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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

Tuesday, August 18, 2009

Tasty Tidbits



• In the "we all need a good laugh department," the legal sparring between Red Lobster and Captain D's Seafood Kitchen continues. After the latter received a cease & desist letter from the giant seafood chain protesting ads attacking its prices and service, the Nashville, TN-based upstart has issued its own letter demanding Red Lobster lower prices, improve service and end tipping. The only ones sure to profit from the dust-up will be lawyers.

• Not all retailers are doing well in the recession: Spartanburg, SC-based BI-LO has filed for Chapter 11 bankruptcy protection.

• Look for maple syrup prices to soar this year because of a shortage of the product in New England. That's good news for local farmers, however.

• Food equipment manufacturer Manitowoc has made Business Week’s list of "best corporate performers."

• America's love affair with chili shows no sign of abating, and QSR Qdoba Mexican Grill plans on embracing that love with a new Chili Verde entry.

Black Angus Steakhouse has emerged from bankruptcy after it was purchased by Versa Capital Management Inc.

Foie Gras, already banned by city ordinance in Chicago, is now headed for the same fate in San Francisco. Animal rights advocates have campaigned against the French delicacy on the grounds that it results from cruel treatment of the geese whose livers make up foie gras.

• In fruit news, Old Orchard Brands' fruit smoothies will reach national levels of distribution through a partnership with Chiquita Brands International, Inc. (who also owns fruit supplier Fresh Express).

Wine.com is doubling its offerings of wines scoring 90 points or higher and which are priced under $20.

Starbucks instant coffee endeavor is expanding to new Costco, Target and Barnes & Noble stores.

• Philadelphia-based Swallow is the latest restaurant to embrace the American comfort food, macaroni & cheese, this time in the form of a pizzeria-type bistro offering mac & cheese in a variety of flavors (Mexican, tuna casserole or Greek with feta cheese).

• Oats and quinoa (a South American plant) may provide a gluten-free substitute for semolina in pasta. Packaged Facts says the gluten-free market has expanded annually at 28% since 2004, growing from $580MM to $1.56bn. Estimates are gluten-free products will top $2.6bn by 2012.

Balducci's appears to be one of the few food retailers not immune to the recession. The company will shutter 4 of its 10 locations, including both New York City stores. The company has passed through several incarnations and is currently owned by Irving Place Capital, a private equity fund.

• Restaurants are expected to add 1.8MM jobs to the US economy in the coming decade, and are increasingly the entry-level job for new workers. Foodservice is also a popular alternative for those who have lost jobs in other sectors according to MSNBC.

• Eastern Pennsylvania-based Turkey Hill Dairy's newest licensed flavor is the Phillie Phanatic Double Play. For all those who aren't baseball fans, the Phanatic is the mascot of the World Champion Philadelphia Phillies. The concoction will feature Bavarian cream-flavored light ice cream with caramel corn and caramel swirl. Previously the company had licensed the Phillies trademark for the Phillies Graham Slam. Broad Street Licensing Group's president, Carole Francesca, hails from Philadelphia, whose Broad Street gives the agency its name.

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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