Food Business News - October 23, 2012 - (Page 16)

Private label penetration forecast to grow in U.S. value during recessionary times; and the changing dynamics of the retail sector, which is being impacted by the emergence of mass merchandisers like Wal-Mart and Target as well as hard discounters like dollar stores. To combat private label growth, Rabobank made two suggestions. First, national brands must focus on “real innovation.” “National food brands need to follow the creative model of other industries, funding research that will lead to radical new products which address unmet consumer needs, or create wholly new categories,” Rabobank said. “Currently more than three quarters of new food products are line extensions or product derivatives.” The research firm’s second suggestion basically amounts to a strategy of if you can’t beat them join them by diversifying into a B2B business model for national brand production as well as co-manufacturing arrangements to serve both retailers and food service operators. FBN Continued from Page 1 low cost, low risk, conservative solutions, they need to think and act more like the Apples of the world, innovating new game-changing food products and entering new categories. Alternatively, national brand owners should consider downsizing brand-building efforts and diversifying their manufacturing into B2B activities.” Rabobank said the increasing competitive strength of retailer brands reflects a power shift from consumer packaged goods companies to food retailers, as well as the growing trust and loyalty consumers have to today’s innovative and high quality retailer brands. The company noted retailer brands have grown s 6% over the past five years compared with the sales of ged national branded packaged hich food manufacturers, which have grown 2%. atured “Retailer brands have matured from their original positioning as ‘cheap and cheerless’ generic products into a more diverse range of national brand equivalents and, more recently, highly innovative premium products,” Mr. Fereday said. “On grocery shelves around the U.S., from convenience stores to upscale supermarkets, retail brands now compete successfully and often win against national brands, co earning consumer trust in terms pricin of pricing, quality, image and value.” The Rabobank report high-lig high-lighted several reasons why market penetration of private label brands wil will grow, most notably th through innovation and i investment; a focus on New food safety effort targets consumers WASHINGTON — The U.S. Department of Agriculture’s Food Safety and Inspection Service, which is responsible for ensuring the safety of meat, poultry and egg products, has introduced an electronic consumer complaint form consumers may use to report concerns about an F.S.I.S.inspected product. “Consumers are an important source of the information that F.S.I.S. needs to ensure that America’s supply of meat, poultry and egg products is safe,” said Elisabeth Hagen, U.S.D.A. undersecretary for food safety. “This new tool empowers consumers to report problems directly to F.S.I.S., enhancing our current surveillance of the food supply and our ability to prevent foodborne illness.” Once an incident is reported to the Consumer Complaint Monitoring Service, the F.S.I.S. may determine what public health implications are associated with the incident, if other people are reporting similar issues and if the F.S.I.S. inspectors have identified problems in a facility that may have caused the issue. On a case-by-case basis, the F.S.I.S. said it may conduct additional follow up with complainants, especially if the problem indicates a potentially widespread or severe public health hazard. The F.S.I.S. said the new service is designed to facilitate the detection of public health threats in the food supply and gives the agency the opportunity to mitigate any threats that may arise. FBN 16 FOODBUSINESS NEWS ® October 23, 2012

Table of Contents for the Digital Edition of Food Business News - October 23, 2012

Food Business News - October 23, 2012
Private label penetration forecast to grow in U.S.
Softer demand slows rate of Nestle sales growth
Drought’s impact becomes clearer
Table of Contents
Web Contents
Editorial - Food issues dampened before election
Culver acquisition boosts B&G third-quarter income
Foreign exchange rate cuts into McDonald’s earnings
Structural changes cut into PepsiCo sales in third quarter
Legislation proposed to track antibiotic use on farms
Dean Foods posts preliminary WhiteWave-Alpro results
California poultry processor files for Chapter 11 protection
Peapod testing virtual grocery stores in the Northeast
Shell egg prices push Cal-Maine income up sharply
ConAgra to close pork processing plant
Cereal Partners Worldwide to reduce sugar, sodium
Frozen food sales projected to remain sluggish
New food safety effort targets consumers
ConAgra Foods looks to heighten focus on nutrition addition
Cholesterol profile of U.S. adults improving
Food and beverage C.P.I. increases in September
Strong China results boost Yum! earnings
Global Greek yogurt introductions accelerate
Sunland recall reverberates throughout the industry
JBS USA has option to acquire XL Foods
Washington - F.D.A. issues guidance for food facility registration
Sports Nutrition - Broadening the appeal for sports nutrition products
Ingredient Innovations - Ushering in the next generation
Convenience Store Trends - On-the-go gourmet
Beverage Business News - Looking for a Pepsi rebound
Old Orchard debuts frozen sweet tea line
Red Bull to add fruit-flavored energy drinks
Lawsuit takes aim at New York’s 16-oz beverage rule
Coca-Cola profit climbs on volume growth
Beverage industry embraces calorie counts on vending machines
Journal report links sugary beverages to obesity
Tingyi partnership poised for flight
Beverage still tops at Pepsi...barely
Beverage Trends - An (energy) shot in the arm
New Food Products
Ingredient Market Trends - CME Group to acquire the K.C.B.T
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 23, 2012