May’s Retail Sales Show Consumer Resilience and Confidence in the Economy
Retail sales rose 0.5 percent in May seasonally adjusted from April and up 3.2 percent unadjusted year-over-year, the National Retail Federation said today. The numbers exclude automobile dealers, gasoline stations and restaurants.
“Today’s retail numbers, and upward revisions to prior months, reinforce the ongoing strength of the consumer and are consistent with a pick up in the pace of the economy in the coming months. The strong job market, recent income gains and elevated confidence translates into ongoing support for spending. Households, in the aggregate, are in solid financial condition but an escalation in trade tariffs will undoubtedly create a considerable downdraft to confidence and spending, or lead to...
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While Restaurant Delivery gets All the Buzz, Digital Orders Overall Grow by Double-Digits
The growing access to foodservice delivery has garnered lots of attention from the marketplace and media, but while delivery grabs the spotlight, digital restaurant orders overall steadily grow by double-digits, reports The NPD Group. Restaurant digital orders, which are defined by meals or snacks ordered via mobile app, internet, or text message, have grown by 23 percent over the past four years and now represent 3.1 billion visits and $26.8 billion dollars. NPD forecasts digital orders to continue to grow by double-digits through 2020 with growth across all service modes including delivery, on premises, and carryout, according to NPD’s Delivering Digital Convenience report.
Although convenience is understandably the top reason consumers choose digital ordering, other top reasons include: no waiting; the ability to order, pay, and have it ready; ordering at my “own” pace; and earning rewards/feeling valued. In addition to these reasons...
Affluent Food Shoppers More Likely to Purchase Natural and Organic Products
The belief that natural and organic practices produce foods that are tastier, more nutritious, and healthier continues to germinate in the minds of key consumer demographics. The result has created a pervasive and enduring trend that spreads to virtually every corner of the food and beverage industry.
Wealthy Americans are among the most influential and active participants in the natural and organic food market, according to Affluent Food Shoppers, a new report by market research firm Packaged Facts.
Packaged Facts’ consumer survey data found that affluent food shoppers are increasingly moving in the direction of eating more organic and natural foods. They are more likely than non-affluent food shoppers to respond that they are eating more natural foods or organic certified foods compared to...
ALLETE Clean Energy's Diamond Spring Wind Project Will Provide Renewable Energy to Corporations
Allete Clean Energy, a wholly owned subsidiary of ALLETE (NYSE: ALE), announced today a power sales agreement with Smithfield Foods, Inc. for the remaining output of the Diamond Spring wind site ALLETE Clean Energy will build, own and operate in Oklahoma.
The Smithfield agreement follows an earlier announcement of power sale agreements with two large Fortune 500 companies, Walmart and Starbucks. Walmart has agreed to purchase 175 megawatts for 15 years, Smithfield will purchase 75 megawatts for 12 years, and Starbucks will purchase 50 megawatts for 15 years. The approximately 300-megawatt Diamond Spring site, which is ALLETE Clean Energy’s first project to sell wind power to corporate customers, is now fully contracted with the Smithfield agreement...
ANALYSIS: Keeping Tabs on Feed Costs
While it is undeniable that any number of internal and external factors have the potential to impact a given commodity, it can be argued that production levels are perhaps one of the most impactful variables in the supply and demand equation...
Chairman Roberts Hears from Administration on Current, Future Ag Trade Efforts
U.S. Senator Pat Roberts, R-Kan., Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry, today held a hearing titled, “Certainty in Global Markets for the U.S. Agriculture Sector.”
Below are Chairman Roberts’ remarks as prepared for delivery:
"Good morning. I call this meeting of the Senate Committee on Agriculture, Nutrition, & Forestry to order.
Ambassador Doud, Undersecretary McKinney, and Dr. Johansson, we are happy to have you all back again before the Committee to discuss the need for certainty in our global agricultural markets...
Consumer Disloyalty is the New Normal
Assume the people you consider to be the most loyal customers on the planet are, in fact, disloyal. Because 92% of the time, you’ll be right. New Nielsen findings demonstrate that just 8% of consumers consider themselves to be firmly committed loyalists.
Yet the marketing tactics and investments rarely reflect these realities. A whopping 46% of consumers tell us they are more likely to try new brands than they were five years ago; a clear signal to a trend we should expect to intensify. Yet we see few signs that adjustments have been made to marketing initiatives or innovation pipelines to match these numbers.
The implications of not dramatically rethinking campaigns that focus on winning or retaining loyal customers are meaningful. The drag effect of consumer demand for choice and...
Kroger and Ocado Break Ground on America's First High-Tech Customer Fulfillment Center
The Kroger Co. (NYSE: KR), America's largest grocery retailer, and Ocado (LSE: OCDO), one of the world's largest dedicated online grocery retailers, today broke ground on America's first customer fulfillment center (CFC).
"Kroger is incredibly excited to reach this meaningful milestone in our Restock Kroger vision to serve America through food inspiration and uplift," said Rodney McMullen, Kroger's chairman and CEO. "Our partnership with Ocado will introduce transformative ecommerce, fulfillment and logistics technology in the U.S. and bring customers fresher food faster than ever before, accelerating our ability to provide anything, anytime, anywhere...
Tyson Foods Unveils Alternative Protein Products and New Raised & Rooted Brand
As part of efforts to expand its protein offerings, Tyson Foods, Inc. (NSYE: TSN) today introduced the company’s first plant-based and blended products, along with its new Raised & Rooted® brand. The initiative makes Tyson Foods the largest U.S. meat producer to enter the growing alternative protein segment with its own products.
TheRaised & Rooted brand was created to provide great-tasting plant-based and blended foods that are rooted in how people eat today. The initial products under this new brand, which will launch with several major retail customers this year, include plant-based nuggets as well as blended burgers made with a combination of beef and plants. In addition, the company’s existing Aidells® brand has launched Aidells Whole Blends™ sausage and meatballs, made with chicken and plant-based ingredients.
Tyson Foods expects to introduce additional alternative protein products through multiple customers and sales channels. This includes...
Pasture Raised Foods LLC Recalls Raw Whole Poultry Products
Pasture Raised Foods, LLC, doing business as Greener Pastures Chicken, a grower/non-inspected processor located in Elgin, Texas, is recalling an undetermined amount of frozen raw whole poultry products that were produced without the benefit of federal inspection, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.
The frozen raw whole poultry items were produced from Nov. 29, 2018 through May 24, 2019. The following products are subject to recall...
ANALYSIS: April Turkey Exports: A Year Over Year Assessment
According to the USDA’s most recent data, total turkey exports for the month of April came in just shy of 25,200 metric tons; a substantial 8.2% rise over this time last year...
Perdue Foods Launches Chicken Plus Products
Plant-based food may be one of the hottest trends in grocery today, but for parents trying to get their kids to eat their vegetables the struggle is still real. To help flexitarian families who are hungry for new ways to fill the vegetable void without sacrificing flavor or nutrition, Perdue is introducing first-of-its-kind nationally distributed new PERDUE® CHICKEN PLUS™ Nuggets, Tenders and Patties blended with vegetables.
Perdue’s latest innovation PERDUE® CHICKEN PLUS™ blends cauliflower, chickpeas and plant protein to create the next generation of frozen chicken nuggets, tenders and patties, and each serving is complete with one-quarter cup (half a serving of vegetables) and is made with 100 percent all-natural ingredients and no antibiotics ever white meat chicken...
NAMI Joins More than 950 Groups to Call for Swift Congressional Ratification of the USMCA
The North American Meat Institute today joined more than 950 organizations representing the U.S. food and agriculture industries to urge Members of Congress to swiftly ratify the U.S.-Mexico-Canada Agreement (USMCA).
In a letter sent to Congress, more than 950 groups representing the U.S. food and agriculture value chain at the national, state and local levels called on Congress to support the ratification of USMCA. The letter reiterates that USMCA will benefit the U.S. agriculture and food industry while providing consumers a more abundant supply of high-quality, safe food at affordable prices...
Chili's Partners Exclusively with DoorDash
Chili's® Grill & Bar, a leader in the casual dining industry, is also leading the category in off-premise innovation. To build on that momentum, starting today, Brinker International, Inc., the parent company of Chili's and Maggiano's Little Italy®, has entered into an exclusive agreement with DoorDash, the nation's largest on-demand destination for door-to-door delivery, that brings delivery of Chili's favorites to Guests from more than 1,000 participating restaurants nationwide.
"We chose DoorDash as an exclusive partner because they have a leading market share in areas where Chili's restaurants are located and have a fast growing delivery platform," said Wyman Roberts, chief executive officer of Brinker and president of Chili's. "While we tested delivery with several partners, DoorDash integrated seamlessly into our operations, demonstrated the ability to drive incremental sales and provided...
Technomic: Students’ Foodservice Demands Grow Both On and Off Campus
Delivery, technology and health trends are changing the foodservice landscape and younger generations are leading this charge. Technomic’s 2019 College & University Consumer Trend Report explores this segment in depth, providing actionable recommendations for operators and suppliers to get ahead of the challenges and competition.
“Students have high expectations from their foodservice experiences both on and off campus. Delivery, convenience and menu innovation are all top priorities for college and university students,” explains Anne Mills, senior manager of consumer insights at Technomic. “On top of this, they will choose companies that support causes they care about such as...
Tyson Foods Inc Recalls Ready-To-Eat Chicken Fritter Products
Tyson Foods, Inc., a New Holland, Pa. establishment, is recalling approximately 190,757 pounds of ready-to-eat chicken fritter products that may be contaminated with extraneous materials, specifically hard plastic, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.
The frozen ready-to-eat chicken fritter items were produced on February 28, 2019. The following products are subject to recall...
Retailers Continue to Stock Up Inventory to Get Ahead of More Tariffs
Imports at the nation’s major retail container ports are expected to continue to grow this summer as retailers stock up inventory to get ahead of higher tariffs, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“With a major tariff increase already announced and the possibility that tariffs could be imposed on nearly all goods and inputs from China, retailers are continuing to stock up while they can to protect their customers as much as possible against the price increases that will follow,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Tariffs are taxes paid by American businesses and consumers, not foreign governments. Retailers will continue to do everything they possibly can to mitigate the impact of tariffs on consumers, but if we see further escalation in the trade war, it will be much more difficult to avoid higher price tags on a wide range of products...
Walmart is Taking Grocery Delivery One Step Further
Consumers have more options than ever before when it comes to how they receive their groceries. Customers can shop in stores, order online for free pickup, or have groceries delivered to their front doors. Now, Walmart is on track to offer Grocery Pickup from 3,100 stores and same-day Grocery Delivery from 1,600 stores by the end of the year. To make grocery shopping an even easier experience for customers, Walmart is offering the option to order fresh groceries and have them be delivered directly into their refrigerator.
Walmart InHome Delivery is a new service designed to help consumers save time and offer another convenient option for grocery shopping. Customers can place a grocery order and then select InHome Delivery and a delivery date at checkout. Then, consumers can go about their daily routine while a Walmart associate completes their grocery shopping for them, from aisle to fridge...
ANALYSIS: An Ongoing Trend Toward Greater Efficiency
The most recent release of the USDA’s Weekly Young Chickens Slaughtered Report closely coincides with the general expectations and overall experiences of most market participants...
This Week in Retail: Looking Ahead to Father’s Day Spending
Father’s Day is coming up on Sunday, June 16th, and retailers are prepping for the second big grilling holiday of the summer.
According to the National Retail Federation, Father’s Day spending in 2019 is expected to reach an all-time high of $16 billion. That’s up from last year’s $15.3 billion. This monumental spending figure still, however, pales in comparison to spending for Mother’s Day, coming in at a whopping $25 billion.
Mother’s Day has long been known as a foodservice holiday, but Father’s Day tends to favor grilling at home with some quality steaks, burgers, chops or ribs. The NRF also reports that spending for Father’s Day has grown 70 percent over the last decade, with special outings playing a big part of that growth, accounting for a projected $3.3 billion. With 76 percent of...
ANALYSIS: Tom Weights and Breast Meat Values
As marketers patiently await “deli season” and the improvement in buying outreach which typically comes along with it, they turn their attention to the supply side in an effort to further refine their market expectations...
Tim Hortons Announces Agreement to Launch in Thailand
Tim Hortons announced today that it has entered into an exclusive master franchise and development agreement to develop the Tim Hortons brand in Thailand with WeEat Company, part of the Wattanavekin family group of companies.
"We are very excited to grow the Tims brand in Thailand as part of our broader global growth strategy," said Tim Hortons President Alex Macedo. "Thailand has a thriving coffee market and our partner has a deep understanding of the Thai market, which we believe will position us well for success in the country."
Tim Hortons believes that it can replicate in Thailand its recent successes in other international markets by featuring a strong core hot and cold beverage platform, a localized food menu and prominent Canadian branding in the restaurant design to celebrate the brand's Canadian heritage...
United Natural Foods Inc Reports Third Quarter Fiscal 2019 Results
United Natural Foods, Inc. (NYSE: UNFI) (the "Company" or "UNFI") today reported financial results for the third quarter of fiscal 2019 ended April 27, 2019.
Third Quarter Fiscal 2019 Highlights
"Our transformational journey continues, and I'm proud of what our team has accomplished this quarter," said Steven L. Spinner, Chairman and Chief Executive Officer. "I am excited about our next chapter and the acceleration of value creation we expect to...
RestaurantOwner.com: Restaurant Delivery Report
RestaurantOwner.com's published results of their 2019 Restaurant Delivery Survey focuses on the growing trend of restaurant delivery and summarizes input gathered from nearly 1,000 independent restaurant owners and operators regarding their experiences with self-delivery and third-party service providers, and their insights regarding restaurant delivery.
Restaurant delivery has become available in most independent restaurants, with 57% of operators offering some form of delivery. Moreover, 16% of the operators without delivery plan to add the service within a year. Of operators who offered delivery, 31% used only third-party services, 12% operated in-house delivery services, and 14% relied on...
Good Eggs Releases Results of Family Food Fix Survey
Good Eggs, the online market that delivers absurdly fresh groceries, today announced the results of its Family Food Fix Survey, which takes a pulse on the perspectives and behaviors of today's consumers when it comes to the necessary task of grocery shopping. Additionally, the findings reveal insights into meal kit usage, the reality of preparing multiple dinners every night, and what families across America want most for dinner.
"From grocery shopping to getting dinner on the table, feeding a family has become a time-consuming struggle for today's busy parents," said Jaime Nessel, Vice President of Assortment of Good Eggs. "Online grocery delivery services can provide significant time savings to families. At Good Eggs, we provide a complete, yet curated assortment of local products, absurdly fresh local produce and meat...
Cracker Barrel Reports Third Quarter Fiscal 2019 Results
Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the third quarter of fiscal 2019 ended May 3, 2019.
New Survey Examines Consumers’ Understanding of the Environmental Impact of Chicken Production
Further delivering on its commitment to transparency, the National Chicken Council (NCC) today unveiled the findings of its new nationwide survey about how deeply consumers understand sustainable food practices as it relates to broiler chicken production, an industry that maintains one of the lowest environmental footprints in animal agriculture. NCC announced the new survey as the Sustainable Brands ’19 Conference kicks off today in Detroit.
According to survey results, knowledge of the environmental impact of chicken among consumers is low. Only half of survey participants (51%) are moderately knowledgeable about chicken’s impact on the environment, while three-quarters (71%) are moderately knowledgeable about how chicken is produced. While most are familiar with topics related to...
QDOBA Mexican Eats Names San Diego “Home” with New Brand Headquarters
QDOBA Mexican Eats®, a leading Mexican fast-casual chain, is choosing to stay and invest in San Diego by opening its new headquarters in the AMP&RSAND office complex. Named “QDOBA Flavor Central,” the headquarters will also serve as a hub for the culinary team to create and test menu innovations.
“The QDOBA team is excited to call ‘America’s Finest City’ our official home,” said Keith Guilbault, CEO of QDOBA Mexican Eats. “During the search for our new office, we knew we wanted to stay in San Diego and diligently sought out a space that reflects our collaboration-centric culture. The AMP&RSAND is a perfect fit.”
Formerly occupied by The San Diego Union-Tribune, QDOBA’s new headquarters is located at 350 Camino De La Reina. The office features exposed brick, concrete pillars and...
Mintel Announces Five U.S. Flavor and Ingredient Trends
Mintel, the world’s leading market intelligence agency, announced from IFT19 the flavor and ingredient trends that are influencing the foodservice and packaged food and drink categories in 2019 and beyond. The five new trends link the relationship between consumer behavior and food and drink to dishes on restaurant menus and products on store shelves, and explain the significant momentum that has led to this moment.
Seeking out ingredients that provide sustenance for healthy eating is top of mind for Americans. However, consumers today are also looking beyond the balanced diet. Flavors that tap into relaxation and support a healthy gut are satisfying consumers that are looking for ingredients that will feed the mind, body, and soul...
Damian Mason: He's The Real Deal
This week we hear from agricultural humorist, book author, speaker, farm owner, podcast host, and consumer trend expert, Damian Mason. We cover packaging, lab grown meat, retail and more!
Did you know? Urner Barry's Market Digest Podcast is now available on Spotify, iTunes, Apple Podcast, iHeartRadio, and SoundCloud! More ways to listen to top industry news and analysis...
Tyson Foods Completes Acquisition of Thai and European Businesses from BRF S.A.
Tyson Foods, Inc. (NYSE: TSN) announced today the successful completion of the acquisition of the Thai and European businesses from BRF S.A. The purchase includes four production facilities in Thailand, and one each in the Netherlands and the United Kingdom. These businesses build on the company’s growth strategy to expand offerings of value-added protein in global markets.
“The addition of this experienced and talented team combined with these businesses strengthens our capabilities and increases our reach to new markets. I’m glad to welcome them to the Tyson Foods family,” said Noel White, president and CEO of Tyson Foods. “We’re now strategically aligned to better serve customers in Europe, the Middle East, and Asia, building on our global strategy.”
It’s estimated that approximately 90 percent of global protein consumption growth will occur outside the United States, with 60 percent of the volume growth coming from...
Technavio: Global Poultry Market Projected to Grow
The global poultry meat market is expected to post a CAGR of about 4% during the period 2019-2023, according to the latest market research report by Technavio.
A key factor driving the growth of the global poultry meat market is the increasing import and export of poultry meat. Various countries have increased the import of chicken meat in recent years. For instance, Japan, Mexico, Saudi Arabia, China, and Iraq were some of the key importers of chicken meat during 2018. In addition, there has been a significant increase in the import of chicken meat from emerging economies including Philippines owing to the rising demand for chicken meat among the consumers. Therefore, the rising export of chicken meat from...
SpartanNash Appoints New President of Food Distribution
SpartanNash (Nasdaq: SPTN) announced today that Mr. Walt Lentz has joined the company as Executive Vice President and President, Food Distribution, effective May 31, 2019. Mr. Lentz has 32 years of logistics and supply chain experience in roles of increasing leadership responsibility, including serving from 2017 to 2019 as Acting Chief Executive Officer and Chief Supply Chain Officer of Peapod LLC, the grocery eCommerce business division of Ahold Delhaize.
As President of Food Distribution, Mr. Lentz will have full responsibility of SpartanNash’s $4 billion food distribution segment and responsibility for the total company supply chain. He will work with the SpartanNash team in developing and executing strategic plans to grow the wholesale distribution and food manufacturing businesses’ profitability. Mr. Lentz will report to SpartanNash’s President and Chief Executive Officer, David M. Staples...
Red Robin Gourmet Burgers Reports Results for the Fiscal First Quarter Ended April 21, 2019
Red Robin Gourmet Burgers, Inc., (NASDAQ:RRGB) last week reported financial results for the quarter ended April 21, 2019.
First Quarter 2019 Financial Highlights Compared to First Quarter 2018
Perdue Foods LLC Recalls Perdue Simply Smart Organics Poultry Products
Perdue Foods LLC., a Bridgewater, Va. establishment, is recalling approximately 31,703 pounds of ready-to-eat chicken products that may be contaminated with extraneous materials, specifically pieces of bone material, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.
The fully cooked chicken products were produced on March 21, 2019. The following products are subject to recall...
Los Hernandez Tamales, LLC Recalls Chicken and Pork Products
Los Hernandez, LLC., a Moxee, Wash. establishment, is recalling approximately 9,090 pounds of chicken and pork tamales that were produced without the benefit of federal inspection, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.
The tamale products were produced from Dec. 3, 2018 through Feb. 7, 2019. The following products are subject to recall...
Butterball Launches New Flavor In Premium Deli Portfolio
In 2018, Butterball launched its premium deli portfolio, featuring specialty and seasoned items with category-driving flavors that were selected specifically for the premium set. This year, Butterball is adding to this premium line with its new flavor option, Herb Roasted Thanksgiving Style Turkey Breast, to build on the Thanksgiving flavor Butterball is most recognized for. Joining Butterball’s signature Thanksgiving Style Roasted Turkey Breast product, the Herb Roasted Thanksgiving Style item will deliver a unique and complimentary flavor profile to any deli case. Oven roasted with a topical herb seasoning, this product allows consumers to enjoy the savory flavor combination of holiday stuffing and oven roasted turkey year-round.
Each of the following deli turkey and chicken items provide consumers with a premium eating experience and wholesome ingredients...
Industry Reacts to Final E15 Rule
Today, the U.S. Environmental Protection Agency issued a final rule to allow consumers uninterrupted access to E15, a fuel blend with 15% ethanol. The announcement follows a public comment period on a proposed rule and in time for the summer season. The rule changes the old limitations on year-round E15, allowing consumers to have access to the clean, lower-cost option at the pump all year. Previously, sales were restricted in a majority of markets from June 1st to September 15th. President Trump fulfilled the commitment he made to rural voters and is a huge win for farmers.
U.S. Secretary of Agriculture Sonny Perdue stated that, "I appreciate President Trump’s steadfast support for our patriotic farmers and for his commitment to expand the sale of E15 and unleash the full potential of American innovation and ingenuity as we continue to demonstrate our rightful place as the world’s leader in agricultural and energy production." Perdue explained that the move to approve the year-round use of E15 in time for the summer driving season provides consumers with...
Developing Alternatives to Antibiotics Used in Food Animal Production
Antibiotics are a lifesaving technology widely used in human and veterinary medicine. However, the use of antibiotic drugs, by humans or animals, can also create selective evolutionary pressures that can spawn microbes and genes resistant to the drugs. Antimicrobial resistance has become a global human health concern, with widespread public and private initiatives aimed at managing resistance. Livestock agriculture is a major consumer of antibiotics and, thus, a contributor to antibiotic resistance.
As the agricultural use of antibiotics becomes a greater focus of policymakers and consumers, animal pharma—the industry that develops and markets antibiotics for food animal use—is altering its outlook on developing as well as investing in new antibiotic products. Rising awareness of antibiotic resistance has generated a number of effects, including regulations on the use of...
Popeyes Announces Agreement to Launch the Brand in Spain
Popeyes Louisiana Kitchen Inc. ("Popeyes") today announced an exciting new agreement to open Popeyes restaurants in Spain with the aim of becoming the market leader.
"We have an ambitious long-term goal for RBI of reaching 40,000 restaurants over the next 8 to 10 years. Today, we're excited to share big news from Europe where we have announced ambitious plans for one of our iconic brands – Popeyes – in Spain," said Josh Kobza, Chief Operating Officer of Restaurant Brands International Inc. ("RBI"), parent company of Popeyes. "We believe we have the best tasting chicken, biscuits and side items and that Popeyes can become Spain's number one choice for chicken as we develop...
ANALYSIS: Shedding Some Light on Slaughter
With year-to-date chicken head slaughter coming in about 1% above 2018 levels, and in the absence of any major changes in demand patterns, it stands to reason that 2019’s stout marketing environment can at least partially be attributed to a decline in average live weights and the reduced production that comes with it...
Restaurant Performance Index Fell Sharply in April
As a result of softer readings in both the current situation and forward-looking indicators, the National Restaurant Association’s Restaurant Performance Index (RPI) fell sharply in April. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.1 in April, down 1.8 percent from a level of 101.9 in March.
April’s RPI decline was the result of broad-based softening in both the current situation and expectations indicators. Although same-store sales readings were slightly positive in April, customer traffic turned negative. In addition, restaurant operators are less optimistic about both sales growth and the overall economy...
This Week in Retail: Wholesale vs. Retail Action
There are two sides to every story, and the retail meat situation is no different. This week in retail, we look at some of the dynamics at play in the wholesale arena for beef and pork and how retail has responded.
There seems to be a contra-seasonal trend happening in the wholesale boxed beef market, for grilling items in particular. The loin complex—where we get strip steaks, T-bones, porterhouse steaks and filets—is currently moving in a contrary direction to its historical norms, residing at multi-year lows.
When we look at the retail items derived from this market, bone-in rib steaks are featured nearly 19 percent below year ago levels, at an average $7.19 per pound. Boneless strip steaks are down a whopping 29 percent from this time last year! Porterhouse steaks are right about on par with year ago levels, while T-bones are down 20 cents per pound. Tenderloin filets are down nearly...
As Grilling Season Begins, Turkey Patties Take Off
Summer is coming up, and with it comes grilling. While beef and pork have long held dominion over the summer grill, there’s been increased interest in turkey patties for grilling in recent years, as consumers lean towards more lower calorie options. Turkey has long been a go-to for burger substitutes due to its low fat content, good micronutrient profile, and a perceived “health halo”.
n the past, consumers have found turkey patties to lack sufficient flavor. Last year, unseasoned turkey patty sales fell eight percent. To remedy this situation...
Tyson Foods Names Noelle O’Mara Chief Marketing Officer
O’Mara, who has more than 17 years of food marketing experience, joined Tyson Foods in April 2016 as vice president, new business models. She most recently served as general manager and senior vice president of two of the company’s billion dollar brands, Jimmy Dean® and Tyson®.
In her new position, O’Mara reports to President and CEO Noel White and is responsible for innovation and brand building across the enterprise to support the company’s overall growth strategy. This includes overseeing consumer insights and analytics, research and development, innovation and marketing effectiveness...
ANALYSIS: Monthly Slaughter Report Helps to Clarify Cold Storage Plateau
Back in the end of March, Urner Barry called into question the accuracy of February’s inventory figures stating...
Sanderson Farms Inc Reports Results for Second Quarter of Fiscal 2019
Sanderson Farms, Inc. (NASDAQ: SAFM) today reported results for its second fiscal quarter and six months ended April 30, 2019.
Net sales for the second quarter of fiscal 2019 were $845.2 million compared with $813.5 million for the same period a year ago. For the quarter, net income was $40.6 million, or $1.83 per share, compared with net income of $41.9 million, or $1.84 per share, for the second quarter of fiscal 2018.
Net sales for the first six months of fiscal 2019 were $1,588.6 million compared with $1,585.4 million for the same period of fiscal 2018. Net income for the first half of the fiscal year totaled $22.8 million, or $1.03 per share, compared with net income of $93.2 million, or $4.08 per share, for the first six months of fiscal 2018...
Harrison Poultry Appoints Executive Vice President and Chief Financial Officer
Harrison Poultry today announced James I. Vincent has joined the family owned, fully integrated poultry processing company as Executive Vice President and Chief Financial Officer (CFO). Vincent brings an extensive background in finance, treasury, financial planning and analysis, tax, strategic planning and risk management and a deep appreciation for Harrison Poultry and its strategy for the future.
Before joining Harrison Poultry, Vincent was the Controller for Wayne Farms LLC. In his new role, Vincent will lead Harrison Poultry’s financial operations and will report to CEO David Bleth.
“I’m delighted to welcome Jamie to Harrison Poultry. He’ll make an immediate impact as...
Indulgent Snack Food is Making a Comeback by Walking the Line Between Health and Enjoyment
U.S. consumers are giving themselves permission to enjoy indulgent snacks, reports The NPD Group. Their permission to enjoy savory and sweet snacks is the result of the wellness-driven acknowledgement that balance is the key. Brands are supporting their consumers’ quest for balance by offering snacks that walk the line between health and indulgence, like portion-control packs, thinner versions, or nutrient-enhanced savory and sweet snacks, finds NPD’s recently released Future of Snacking report.
“The role of snack food is changing in different ways in reaction to Americans’ desire for balance, portable snack foods, and holistic wellness,” says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. “It’s no longer about depriving yourself of...
United States-Colombia Trade Promotion Agreement Pays Dividends to American Farmers and Exporters
The United States-Colombia Trade Promotion Agreement (CTPA) entered into force on May 15, 2012, laying the foundation for a surge in U.S. agricultural exports. Since 2012, U.S. agricultural exports to Colombia nearly tripled from $1.1 billion to $2.9 billion in 2018. Despite its geographic proximity to major U.S. competitors Brazil and Argentina, Colombia, the third-largest economy in South America, purchases half of its agricultural imports from the United States. Preferential access from CTPA and a strong Colombian economy have allowed the United States to increase its market share from 19 percent prior to CTPA, to 50 percent in 2018. Changing demographics, a growing middle-class, and consumer trends toward more modern retail outlets is expected to keep demand strong into the future for high-quality U.S. agricultural exports.
Colombian Macro-economic Trends and Changing Demographics
In addition to CPTA, political stability and a dynamic economy have contributed to Colombia becoming the United States’ 12th-largest destination for agricultural exports, up from...
Perdue Responds to UGA Study on USMCA
The University of Georgia recently published a study claiming the new United States–Mexico–Canada Agreement would cost some Georgia vegetable and fruit growers revenue and jobs. The sensational assertions are flat wrong. As a proud UGA alumnus, I’m here to tell you USMCA is good for Georgia’s farmers and all American agriculture.
Chapter by chapter, verse by verse, USMCA improves virtually every component of NAFTA and Georgia’s agriculture industry stands to gain significantly. It’s important to note we didn’t get all the improvements we wanted for seasonal fruits and vegetables. While we were hopeful we could make progress in the renewed NAFTA, USMCA isn’t a step backward. The UGA study assumed we lost ground, but the facts are it wasn’t ground we had to begin with. Since the inception of NAFTA more than 20 years ago, agricultural trade between our three countries has...
Poultry Industry Icon, Robert Hopkins 'Twig' Strickler, Passes Away
Robert Hopkins 'Twig' Strickler, beloved husband, father, grandfather, and businessman passed away on May 24, 2019 at the age of 90.
Twig graduated from Harrisonburg High School in 1946. In the fall of same year he enrolled at Virginia Polytechnic Institute and State University (Virginia Tech) where he ultimately earned a bachelor of science degree (Business Administration) in the spring of 1950. During his senior year at Virginia Tech he was commissioned into the United States Army as a 2LT after completing ROTC. Shortly after, Twig was shipped out to Germany where he was stationed for two years.
Returning to the Shenandoah Valley in 1953, Twig resumed his work within the small family business, Rocco Feeds, which was an abbreviation for Rockingham County chosen by his mother. By the time Twig retired as CEO in 1985, Rocco Feeds had expanded into a large food company known as Rocco Enterprises...
ANALYSIS: ASF Update; Changing Global Protein Flows
At the time of this report, African Swine Fever continues to spread generally unchecked through China and has more recently expanded to the neighboring nations of Hong Kong, Vietnam and Cambodia, in addition to the revelation that North Korea has been dealing with it since at least February. The lastest official numbers from China admit a 20.8% drop in the April hog herd vs last year and sow losses of 22.3% year over year. As China is notoriously selective with the amount and accuracy of data that they provide the world, this situation could be...
Sikorski Sausages Co Ltd Recalls Meat and Poultry Sausage Products
Sikorski Sausages Co., Ltd., a London, Ontario, Canada establishment, is recalling approximately 74 pounds of various imported meat and poultry sausage products that were not presented for import re-inspection into the United Sates, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.
The various ready-to-eat meat and poultry sausage items were imported on May 14, 2019. This spreadsheet contains a list of the products subject to the recall.
The products subject to recall bear Canadian establishment number...
Blount Fine Foods Recalls Soup with Chicken Products
Blount Fine Foods, a McKinney, Texas establishment, is recalling approximately 6,690 pounds of soup with chicken products that may be contaminated with extraneous materials, specifically plastic, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today.
The ready-to-eat chicken tortilla soup items were produced on April 26, 2019. The following products are subject to recall...
ANALYSIS: Cold Storage Holdings Show Signs of Seasonality
Wednesday’s release of the USDA’s Cold Storage Report helps to underpin many of the key market forces which remained evident throughout the month of April...
Perdue Premium Meat Company to Acquire Panorama Meats
The nation’s largest producer of grass-fed, organic beef to grow with support of new resources
Panorama Meats®, the nation’s largest producer of 100 percent grass-fed and grass-finished certified organic beef, today announced they were joining Perdue Premium Meat Company, Inc., an industry leader in sustainable agriculture and humane animal care. Panorama will be the most recent brand to join the Perdue Farms family of sustainable premium meat companies that include Niman Ranch®, Coleman Natural®, Prairie Grove® and Sioux-Preme® Packing Co. Panorama’s nearly 50 independent family ranchers raise U.S. born cattle and span seven states and one million acres of USDA Certified Organic grasslands in Northern California, Southern Oregon, Montana, South Dakota, Nebraska, Wisconsin, and Colorado.
“Perdue Premium Meat Company brings long-term stability and shared resources that will...
This Week in Retail: The Memorial Day Rundown
It’s finally here, the unofficial start to summer and the very official start to the grilling season. In the week leading up to Memorial Day weekend, the beef category claims the top spot for protein feature volume at 27 percent, followed by seafood at just under 26 percent.
Chicken managed to knock out pork for the number three spot with 22.5 percent of ad space, leaving pork with 18 percent. Cheaper grilling items like thighs and drumsticks helped boost chicken featuring volume this week. Meanwhile, the beef segment presents the ultimate showdown between ground beef and steak. In the pork complex, we see an increase in pork chop featuring, up nearly 8 percent week over week.
Taking a closer look at the beef complex, Urner Barry’s weekly retail beef index is right on par with the 3-year average at $5.85 per pound. This is down from the previous week’s index of $6.47 per pound. Ground beef features are modestly lower year over year at an average...
Taco Bell Embarks On Next Chapter of Global Growth
Taco Bell, the world's largest Mexican-inspired restaurant chain, is continuing its major global expansion with the signing of its largest master franchise agreement in India, as well as unveiling new international markets for the brand.
The Master Franchise Agreement, signed with franchise partner Burman Hospitality Private Limited (BHPL) of India, commits to developing 600 restaurants on the sub-continent in the next 10 years. Upon completion of the 600 restaurants, the brand expects to contribute over 20,000 jobs to India's economy...
Restaurants Face Challenges Tapping into the Summer Labor Pool
According to the National Restaurant Association, summer employment is defined as the average number of eating and drinking place jobs in June, July, and August. Generally, the United States restaurant industry begins to ramp up its seasonal hiring in April, and peaks in June, July, and August. Restaurants are expected to add 515,000 jobs this summer season. Summer is typically the busiest season for restaurants in many parts of the United States, and the increased consumer traffic leads to additional employment opportunities at all levels of a foodservice operation. Roughly one in six food and drinking establishments operate on a seasonal basis, many being during the summer. The seasonal businesses that do all of their hiring for the summer months are responsible for the bulk of additional jobs.
Although the restaurant industry will add more than half a million jobs for the seventh consecutive summer, hiring will be somewhat cut back in 2019, with the projected increase of...
BJ’s Wholesale Club Holdings Inc Announces First Quarter Fiscal 2019 Results
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company") today announced its financial results for the thirteen weeks ended May 4, 2019.
“We are pleased with our solid start to the year,” said Christopher J. Baldwin, Chairman and Chief Executive Officer, BJ’s Wholesale Club. "We delivered merchandise comparable sales of 1.9%, improved margins and continued to grow earnings by executing against our strategic priorities. Looking forward, we continue to see momentum across our business and are encouraged by the opportunities ahead of us, as we continue to transform BJ's Wholesale Club."
“In addition, Robert Steele has been appointed to serve as BJ’s Lead Independent Director,” said Baldwin. “His extensive experience and knowledge of our industry and business will be invaluable to our company.”
Turkey Thigh Meat: Where To Go From Here?
On May 17, the Trump administration agreed to lift the trade tariffs which were first enacted back in June 2018 against Mexican and Canadian steel and aluminum. In response, any retaliatory tariffs imposed on U.S. goods, including pork, have since been removed...
Hormel Foods Reports Second Quarter Results
Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the second quarter of fiscal 2019. All comparisons are to the second quarter of fiscal 2018 unless otherwise noted.
Technomic: Canadians’ Routines and Habits Present Challenges for Emerging Bakery and Coffee Cafes
In the 2019 Canadian Bakery & Coffee Cafe Consumer Trend Report, Technomic found that many coffee cafe customers stick to the same restaurant brand and, oftentimes, the same cafe location, due to their coffee preferences and demands for convenience. On the other hand, bakery-cafe customers are open to mixing up the brands they visit, challenging these operators to build up loyal customer bases.
“For emerging coffee cafes, the challenge is in getting consumers to break from their routines and try something new,” explains Charles Winship, manager of consumer insights at Technomic. “While specials and limited-time offers can help draw in new visitors, whether these guests habitually return will ultimately come down to value, convenience and, in many cases, coffee.”
Key takeaways from the report include...
Guests can Now Order P.F. Chang's with Uber Eats Across the U.S.
Enjoying P.F. Chang's menu of made-from-scratch favorites just got even easier. Now, guests across the U.S. can order P.F. Chang's using their Uber Eats app.
"Uber Eats is one of the fastest growing off-premise delivery companies in the U.S.," said Tana Davila, P.F. Chang's senior vice president. "We are excited to partner with them and make our food even more accessible to current and new customers."
Uber Eats is fully integrated throughout P.F. Chang's restaurant point-of-sale system, ensuring seamless order placement and timely delivery of orders from the entire made-from-scratch menu in restaurants across the country. P.F. Chang's will continue to offer...
Restaurant Food Costs: What does ASF Mean for Protein Prices in the US?
Rabobank expects food costs in the US to increase in the second half of the year, as protein prices are impacted by stronger export demand following the African Swine Fever (ASF) outbreak. Pork and chicken prices will be the most impacted. Beef will be the last to see increases materialize, but QSR patty prices are expected to be the most vulnerable component. If a trade agreement with China were to be brokered, price increases would be faster and steeper.
Restaurants Should Expect Rising Protein Prices
For the past two years, restaurants have been favored by a relatively benign food cost environment, which helped compensate for rising costs in other areas (labor, real estate). We expect this situation to change (for proteins) towards the second half of the year and...
National Restaurant Association President & CEO Announces Retirement
After 12 years successfully leading one of Washington’s largest and most influential trade associations, advancing and protecting all aspects of the restaurant and foodservice industry, National Restaurant Association and National Restaurant Association Educational Foundation President & CEO Dawn Sweeney announced last week that she will step down when her current contract ends at the end of 2019. Until then, she will continue to lead the Association and Foundation, gain Board approval for the 2020-2024 strategic plan, and assist Board leadership in the search for a new CEO.
“Serving and leading the restaurant industry during this historic timeframe, when foodservice has grown to an $863 billion business employing over 15 million professionals, has been the most fulfilling experience of my career,” said Dawn Sweeney. “We have accomplished much together, including...
Nathan’s Famous Names James Walker Senior Vice President, Restaurants
Nathan’s Famous announced today that it has hired James Walker, CFE, as the company’s Senior Vice President, Restaurants. Walker comes to Nathan’s Famous from Subway where he was Vice President, North America, overseeing all franchised restaurants in the U.S. and Canada.
“We are excited to have James on board to lead our all-important restaurant division,” said Eric Gatoff, CEO of Nathan’s Famous. “While our success over the last decade has largely come from our product licensing and foodservice businesses, Nathan’s started as a restaurant company in 1916. James’ skill set includes extensive experience in restaurant operations, franchising and product development. Adding someone as accomplished and innovative as James demonstrates our continued commitment to...
SpartanNash Announces First Quarter 2019 Financial Results
SpartanNash Company (the "Company") (Nasdaq: SPTN) today reported financial results for the 16-week first quarter ended April 20, 2019.
"We are pleased with our team's efforts to grow net sales across all three business segments, particularly in light of the challenging operating environment," said David Staples, President and Chief Executive Officer. "While we are not satisfied with our bottom-line results for the quarter, our team remains committed to our fiscal 2019 objectives and long-term strategy, which we believe will support both future growth and profitability long-term."
Strategic Business Objectives
As outlined in its fourth quarter earnings release, the Company has defined its top five objectives for 2019. These objectives remain critical in the context of the Company's long-term strategic objective to evolve into a company with a national, highly efficient distribution platform servicing a diverse customer base through...
Whole Foods Market to Further Reduce Plastics Across all Stores
Whole Foods Market today announced that it will eliminate plastic straws from its stores in the U.S., the U.K. and Canada by July 2019, becoming the first national grocer to make this change. In addition, the grocer switched to smaller plastic bags in its produce department this year and is replacing hard plastic rotisserie chicken containers with new bags that use approximately 70 percent less plastic. Together, these packaging changes will reduce an estimated 800,000 pounds of plastic per year.
“For almost 40 years, caring for the environment has been central to our mission and how we operate,” said A.C. Gallo, President and Chief Merchandising Officer at Whole Foods Market. “We recognize that single-use plastics are a concern for many of our customers, Team Members and suppliers, and...
Caito Foods LLC Recalls Salads with Chicken Products
Caito Foods LLC., an Indianapolis, Ind. establishment, is recalling approximately 1,767 pounds of salad with chicken products due to misbranding and undeclared allergens, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today. The products contain soy, a known allergen, which is not declared on the product label.
The ready-to-eat salads with chicken items were produced on May 12 through May 15, 2019. The following products are subject to recall...
Delivering the Goods: British Courier and Express Delivery Market Hit £12.6 Billion in 2018
Brits’ love of online shopping* is sending the courier and express delivery market** into double digit growth, according to latest research from Mintel. Last year, courier and express delivery sales increased a spectacular 12% to reach £12.6 billion, thereby completing growth of 62% since 2014. Meanwhile, volume sales increased by 14% alone in 2018 and 66% between 2014 and 2018. Last year, Brits sent an impressive 3.65 billion packages, up from 3.2 billion in 2017.
Over the next five years, the market for courier and express delivery is expected to continue to post first-class sales. Volumes are forecast to maintain double-digit yearly growth, rising by 54% between 2019 and 2023, further surpassing value sales, which are forecast to grow by 42% over the same five year period.
Cost (53%), ease of finding products online (51%) and greater variety (39%) are the top three reasons why Brits are choosing to have products delivered as opposed to shopping in-store...
ANALYSIS: A Mixed Showing for Chicken Exports
Between the African Swine Fever-related challenges on the pork side, the ongoing tariff scuffle between the U.S. and China, or the political tension south of the border, it’s safe to say that 2019 is proving to be an unsettled year for exporters...
Consumer Pent-Up Demand for Restaurants Remains Elevated
The trend line of restaurant sales was positive during the first four months of 2019, according to data from the U.S. Census Bureau. Eating and drinking place sales totaled $61.5 billion on a seasonally-adjusted basis in April, which represented the fourth consecutive monthly gain after a sluggish second half of 2018.
To be sure, there appears to be more room for growth in the months ahead, according to a national survey conducted May 9-12 by ORC International for the National Restaurant Association. When asked about their current restaurant usage, a significant proportion of the American public say they would like to be patronizing restaurants more often. Forty-two percent of all adults say they are not eating on the premises of restaurants as frequently as they would like, while 48 percent say...
ANALYSIS: Egg Prices Hit Lowest Levels Since 2016Urner Barry’s benchmark Midwest large egg quote dipped below $0.60 per dozen on Tuesday May 14th for the 1st time since October of 2016...
MIBO Fresh Foods LLC Recalls Salad with Meat Products
MIBO Fresh Foods LLC, a Fort Worth, Texas establishment, is recalling approximately 1,460 pounds of salad with meat products due to misbranding and undeclared allergens, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced today. The product contains anchovies, a known allergen, which is not declared on the product label.
The ready-to-eat Chef salad with ham and turkey items was produced on May 10 and May 13, 2019. The following products are subject to recall...
Canada Foreign Minister to Visit Cuba Thursday to Discuss Venezuela
Canadian Foreign Minister Chrystia Freeland said she will visit Cuba on Thursday to discuss the political crisis in Venezuela and the United States' decision to allow lawsuits for property confiscated after the 1959 revolution.
"It is of critical importance that our two countries meet to discuss the economic, political and humanitarian crisis in Venezuela and the work we can undertake together to address it," Freeland said in a statement on Wednesday.
"I also look forward to discussing how we can work together to defend Canadians conducting legitimate trade and investment in Cuba in light of the United States ending the suspension of Title III of the Helms-Burton Act...
Which Rules the Roost When it Comes to Restaurant Orders: Burgers or Chicken Sandwiches?
Burgers have been a top item ordered at U.S. restaurants for decades but chicken sandwiches have come on strong over the last several years. There are more chicken sandwich restaurant concepts and chicken sandwiches are appearing on more menus. So have burgers been knocked off their perch by chicken sandwiches? “No,” says The NPD Group, which daily tracks U.S. consumers use of restaurants and other foodservice outlets. Burgers still rule the roost and are the top sandwich ordered overall.
By the numbers, the average number of times a customer purchased a burger at a restaurant over the 12-month period ending February 2019 was 14.7 times and the customer purchase frequency of chicken sandwiches was 8.7, according to NPD’s receipt harvesting service, Checkout, which tracks...
Slower Tax Refunds and Weather Affect April Retail Sales but Fundamentals 'Remain Positive'
Retail sales were down 0.2 percent in April seasonally adjusted from March but up 5.2 percent unadjusted year-over-year, the National Retail Federation said today. The numbers exclude automobile dealers, gasoline stations and restaurants.
“Slower tax refunds and weather may have been key factors impacting April’s numbers, but the fundamentals remain positive, particularly in long-term comparisons,” NRF Chief Economic Jack Kleinhenz said, citing flooding in the middle of the country and blizzards and extreme temperature swings elsewhere along with a soft housing market that impacted sales of furniture, appliances and building materials. “Despite there being a lot of...
U.S. Pork Producers Seek Main Course, Not Crumbs
African Swine Fever Affects China's Pork Consumption
This Week in Retail: Looking Ahead to Father’s Day Spending
Fair Oaks Farms Founder Mike McCloskey Releases Statement Following ARM Undercover Video Release
Mintel Announces Five U.S. Flavor and Ingredient Trends
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