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Insights & Outsights, a light-hearted annual retrospective (2013 and 2014). Email us for more
Subject:
FOOD BUSINESS NEWS
Period: April 9, 2016 to April 16, 2016
Geographies:
Worldwide
Categories:
All Categories
Contents
 

Unilever CEO Paul Polman Calls On Business To Be More Proactive In Protecting Environment

Unilever CEO Paul Polman is calling on business to put more importance on long-term sustainability goals than profits. Polman said the cost of doing nothing about to protect the environment is becoming more expensive than action. With governments still hampered by debt following the global financial crisis of a decade ago, business must be willing to pay for developments promoting sustainability, the executive said. After his appointment as Unilever CEO in 2009, Polman proposed the Unilever Sustainable Living Plan, which seeks to double the company’s revenue while reducing its environmental impact by half and sourcing 100 percent of raw materials from sustainable suppliers.

"Unilever chief Paul Polman urges the long view for business", The Australian, April 14, 2016

New Butterball Ground Turkey Brand Made From Antibiotics-Free Birds

Turkey processor Butterball LLC announced a new line of ground meat made from birds never treated with antibiotics. The move puts Butterball in the rapidly expanding group of meat and poultry processors that are eradicating antibiotics from their animal husbandry schemes. Perdue Farms Inc. in February said it is transitioning to chicken and turkey products that use “no antibiotics ever.” Tyson Foods Inc., said it will eliminate antibiotics by September 2017. Butterball says its “Farm to Family” brand of antibiotics-free ground turkey is already appearing in grocery stores. It expects to generate $100 million in retail sales over the next three to four years from the product.

"Turkey Burgers Go Antibiotic-Free as Butterball Jumps on Trend", Bloomberg, April 09, 2016

Sainsbury’s Ends Price-Matching Coupon Scheme In Favor Of Lower Prices

British retail grocery chain Sainsbury's is no longer giving shoppers a refund coupon when its products are more expensive than of a competitor's. The company said the money saved by ending the “Brand Match” program will be used to reinvest in key everyday products “that matter most” to customers, including chicken, bread, cheese, fresh produce and household cleaning items. The idea behind Brand Match, launched five years ago, was to mitigate the consumer perception that Sainsbury’s was too expensive. The move to drop the program follows adjustments to similar price guarantee schemes by competitors Tesco, Morrisons and Asda.

"Sainsbury's Ends Brand Match In Favor Of Lower Regular Prices", Retail Analysis, April 07, 2016

Whole Foods Market Seeks To Widen Target Market With 365 Store Concept

Whole Foods Market’s plan to launch its 365 by Whole Foods Market store concept is part of the retailer’s efforts to expand its customer base. With the first store scheduled to open on May 25, 2016, in the Silver Lake neighborhood of Los Angeles, the stores will feature a product assortment the company said is developed toward “greater efficiency.” Compared with a regular Whole Foods store, the 365 stores will have a smaller floor space of about 30,000 square feet. Although 365 stores will offer more affordable prices, Whole Foods aims to have the smaller stores have much in common with the regular stores, such as high-quality meat and seafood and an emphasis on offering a wide collection of produce.

"What to expect from Whole Foods' new, low-price grocery chain", The Washington Post, April 07, 2016

Colorado Project Generates Methane Gas, Then Electricity, From Food Waste

Landfills are piled high with rotting food that emits methane gas. But a Colorado project is turning the methane gas produced by cattle dung and discarded food into electricity. The Heartland Biogas Project uses six holding tanks to store 1.7 million gallons of either food waste or manure slurry. “Digesters” turn the mess into a water-based sludge, some of which becomes compost. But the more interesting byproduct is methane gas, produced by anaerobic digestion of spoiled milk, old pet food and vats of grease mixed with beneficial bacteria. The gas is transported to an interstate pipeline and used to make electricity. Several problems are tackled in the process: putting a greenhouse gas to work generating renewable energy; diverting... More

"How Colorado Is Turning Food Waste Into Electricity", National Public Radio, April 05, 2016

Walmart, Sam’s Club Pledge 100% Cage-Free Eggs Within Ten Years

Walmart and Sam’s Club announced a commitment to sourcing only cage-free eggs by 2025, though they hedged a little, saying the accomplishment of the goal depended on “available supply, affordability and customer demand by 2025.” In a statement the companies said the cage-free pledge supports their “aspiration” of achieving the “five freedoms” of animal welfare for farm animals in its supply chain,” announced a year ago. Besides freedom to express normal animal behavior, the others are freedom from hunger and thirst; discomfort; pain, injury or disease; and fear and distress. The company is requiring all of its egg suppliers to be certified and fully compliant with United Egg Producers (UEP) Animal Husbandry Guidelines.

"Walmart U.S. Announces Transition to Cage-Free Egg Supply Chain by 2025", News release, Walmart, April 05, 2016

Canadians Say Rising Food Prices Are Making It Harder To Put Food On The Table

A majority of working poor, middle-class and even higher-income Canadian consumers – nearly three out of five – say the rising cost of food is making it tougher to feed their families, an Angus Reid Institute poll finds. To deal with the problem, consumers are cutting back on meat purchases, buying cheaper brands, and choosing what they believe are less healthy but cheaper foods. Sixty-three percent of Canadians say the government has not paid enough attention to rising food prices, and 53 percent say the issue is “one of the most important” facing the country today.

"Rising food prices: Canadians – regardless of income level – say it’s getting harder to feed their families", Angus Reid Institute, April 04, 2016

USDA Data On Organic Sector Show Healthy Growth

Thanks to a newly launched organic database system that tracks and reports on certified organic operations, the USDA announced continuing double-digit growth in U.S. organic farming, ranching, handling and processing. The data collected from the constantly-updated Organic Integrity Database confirm that there are now 21,781 certified organic operations in the U.S. -- up 12 percent since 2014 -- and 31,160 around the globe. The total retail market for organic foods and other products is now valued at more than $39 billion here and more than $75 billion worldwide. The agency has invested a billion dollars in more than 40,000 local and regional food businesses and infrastructure projects since between 2009.

"USDA Reports Record Growth In U.S. Organic Producers", News release, U.S. Department of Agriculture, April 04, 2016

FDA Will Release Voluntary Salt-Content Goals This Summer

Politico reports that voluntary goals for sodium levels in processed foods will be released this summer by the FDA, thanks to a lawsuit by the Center for Science in the Public Interest. Having to reduce salt content makes some food companies nervous, because the ingredient gives breads, crackers and sauces “their trademark taste.” It’s likely, however, that the reductions would be phased in over ten years. The CSPI lawsuit should push the FDA to release the salt targets completed two years ago but kept under wraps. Excessive salt content in processed foods has been a bête noire of the Obama administration for years.

"Obama's latest food crackdown: Salt", Politico, April 03, 2016

“Free From” Is Good, But It’s No Substitute For Unprocessed

Food writer Marion Nestle writes that it’s all well and good that the food industry is getting rid of bisphenol-A (BPA) from its packaging, and removing unnatural additives, artificial colors or flavors, high fructose corn syrup, trans fat, gluten and GMOs – or at least including GMOs on their labels. Products sell better, and companies make more money, when the labels proclaim “free from.” And consumers benefit “to an extent,” she says. But highly processed foods still contain a lot calories, and often excessive salt and sugar. People need to eat vegetables and other unprocessed foods. “No amount of subtraction from highly processed foods is going to change that,” she concludes.

"No amount of 'free from' labelling will make processed food good for you", The Guardian, April 02, 2016

FDA Takes Steps To Reduce Infant Exposure To Arsenic In Baby Food

The FDA has issued a “draft guidance“ to the baby food industry proposing a limit of 100 parts per billion for inorganic arsenic in rice cereal, the main source of arsenic exposure in infants. Because of their small size, babies under the age of one consume about three times more rice – relative to their weight – than adults. FDA testing found that most infant rice cereal being sold today either meets or approaches the proposed limit. Manufacturers can produce infant rice cereal that meets or is below the proposed limit by sourcing rice with lower inorganic arsenic levels, the agency said.

"FDA proposes limit for inorganic arsenic in infant rice cereal", News release, U.S. Food and Drug Administration, April 01, 2016

Del Monte Removes BPA Packaging, GMO Ingredients

Del Monte Foods announced it is eliminating bisphenol-A (BPA) from its food cans and removing all GMO ingredients from its foods. The company, which produces fruit, vegetable, and tomato products, said the moves are a response to consumer preferences. All Del Monte cans will be converted to non-BPA linings beginning with fresh pack production in May and running through October. The company’s foods have always been non-GMO, but some added ingredients for sweeteners or flavorings have come from genetically modified crops like corn or soybeans. These GMO ingredients will be eliminated this year.

"Del Monte Foods Announces Conversion to Non-BPA Packaging and Increases Non-GMO Vegetable, Tomato and Fruit Cup® Product Offerings", News release, Del Monte, March 29, 2016

More Retail Grocery Chains Transitioning To Cage-Free Eggs

Several retail food chains announced they are switching to cage-free eggs. The latest group includes Bashas’, The Fresh Market, and Aldi. Bashas’ will be completely cage-free by 2017 because it is “the right thing to do,” says CEO Edward Basha. The Fresh Market’s store brand of eggs are already cage-free, but it will switch to cage-free for all of its eggs within four years. Aldi says it will offer a cage-free egg choice by the end of the year, but has set 2025 as the target date for 100 percent cage-free eggs in stores.

"Bashas', Fresh Market, Aldi commit to cage-free eggs", Supermarket News, March 23, 2016

Shoney’s Commits To All Cage-Free Eggs By 2025

Nashville, Tenn.-based restaurant chain Shoney's has committed to serving only cage-free eggs in its 150 restaurants by 2025. The company said it is working with its suppliers “to back the brand's dedication to the humane treatment of animals” and figure out a smooth implementation. "This is about a movement, not a trend," said CEO David Davoudpour, who acquired Shoney's in 2007. Shoney’s serves 50 million eggs a year. Other companies that recently announced a transition to cage-free eggs include restaurateur HMSHost, egg producer Pasco's Oakdell, grocery retailer SuperValu, PepsiCo, Olive Garden, LongHorn Steakhouse, Krispy Kreme Doughnuts, snack maker Snyder's-Lance, Walmart, Otis Spunkmeyer, and grocery chain Giant Eagle (Pa.).

"Shoney's Makes Commitment to Serve Only Cage-Free Eggs", News release, Shoney's, March 23, 2016

New York City Schools Serve Only Antibiotics-Free Chicken For Lunch

New York City's public schools have contracted with Somma Food Products to provide all 1,700 schools – 1.1 million students – in the system with 100 percent antibiotics-free, vegetable-fed ChickenTopia Drumstix for lunch. The city's Department of Education is one of six large urban school districts known as the Alliance that two years ago agreed that all school lunch chicken products must be sourced from humanely treated chickens raised with zero antibiotics of any kind and a vegetarian diet. Besides ChickenTopia, Somma Food Group's products include Merrywood Farms and Range Grass Fed Beef.

"New York City SchoolFood Launches Chickentopia 100% Antibiotic-Free, Vegetable-Fed Chicken from Somma Food Group", News release, Somma Food Products, March 17, 2016

Organic Dairy Backs Mandatory GMO Labeling

Stonyfield Organic, a U.S.-based organic dairy owned by France’s Danone group, has gone on record as supporting mandatory GMO labeling of food products. Parent company Danone has not yet publicly supported GMO labeling, but has also not “donated to campaigns trying to block it,” according to a Stonyfield spokesman. The U.S. Senate on March 16 defeated legislation formally known as the Safe and Accurate Food Labeling Act, passed by the House last summer. Opponents of the bill, however, refer to it as the “deny Americans the right to know,” or DARK, Act. It would have preempted states, including Vermont, from requiring the labeling of GMO foods, instead implementing a voluntary system.

"Danone's Stonyfield backs mandatory GMO labelling - Expo West", Just-Food, March 14, 2016

Campbell Soup Cans To Be Mostly BPA-Free By End Of 2016

Campbell Soup Co. began using cans made with acrylic or polyester linings in March, and has committed to eliminating all cans with bisphenol A (BPA) linings over the next year. The company said all varieties of Campbell's soups and gravies, Swanson broths and Spaghettios pasta products will be packaged in non-BPA-lined cans. It is on schedule to have three-fourths of its soup portfolio in non-BPA cans by December. BPA is a component in metal can coatings that protects food from direct contact with metal surfaces. Studies have found that the compound causes health problems.

"Campbell Soup to switch to BPA-free cans by 2017", Reuters, March 13, 2016

 
Companies, Organizations  

Hindustan Unilever Faces Rising Competition From Local Rivals; Likely To See Revenue Take A Hit

Hindustan Unilever Ltd.’s margins could be hurt by growing competition from local companies, such as Patanjali Ayurved Ltd., as well as by rising prices of raw materials, according to market analysts. Almost 45 percent of HUL’s brand portfolio is being threatened by rival products from Patanjali, according to analysts from ICICI Securities Ltd. This prompted the brokerage firm to lower its earnings forecast for HUL by 3 percent for financial year 2016–2017 and by 7 percent for 2017–20018. In 2014–2015, HUL reported a net profit of Rs. 4,315 crore, with total revenue of Rs. 30,170 crore.

"HUL’s margins seen coming under pressure", Livemint, April 07, 2016

Hindustan Unilever Is Business-School Students' Favorite Workplace, Nielsen Study Reveals

Hindustan Unilever Limited was recognized as the number 1 Employer of Choice, according to the most recent Campus Track Business School Survey by Nielsen. Results of the survey of 2016 graduating batch of business school students in the country revealed HUL has retained the “Dream Employer” status for the seventh year in a row. Other recognition received by HUL include number 1 ranking for marketing and number 1 FMCG in finance. Factors that helped HUL become the respondents’ favorite workplace include the company’s positioning as a “school for CEOs,” which highlights the company’s approach to developing talent and leaders in-house.

"HUL is the 'No.1 Employer of Choice' in India for fifth successive year", Hindustan Unilever, April 05, 2016

How Grocery Stores Can Survive Amazon

Bloomberg Gadfly, April 11, 2016

Supermarket Showdown

National Retail Federation, April 11, 2016

NZ academics fight against sugar

Asia Food Journal, April 08, 2016

UK brands eye growing Muslim consumer market

World Bulletin, April 08, 2016

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