MarketWatch: Food - May 2008

MarketWatch: Food - May 2008

Introduction
The Food MarketWatch contains the latest news, analysis and opinion, covering all the month's major issues including mergers and acquisitions, marketing and regulatory issues. It covers the period from March 15 – April 14 2008.

Scope
Geographic coverage: global

Category coverage: food

Report Highlights
Datamonitor's Food MarketWatch provides monthly insight into the key events in the food industry

Reasons to Purchase
Gain monthly insight into the key events across the food industry

Learn more about the news, analysis and opinions of your industry

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
INDUSTRY UPDATE 2
News in Brief 2
NEW PRODUCTS REVIEW 4
Canned fruit updates its image 4
Yogurt: top flavors in new global product launches 7
New food launches by category, December 2007 to February 2008: seasonings add spice to the market 8
Product claims: new food launches, December 2007 to February 2008 9
FEATURE ANALYSIS 10
Morrison's strong results allow Sir Ken to leave on a high 10
Tesco's fresh concept for the US is not quite so easy 11
INDUSTRY COMMENT 13
Nestle: boosting its healthy offerings with new smoothie brand 13
Dobbies: bright prospects ahead 14
Sainsbury: plenty to play for 15
NEWS 16
Headlines 16
Tesco appoints senior executive for Fresh & Easy 16
Coughlin Stoia Geller Rudman & Robbins sues Darden Restaurants 16
American Italian Pasta Company reports annual revenue of $397.8 million 16
Smart Balance Q4 net sales up 26% 16
NexCen Brands annual revenue up 16
Kim and Scott's Gourmet Pretzels to launch new Breakfast Pretzel Line 16
Yum! Brands appoints new vice chairman 16
NPC International Q4 net income up 16
Mary's Gone Crackers unveils Sticks & Twigs 16
Bakkavor Group acquires 48% share in Gastro Primo 17
Nutritious Living introduces new cereal products 17
CH Guenther & Son acquires Williams Foods 17
Lifeway Foods introduces Probiotic Kefir Wellness snack bars 17
Einstein Noah announces return of Lucky Green Bagel 17
Mexican Restaurants 2007 revenues up slightly 17
Minerva's 2007 gross revenue surges 17
Trial opens over Parmalat financial scandal 17
Bristol-Myers likely to divest baby food business 17
Wellness Foods reportedly acquires Dorset Cereals 17
Starbucks reportedly in talks with Sistema 18
Tesco plans to expand in Japan 18
Marks & Spencer reportedly considering sale of other brands 18
Cadbury loses claim on color purple 18
Unilever expects contribution from emerging markets to increase 18
Dragon Capital and East Capital acquire 70% stake in Chumak 18
Lance acquires Brent & Sam's 18
RAB Food Group selects Optio Software to streamline document processes 18
Lawson Software launches new software to improve food safety and quality 18
TGI Friday's restaurants introduces Ultimate Pasta salad 18
Luna & Larry's Bliss Unlimited introduces two new chocolate flavors 19
Marks & Spencers awards Lord Burns with a GBP450,000 payoff 19
Nascent appoints new CFO 19
NutraCea reports Q4 net loss 19
SheerBliss Ice Cream launches BlissBites 19
Gate Gourmet renews and expands contract with Norwegian Air Shuttle 19
China Marine Food retains HCI to implement investor relations program 19
Unimilk intends to hold IPO in 2009 19
Nestle refuses to comment on reported interest in Mead Johnson 19
KFC launches new breakfast menu 19
Lindt & Sprungli's 2007 sales up 14% 20
Frutarom Q4 sales up 49% 20
Cosi Q4 net loss widens 20
Danisco invests in ice cream optimizing freezing technology 20
Einstein Noah signs development agreement with SSP America 20
Back Bay Restaurant completes deal with GE Capital Solutions 20
Verizon Business helps Del Monte Foods to reap benefits of IP networking 20
Marco's Pizza to open first of 11 stores in Tucson in March 20
Dunkin' Donuts to increase franchise locations in US 20
Caribou Coffee selects Valtira's online marketing platform 21
4th Floor Investments announces partnership to acquire CDC 21
Martek Biosciences launches new bread product 21
Quaker introduces new granola bars 21
Oakville Produce Partners takes majority stake in Greenleaf 21
Campbell sells Godiva Chocolatier to Yildiz 21
ASA asks Danone to remove or alter Actimel advertisement - report 21
Unilever reportedly untouched by slowdown in US economy 21
Kraft, Sara Lee face pressure from rising beef and pork prices 21
Tesco under attack from green campaigners 21
Maple Leaf proceeds with double-shift expansion at Brandon plant 22
General Mills Q3 net sales up 22
Kerry Group chooses Attunity to improve data access 22
Mars Food US plans to invest in Greenville Uncle Ben's plant expansion 22
Olayan Food selects Radiant Systems for Burger King restaurants 22
Naturally Iowa announces purchase orders from Ball's Food up by 80% 22
Wisconsin Natural Acres expands into Chicago market 22
Cadbury Schweppes appoints four board members for DPSG 22
Starbucks to acquire Coffee Equipment and its Clover brewing system 22
Amul reportedly enters into procurement contract with Vanilco 23
Sara Lee reportedly plans to double margins in bread business 23
Campina eyes expansion in Russia 23
Hindustan Unilever adds INR974 million to its capital expenditure 23
Waitrose to source its beef only from Britain 23
Somerfield's sale doubtful 23
Campina's 2007 net turnover up 23
Marks and Spencer enters into JV with COMS for expansion 23
Pollo Tropical now offers hormone free menu in Florida 23
Starbucks plans to introduce new line of energy, health and wellness products 24
Court orders Starbucks to pay California baristas $106 million 24
Luby's Q2 same-store sales down 24
FDA issues warning on cantaloupes from Agropecuaria Montelibano 24
Marico ends distribution agreement with Indo Nissin Foods 24
KFC to offer grilled chicken 24
CFIA and Cadbury recall Cadbury Mini Eggs 24
NDDB initiates process of merging Mother Dairy and Dhara 24
Food companies turn to healthier product lines 24
Prices of consumer goods likely to go up by 5-10% 25
WM Morrisons to open new distribution centre in Kent 25
Cross Atlantic Commodities launches new import division 25
New Orleans Roast and New Orleans Brew to purchase assets of PJ's Coffee 25
Sconza Candy plans to purchase plant in Oakdale 25
Plumgood Food to acquire Purity Dairies' home delivery business 25
Southern California McDonald's restaurants introduce Iced Coffee 25
Sonic's Q2 revenues up 25
Subway teams up with Tab Ramos to fight juvenile obesity among Latinos 25
Southeast Milk chooses Junction's food and beverage processing software 25
Nestle India adds two more variants to its Kit Kat range 26
Unilever South Africa warns against fake Knorrox competition 26
Maple Leaf plans to close duck-meat processing plant in Franksville 26
Starbucks Middle East launches Colombia Narino El Tambo coffee 26
Zhongpin's Q4 revenues up 111% 26
KFC hikes prices in China 26
Wimm-Bill-Dann launches production of baby food in Siberia 26
Edgewater Foods engages CFSG1 for investor and public relations 26
Sun Capital Partners's affiliate acquires Timothy's Coffees of the World 26
Soyjoy introduces two new nutrition bars 26
Max & Erma's Restaurants Q1 revenue down marginally 27
WM Morrisons introduces bananas with red skin 27
J Sainsbury Q4 sales up 27
Back Yard Burgers partners with Gameday Baseball 27
Starbucks delays listing of calorie counts 27
Ruby Tuesday's franchisee to expand in UAE 27
CKE Restaurants Q4 income down 27
Murray's Chickens introduces new eco-friendly packaging 27
Panda Express introduces new dish 27
Bush Brothers & Company introduces new grilled meal 27
Natural Harmony secures interim financing 28
Dining In introduces new diet program 28
Uniq annual revenues up 28
Barilla introduces new whole grain pasta 28
XELR8 Holdings annual loss decreases 28
McCormick's Q1 net sales up 28
ConAgra to sell trading and merchandising operations to Ospraie 28
Tootie Pie's February sales up 28
Unilever Thai to cut accumulated production costs 28
Texas Roadhouse acquires three franchised restaurants 29
Tesco expands in Scotland through acquisition 29
Compass dismisses food price rises 29
Bright Dairy & Food to hike milk prices 29
Italian officials say buffalo mozzarella cheese is safe 29
Wimm-Bill-Dann Foods annual income up 29% 29
Atwater Foods merges with Cherry Country FruitWorks 29
China Yingxia to acquire soybean milk production lines from King 29
Domino's Pizza launches new 444 Deal meal offer 29
Buscemi's to roll out Little Diablo products 29
Water Club announces retail partners 30
Dole Fresh Fruit recalls Honduran cantaloupes 30
Burger King intends to unveil Whopper Bar restaurants 30
Philip Morris spin-off to reportedly benefit investors 30
SkyGourmet launches ACU in Hyderabad 30
Barry Callebaut to buy 60%-stake in Kuala Lumpur Kepong Cocoa 30
EU not to ban Italian mozzarella cheese 30
Unilever North Africa and Middle East appoints new chairman 30
National Foods makes indicative offer to buy Dairy Farmers 30
Strauss 2007 sales up 30
China Yingxia International's Q4 sales up 31
Cal-Maine Foods Q3 net sales up 31
PepsiCo and Strauss complete North American joint venture 31
G Willi-Food annual revenues up 30% 31
Paradise reports improved annual net income 31
Sara Lee Foodservice to launch Good Origin sustainable coffee in US 31
Chick-fil-A to add limited-time flavor to sustain milkshake sales 31
CiCi's Pizza adds new flip to buffet line up 31
Pepperidge Farm adds new flavor to Chunk and Soft Baked cookie lines 31
Papa John's to introduce new pizza variety 31
Procter & Gamble to launch Pringles Stix across US 32
High Liner Foods consolidates US businesses, appoints new president and COO 32
Wendy's signs development agreements to open restaurants in Mexico 32
Burger King adds new items to menu 32
Lifeway Foods Q4 sales up 29% 32
Canyon Creek enters into co-packing arrangement with Canadian company 32
Gate Gourmet selects ISE as partner for Norwegian's duty free business 32
Hardee's rolls out chicken fillet biscuit 32
Bay Valley Foods recalls America's Choice Classic Caesar Dressing 32
Sbarro's Q4 revenues up 32
Kraft Foods cuts list prices of Maxwell House and Yuban ground coffees 33
CVAM acquires certain assets of Willow Brook Foods 33
CBRL Group March comparable store retail sales up 5% 33
Dairy Farmers considers indicative offers 33
Lifeway Foods Q1 revenues up 23% 33
Stretch Island Fruit announces partnership with Kidfresh 33
China Marine Food's Q4 revenues surge 33
Shamrock Farms milk now available at Harris Teeter supermarkets 33
Pepperidge Farm introduces Baked Naturals snacks 33
CHS acquires Legacy Foods 33
Dunkin' Donuts announces store development agreement with InterOcean 34
Saputo acquires activities of Alto Dairy Cooperative 34
SeaBear acquires Gerard & Dominique Seafood 34
Kikkoman introduces new logo and US name 34
Qdoba Mexican Grill opens fourth restaurant in New York 34
Shape Foods launches Heart Shape Flax Oils 34
Hain Celestial acquires Daily Bread 34
Amish Naturals expands retail network with HE Butt Grocery 34
Fresh Harvest expands distribution for organic snack bar line 35
UFood Restaurant announces new franchise agreement 35
Homemade Baby organic food certified gluten-free 35
Vreba-Hoff Dairy provides kosher milk to Israeli food distributor 35
Bonefish Grill introduces new Mediterranean inspired dishes 35
Ruby Tuesday's Q3 net income falls 35
MidAmerica to roll out Sqwish soft serve brand across US 35
SunOpta completes acquisition of Tradin Organic Agriculture 35
Maybank enters into partnership with Pizza Hut 35
Mexico City faces smoking ban 35
Tesco identifies partner to enter India 36
Sodexo's H1 organic revenues surge 36
Senomyx announces management changes 36
CoolBrands reports Q2 earnings of C$5 million 36
Fieldale Farms reduces chicken production 36
Wendy's introduces new line of Chicken Go Wraps 36
Zebu Forno opens new location in Hoboken 36
Wendy's Q1 average same-store sales down 36
Kuehne + Nagel secures new five-year distribution contract from Whitebread 36
Mizkan acquires Imperial Brands' gourmet and specialty foods division 36
Port City Java opens new unit; March same unit corporate cafe sales up 37
Meyer Natural Angus to buy Coleman Natural's beef business 37
New York baristas sue Starbucks over tips 37
Nestle Nigeria appoints new MD and CEO - report 37
Lidl to open stores in Malta 37
Giant Food and Safeway workers approve labor contract 37
UDS Group announces delivery launch for Subway restaurants 37
FSA says artificial colorings are as unhealthy as petrol 37
Cadbury seeks backing for Dr Pepper demerger 37
Novartis secures 25% stake in Alcon from Nestle for $11 billion 37
Ceva Logistics signs multi-year distribution contract with Numil 38
Clemmy's ice cream expands national distribution 38
California Pizza Kitchen signs franchise deal with Gourmet Gulf 38
Malt-O-Meal recalls unsweetened puffed rice and puffed wheat cereals 38
Jack in the Box debuts BBQ Bacon Sirloin Burger 38
Papa John's signs development agreements to open new restaurants 38
Wingstop's Q1 comparable store sales up 38
Hindustan Unilever announces management changes 38
House Foods implements JDA Enterprise Planning solution 38
Starbucks launches new everyday brew Pike Place Roast 38
Arla Foods reports fall in Middle East sales 39
Biscuit industry insists on reducing VAT to uniform 4% 39
TravelCenters of America opens Popeyes restaurant in Porter, Indiana 39
SunOpta provides update on expansion of vertically integrated soy operations 39
Krispy Kreme introduces Caribbean Kreme doughnuts and chillers 39
NutraCea to expand Irgovel plant in Pelotas, Brazil 39
Passage Foods launches Passage to India Simmer Sauce range in US 39
Frisch's Restaurants Q3 net earnings up 8% 39
Six Flags announces multi-brand partnership with Kraft Foods 39
Imperial Sugar enters into brokerage deal with Maximus Coffee 39
Naturally Iowa signs sales broker agreement with Meiwah 40
Yogurtland to open new stores 40
California Pizza Kitchen's Q1 preliminary revenues up 40
Pizza Inn engages TDA as advertising agency of record 40
Kraft Foods to open new plant in Bahrain 40
Heinz to launch new Special Blend ketchup 40
Kraft Foods introduces new bagel-fuls 40
Kettle Foods introduces new snack Death Valley Chipotle 40
China Yurun Food Group annual net profit up 79% 40
Buca Q1 total revenue down 40
McCormick Canada launches four new Thai Kitchen rice noodle products 41
Burger King introduces new Cheesy Bacon BK Wrapper 41
Waterlicious announces progress in ongoing discussions with McDonald's 41
Brazil Fast Food Q4 sales up 41
Cellfire partners with McDonald's to offer instant savings 41
Rumbi Island Grill plans to franchise restaurant concept across US 41
Naturally Iowa launches new all-natural frozen yogurt product line 41
Amish Naturals files patent applications for high-fiber food technology 41
Zukay Live Foods rolls out new line of probiotic condiments 41
Cracker Barrel recalls mislabeled chocolate-covered peanuts and almonds 41
Parmalat considers expansion in Australia 42
Frito-Lay launches low sodium versions of some snack brands 42
Loaded apologizes to Heinz over Nazi slur 42
Noodles & Company reopens Madison location 42
Tesco to move 208 Tallaght workers 42
Organic To Go launches Pizza Organico 42
Symphony Environmental to supply d2w additive to Tiger Brands 42
Del Taco to open 32 restaurants in Minneapolis-St Paul area 42
Friesland Foods and Campina reach agreement on proposed merger 42
Benihana Q4 total restaurant sales down 43
Wingstop signs franchise agreement with NFL lineman Raheem Brock 43
Canyon Creek secures two food service customers 43
Guardian CEO Carolyn McCall resigns from Tesco's board 43
Asda March sales exceed expectations 43
Danone declines to comment on reports regarding exit from Wahaha JV 43
Starbucks to shut down 45 stores in Save Mart and Lucky supermarkets 43
Mars appeals against fine in Indonesia 43
Temptation Foods intends to raise $200 million for acquiring companies 43
COMPANY SPOTLIGHT: HJ HEINZ 44
Business Description 44
SWOT Analysis 46
Strengths 46
Weaknesses 47
Opportunities 48
Threats 49
APPENDIX 50
Further reading 50
Index 51
ABOUT MARKETWATCHES 54
Editors 54
Ask the analyst 54
Datamonitor consulting 54
Disclaimer 54
List of Tables
Table 1: Top claims in new food launches, December 2007 to February 2008, compared to same period the year before 9
Table 2: Key Facts 44
Table 3: SWOT Analysis 46
List of Figures
Figure 1: Del Monte Healthy Kids - Enriched Peach Chunks; Fruit Cocktail 5
Figure 2: Klett Schokolade Mucho Schokolade 5
Figure 3: Hershey's Fresh From The Factory Candy 5
Figure 4: Glico Dororich 6
Figure 5: Nissui Noko Cheese Kamaboko 6
Figure 6: Murray's Chicken Boneless & Skinless Chicken Breasts - Eco-Packaging 6
Figure 7: Yogurt: top flavors in new products 7
Figure 8: Leading global food launches by category, December to February 2006/07 and 2007/08 8