Tasty Tidbits

• A joint study the 1.4MM African immigrants living in the U.S. estimates they make up a $50bn potential market. The survey was conducted by LA-based New American Dimensions (NAD), the U.S. African Chamber of Commerce, The Minneapolis Foundation and Aguilar Productions. Researchers, the research identifies the group as “largely untapped,” and points out an Islamic sub-segment where culturally- appropriate foods and beverages are currently lacking.

• Starbucks Corp. remains unable to find the “right” product mix, and will launch a line of salads. In addition, its baked goods will no longer contain HFCS (high-fructose corn syrup), artificial flavors or dyes. Where possible, preservatives will also be dropped from these products, and will cover 90% of the bakery items sold. Starbucks is also testing a Frappuccino formula in Dallas that incorporates these changes.

• In yet another sign the organics trend is slowing, sales of organic milk in California increased just .2% March, the most-recent month reporting to the California Department of Food and Agriculture. Totals reached 2.5MM gallons with increased totals for low-fat milk and drops in whole, reduced-fat and fat-free milk (source: California Farm Bureau).

• Kraft, playing on the word “singles” in its Kraft Singles line of packaged cheeses, is promoting grilled cheeseburgers for $1 in TV ads and on the Web, while Unilever is looking to grab some $1 buzz by giving away 25MM coupons for discounts on 2 boxes of Lipton Onion Soup mix as part of Lipton Onion Burgers priced at 85 cents per serving. Wal-Mart is running TV ads touting a dozen breakfast items for a buck or less as an alternative to QSR breakfasts costing up to $5. And finally, Campbell is looking at $1 price points for some condensed soups instead of the customary $1.59. The move is partly in response to the meteoric rise of dollar stores. According to one industry source, spending at dollar outlets by consumers earning more than $100K spiked 18% last year.

• The $11bn bottled water industry continues to find friction as concerns rise about the amount of waste it generates. Now the FDA has announced it will require bottlers to test their water sources for coliform and fecal contamination (previously the source did not have to be tested).

• OSI Restaurant Partners LLC, the parent company of the Outback Steakhouse, Bonefish Grill and Carrabba’s Italian Grill among others, has started shedding some of its smaller brands in order to pay down debt. Both Roy’s and Cheeseburger in Paradise have been sold back to their original owners. While privately-held, OSI hold public debt and reported its latest earnings as showing a net profit of $82.3MM, mostly on reducing its debt load by $20.8MM to $27MM. Revenues ($964.4MM) were down almost 10%, with same-store sales off 8.6% at Outback Steakhouse, 7.3% at Carraba’s, 10% at Bonefish Grill and 19.9% at Fleming’s Prime Steakhouse & Wine Bar. Last year the company’s first quarter earnings showed a loss of $9.7MM. The chain went private to avoid a continued hammering by Wall Street, but soon after ran into first a downturn in the casual dining sector followed by the Great Recession.

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