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FOOD BUSINESS NEWS:

Discussions about the food industry, restaurants, and licensed food brand extensions

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A World Leader
One of the World's Top 20 Licensing Agents

Wednesday, July 22, 2009

"Tasty Tidbits #2"


• In a move counter to the falling sales of carbonated drinks in general and colas in particular, Red Bull has launched its own cola that it touts as free of artificial flavors, preservatives, HFCS (high-fructose corn syrup) & phosphoric acid. The product contains "slightly more caffeine" than regular cola, and was first distributed in Europe and Russia last year. Its American debut was in (where else?) Las Vegas last June.

• Discount club store Costco opened its first store in Australia in June.

• The business of in-store retail health clinics has grown 130% since 2003, though much of that growth comes from the creation of a category that did not previously exist in any widespread distribution.

Kraft sticks to its knitting as CEO Irene Rosenfeld plans to offer variations of tried & true products rather than new concepts as its strategy for dealing with the current economic challenges. General Mills, on the other hand, is launching Wanchai Ferry-brand Chinese frozen entrees. Suzie Wong, where are you?

• Having trouble sacking an employee? Seems there is a web site for just about anything, so it’s no surprise howtofiresomeone.com is offering business owners advice on terminating employees. The consensus is: be considerate of feelings and be truthful with employees as well as clients.

Wal-Mart, McDonald's and Nestlé were among the top-50 most admired companies by the readers of Fortune magazine.

• Old-fashioned "brown" liquor, especially bourbon and other whiskies, is making a comeback of sorts. Consumers see them as "classic" and even "artisanal" because of the complex craft of distilling and aging them, though sweetened versions are gaining popularity with younger drinkers.

• Chocolate giant Lindt is looking at using cocoa shells to generate electricity, though it still will mean burning something.

• If the "Carrying Coals to Newcastle" or "Selling Snow to Eskimos" doesn’t cover the topic, then perhaps the new phrase for overkill in a market will be "Opening a Coffeeshop in Seattle." Despite a killer economy, entrepreneurs there are opening new coffeeshops, with a typical start-up running $150,000-$500,000. But profits are 10-18% of sales, and— bad news for Starbucks— the city's quirky residents seem to favor indie establishments over chains.

Green Mountain Coffee is trying for the C-store market with its new Revv coffee with up to 27% more caffeine.

Tesco US division Fresh & Easy is using ultraviolet-light to sanitize plastic trays and display packaging. The process allows materials to be reused and helps the company reduce its carbon footprint.

• And on the marketing front, Tesco has convinced 45,000 customers to register with it to receive emails as part of "friends of fresh & easy" announcing company news (something consumers really crave) as well as exclusive offers and special deals. The pilot project apparently came about from feedback the company gathered from its Fresh & Easy Web site where consumers said they liked the idea of receiving correspondence from the company via e-mail. Tesco will support the surge with signage and handouts encouraging even more customers to sign up. Fresh & Easy also has a blog, as well as a Twitter account.

Nestlé USA introduced a variety of new products under its Stouffer’s brand, including Corner Bistro Stromboli and Flatbread Melts in six varieties. At the same time, the Lean Cuisine group launched four new frozen entrees, including Beef Chow Fun, Sun-Dried Tomato Pesto Chicken, Pasta Romano with Bacon and Linguine Carbonara.

Target is opening 27 new stores, including 6 supercenters selling food. The move as seen as essential in its competitive strategy to deal with Wal-Mart, the nation’s top retailer and largest food seller.

• Turkey's ice cream market is projected to grow at a 10% rate over the next five years. In an unrelated move, casual dining restaurant company Brinker International has opened its first Chili's in Turkey.

• U.K. grocery retailers & manufacturers have pledged to help cut household food waste by 155K tons or 2.5% of total waste before the end of 2010 in conjunction with the Waste Resources Action Program's "Love Food Hate Waste" campaign. The goal is to implement more effective labeling, package sizes, and storage, partly to keep food fresher for longer.

• As a sign of the flush cash position of grocery retailers, mid-West chain Price Chopper will sponsor the Price Chopper 400 NASCAR race at Kansas Speedway as part of the Sprint Cup competition.

Ohio State University researchers have discovered what moms have known for a long time: children consume an average of two cups of fruits and vegetables a day, which lags near the bottom of the recommended total. Up to 40% of the fruit intake is in the form of juices, and French fries account for about 25% of vegetables eaten. Another study (by Columbia University) shows children drinking less milk in favor of sweetened beverages, lowering their calcium intake.

Mars Snackfood is rushing into the social media marketing frenzy to advertise its Skittles products. In addition to hosting a user-created portion of its Skittles.com website that invites consumer-uploaded content, fans of the candy are encouraged to interact with the product through a user-maintained Wikipedia article for Skittles and postings from the social-messaging site Twitter which feature the word "Skittles."

Mother Burger will open in New York City in April with a signature drink: milk shakes with and without alcohol. Seems almost un-American.

• Talk about the American way: Kogi, a "Korean taco" lunch truck circulating the streets of Los Angeles, has been crowned "America's first viral restaurant" by Newsweek. Its owner, Roy Choi, is a veteran of trendy bistro La Bernardin and a valedictorian of former Broad Street Licensing Group client The Culinary Institute of America. Fans can find Choi's peripatetic truck on the Twitter social networking site, and have uploaded videos on YouTube. His fare includes regulars tacos with short ribs, spicy pork, chicken or tofu, but also extends to kimchi quesadillas, pork-belly tortas and Korean blood-sausage hot dogs. Grilled tripe, sweetbreads and anchovies marinated in traditional Korean flavors are on the drawing board.

• Despite offering vegetarian fare regularly to Americans, restaurants in Thailand are only now serving vegetarian fare. Vegetarian restaurants catering to a Buddhist clientele are common in China, for example.

Wm. Wrigley Jr. Company’s Global Innovation Center (GIC) in Chicago received LEED Gold certification by the U.S. Green Building Council (USGBC). LEED certification (Leadership in Energy and Environmental Design) is an accreditation system and nationally accepted benchmark for green buildings. Certification signifies that a building has met specific environmentally sound criteria, such as constructing on sustainable sites, improving water efficiency, using renewable materials and resources and employing innovation and design.

Excerpted from BSLG's weekly subscription news reader service Food Business News. To subscribe or for information about licensing, contact Broad Street Licensing Group (tel. 973-655-0598)

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