Food Business News - October 23, 2012 - (Page 50)

Beverage Business News Lawsuit takes aim at New York’s 16-oz beverage rule NEW YORK — A group of business and trade associations on Oct. 12 filed a lawsuit that challenges the New York City Board of Health’s authority to issue a rule to prohibit certain businesses from selling sugarsweetened beverages larger than 16 oz. The American Beverage Association, Washington, and the National Restaurant Association, Washington, were in the plaintiffs group as well as the Teamsters Local 812, the Korean-American Grocers Association of New York, the National Association of Theatre Owners of New York State and the New York State Coalition of Hispanic Chambers of Commerce. According to the board of health rule, which passed on Sept. 13, 2012, many food establishments starting March 12, 2013, no longer will be allowed to sell sugar-sweetened beverages in containers larger than 16 oz. The establishments include restaurants, food carts, delis, movie theater concessions, stadiums and arenas. The rule will not affect drinks that contain at least 50% milk, or fruit or vegetable juices that contain no added sugar. The lawsuit, filed in New York state court, contends that under New York state law the power to pass legislation is reserved for the city council. “We can’t allow decisions like this — decisions that put real jobs at risk — to be made by skirting the process,” said Ed Weber, president of the Teamsters Local 812. The lawsuit points out grocery stores and convenience stores will remain unregulated. “Laden with exceptions, exclusions and loopholes, the ban draws lines and picks among businesses winners and losers based transparently on economic, political and social concerns ...,” the lawsuit said. The lawsuit points out the rule imposes no limits on alcoholic beverages or certain milk or soy-based milk substitutes. Restaurants or bars would be forbidden from serving a 20-oz Coke, but they would be allowed to serve a 20-oz rum and Coke. Diners would be permitted to sell 800-calorie milk shakes, but they would be forbidden from serving 240-calorie, 20oz soft drinks. “This arbitrary ban creates an uneven playing field, seriously harming thousands of small businesses in the city while leaving others exempt,” said Caroline Starke, a spokeswoman for the plaintiffs. Michael Bloomberg, mayor of New York City, spoke in favor of the rule the day it passed. “This is the biggest step a city has taken to curb obesity,” he said. “Simply by proposing limits on sugary drinks, New York City pushed the issue of obesity, and the impact of sugary beverages, onto the national stage. The board of health’s passing this proposal means that New Yorkers will soon consume fewer junk calories and eventually begin turning the tide of the obesity epidemic that is destroying the health of far too many of our citizens.” BBN Coca-Cola profit climbs on volume growth for the quarter was $12,340 million, up 1% from $12,248 million during the same quarter of the previous year. “We are pleased with our third-quarter and year-to-date results,” said Muhtar Kent, chairman and chief executive officer. “We continue to deliver consistent and solid performance with our business growing worldwide volume by 4% in the quarter and 5% year-to-date. Importantly, we realized growth in the quarter across all five of our global geographic operating groups, despite continued volatility in the worldwide economy. “We have been able to crack the calculus for growth in this environment. We have done this by consistently investing in our system and our brands to ensure our global portfolio is more relevant and healthier today than it has ever been. We remain resolutely focused on ensuring we leverage our wonderful heritage and fuse it with what is expected by our consumers today in order to earn and sustain our place in their daily lives tomorrow.” Volume growth in North America was 2%, led by 7% volume growth in still beverages. Sparkling beverage volume in North America was even for the quarter. “In sports drinks, Powerade grew volume 9% this quarter, while also leading the North America sports drink category in absolute unit case volume growth for the fourth consecutive quarter,” said Mr. Kent in a conference call with financial analysts on Oct. 16. “Our juice and juice drinks portfolio in North America outpaced the category, up 6% for the quarter, while gaining both volume and value share. Our positive result in this category was broad-based, driven by strong growth in our juice drinks business, volume and value share growth across our Minute Maid Lights portfolio, and further value share gains in the 100% chilled orange juice segment.” For the nine months ended Sept. 28, income rose 3% to $7,153 million, or $1.58 per share, which compared with income of $6,927 million, or $1.51 per share, during the same period of the previous year. Net operating revenue for the period was $36,562 million, up 3% from $35,502 million. BBN ATLANTA — Global volume growth contributed to a 4% increase in income at The Coca-Cola Co. during the third quarter. For the quarter ended Sept. 28, the company had income of $2,311 million, equal to 51c per share on the common stock, which compared with income of $2,224 million, or 49c per share, during the same quarter of the previous year. Net operating revenue 50 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