Industry News

Sales of functional foods and beverages are growing faster than vitamins and dietary supplements, according to Euromonitor International (EI). However, functional foods will not overtake the overall market for traditional supplements. The global fortified food and beverage market climbed to about $97 billion in 2006, to almost double the size of vitamins and dietary supplements. Worldwide, functional foods and beverages grew by 10% in 2006, compared to supplements' 6%. While global functional food and beverage growth is projected at 34% between 2006 and 2011, vitamins and dietary supplements are expected to grow by 18% on a worldwide basis between 2007 and 2012, reported MediaPost's Marketing Daily. Full Story (Free Registration Required)

Cooking oil, flour, butter, cheese and other commodity-type categories are most susceptible to losing market share to private label, according to a report by Citigroup Global Markets. These categories experienced the largest private label share gains for the 12 weeks ending July 12. Overall, private label food categories had a 21.5% unit volume share for the 12 weeks in food, drug and mass, up from 20.6% for the 12 weeks ending July 14, 2007, reported Supermarket News. Full Story

In a time of increased inflation, milk has become one of the toughest challenges to overstretched consumers. Like gasoline, its partner in inflation, milk has outpaced other price hikes. During the last five years, the cost of milk has gone up 43%, while overall inflation rose 19%. And like gasoline, which has dipped in price recently, the price of milk also has dropped. In the past few days, Publix Supermarkets and some Kroger stores in metro Atlanta lowered the price on a gallon of milk by nearly 70 cents, to about $3.60. Nationwide, consumers paid about 10% more for milk in June than they had a year earlier, according to the Bureau of Labor Statistics, reported The Atlanta Journal-Constitution. Full Story

Lyons Specialty Co. is expanding food services at convenience stores. Earlier this year, the company introduced new prepared foods such as fried chicken to the 500 Louisiana convenience stores it supplies, reported redOrbit. Full Story

In the wake of a recall by one of its ground beef suppliers, Coleman Natural Beef, Whole Foods Market plans to tighten oversight of its suppliers to keep substandard products out of stores, reported The New York Times on the Web. Full Story (Free Registration Required)

International News

China's consumer price index (CPI) was up 6.3% in July, down from 7.1% in June and 7.7% in May. Food prices, which account for more than a third of the CPI calculation, rose 14.4% in July, 2.9 percentage points lower than June and 6 percentage points lower than the growth for the first half. The price of meat increased 16%, while that of pork rose 12.1%. Cooking oil went up 30.8%, vegetables up 8.4%, aquatic products up 18.3% and grains up 8.6%, reported China Daily. Full Story

Brazil Fast Food Corp. acquired 60% of Internacional Restaurantes do Brasil, which owns 14 Pizza Hut restaurants and is Pizza Hut's largest Brazilian franchise. The acquisition is expected to increase consolidated revenue by 20% in 2008 and 40 to 50% in 2009, according to Brazil Fast Food Corp. CEO Ricardo Bomeny. Full Story

Health News

A high legume intake led to a roughly 40% lower risk of developing Type 2 diabetes in Chinese women, according to research from Vanderbilt University Medical Center and the Shanghai Cancer Institute published in the American Journal of Clinical Nutrition. Chinese women who had a high intake of any kind of legume had a 38% lower risk of developing Type 2 diabetes, while those who had a high intake of soy beans specifically had a 47% risk reduction, reported Natural News. Full Story

Washington News

Full administrative hearings on the 2007 merger between Whole Foods Market Inc. and Wild Oats Markets Inc. are being planned by FTC, reported CNNMoney. The move follows a federal appeals court revival of the FTC's antitrust challenge to the $565 million transaction. Full Story

One of Pizza Hut's largest franchisees, Midland Food Services, filed for Chapter 11 bankruptcy protection for a second time. Minimum-wage increases, a rise in the cost of ingredients, and unfavorable lease terms were some of the factors in its negative operating results, the Pizza Hut franchisee said in papers filed with the U.S. Bankruptcy Court. Midland,with six restaurants in Kentucky and dozens of others in Ohio and West Virginia, filed for Chapter 11 in October 2000 and emerged from bankruptcy protection in August 2001, according to The Courier-Journal. Full Story

Market News

USDA estimates feed corn production will be the second largest on record this year at 12.3 billion bushels, and that soybean production will be up 15% from a year ago and the fourth largest production on record. All wheat production, at 2.46 billion bushels, is virtually unchanged from the July forecast, but up 19% from 2007. Full Report

Produce distributors and fresh fruit and vegetable farmers are seeking third-party verification of farm practices that reduce the risk of E.coli, listeria and other illnesses. The Washington State Department of Agriculture is conducting a growing number of audits using USDA Good Agricultural Practices and Good Handling Practices. Through the process, WSDA's auditors verify that growers and processors are following best management practices to reduce the risk of microbial contamination of fresh produce, reported Fruit Grower News. Full Story