meat, sauces, gravies and soups.

A technology partnership with Anagenix Ltd., Auckland, New Zealand, allowed Stratum Nutrition to add ApuraGreen to its portfolio. The partnership will allow Stratum Nutrition to bring new kiwifruit products manufactured by Anagenix to market.

Source: FoodBusinessNews

FDA LETTER TO CANTALOUPE GROWERS RECEIVES RESPONSE

In the wake of a listeria outbreak that’s been linked to the deaths of more than two dozen people, the Food and Drug Administration is asking cantaloupe growers, shippers and processors to follow FDA guidelines.
“In light of this multi-state outbreak of listeriosis associated with consumption of cantaloupe, which CDC has stated is the first listeriosis outbreak associated with melon, the agency believes that it is prudent to encourage members of the cantaloupe industry to review their current operations in the context of a number of FDA guidances and draft guidances that are generally relevant to preventing contamination of fresh cantaloupe with human pathogens,” said Michael Landa in the November letter to the melon industry.
Landa is the FDA’s acting director for the Center for Food Safety and Applied Nutrition. In particular, Landa advises growers to pay particular attention to the FDA’s draft guidance to industry titled “Guide to Minimize Microbial Food Safety Hazards of Melons.” The letter said that draft guidance supplements the Good Agricultural Practice guide and Fresh cut food safety guide issued by the FDA.
“Additionally, the Agency recommends that the cantaloupe industry consider the recommendations in FDA’s draft guidance to industry titled ‘Control of Listeria monocytogenes in Refrigerated or Frozen Ready-To-Eat Foods,’ to the extent those recommendations are relevant to the specific practices used in the fresh cantaloupe industry,” Landa said in the letter. He also praised the cantaloupe industry’s assistance in contributing to the development of the cantaloupe food safety guidance and other food safety measures. In response to the FDA, Steve Patricio, president of cantaloupe shipper Westside Produce, Firebaugh, Calif., and chairman of the Dinuba-based California Cantaloupe Advisory Board, issued a letter to Landa dated Nov. 4.
In the letter, Patricio said the board applauded the FDA’s outreach to the industry and pledged the full support of the California cantaloupe industry to improve the safety of the fruit. In particular, he noted the cantaloupe indsutry has pledged a total of $200,000 in research funding which will be used by the Center for Produce Safety over the next four years to ways to improve the safety of melons.
What’s more, Patricio said that the California cantaloupe industry has begun an immediate review of internal food safety practices. Finally, he said the Center for Produce Safety — in addition to food safety experts at the Produce Marketing Association, Western Growers and United Fresh Produce Association — has begun a process to fully review all research on food safety practices for cantaloupe throughout the world.
“This effort will become the basis of updated regional guidance for melon food safety which will be submitted to FDA as soon as possible,” Patricio said. Source: The Packer

AUCHAN LAUNCHES EDI PROJECT FOR E-COMMERCE

France-based retailer Auchan has launched an electronic data interchange (EDI) e-commerce project based on an international agreement with IT service provider Comarch. The grocery retailer aims to exchange electronic documents such as invoices and orders with e-commerce providers in several countries. The decision follows a successful initial pilot in Poland, which began with the launch of Auchan’s e-commerce platform in the country in June 2011. The retailer has been working with Comarch on international EDI projects since 2003.
Source: Planet Retail

SPROUTS AND SUNFLOWER TOGETHER?

Representatives of Arizona-based Sprouts Farmers Market and Colorado and Arizona-based Sunflower Farmers Market are engaged in discussions about a possible acquisition by Sprouts of Sunflower.

The talks and negotiations have been going on for slightly over a week, although perhaps longer, according to the information I have.

Source: Fresh & Easy Buzz

A&P RECEIVES $490 MILLION COMMITMENT

Tengelmann-controlled bankrupt US grocer A&P has reached an agreement to receive $490 million of debt and equity financing from The Yucaipa Companies, Mount Kellett Capital Management and Goldman Sachs.

If this agreement is approved by the US Bankruptcy Court for the Southern District of New York, it would allow A&P to emerge from bankruptcy as a privately-held company in early 2012.

P&G, WALMART TOP KANTAR’S ANNUAL POWERANKING

Traditional grocery retailers like Kroger, Publix and HEB are among the top 10 performing retailers in the latest ranking from Kantar.

In its 15th year of publication, the Kantar Retail PoweRanking Study highlights those manufacturers and retailers that have performed the best in the eyes of their trading partners. Entitled “Quick Response,” the 2011 PoweRanking report highlights the capability of manufacturers and retailers to focus on their mutual consumer and quickly respond to changes in the marketplace.

The report refers to “the joints” as requirements for succeeding in a quick response age. Structures and processes must be in place for joint planning, joint development, joint execution and joint key performance indicators.

The top seven PoweRanking manufacturers maintained their ranks. Procter & Gamble maintained its No. 1 position but the gap closed with Kraft at No. 2. General Mills and Unilever had the largest gains, being recognized for their abilities to respond quickly. Coca-Cola gained across all measures, with the largest gains in recognition for its sales organization.

“This year’s PoweRanking demonstrates how best-in-class trading partners are working together to appeal to a common consumer and meet their needs quickly,” said Ken Harris, CEO of Kantar Retail Americas Inc.

The top 10 manufacturers are:
- P&G
- Kraft
- General Mills
- PepsiCo
- Unilever
- Nestle
- Coca-Cola
- ConAgra
- Kellogg’s
- Clorox

The composite scores are based on rankings in eight key areas where manufacturers interface with retailers: clearest company strategy; most important consumer brands for retailers; best combination of growth and profitability; best sales force/customer teams; most innovative marketing programs; most helpful consumer/shopper insights and category leadership; best supply chain management; and best shopper marketing programs.

Among retailers, Walmart maintained its No. 1 rank for 2011 but the gap to other leading retailers closed. Target had a large increase of 8.2 percentage points, propelling it from third to second. Target especially received increased recognition for its consistent strategy and integrated brand message.

“Joint plans and actions to connect with consumers on all fronts in an integrated fashion will be increasingly important,” Harris said.

This year’s top 10 retailers are:
- Walmart
- Target
- Kroger
- Costco
- Publix
- Wegmans
- HEB
- CVS
- Walgreens
- Safeway

Ranking criteria for retailers include clearest company strategy; best at store branding; projected power retailers; best retailers with which to do business; best category leadership/buying teams; most innovative consumer marketing/merchandising; best supply chain management; and best practice category leadership.

The purpose of the PoweRanking study is to gain insights into the practices of the leading manufacturers and retailers in their working relationships. Each group of manufacturers and retailers ranked the other in eight key areas.

Customized questionnaires were developed for retailers and wholesalers in food, drug, mass merchandiser and convenience channels and manufacturers in food, general merchandise and HBC. These questionnaires were mailed each spring from 1997 to 2011 to personnel at all levels of management with the assurance of total confidentiality. To provide trended information over time, the PoweRanking measures are calculated on a rolling two-year basis.

BIG LOTS Q3 RETAIL SALES UP 6%

US grocery retailer Big Lots has reported that retail sales for its third quarter ended October 29 increased 6% to $1.1 billion compared to $1 billion in the prior year period. Comparable store sales for outlets open at least two years rose 1.7%. For the nine-month period, also ended October 29, retail sales from US operations climbed 2.3% to $3.5 billion compared to $3.4 billion for the same time in 2010. Comparable store sales dropped 1.3% for the year-to-date period.

SEVEN & I TWEAKS ITS FORECASTS

Japan-based Seven & I Holdings has posted a 26% rise in operating profit to $1.86 billion for the half year ended August 2011. The company raised its full year forecast after revising the estimate last month, Reuters reports. For the financial year ending February 2012, the owner of the 7-Eleven convenience stores, Ito-Yokado and York Benimaru supermarket chains raised its operating profit outlook to $3.55 billion up from $3.51 billion.

78% OF US FAMILIES SAY THEY PURCHASE ORGANIC FOODS

Seventy eight percent - more US families than ever before - say they are choosing organic foods, according to a study published today by the Organic Trade Association (OTA). "In a time when the severity of the economy means making tough choices, it is extremely encouraging to see consumers vote with their values by including quality organic products in their shopping carts," said Christine Bushway, OTA's Executive Director and CEO. The finding is one of many contained in OTA's newly released 2011 U.S. Families' Organic Attitudes and Beliefs Study. "It's clear that with more than three-quarters of U.S. families choosing organic, this has moved way beyond a niche market," Bushway added.

According to the study, four in ten families indicate they are buying more organic products than they were a year ago. The findings are in line with those in OTA's 2011 Organic Industry Survey, which revealed that the US organic industry grew at a rate of nearly eight percent in 2010. Fueled by consumer choice and demand, the organic sector is one of the few components of the U.S. economy that continues to add jobs.

Nearly half (48%) of parents surveyed revealed that their strongest motivator for buying organic is their belief that organic products "are healthier for me and my children." Other motivators for purchasing organic included concern over the effects of pesticides, hormones and antibiotics on children, and the desire to avoid highly processed or artificial ingredients.

Nearly a decade after the federal rules for organic were implemented, 72% of parents are now familiar with the USDA Organic seal, up significantly from 65% in 2009. However, the study also found that three in ten US families are new entrants to the organic marketplace. This figure is consistent with prior years' findings, and indicates a need for continued outreach and education on the verified benefits offered by organic agriculture and products.